Chinese ADR stocks and etf that achieved a doubling, hedge funds also entering. Will the wave of rising stock prices continue?
Stimulated by the assets and positive policies in China, there has been a sharp rebound. Despite a decline on Thursday, the market continues to rise this week.
Chinese stocks have surged significantly, with US-listed China ADR stocks also skyrocketing. Looking at the rate of rise and fall in the past 10 days... $Bilibili (BILI.US)$Stock price has doubled, $Futu Holdings Ltd (FUTU.US)$has risen by about 90%, $KE Holdings (BEKE.US)$has risen by 75%, $JD.com (JD.US)$、 $PDD Holdings (PDD.US)$have also risen by over 55% each.
Furthermore, with the strong market performance and expectations of powerful stimulus measures, overseas investors are quietly changing their stance towards the China Connect market. Overseas hedge fund capital is flowing in continuously. When looking at the performance of US-listed China Connect ETFs, multiple China Connect ETFs are showing strong recovery and reaching new highs.
$Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$has risen by approximately 132% in the last 10 days $Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$has risen by about 115% $Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU.US)$Has risen by more than 92%, $KraneShares CSI China Internet ETF (KWEB.US)$、 $Invesco China Technology ETF (CQQQ.US)$they have also risen by about 50% each.
Following today's sharp rise, the Hong Kong stock market also extended gains, recording the best monthly performance in major markets.
In addition, benefiting from the market recovery, the number of account openings at Hong Kong securities companies has doubled, and stock prices continue to rise.
Will investment money return to the China Connect stock market?
According to Goldman Sachs' report, hedge funds from around the world are flowing into the China Connect stock market.バリュー株の代表格(September 23-27)China Connect buy amount hits record highHas become.China Connect-focused overseas listed ETF saw an inflow of $2.4 billion in the last 3 trading days of SeptemberDone.
According to Goldman Sachs' report, hedge funds from around the world are flowing into the China Connect stock market.バリュー株の代表格(September 23-27)China Connect buy amount hits record highHas become.China Connect-focused overseas listed ETF saw an inflow of $2.4 billion in the last 3 trading days of SeptemberDone.
David Tepper, founder of Appaloosa Management, responded to the Chinese government's massive stimulus measures exceeding expectations after the Federal Reserve's rate cut by buying "all" Chinese-related stocks"All" Chinese-related stocks were added to the buy liststated that they are doing.
David Aspel, Chief Investment Officer (CIO) of Mount Lucas, stated, "Many investors who had previously stayed away from the Chinese market are coming back, expecting the Chinese stock market to hit bottom and rebound strongly before the economic recovery." Aspel is employing call spread strategies targeting Chinese online retailers $JD.com (JD.US)$and others.
Can the upward trend continue?
JP Morgan pointed out that the sustainability of the Chinese uptrend lies in fiscal policy, economic indicators, and performance adjustments.in.According to Morgan Stanley's latest report, if China announces further fiscal stimulus measures in the coming weeks, Chinese stocks will
JP Morgan pointed out that the sustainability of the Chinese uptrend lies in fiscal policy, economic indicators, and performance adjustments.in.According to Morgan Stanley's latest report, if China announces further fiscal stimulus measures in the coming weeks, Chinese stocks will
further.There is a potential for a 10%-15% increase.There are skeptical views that exist.
However, there are still skeptical views. Although Chinese stocks have shown performance surpassing stocks of other countries and regions, some investors still worry that the upward trend may not sustain without continued policies.
In addition, according to Bloomberg, Nomura Holdings economists have expressed concerns about the recent significant surge in Chinese stock prices, the highest in about 16 years since 2008. They argue that the current Chinese economy is much more fragile compared to before the COVID-19 pandemic, and investors should be prepared for the possibility of a sharp decline in stock prices.
Moreover, following the recent market surge, Maybank Securities' institutional equity sales and trading head, Wong Kok Fun, pointed out that it is natural for profit-taking selling to occur before the weekend, and investors should also be cautious as trading in the Chinese mainland market is set to resume next week.
Source: Bloomberg, moomoo, Yahoo Finance, Reuters
This article uses auto-translation in part.
- moomoo News Zoe
This article uses auto-translation in part.
- moomoo News Zoe
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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183533783 : Well done.
こうめ0131 : China Connect cannot be trusted. Who knows when Xi Jinping will throw a bomb.
恋コイ : It seems to be impacting only a very small part of the industry temporarily, but we cannot expect a lasting impact. Local industries in many cities seem to be collapsing...
183047286 : There is a big pit waiting to be dug
Excavation.
Kellyliang : American government bonds
下がらなければ上がる こうめ0131 : Bear ETF (Short) may go up.$Direxion Daily FTSE China Bear 3X Shares ETF (YANG.US)$