π China ETFs Surge 5 Days π HSI Breaks 25,000: Boom or Bust?
π₯ Breakout Alert!
China markets are heating up! π₯ The Hang Seng Index just pushed through 25,000 β a level not seen since early 2022 β and China ETFs like $YINN have surged for five straight sessions. The rallyβs got traders asking: is this the real dealβ¦ or another quick flip?
π Whatβs Driving the Rally?
The momentum kicked off with PBOC policy support and rumors of state fund buying π¦. That lit a fire under beaten-down sectors like tech and property, which had been lagging for months. π
Foreign investors are re-entering the market via Stock Connect, and hedge funds have been spotted building positions in names like $Alibaba(BABA)$ and $TENCENT(00700)$ . Even , the China internet ETF, saw a 4% pop this week.
$iShares China Large-Cap ETF(FXI)$ and $YINN β popular among short-term traders β have been leading the charge as sentiment around China shifts from despair to cautious optimism.
π Is This a Rebound or Dead Cat Bounce?
Sure, the rally looks strong on the chart β but letβs not forget: $HSI is still down nearly 30% from 2021 highs. π Consumption remains soft, and geopolitics are far from stable, with new U.S.βChina tensions simmering over chip sanctions and trade tariffs.
Tech valuations may look cheap, but earnings visibility is still murky. Plus, the US delisting overhang for Chinese ADRs hasnβt vanished β itβs just faded into the background (for now).
If this is a true structural bottom, weβll need to see continued flows and follow-through in earnings season β not just short-covering.
π‘ What Are Traders Watching Now?
The 25,000 breakout on $HSI is a psychological win β but the next test lies around 25,500β26,000, which has served as key resistance before.
On the sector front, $HSTECH will be the one to watch β if tech continues to gain ground, it could validate the rally. Keep an eye on Fed rate cuts, oil prices, and any signs of stimulus from Beijing in the next NPC meeting.
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