Today, both the Hong Kong stock market and A-share market have experienced a comprehensive surge.The Hang Seng Index has been consolidating for two weeks and finally decided to break out to the upside, indicating that the market for Chinese assets is preparing to take off.
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This market launch is similar to the one in mid-September, coinciding with bullish monetary policy announcements in China and military demonstrations of strength, particularly the recent joint carrier training with the Liaoning and Shandong aircraft carriers, as well as official induction of the J-35A fighter jet. This sets the stage for a potential surge in Chinese assets.
At this moment, the frequent appearances of Chinese aircraft carriers and fighter jets could be seen as a hedge against potential risks from the U.S. presidential election.Regardless of who becomes the next U.S. president, the policy towards China is unlikely to change significantly, and in order to address internal conflicts, the conflict is likely to escalate further. Demonstrating military strength could help offset these concerns to some extent.
The competition between China and the U.S. is actually a tripartite competition involving technology, finance, and military, with military power being the key underlying factor.The United States' strength is primarily based on its powerful military power. With the support of military power, there is subsequent technological monopoly and financial dominance. Chinese assets have been suppressed for more than 3 years, which is actually the capital pricing China...