China had its best day in years last night.
The Shanghai Composite was up over 4%.
Matthew Holland of Morgan Stanley![ext]()
has some thoughts...
China loves a Friday. Looking at the mail I wrote last Friday "I have to go back a long way to find the last time I wrote that China ends the week as the best performing market in the region" suddenly its getting like buses, you wait for ages then 2 come along at once. The days starts innocuously enough but all it took was the HSBC![ext]()
Flash![ext]()
PMI![ext]()
to light the fuse that sparked the market into life as we see a spectacular 4.3% gain its best 1 day performance for 2012. More impressive was the surge of volume that accompanied the move with more than $33bn, second highest of the year, more than double the recent average as retail returns to the market. As ever in Asia momentum a powerful force as few wanted to buy the dip but now there are plenty that want to chase the rally with the SHCOMP now having put on 10% since the lows 10 days ago now, A shares only -2% for the year. You often hear the comment that "I'm happy to miss the 1st 10%" and that's exactly what many have done as this years ugly duckling shows signs of becoming a swan. Record volume on the XUA futures contract with the open interest now exceeding $2bn for the first time as the lack of QFII send accounts looking for other ways to get long the mainland.
*For more on China's strong Flash PMI, see here >*![ext]()
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Reported by Business Insider 3 hours ago.
The Shanghai Composite was up over 4%.
Matthew Holland of Morgan Stanley
has some thoughts...China loves a Friday. Looking at the mail I wrote last Friday "I have to go back a long way to find the last time I wrote that China ends the week as the best performing market in the region" suddenly its getting like buses, you wait for ages then 2 come along at once. The days starts innocuously enough but all it took was the HSBC
FlashPMI to light the fuse that sparked the market into life as we see a spectacular 4.3% gain its best 1 day performance for 2012. More impressive was the surge of volume that accompanied the move with more than $33bn, second highest of the year, more than double the recent average as retail returns to the market. As ever in Asia momentum a powerful force as few wanted to buy the dip but now there are plenty that want to chase the rally with the SHCOMP now having put on 10% since the lows 10 days ago now, A shares only -2% for the year. You often hear the comment that "I'm happy to miss the 1st 10%" and that's exactly what many have done as this years ugly duckling shows signs of becoming a swan. Record volume on the XUA futures contract with the open interest now exceeding $2bn for the first time as the lack of QFII send accounts looking for other ways to get long the mainland.*For more on China's strong Flash PMI, see here >*
Please follow Money Game
on Twitter and Facebook.Join the conversation about this story »
Reported by Business Insider 3 hours ago.