HSTECH closed up an eye-popping
$HSTECH(HSTECH)$ closed up an eye-popping 5.9% on news of a slew of monetary stimulus measures from the PBoC and market boosting measures by the CSRC.
Massive gains led by $JD-SW(09618)$ +10%, $BABA-W(09988)$ +6%, $NTES-S(09999)$ +6%, $NIO-SW(09866)$ +11% and $BILIBILI-W(09626)$ +7%.
Have we turned a corner in CN markets? It appears we have.
Does this mean the end of volatility and return of the good ol’ days? I doubt it.
It will take a lot more than these latest stimulus measures to get a new class of investors beyond those looking to make a quick trade to pour money into Chinese equities.
China is still dealing with major challenges to its economy and has to follow up these market-aligned policies with fiscal measures to shore up long-term confidence.
We want the next pullback in the market to be just that - only a pullback. And if Beijing can follow through with hard fiscal measures to aide industries while the economy adjusts, then these recent gains will only be the beginning.
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https://x.com/BrianTycangco/status/1838501435312574521
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