Nasdaq Recovers, Bitcoin Plunges, Hong Kong Stocks Decline: Market Volatility Amidst Institutional Optimism for Chinese AssetsFollowing declines across the three major U.S
Nasdaq Recovers, Bitcoin Plunges, Hong Kong Stocks Decline: Market Volatility Amidst Institutional Optimism for Chinese Assets
Following declines across the three major U.S. stock indices, the Nasdaq closed in the green. Nvidia, in particular, saw an increase of over 3%. Bitcoin, however, experienced a significant drop, and the Nasdaq Golden Dragon China Index underwent a correction, falling over 3% at one point. Several Chinese ADRs also declined. The A50 index futures also fell over 1%. Bitcoin continued its downward trend, with Coinglass data revealing a drop below the $60,000 mark in the past 24 hours. This resulted in over 93,000 crypto traders experiencing liquidations. Gold and silver also experienced short-term decreases. In Europe, the UK, French, and German stock markets all registered declines.
On October 3rd, the Hong Kong stock market also witnessed a correction. The Hang Seng Index closed down 330 points, or 1.47%, at 22,113 points. The Hang Seng China Enterprises Index dropped 127 points, or 1.58%, to 7,914 points. The Hang Seng Tech Index declined 178 points, or 3.46%, to 4,978 points. The main board turnover amounted to HK$31.03 billion.
The U.S. announced its latest initial jobless claims figure on Monday evening. The figure, for the week ending September 28th, came in at 225,000, compared to an expectation of 220,000 and a revised previous reading of 219,000. Additionally, the final reading for the S&P Global Services PMI for September stood at 55.2, missing forecasts of 55.4 and matching the preliminary figure.
Despite the correction experienced by Hong Kong stocks and Chinese ADRs on October 3rd, institutional investors remain optimistic about Chinese assets. Zhang Yidong, the Global Chief Strategist at CICC, stated that the volatility in Hong Kong's stock market serves as a confirmation of the reversal logic, rather than a fleeting rebound. He believes that Hong Kong and A-share markets are poised to transition from recent forced buy-ups to a more sustainable, oscillating reversal in October.
According to recent equity disclosure information from the Hong Kong Exchanges and Clearing Limited, JPMorgan Chase & Co. increased its holdings in several Chinese companies on September 27th, including:
- Hong Kong Exchanges and Clearing Limited: Increased its stake by approximately 6,116,400 shares, representing an investment of approximately HK$1.813 billion, raising its ownership from 5.93% to 6.42%.
- Tsingtao Brewery Co., Ltd.: Increased its H-share holdings by approximately 4,375,000 shares, with an investment of approximately HK$242 million, raising its ownership from 7.60% to 8.27%.
- BYD Company Limited: Increased its H-share holdings by approximately 6,520,000 shares, representing an investment of approximately HK$1.791 billion, increasing its ownership from 4.85% to 5.45%.
JPMorgan's increased holdings suggest that institutional investors retain confidence in Chinese assets, and they remain optimistic about the long-term prospects of the Chinese economy.
Overall, the recent market fluctuations have been significant, necessitating a cautious approach for investors, alongside an awareness of fundamental changes. The unwavering confidence of institutional investors in Chinese assets provides a sense of reassurance to the market. It is expected that Chinese assets will continue to hold attractive investment merit in the coming period.
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