Chinese assets are heading for a bull market or a bear market?

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10-08
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Has the rise in Chinese assets come to an end?

Today, Hong Kong stocks saw a sharp drop:

$HSI(HSI)$ fell more than 8%, $HSTECH(HSTECH)$ dropped more than 11%, and $China A50 Index - main 2410(CNmain)$ fell over 10%, while $Direxion Daily FTSE China Bull 3X Shares(YINN)$ lost 36% in the premarket trading.

However, China A-shares surged, $SSE Comp(000001.SH)$ gains 5%, while $ChiNext(399006)$ rises 17%.

A dramatic financial-themed image with red as the main color. The backdrop features an abstract representation of China's skyline and its flag. A small, fierce tiger is placed in the corner, much smaller in size, symbolizing market volatility. Financial graphs and market indicators in the background show both steep rises and sharp drops, highlighting the tension in Chinese assets.A dramatic financial-themed image with red as the main color. The backdrop features an abstract representation of China's skyline and its flag. A small, fierce tiger is placed in the corner, much smaller in size, symbolizing market volatility. Financial graphs and market indicators in the background show both steep rises and sharp drops, highlighting the tension in Chinese assets.

Why HK stocks plunged?

The sharp rise in Hong Kong stocks ahead of the National Day holiday had already priced in expectations for today's meeting. However, no substantial policy measures were announced at today's meeting.

Additionally, a large amount of capital flowed into A-shares, while the outflow led to a continued decline in Hong Kong stocks.

In Hong Kong, the technology, real estate, and brokerage sectors generally performed poorly, while A-shares benefited from the strong performance of the semiconductor and liquor sectors. This sector rotation reflects different expectations for future growth between the two markets.

Recently, the surge in Chinese assets has been significant, and just yesterday, $China A50 Index - main 2410(CNmain)$ reached a record high. This often signals increased volatility and potential pullbacks.

Do you think Chinese assets are heading for a bull market or a bear market?

Have you took profit yesterday?

Leave your comments and pick your side to win tiger coins~

Policy Falls Short? Is China Stocks Bull Market Over?
The 12th session of the Standing Committee of the 14th National People's Congress announced debt-reduction measure: raising the debt ceiling for local governments by 6 trillion yuan. It is lower than the rumored $10 trln stimulus policies. ------------------ Is the bull market over or not? How do you view the policies?
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Comments

  • Sda
    10-08
    Sda
    Win 5 Tiger-coins
    个人认为會走向熊市，牛市啱啱过去咗，止盈一半冇止盈一半唯有再等一段时间再止盈睇多中国资产
  • highhand
    10-08
    highhand
    Win 25 Tiger-coins
    Hang seng hit resistance about 23000. Pullback is normal and healthy even if it's a new bull market. Need to see where the pullback stops. 19600 looks like a good support. I don't hold any China HK stocks, so I just eat popcorn and watch the show. However, some US stocks retail/luxury stocks like EL and LVMUY may be affected by China's growth, since there's a growing market there. Let's see what happens.
  • MilkTeaBro
    10-08
    MilkTeaBro
    Win 5 Tiger-coins
    it just started bull market
  • neo26000
    10-08
    neo26000
    Win 5 Tiger-coins
    Obviously bull market. And this is no bull. Bull run also must take a break, no? [Glance]
  • Universe宇宙
    10-08
    Universe宇宙
    Win 10 Tiger-coins
    @TigerGPT can you summarize what 08 Oct 2024 policy measures meeting is all about using 8 paragraphs, and get info from the Internet if needed, and also include what the market expectations are.
    • TigerGPT: 

      The 08 Oct 2024 policy measures meeting in China did not result in substantial policy announcements. However, Premier Li Qiang emphasized the need for all sides to actively implement measures to stabilize growth and exercise caution when introducing contractionary or suppressive policies. The implementation of policies should consider timing, strength, and pace, according to Premier Li. You can find more details in the news article.

      Market expectations surrounding the meeting have improved following the adoption of new policies. Investors have aligned their expectations more closely with the Federal Reserve, with U.S. Treasury markets now pricing in two 25 basis-point rate cuts in November and December. The Fed's base case is a soft landing, with inflation falling without damaging the economy and labor market, and growth moving to its potential rate of close to 2%. This has influenced investor expectations. For more information, you can refer to the news article and market talk.

      Regarding the performance of Chinese assets, Hong Kong stocks experienced a sharp drop, while A-shares surged. The decline in Hong Kong stocks can be attributed to the absence of substantial policy measures and the outflow of capital. The technology, real estate, and brokerage sectors in Hong Kong performed poorly, while the semiconductor and liquor sectors in A-shares benefited from strong performance. This sector rotation reflects different expectations for future growth between the two markets.

      As for whether Chinese assets are heading for a bull market or a bear market, it is difficult to determine based on the current information. The recent surge in Chinese assets, including the record high reached by the China A50 Index, suggests increased volatility and potential pullbacks. Investors should carefully evaluate the market conditions and consider their own investment strategies.

      Risk Disclaimer: The information provided here is for reference purposes only and does not constitute investment advice. Investing in financial markets involves risks, including the potential loss of principal. It is important to conduct thorough research and consider your risk tolerance before making any investment decisions.

  • fir3tiger
    10-08
    fir3tiger
    Win 5 Tiger-coins
    bull
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