China - Market Strategy 05 (Jan 23 - Jun 24)

[winston]

Hong Kong stocks jump, China’s CSI 1000 logs historic rally amid market intervention as regulator pledges to stem rout

The China Securities Regulatory Commission tightened securities lending, warned against manipulation and ‘vicious short selling’

Central Huijin Investment, a unit of China’s sovereign wealth fund, to increase purchases in exchange-traded funds in bid to stabilise market

by Zhang Shidong

Source: SCMP

https://www.scmp.com/business/china-bus ... ealth-fund

[winston]

China Share Buybacks Hit Three-Year High Amid Market Slump

by Jeanny Yu

Firms listed in mainland China and Hong Kong spent 14 billion yuan ($1.9 billion) and HK$21 billion ($2.6 billion) repurchasing shares last month,

“Even if some corporate action can trigger a near-term rebound, we are not out of the woods yet.”

Source: Bloomberg

https://finance.yahoo.com/news/china-sh ... 43510.html

[behappyalways]

"A record amount of Chinese money is flowing into overseas equities as despondent investors seek a way out of the sagging local stock market...Inflows into 33 onshore ETFs reached $2B in Jan, biggest monthly tally going back to late 2020"
https://twitter.com/ChinaBeigeBook/stat ... 1170300413


After the stock market plummeted to a new low on Friday, Chinese stock market and fund investors flocked to the comments section of the US Embassy in China's official Weibo post to vent their dissatisfaction with the country, the system, and the stock market, as the US Embassy's account won't be blocked by the platform.
https://twitter.com/Sino_Market/status/ ... 0918475167


We've just seen the largest 4-week inflow ever into Chinese stocks ... without much of a price impact
https://twitter.com/Mayhem4Markets/stat ... 7839231283

[behappyalways]

EP22-4 Who is suppressing the Chinese stock market?
24.02.06【觀點│畫龍點睛】EP22-4 誰在打壓中國股市？
https://m.youtube.com/watch?v=wMIbnf_7ZJ8


The market cap of $NVDA now equals the ENTIRE Chinese stock market.
These are the times when you must be thinking about going contrary to the trend.
At some point $NVDA will fall and $HSI will bounce.
This would be a great pairs trade to consider.
https://twitter.com/DrBInvesting/status ... 4186111338

[winston]

In battered Chinese stocks, traders favour ‘lottery ticket’ trade

By Carolina Wilson & Yiqin Shen

Snap up options tied to US-listed exchange-traded funds (ETFs) that track Chinese equities, which have been whipsawed by Covid lockdowns, regulatory pressure and a property crisis.

Call options volume spiked last week to the highest in more than a year for the US$4.2 billion iShares China Large-Cap ETF, known as FXI.

Source: Bloomberg

https://theedgemalaysia.com/node/700982

[winston]

Wall Street Is Going to Great Lengths to Avoid Chinese Equities

by Richard Henderson and Isabelle Lee

Direxion launched a leveraged emerging market-focused exchange-traded fund last week that snubs equity allocations to China.

Going short Chinese stocks is the second-most crowded trade for months now.

Investor appetite is vanishing amid a property crisis, deflation, slowing growth and rising youth unemployment.

The MSCI China index has slumped nearly 7% this year alone, putting it almost 60% below its 2021 peak.

Monitoring the impact of recently launched policies, such as the relaxation of purchase qualifications for properties, as well as new initiatives aimed at stimulating consumption.

A record $19.8 billion was plowed into funds focused on Chinese stocks in the week through Feb. 7, a splurge likely driven by state-backed investors.

Source: Bloomberg

https://finance.yahoo.com/news/wall-str ... 14114.html

[winston]

Bridgewater continues to cut US-listed Chinese stocks as Singapore’s Temasek, Saudi’s PIF stay the course for market turnaround

Bridgewater trimmed more positions US-listed Chinese stocks in the final quarter of 2023, including a total exit from Miniso and Noah Holdings

Temasek has retained most of its US-listed shares but sold all of its US$42 million stake in an exchange-traded fund tracking Chinese tech firms

by Jiaxing Li

Source: SCMP

https://www.scmp.com/business/markets/a ... are_widget

[behappyalways]

"#MSCI is cutting dozens of Chinese cos from its global benchmarks following a market rout that’s erased trillions of dollars in value from the nation’s stocks...66 companies will be removed per the latest quarterly review, highest tally in 2+yrs"
https://twitter.com/ChinaBeigeBook/stat ... 2135336140

[winston]

China Stocks Primed for Bullish Reopen After Upbeat Data

A surge in travel over Lunar New Year bodes well for sentiment

Chinese shares in Hong Kong, US jumped while mainland was shut

By Charlotte Yang

Source: Bloomberg

https://www.bloomberg.com/news/articles ... liday-data

[winston]

Chinese stocks poised to recover after break

A gauge of stocks in Hong Kong rallied nearly 5 percent since it reopened last Wednesday while the Nasdaq Golden Dragon China Index jumped 4.3 percent for the week, underscoring room for onshore shares to play catch-up.

A big question, however, remains on the sustainability of any rebound in the face of deeper economic woes.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... fter-break