China - Market Direction 01 (May 12 - Jul 15)

[behappyalways]

Shanghai Margin Trades Shrink Most in Three Years Before Holiday
http://www.bloomberg.com/news/articles/ ... re-holiday

[winston]

Brokers advise paring A-share holdings as correction looms

The Year of the Goat may turn out bullish for Chinese stocks but not without risks, brokers warn.

The A-share market may head into a stormy first half before eventually trending higher, with lower- valued blue chips high on the securities companies' recommendation list, Xinhua News Agency reported.

There may be a correction of 20 percent for the Shanghai Composite Index around next month, dipping to a low of 2,600 points, Guosen Securities said. It advises investors to pare their holdings from a high around the Lunar New Year.

The index closed at 3,247 points before the holiday.

Guotai Junan Securities said three risks will loom large in the first half, including a massive capital flight from Russia and other emerging markets weighed heavily by debts.

Potential domestic threats will likely come from defaults by small and medium-sized property developers and enterprises, as well as regulators' moves to cool a sizzling market, the firm said.

But "a keynote of a bull market" will remain, said China International Capital Corp, as investors continue to find heartening stories from the reform of state companies and economic diplomacy.

Blue-chip stocks, which are relatively cheap, will return to an upward cycle as monetary policies loosen and growth prospects improve, CICC added.

Guotai Junan expects there to be another rally in the second half, as concerns over increased stocks in the market resulting from a registration-based initial public offering system fade, inflation picks up and a low interest rate encourages risk-taking.

The central bank is likely to cut its benchmark interest rate and reduce the reserve requirement ratio for banks, according to CITIC Securities.

Source: The Standard HK

[behappyalways]

'Buy India and avoid China': Hugh Young gives his top tips to play Asia
http://www.telegraph.co.uk/finance/pers ... -Asia.html

[winston]

The margin balance now accounts for 2.8 percent of total stock market capitalization and 15 percent of the daily transaction volume.

These risks remain under control.

Source: Dr Check, The Standard HK

[behappyalways]

China Regulator Urges Caution as Stocks Jump to Seven-Year Highs
http://www.bloomberg.com/news/articles/ ... year-highs

[behappyalways]

Foreign Investors Are Cashing Out of China
http://www.bloomberg.com/news/articles/ ... mulus-bets

[behappyalways]

[超级新闻场]股市上涨 大妈弃舞从股 新手纷纷入市
http://news.cntv.cn/2015/04/01/VIDE1427 ... 8873.shtml

[behappyalways]

[环球财经连线]关注股市持续上涨 股市“牛”不停蹄 股民蜂拥入市
http://jingji.cntv.cn/2015/04/02/VIDE14 ... 2249.shtml

[behappyalways]

U.S. Dot-Com Bubble Was Nothing Compared to Today’s China Prices
http://www.bloomberg.com/news/articles/ ... ina-prices

[winston]

This chart says a “monster breakout” could be starting here

by Chris Kimble

Source: Kimble Charting Solutions

http://thecrux.com/trader-alert-a-monst ... ting-here/