To The Moon

$CapLand China T(AU8U.SI)$ 🔥🔥🔥🔥🔥

🇳🇿 At 1538, AU8U was at 9.80% profit, and then checked back 1700 increase to 11.70% profit. 🇸🇬 Market closed at noon 🇸🇬 and reopens in 56 minutes. @SPOT_ON are you in short-term or long-term? What's your target 🎯

🔥🚀 China's Stock Market Soars After Stimulus 🚀🔥

In the past five days, the Shanghai Stock Exchange (SSE) Composite Index has risen more than 16%.

This comes after a variety of economic stimulatory developments, which we'll be detailing in this tweet.

Recent Developments

China's recent actions to address its faltering economy involve several targeted interventions aimed at stabilizing key sectors and stimulating broader growth.

Increased Liquidity

The People’s Bank of China (PBOC) cut the reserve requirement ratio (RRR) for commercial banks, allowing them to hold fewer reserves and lend more, especially to small and medium enterprises.

This move seeks to inject liquidity into the economy and support credit expansion.

Infrastructure Spending

In addition, China introduced a major infrastructure spending boost by issuing new sovereign bonds worth 2 trillion yuan (approximately $284 billion).

This funding will help drive large-scale infrastructure projects, including transport, energy, and technological advancements, providing a short-term stimulus to economic growth.

Supporting Real Estate Developers

Another critical area is the real estate sector, which has been a significant contributor to China’s economic slowdown.

To stabilize this sector, which is grappling with falling prices and unsold housing units, authorities introduced measures like relaxing home purchase restrictions in smaller cities, reducing mortgage rates, and encouraging property developers to accelerate the completion of unfinished projects.

The government is also supporting struggling real estate developers by easing borrowing restrictions and providing subsidies. These initiatives aim to restore confidence in the housing market, a key driver of both household wealth and broader economic stability.

Current Environment

However, challenges persist. Despite these interventions, consumer confidence remains low due to uncertainty surrounding employment prospects and income growth, which limits the effectiveness of stimulus measures.

Additionally, China's high levels of corporate and local government debt pose long-term risks to economic recovery efforts. While the government’s actions may provide temporary relief, sustainable growth may depend on broader structural reforms and fostering more robust consumer demand.

What're your thoughts on the current state of the Chinese economy?

Source: THE KOBEISSI LETTER 

China's Stock Market Today:

1. Chinese stocks up 6% today and 18% in 5 days

2. Beijing 50 index posts RECORD 15% intraday jump

3. RECORD 1 trillion Chinese Yuan traded in 30 minutes

4. Brokerages open 24/7 to accommodate retail traders

5. Commerce Ministry says it will "improve policy effectiveness"

6. Chinese brokerages crashing due to high traffic

It truly feels like 2020 all over again.

Hang Seng Index (HSI)

The Hang Seng Index (HSI) concluded today's trading at 19,000.56, marking a significant increase of 4.13% or 753.45 points. A notable bullish signal (in the form of red candle) was observed on September 16, with the HSI fluctuating between 17,177 and 17,422.

Hang Seng Index monthly chart

I believe there's a change in market structure, and it'll rally in 2025

But everyone's talking about

A lotta people are trying to pile into it

Short term risk has elevated

And it's right at monthly upper Bollinger band resistance. Hang Seng will likely hit 28000 sometime in 2025 or 2026, but it won't be a straight path.