Chinese stocks rose sharply in the afternoon in trading on the 22nd. Traders said the rally was due to technical reasons in the absence of new material.
In Hong Kong, the Hang Seng Index rose nearly 2% in minutes to finish 1% higher after a seven-day losing streak. About half of the stocks in the index were oversold, according to technical indicators as of Thursday. The Hang Seng Tech Index closed 2% higher.
The CSI300 index of mainland stocks rose 0.8%. There was also a scene where it fell 0.7% at one point. The index was the most oversold since June as of Thursday.
Many market players mentioned the possibility of buying by sovereign wealth funds. There have been cases in the past where stocks have been reluctant to fall due to purchases from the so-called “national corps.” Others cited Caixin’s report over the weekend that China was considering stronger measures to address risks associated with local government funding entities.
“Most people I spoke to were pretty confused by the afternoon’s move,” said Willer Cheng, senior analyst at Forsyth Barr Asia. “There was a lot of speculation, but no clear explanation.” In addition, he said that considering the recent sharp decline, “It is reasonable to call it a technical rebound.”
Original title:Sudden Rally in China Stocks Has Traders Scratching Their Heads (excerpt)
2023-08-22 10:44:33
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