funds is going to allocate more into China equity overtime so this will help facilitate some price momentum we see in China equity recently.
Lack of China Tech Short Covering Means Rally Is Fresh Buying
-- Chinese tech stocks have had a tremendous rally since the nation announced its stimulus spree. And this time, it may be real.Short positions on American Depositary Receipts of major companies including Alibaba Group Holding Ltd., JD.com Inc. and Baidu Inc. haven’t changed dramatically in recent days, according S3 Partners and JPMorgan Chase & Co. That could be good news for the market.“The sharp rally in Chinese ADRs over the past week has been mostly the result of fresh buying rather than short covering,” JPMorgan Chase & Co. strategists including Nikolaos Panigirtzoglou wrote in a note this week. “Short covering in individual stocks appears to have played only a modest role in the Chinese equity rally.”The Hang Seng Tech Index, which tracks 30 Chinese tech companies listed in Hong Kong, has soared more than 45% in less than four weeks, including a record surge in the six days through Wednesday. Alibaba, JD.com and food-delivery company Meituan were among those that had some of th
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