What will be the next step for Hong Kong stocks? Morgan Stanley: The differentiation will continue, and foreign capital still has room for allocation increase.
Morgan Stanley stated that so far, southbound capital has made the largest contribution to this rebound, with foreign long-term investors still holding relatively low positions and there being room for increased allocation. After a long period of limited attention, Global investors are beginning to reassess China's investability in the fields of Technology and AI. In the short term, the divergent performance between AI/Technology stocks and non-AI/Technology stocks may continue.
At the beginning of the year, a crazy purchase of 150 billion Hong Kong dollars! The South Water supports the Hong Kong stock market.
On Monday, the trading volume through the Hong Kong Stock Connect accounted for nearly half of the total trading volume of Hong Kong stocks, with a net buying amount reaching 16.5 billion Hong Kong dollars, the highest level since early December. In just the first few weeks of this year, the net Inflow of southbound funds has approached 150 billion Hong Kong dollars (approximately 19.3 billion US dollars), more than seven times that of the same period in 2024.
Wall Street under the impact of Trump: Increasing hedging protection, and are Chinese Assets becoming more sought after?
① At the beginning of the Trump 2.0 Trade War, as the market became increasingly volatile, Wall Street traders' investment styles seemed to be undergoing a timely transformation... ② The holding period is getting shorter and hedging protection is becoming more prevalent, which is becoming a trend sweeping across the stock, bond, and currency markets, while China Assets have instead become quite popular during this time.
Top ten macro events globally in 2024: The US and Japan central banks both pivot, China's Assets explode, and epic surge of Gold and Bitcoin.
This year, major global central banks, including the Federal Reserve and the European Central Bank, have all entered a path of easing, while the Bank of Japan announced the end of the negative interest rate era. The narrowing of the interest rate differential between Japan and the USA briefly spurred a reversal in yen carry trades. Chinese assets have strongly rebounded under the boost of policy 'combinations'. The US elections have driven the 'Trump trade' to become popular, with Bitcoin and Gold, the two major assets, dominating in chaotic times.
Last night, china assets went "crazy."
Overnight, the nasdaq Golden Dragon china index rose over 8.5%, marking the best single-day performance since the end of September. Popular Chinese concept etfs surged collectively: the largest MCHI increased by 7.7%, the FXI, which tracks large Chinese companies in the Hong Kong stock market, rose over 8%, and the only major Chinese concept etf tracking the A-share market, ASHR, gained nearly 7%. The most insane increase came from the three times leveraged FTSE China, YINN, which soared 24% overnight and continued to rise over 2% after hours.
Are Wall Street traders starting to layout A-shares? Unusual bullish bid in the options market for two consecutive days.
① On Monday, over 0.2 million call options for Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU) were bought; ② The options trading volume of this etf is usually quite low, with daily transactions often only in the hundreds to thousands. Therefore, the sudden emergence of 0.2 million single-day options large trades is extremely rare.