What opportunities can we seek from the Chinese assets?
Should we Buy the dip, or clear the ship?
Market Surge
Today, China's stock market saw a significant surge, driven by four key factors:
Policy: The People's Bank of China has reiterated its commitment to interest rate cuts and announced a substantial SFISF application of 200 billion yuan. They also emphasized monitoring prices, exceeding market expectations.
Sentiment: The emphasis on technology by China's leadership has sparked a "fear of missing out" (FOMO) sentiment, particularly in the tech sector.
Technical: The indices have tested the gap with reduced volume and seem to have found a floor.
Fundamentals: Morning economic data has generally surpassed expectations.
It's worth repeating: China's version of quantitative easing is on the way, and we all feel optimistic about Chinese assets.![]()
Currency Exchange
The yuan's depreciation seems limited, but an upward trend isn't clear yet. The US dollar remains strong, buoyed by better-than-expected economic data, so holding onto dollars still seems sensible.![]()
Investment Options
For those interested in Chinese assets, it seems that the $FTSE China 50 Index (.FTXIN25.HK)$ most directly reflects overseas sentiment. The $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ tracks this index and uses leverage to amplify its daily returns threefold. For many of us who are not familiar with the Chinese market but hope for some chance to grab the trends immediately, It could be the most responsive option during a bullish phase for Chinese stocks. If you're more conservative, you might consider the $iShares China Large-Cap ETF (FXI.US)$, which is the most traded Chinese large-cap ETF. ![]()
Additionally, Chinese brokerage and tech stocks are in high demand. Do you think $Futu Holdings Ltd (FUTU.US)$, $Alibaba (BABA.US)$, $PDD Holdings (PDD.US)$ , and $Tencent (TCEHY.US)$ will be the prime examples and typically perform better and better recently?![]()
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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105364426 : As long as the mainlanders are not buying up the shares, no way the rise could be substained.
FuruX2 : Gotta start buying!! Expecting things to move up from here sustainably. Hedge funds have finished dumping their latest OTM calls. And mainland market today is just wild. That’s $285 billion which is almost equal to the entire matched total value traded in the US markets for the last 5 days (on average). Tell me something you’re still clueless about…..
超级月亮 105364426 : 国家队应该会持续买入