prc30 on Nostr: China Morning Missive Not exactly sure that Trump has played all that much of a role ...
China Morning Missive
Not exactly sure that Trump has played all that much of a role in the recent China equities rally. The more I think on this thesis the more I see it as pretty nonsensical.
There’s no question that the Hong Kong market has returned to life after multiple years of underperformance. The driver, however, has been a return of retail Chinese investors allocating to risk.
The catalyst for this return is the “DeepSeek” trade. Ever since that AI model ravaged its way into the global zeitgeist, Chinese investors decided to plow head on into all tech related equities. Perhaps no better example of this than Alibaba.
There’s also the fact that Chinese stocks have been trading at insanely cheap valuations, especially as compared to their peers in the United States. The only question which remains is whether, this time, the return of Chinese retail investors to the stock market will remain. Multiple times over the past five years these investors have waded into the markets to try their luck at knife catching. Each time, thus far, those investors have walked away slashed and cut.
https://finance.yahoo.com/news/analysis-donald-trump-makes-chinese-020240251.html
Not exactly sure that Trump has played all that much of a role in the recent China equities rally. The more I think on this thesis the more I see it as pretty nonsensical.
There’s no question that the Hong Kong market has returned to life after multiple years of underperformance. The driver, however, has been a return of retail Chinese investors allocating to risk.
The catalyst for this return is the “DeepSeek” trade. Ever since that AI model ravaged its way into the global zeitgeist, Chinese investors decided to plow head on into all tech related equities. Perhaps no better example of this than Alibaba.
There’s also the fact that Chinese stocks have been trading at insanely cheap valuations, especially as compared to their peers in the United States. The only question which remains is whether, this time, the return of Chinese retail investors to the stock market will remain. Multiple times over the past five years these investors have waded into the markets to try their luck at knife catching. Each time, thus far, those investors have walked away slashed and cut.
https://finance.yahoo.com/news/analysis-donald-trump-makes-chinese-020240251.html