Monday, 28 July 2014

Asia today - funny how sentiment changes

It is funny how sentiment changes.  Last Friday (link here) I noted some of the arbitrage differentials between the Hong Kong and the local Chinese markets and today I read this on Bloomberg:

'Shanghai-Hong Kong Valuation Gap Narrows on Stock Arbitrage Bets' 

Even Fast FT joined in noting

'A gauge of Chinese shares traded in Hong Kong has entered a bull market as investors continued to look beyond concerns about China's financial system. The Hang Seng China Enterprises Index has risen as much as 0.6 per cent to 11057 points, meaning it has gained 20 per cent since its 2014 low on March 20'

Interesting.  China/Hong Kong is still a stock picking zone...


  1. Hang Seng looking volatile and toppy, ripe to scale into a short position.

  2. The 5 year chart does suggest resistance >24k. Good spot, will be writing on this in the next 24 hours.