RMB multiyear high....
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RMB multiyear high is good for Chinese stocks. You would know that I have been talking about RMB internationalisation for awhile. In fact, the strengthening of RMB is an indication that China's RMB internationalisation is progressing smoothly.
Yes you may have even read about the Harvard report that mentioned that China has become a leading global economic powerhouse as well as leading the world and competing for the number 1 spot against US and European countries for the tech leadership.
Donald trump's past presidency term has in fact further expedited this process in tech leadership as China spends more efforts to develop its own hard tech like chips, semiconductors, various hard parts for the tech... This at the same time, let China focus on the tech regulation such that there is narrative to say that chinese tech regulations would slow down the tech leadership of China. Another nice chess piece there for China, which this single move press down Chinese tech equities to such low valuation.
My prediction of 2022 is that Chinese tech stocks will return to normalcy in terms of pricing and risk premium will abate. The strength of RMB will expedite the outflow of RMB into the world so as to counter the RMB strength, which may hurt the exports.
So i expect the overseas investment regulation for domestic china citizens will be formalised in China such that Chinese citizens should be allowed to invest overseas in 2022. Will I be right? Only time will tell... But if this happens, this will benefit the chinese tech stocks... I am positioning my capital into selected chinese tech stocks for the best potential return going into 2022 and 2023.
As always, risk management is important. Stay safe and manage the portfolio well.
As always, this should not be construed as any investment or trading advice.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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102952476 : This is so funny. With next year house property sectors busting here and there, China will suffer badly from various debt issues, it will go down hill year after year . It will be wise to just stay away from China stocks or just do short term trading.
SANDRO 善子 102952476 : RMB multiyear high is good for Chinese stocks.
SANDRO 善子 : Good article![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Hopehope赋予希望 OP 102952476 : China has so many tools at its disposal. think you dont understand China and are just reading the mainstream non Chinese financial media. these media are just way too biased. learn to have independent thinking...
102952476 : Haha, still so bullish about China stocks? Just now curious and checked several China stocks: Didi going towards penny stock, Baba drop below 120, FUTU below 40. So glad that I don’t have independent thoughts and I didn’t touch China stocks except trade some FUTU stocks for fun purely because I use this platform for a while and it is quite nice to use.
丁蟹NA 102952476 : lol, they could just print money like the US, so that the housing market does not suffer. But they chose not do that. They hit the brake on housing market, and education sector, because that the main spending per house hold, they want that money spent somewhere else. The reason the US stock is up, is because feds are printing money, money eventually flows to stock market. Capital trying to get that free money, so they all came back to the US. Tappering does the opposite. This had happened over and over again through out the history. Go short it, and see what is going to happen?