China 6 Day Market Rally
How the Six-Day China Rally Stacks Up to Other Major Market Events*
Fueled by aggressive economic stimulus package, an amazing run-up occurred in China equities ahead of PRC National Day. The streak continued when the market reopened after a one-week break.
On October 8th, 4,976 stocks opened up by 9% or more; only 5 stocks opened down. All in all, benchmark index CSI300 posted a 32% gain in SIX trading DAYs.
The amount of time taken for the US market to rebound 30% from the low:
BlackMonday (1987): 52 weeks
GulfWar (1990): 25 weeks
Great Bond Massacre (1994): 41 weeks
Russian Default (1998): 11 weeks
Global Financial Crisis (2008): 6 weeks
COVID19 (2020): 3 weeks
China’s equity market value nearly halved since the pandemics and housing crisis. As avg price-to-book ratio hit 1.3 recently, attractive bargain in stocks do exist. But fear, uncertainty, and doubt (FUD) about long-term outlook has cast a shadow over the people of China. Few were willing to invest or spend.
The miracle 32% (relief) rally may be short-lived; we can only hope the worst of the downturn is behind. The road to full recovery will call for restoration of confidence. And Beijing eagerly needs to make that happen like never before
Fueled by aggressive economic stimulus package, an amazing run-up occurred in China equities ahead of PRC National Day. The streak continued when the market reopened after a one-week break.
On October 8th, 4,976 stocks opened up by 9% or more; only 5 stocks opened down. All in all, benchmark index CSI300 posted a 32% gain in SIX trading DAYs.
The amount of time taken for the US market to rebound 30% from the low:
BlackMonday (1987): 52 weeks
GulfWar (1990): 25 weeks
Great Bond Massacre (1994): 41 weeks
Russian Default (1998): 11 weeks
Global Financial Crisis (2008): 6 weeks
COVID19 (2020): 3 weeks
China’s equity market value nearly halved since the pandemics and housing crisis. As avg price-to-book ratio hit 1.3 recently, attractive bargain in stocks do exist. But fear, uncertainty, and doubt (FUD) about long-term outlook has cast a shadow over the people of China. Few were willing to invest or spend.
The miracle 32% (relief) rally may be short-lived; we can only hope the worst of the downturn is behind. The road to full recovery will call for restoration of confidence. And Beijing eagerly needs to make that happen like never before
$Yihai Kerry Arawana Holdings (300999.SZ)$ $Contemporary Amperex Technology (300750.SZ)$ $Sungrow Power Supply (300274.SZ)$ $Ganfeng Lithium Group (002460.SZ)$ $JIANGXI COPPER (00358.HK)$ $Baowu Magnesium Technology (002182.SZ)$ $China Aluminum International Engineering Corporation (601068.SH)$ $PETROCHINA (00857.HK)$ $Alibaba (BABA.US)$ $BABA-W (09988.HK)$ $TENCENT (00700.HK)$ $Tencent (TCEHY.US)$ $Meituan ADR (MPNGY.US)$ $MEITUAN-W (03690.HK)$ $PDD Holdings (PDD.US)$ $JD.com (JD.US)$ $Futu Holdings Ltd (FUTU.US)$ $KraneShares CSI China Internet ETF (KWEB.US)$ $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ $Direxion Daily FTSE China Bear 3X Shares ETF (YANG.US)$
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102329055 : Do people still care what's going to be announce this Saturday?
Thelord 102329055 : Sure announce useless things and Monday gonna dump very hard again
102329055 Thelord : Can they afford to say useless stuff?
10baggerbamm 102329055 : are you kidding me I got news for you if China does not stimulate again the economy in a very big way Monday you're going to lose BIG%, it's going to be a gap down before you can even get out. if they do this monster gargantuan stimulus that's was supposedly going to happen on Monday if they do that on Saturday then it's an enormous Gap up on Monday morning it won't be as high as the last leg up the first time and that's because the first time you had huge shorts in the marketplace but you will see about a 50% retracement of what the former high was to the recent sell off the lows this week
Thelord 102329055 : They never fail to shoot at their own feet
Daring Lu : I will hold
slank : i will hold and buy more
70178269 : Wish I shorted that crash...switch over and buy the dip