HSI ends down 3.5%, the first decline in 7 days
$HSI(HSI)$ ends down 3.5% on Thursday (10/3), the first decline in 7 days after rising 34.6%. $KraneShares CSI China Internet ETF(KWEB)$ $Direxion Daily CSI China Internet Index Bull 2x Shares(CWEB)$ $KraneShares Hang Seng TECH Index ETF(KTEC)$
The index managed to end well off the day's lows (down as much as 7.5%!) after news came out of millions of mainland investors rushing to open brokerage accounts during the National Day holiday.
There's also some speculation that Beijing could be getting ready to unleash a massive fiscal stimulus package. The former head of the Ministry of Finance alluded to a 4 to 10 trillion yuan (as much as $1.4 trillion) stimulus during a recent interview.
It's clear that bears are not as confident anymore betting against China right now for fear of CHINA announcing something big in the coming days or after the holiday period.
Most major CN techs ended the day at a 1% to 3% discount to their ADR-listings except for $WB $BILI which are 5% below their respective US closes.
$BABA-W(09988)$ $JD-SW(09618)$ $BIDU-SW(09888)$ $TENCENT(00700)$ $BILIBILI-W(09626)$ $NTES-S(09999)$ $NIO-SW(09866)$ $LI AUTO-W(02015)$ $XPENG-W(09868)$ $TME-SW(01698)$
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So funny how as soon as the HK markets finally corrected today you get people commenting on how it was all gambling and “poor losers” - the same people who didn’t have it in them to invest and ride up the most impressive 2-week rally in stocks since the GFC. They’re the real losers.
Corrections happen. This one was due and it could go lower in the coming days unless CHINA follows up with more stimulus news.
Technically, Chinese markets are now in a bull market. You can’t discount that - it’s data-driven. I doubt we’ll ever see the August/September lows of these stocks again unless WW3 breaks out.
But the next leg up will not be as easily won. This is the “put your money where your mouth is” phase for CHINA on stimulus and monetary easing, as well as creating a better environment for private enterprise to thrive.
https://twitter.com/BrianTycangco/status/1841775122669306246
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