4 Jan 2022: Markets Update (Asia Morning)
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Hang Seng index wasnt pretty this morning Asia time and at one point was at 23126 points. Currently it is down around 0.2%, probably affected by negative news reporting on Evergrande as well as the weak performance in the Chinese markets this morning. So what was the reason for Hang Seng index fall today? Weak performance by the Chinese tech stocks like Tencent, Xiaomi, JD, Netease Meituan and even sports and shoe apparel manufacturers like Li Ning and Anta dragged down the Hong Kong main index...
With Hang Seng Tech index being under continued downside pressure, Hang Seng index really needs old economy counters like AIA, CNOOC, CK Asset, BOC and WH Group to try to pull it up. So far, old economy stocks this morning is doing reasonably well and may be able to balance out the downside pressure brought on by the weak Hang Seng Tech index which is still trying gto hold onto the 5560 level...
If Hang Seng Tech index is unable to hold onto the level of 5560, then another downleg pressure for Hang Seng index will be here. Will Alibaba, Tencent, NetEase, Xiaomi, Bilibili, Kuaishou, JD, Za Online hold the defense and prevent another downleg for the Hang Seng Tech and hopefully the Hang Seng index... Its not going to be easy as I have been seeing negative narrative driven by foreign media and shortsellers. Even some small retail traders jump onto the bandwagon to try to shortsell Chinese tech stocks..
So all in all, what can happen? CSRC has come out to strengthen their position that the VIE structure announcement is meant to plug loophole but foreign media and shortsellers are not giving chinese tech investors a chance for a breather as they continue to pile on the downside pressure.
What can China do? They have to act fast to refute fake news and come out with a strong statement to say tech regulations introduced so far is completed. That may be the life saving act that not only help Chinese tech stocks investors but also help China since the tech companies have been laying off employees. Economic pressure is there so less regulations may well served China now.
As always, this should not be construed as any investment or trading advice.
r/great_investment
$XIAOMI-W (01810.HK)$ $CK ASSET (01113.HK)$ $TENCENT (00700.HK)$ $Alibaba (BABA.US)$ $BABA N2411 (05844.HK)$ $JD.com (JD.US)$ $JD-SW (09618.HK)$ $KUAISHOU-W (01024.HK)$ $BILIBILI-W (09626.HK)$ $Bilibili (BILI.US)$ $Baidu (BIDU.US)$ $BIDU-SW (09888.HK)$ $BOC China Selected Hybrid Fund (163801.SZ)$ $ZA ONLINE N2507 (40304.HK)$ $NetEase (NTES.US)$ $NTES-S (09999.HK)$ $LI NING (02331.HK)$ $ANTA SPORTS (02020.HK)$ $HAIDILAO (06862.HK)$
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Heymen 浆糊中人 - 虫拜我吧 : You don’t think it’s a chance ?
Heymen 浆糊中人 - 虫拜我吧 : What thing? About the China control ?
HODL-Seh Liao 浆糊中人 - 虫拜我吧 : Oi… What? Don’t talk half keep half leave us hanging
Hopehope赋予希望 OP : us and China battle of systems
Hopehope赋予希望 OP 浆糊中人 - 虫拜我吧 : you fall into the trap that shortsellers from a competing system want you to believe in. you being gamed into believing this
moneyworkhard : Does look like great time to go in but hk fund mgrs don't think so