With a crippling property market (businesstimes.com.sg/property/cheap-cabbage-apartments-some-chinese-cities-draw-buyers-and-caution), lower than expected domestic spending, stock market make a U turn barely after a small recovery, fund managers flocking to Beijing to meet top officials to get answers, ongoing US-China trade sanctions, never ending finger pointing at China on Russia , Taiwan, Europe matters, is China economy really back on recovery ?
Well, nobody really knows since the official data released by the Government is also interpreted differently. However, the weekly chart offers some intelligent clues. We are still on a downtrend from the weekly chart and now lies a potential reverse Head and Shoulder pattern. With the latest announcement by the government to the world, I expect the price action to break out this/next two weeks and continue rally.
Note that the recovery is not going to be a 90 degrees sharp rise but sporadic and unevenly distributed amongst different sectors with AI being the top priority for the country moving forward.
Those who wish to buy/accumulate into this ETF can prepare yourself and buy in tranches - 10% now, 20% upon breakout and so on and so forth.
"Peak Pessimism?" Wait until the public accepts that their long-term savings has evaporated with the popping of the real estate bubble.
mudguts222jb
⋅
youtu.be/JD3m6U6g53k?si=ucxBZGgQJE_bLZc4 Zeihan: 1) 70% of public wealth in China is invested in real estate (condos) 2) Overbuilding may suggest real estate prices will eventually collapse 90%
It is only undermining its foundation with these political games.
businesstimes.com.sg/international/global/china-tightens-grip-stocks-net-sale-ban-open-close