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🇨🇳 Chinese Market 🔥 + 🇺🇸 Market outlook (21-25 Oct)🔮

🇨🇳 Chinese Market 🇨🇳 :Just over the weekend, stimulus were released. A summary of key measures with related stocks that may benefit from it. $iShares MSCI China ETF (MCHI.US)$ $iShares China Large-Cap ETF (FXI.US)$ $KraneShares CSI China Internet ETF (KWEB.US)$ $CSI 300 Index (000300.SH)$ $Hang Seng Index (800000.HK)$
🔥Re-lending and Swap Facility: The People’s Bank of China launched initiatives to support stock buybacks and provide liquidity for investors to purchase stocks. $Alibaba (BABA.US)$ $BABA-W (09988.HK)$ $PDD Holdings (PDD.US)$ $JD.com (JD.US)$
Fiscal Stimulus Announcement (Oct 12, 2024): China’s finance ministry announced new fiscal measures to boost the economy and achieve growth targets, but details on the package size were not disclosed.
Counter-Cyclical Adjustment: This term refers to policies that stabilize economic cycles. Main Fiscal Policy Measures:
1.Debt Limit Increase: Raising the debt limit to help local governments manage hidden debts and support economic growth.
2. Special Bonds for Banks: Issuing bonds to strengthen state-owned banks’ capital, boosting their ability to support the economy. ->Strengthening state-owned banks 🔥 $ICBC (01398.HK)$ $BANK OF CHINA (03988.HK)$ $CCB (00939.HK)$
3. Real Estate Market Support: Using bonds and policies to stabilize the housing market by allowing the purchase of existing properties and land. ->Stabilizing the real estate sector through strategic measures. $CHINA VANKE (02202.HK)$
4.Additional Fiscal Flexibility: The government has room to increase borrowing and deficits, though specific amounts remain undisclosed. $China Railway Construction Corporation (601186.SH)$ $China Railway (601390.SH)$ $China Communications Construction (601800.SH)$
🚀 Analysts predict China may introduce up to 2 trillion yuan in stimulus before 2025. Positive policy signals suggest continued support for the economy, but officials aim to avoid a speculative market boom by managing the pace of policy releases. Don’t miss out this: $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$
🇺🇸 US Market (21-25 Oct) 🇺🇸: $S&P 500 Index (.SPX.US)$ has just notched ALL time high again at 5883 on thursday, while $NASDAQ 100 Index (.NDX.US)$ remained strong above 20300; coupled with strong movement from $Dow Jones Industrial Average (.DJI.US)$ Not forgetting $NVIDIA (NVDA.US)$ broke 140 last week 🥂
📝 Next week notable earnings calls with its rating are: $ServiceNow (NOW.US)$ 7/10 ⭐️ $T-Mobile US (TMUS.US)$ $AT&T (T.US)$ 6/10 ⭐️ $Coca-Cola (KO.US)$ 7.5/10 ⭐️ $American Airlines (AAL.US)$ 5/10 ⭐️ $Thermo Fisher Scientific (TMO.US)$ $GE Aerospace (GE.US)$ 6.5/10 ⭐️
Overall market demand at the top is feeling sluggish and may see some profit taking/retracement. However, strong stocks like $NVIDIA (NVDA.US)$ $Apple (AAPL.US)$ $JPMorgan (JPM.US)$ $Financial Select Sector SPDR Fund (XLF.US)$ $Alphabet-A (GOOGL.US)$ $Meta Platforms (META.US)$ are supporting the market bullish momentum.
🔮 $S&P 500 Index (.SPX.US)$ to stay within last week call of 5790-5900. $NASDAQ 100 Index (.NDX.US)$ to stay within 19700-20600. Not much differing views till earnings seasons and election is over.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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