08-05-2024, 03:58 PM
(05-05-2024, 07:13 AM)sgbuffett Wrote: [ -> ]HSI has longerst winning streak in 6 yrs...
Below is the dollar yuan movement.
The unusual thing about this 9 day rally of the HSI is the first half we do not see a correlation between weakening dollar and rise in HSI. Then the 2nd half of the rally the US$ plunged and we saw a sharper rise like some some kind of switch is flipped.
To explain this we look at the stock connect activity between China and HK. For past few weeks there was net inflows from China into HK and outflow by international funds from thus created a daily yo-yo where market struggled at around 17K level. When mainland funds start to overpower the selling by international funds we.see HSI start to go above 17000 in earnest. During this period the net inflow by foreign investors was still negative and that correlates with the Dollar- Yuan exchange rate.
When the downtrend was broken and reversed at 17650, both mainland flows and foreign flows into HK noth were positive. Causing the the rally to accelerate.
The USD continued.to plunge vs Yuan ....HSI and HSTech futures continue to rise right up to end of of all trading on Frday.
Foreign funds remain under invested in China and any positive surprise from China's economy will trigger bigger flows.
If something unexpected happens like recovery of Chinese property sector it will cause absolute buying frenzy.
If you are familiar with China HK markets and the nooks and cranny ...there will be multi baggers jn the works if this rally continues provided you are bold enough to take the risk.
We will.soon visit the HSI=20K level ....this was then level when this thread started and the biggest struggle for HSI takes place. Even if it slice pass the.20K mark in the next 2 weeks to stay above that the Yuan needs to dip below 6.90 and the China & HK economy needs to show it is on path to recovery to its old self...that bar is quite high...
Sgbuffett say we will soon visit 20k. Hang on
