To The Moon

In April, with flowers blooming and birds singing, Hong Kong stock market is also booming.The $HSI(HSI)$ surged 7.39% in April, ranking first among major global indices, surpassing 20% from its lowest point, entering a technical bull market! Meanwhile, overseas markets like the US and Japanese stocks are in a slump.What's the secret behind Hong Kong stocks' independent rally?Big NewsOn the news side, there's no big news both at home and abroad.Domestically, the import-export data in March declined year-on-year, and profits of industrial enterprises above a designated size also fell, ending the recovery trend since last August.Abroad, the US economy was robust in the first quarter, with core CPI higher than expected, making it unlikely for the Fed t

Another miserable week, $HSI(HSI)$ fell 4.15% in last week, below 17,000 points round mark, hit a new low for the year!On the macro, the official manufacturing purchasing managers' index (PMI) fell further to 49.4 in November, worse than market expectations.On the micro, $MEITUAN-W(03690)$ $MEITUAN(MPNGF)$ $Bilibili Inc.(BILI)$ $BILIBILI-W(09626)$ and other Chinese stocks intensive disclosure of financial results last week, but most of the less than expected, resulting in a plunge in stock prices. Among, Meituan weekly drop of 19.43%, Bilibili for 19.39%!Pessimism is spreading

1. China’s regional banks could face a $300 billion capital shortfall from exposure to local government financing vehicles (LGFVs). The #LGFVs are investment companies formed by local governments for the sole purpose of borrowing money in the form of bonds to finance infrastructure and real estate development projects. These LGFVs are said to hold a cumulative $9 trillion in debt and about $1.67 trillion of that is linked to regional banks, which may not have enough access to capital to withstand a sizable markdown. And without a firm recovery seen yet in China’s real estate market, the pressure becomes greater for local governments to carry on more debt to shore up the capital of these regional banks, lest they risk a bank run that could undermine the stability of the financial system.