The Chinese Phenomenon?

clylbw

Well-known member
454 4
Hi,

It seems that many of the big movers today, 2nd January 2004, are somewhat with Chinese background, e.g. NTES, SINA & SOHU of the NASDAQ, and HNP, SNP, CBA, CHN, CHA of the NYSE. I do wonder whether this has been triggered by some specific news because it does not look like a coincidence to me. Or is it just my imagination?

I know I should not always look for the reasons behind the moves, but, please forgive my curiosity :eek: . I do wonder why...

And, wish you a great new year for your trading!!!!!!!!!! :cheesy:
 

clylbw

Well-known member
454 4
Today's SINA.
 

Attachments

  • sina02jan2004.jpg
    sina02jan2004.jpg
    15.2 KB · Views: 862

clylbw

Well-known member
454 4
Hi Skim,

No I do not think so; the Chinese New Year is not due until the end of January because it is based on the lunar calendar.

Thanks though. :)
 

Skimbleshanks

1
2,325 16
January 22 is the first day of the Chinese New Year. Year of the Monkey. Only three weeks away.

Those Chinese institutions also need to report at year-end, and as with western insitutions they will buy leading up to the year-end. And then they can report to their investors that they hold stock in the most successful companies.

My money's on the Chinese New Year. :D
 

BBB

Experienced member
1,071 3
Some say China will be the next economic power house. Maybe this activity is due to some China Fund throwing in their buttons???
 

Rognvald

Established member
916 15
I understand there has been significant Chinese support of the $ ?
 

Trader333

Moderator
8,612 939
I understand there has been significant Chinese support of the $ ?

And Japanese as well which is why the dollar has remained over valued against the Chinese and Japanese currencies and is a real political hot potato in the US.


Paul
 

peto

Established member
944 83
This from DTNIQ Weekly Insight Newsletter http://www.dtniq.com :

One would think investors would be a bit gun shy about gushing after a particular stock sector, having been burned so badly in the tech-stock bubble of the late 1990s. But stocks with any hint of exposure to mainland China have been all the rage in the fourth quarter of 2003, extending into the first day of trading in 2004.

Jilin Chemical gained $3.95 to $24.29 Friday, Sinopec Beijing Yanhua Petrochemical was up $5.49 to $49.90, Petrochina added $6.65 to $63.70, and China Resources Development was up $2.67 to $8.42 -- that's a 46% gain in one day. You would think the whole country had dropped Communism to justify such a feeding frenzy. But there was no particular news of note.

No doubt a short squeeze contributed to some of the gains, but even so, the action is more that of a commodities-style blowoff top than it is of a steady bull market with legs. If you own these stocks, you don't need me to tell you what to do -- but I'm going to tell you anyway. Have an exit strategy in place, and stick to it when the time comes. These things end badly, always.



I have a long term holding in FTO Fortune Oil (Oil distributer in China) which has trebled since May this year, and just wondering how much longer to hold.
 

clylbw

Well-known member
454 4
Skimbleshanks said:
Those Chinese institutions also need to report at year-end, and as with western institutions they will buy leading up to the year-end. And then they can report to their investors that they hold stock in the most successful companies.

Hi Skim,

As you have mentioned, there are about three weeks left before the Chinese New Year. Why do you suppose the institutions have started buying now? Three weeks seem kind of some time to me...
:rolleyes:
 

clylbw

Well-known member
454 4
Hi Rognvald, Trader333, I am afraid not to have got your points. Can you please further explain the relationship between the over/under valuations of currencies and stock performances? Thanks. :)
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock