Hong Kong Exchange (388.HK) Extends Its Upmove On The Improving Market Sentiment
Medion Jim July 6, 2020 1:59 PM
Hong Kong Exchange (388.HK) jumped 9% last week, while China's Shanghai Composite index soared 6.5%. Overseas investors would use Hong Kong Exchange's stock connection to invest China's market. The northbound capital inflow to buy China's stock accumulated to 160 billion yuan for the week ended July 3, comparing the outflow of 67.9 billion yuan in March.....
Hong Kong Exchange (388.HK) jumped 9% last week, while China's Shanghai Composite index soared 6.5%. Overseas investors would use Hong Kong Exchange's stock connection to invest China's market. The northbound capital inflow to buy China's stock accumulated to 160 billion yuan for the week ended July 3, comparing the outflow of 67.9 billion yuan in March.
In the below chart, Shanghai Composite index, as shown on the weekly chart, broke above the long term trend line, indicating that the sentiment of the China market is turning bullish.
Source: GAIN Capital, TradingView
Except for the increase of capital inflow for investing Chinese market, Hong Kong's stock exchange is also benefited from the returning of Chinese stocks from the U.S. market. The stock already touched the 2nd resistance level as mentioned.
From a technical point of view, the trend of the stock remains strong as the prices are trading around the record high level on the daily chart.
The RSI is above its overbought level at 70, but has not displayed any reversal signal.
Bullish readers could consider to place the nearest support level at HK$322 (the high of June 24), while resistance levels would be located at HK$375 and HK$405.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.