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.
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~
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