Bitcoin Crash Fuels Capital Inflow into A-shares, Hong Kong and US-listed Chinese Stocks Surge, Market Momentum is Strong!Bitcoin has been sluggish recently, falling consecutively, ending its September rebound and dampening investor optimism about entering the best return month in cryptocurrency history. After a plunge on October 1st that triggered a liquidation of 150,000 users' positions, another crash took place yesterday, leading to another 93,000 liquidations in the virtual currency market
Bitcoin Crash Fuels Capital Inflow into A-shares, Hong Kong and US-listed Chinese Stocks Surge, Market Momentum is Strong!
Bitcoin has been sluggish recently, falling consecutively, ending its September rebound and dampening investor optimism about entering the best return month in cryptocurrency history. After a plunge on October 1st that triggered a liquidation of 150,000 users' positions, another crash took place yesterday, leading to another 93,000 liquidations in the virtual currency market. Bitcoin had peaked at $65,000, but has now fallen to its bottom, making further gains unlikely and significantly increasing the risk of further drops.
Meanwhile, the A-share market has demonstrated a powerful rebound that has caught the attention of global investors. Hong Kong and US-listed Chinese stocks have been experiencing consecutive surges, recouping three years of losses, with some individual stocks seeing daily gains exceeding several times their value. The Hang Seng Index has recorded 13 consecutive days of gains, the Hang Seng Tech Index has seen 14 consecutive days of growth, and the Hang Seng China Enterprises Index has been on an upward trend for 15 consecutive days, all reaching new short-term highs.
Real estate stocks have been particularly eye-catching. Vanke has climbed from 3.7 yuan to a high of 14 yuan, representing a fourfold increase, with a single trading day witnessing a 61% jump. The real estate sector saw a surge of 10% for three consecutive days, followed by a 40% gain in a single session. Multiple stocks within the sector, including Yuzhou Group, Rongxin China, and ZhongAn Group, have doubled in value. Chinese securities brokerage stocks have also soared, with firms like China Merchants Securities, Hongye Futures, GF Securities, CITIC Securities, Eastern Securities, Zhongzhou Securities, CICC Capital, and Guotai Junan experiencing gains ranging from 2 to 5 times, with a single day witnessing a 40.09% surge after consecutive days of gains.
Today, the Hang Seng Index, Hang Seng Tech Index, and Hang Seng China Enterprises Index all opened lower but closed higher, continuing their upward trend. The real estate and Chinese securities brokerage sectors remained the top performers, with both sectors climbing over 7% during the session, indicating strong investor buying activity. A significant portion of this capital flow originated from those who sold Bitcoin, with some allocating funds to Hong Kong stocks, others to US-listed Chinese stocks on the Nasdaq, and others waiting to invest in A-shares upon market opening.
The A-share market is supported by a combination of policies, with international investors believing that the rally is only just beginning. Morgan Stanley and JPMorgan Chase have both increased their holdings. Global investment banks are unanimously bullish on the Chinese stock market, with recent short-sellers of US-listed Chinese stocks losing $7 billion. Many short-selling institutions have switched to long positions, recognizing that they cannot resist the power of the trend. A-shares are expected to continue their upward trajectory next week, presenting opportunities for investors willing to enter the market.
The market momentum is undeniable and its impact has become increasingly profound. The Nasdaq traded at 7,700 points in 2020, and currently at 18,000 points. The A-share index is currently at 3,300 points, and reaching 10,000 points within four years may not be unreasonable. While pullbacks and dips are inevitable, as long as the upward trend persists, growth is expected.
Market Overview:
- Bitcoin crashes, prompting investors to move capital toward the A-share market.
- Hong Kong and US-listed Chinese stocks experience a strong rebound, recouping three years of losses.
- Real estate stocks and Chinese securities brokerage stocks stand out, exhibiting remarkable single-day gains.
- Global investment banks are universally bullish on the Chinese stock market, with foreign investors increasing their positions.
Expert Opinions:
- The A-share market has a bright future with an upward trend, and is expected to continue its strong performance next week.
- Pullbacks and dips are expected, but as long as the upward trend remains, growth is inevitable.
Conclusion:
The capital flow from the Bitcoin crash into the A-share market has fueled a strong rebound in Hong Kong and US-listed Chinese stocks, creating a robust market momentum. The A-share market holds promising potential for the future, with global investment banks expressing unanimous optimism, indicating a sustained upward trend. The upcoming market opening next week is highly anticipated.
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