The Chinese Phenomenon?

[clylbw]

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 . I do wonder why...

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

 

[clylbw]

Today's SINA.

 

[clylbw]

Today's HNP.

 

[Skimbleshanks]

Chinese New Year approaching perhaps?

 

[clylbw]

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.

 

[MCGF]

Spooky!

Ill get on to darren winters-im sure he will know why!

 

[Skimbleshanks]

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.

 

[clylbw]

Ah, good point Skim.

 

[BBB]

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

 

[Rognvald]

I understand there has been significant Chinese support of the $ ?

 

[Trader333]

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]

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]

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...

 

[clylbw]

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.

 

[clylbw]

Hi peto,

Thanks a lot for the information.

 

[riddle]

I just saw this item on chinese stocks. Monday could be interesting!

Jan. 5 (Bloomberg) -- Chinese shares are expected to tumble today after Southern Securities Co., the nation's fifth-biggest brokerage, was seized by the government amid fraud allegations.

The collapse of the firm, located in the southern city of Shenzhen, was triggered by ``illegal and irregular operations, and disorderly management,'' the China Securities Regulatory Commission and the Shenzhen government said in a weekend statement carried on state news agency Xinhua's Web site.
...snip...

One in 10 publicly traded companies in China have doctored their books, the regulatory commission said in March 2002. A November 2001 survey by China's National Audit Office found that 14 out of 16 accounting firms had issued ``seriously falsified'' reports on behalf of their clients.
...snip....
Bloomberg full article

 

[BBB]

AAAh! Reminds me of 1999-2001 USA tech boom

 

[BBB]

Interesting article here under 'Features' on China

www.appliederivatives.com