Time for China Long? $112bln in funding schemes brings clarity
Hang Seng sold off quite significantly (with oil) after PBOC's return from holiday gave a muddy picture on the funding schemes and degree of the stim package, making investors nervous and uncertainty.
On friday, the market recovered 5% on the clarity of news items outlining different funding schemes. There is still some pessimism about the efficacy and ability of these funding schemes to lift the economy towards target growth, but there is a lot of optimism from the west, with funds like Scion (Michael Burry) moving capital into china betting on the funding bringing expansion and lifting the markets.
This looks like a reasonable poinit to start to watch sunday night (china AM) to look fro a break of the down trend for the gap fill and beyond.
Roughly my plan is to find the move towards fair value (21250) and take a bunch of profit, leaving float to swing.
May not happen, there is uncertainty, but I'm betting at least that the stock buying news will bring more interest and lift the Chinese indices.
On friday, the market recovered 5% on the clarity of news items outlining different funding schemes. There is still some pessimism about the efficacy and ability of these funding schemes to lift the economy towards target growth, but there is a lot of optimism from the west, with funds like Scion (Michael Burry) moving capital into china betting on the funding bringing expansion and lifting the markets.
This looks like a reasonable poinit to start to watch sunday night (china AM) to look fro a break of the down trend for the gap fill and beyond.
Roughly my plan is to find the move towards fair value (21250) and take a bunch of profit, leaving float to swing.
May not happen, there is uncertainty, but I'm betting at least that the stock buying news will bring more interest and lift the Chinese indices.
Note
(sorry for the typos! can't edit it now)
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