A-shares are closed on Sunday, but there was plenty of news over the weekend: the central bank and the China Securities Regulatory Commission will hold a symposium tomorrow morning to discuss ways to promote the use of tools to support the capital market. The CSRC also said it would do everything possible to stabilize the market and expectations.
The timing is rather delicate. The Shanghai Composite just closed out its sixth consecutive weekly loss, falling below 3,600. The ChiNext Index dropped 10.08% for the week, and the STAR 50 fell 13.73%. Investors have all taken shelter in banks and liquor stocks.
Meanwhile, South Korea reported today that chip exports in October surged 259% year over year to $56.4 billion. The demand story for AI hardware is still intact, so this week's selloff in A-share tech stocks looks more like an unwinding of crowded positions than a reversal in the sector's fundamentals.
My take is that policy optimism could drive a rebound tomorrow, but whether tech stocks can truly find a floor will also depend on the U.S. semiconductor index (down 7.2% last Friday) and whether Friday's nonfarm payrolls data is reassuring.
What do you think tomorrow: will banks keep holding up, or will tech stocks bounce first?
#A股 #Hong Kong stocks
Not investment advice
The timing is rather delicate. The Shanghai Composite just closed out its sixth consecutive weekly loss, falling below 3,600. The ChiNext Index dropped 10.08% for the week, and the STAR 50 fell 13.73%. Investors have all taken shelter in banks and liquor stocks.
Meanwhile, South Korea reported today that chip exports in October surged 259% year over year to $56.4 billion. The demand story for AI hardware is still intact, so this week's selloff in A-share tech stocks looks more like an unwinding of crowded positions than a reversal in the sector's fundamentals.
My take is that policy optimism could drive a rebound tomorrow, but whether tech stocks can truly find a floor will also depend on the U.S. semiconductor index (down 7.2% last Friday) and whether Friday's nonfarm payrolls data is reassuring.
What do you think tomorrow: will banks keep holding up, or will tech stocks bounce first?
#A股 #Hong Kong stocks
Not investment advice