I like to look at some individual chinese stocks listed in HK and Shangai/Shenzen every once in a while to get a feel for what is going on in the world's most important economy. While you have to read between the lines to understand what is going on, hopefully some of these charts can be useful for your analysis.
http://rpubs.com/nvest_ai/china
My take away is that financial conditions in China are still very tight, with small and medium banks trading very poorly. Its also interesting to see the heavy machinery stocks trading poorly (although the trend is still up) given the amazing order numbers most are posting (excavator sales were up >100% in 2017 and up > 50% in 2018). Most importantly the ramp up in property stocks, especially the levered ones line Sunac and Evergrand seem to be coming down. I wonder if it has anything to do with HNA's founder death, which seemed to get very little coverage in western media.
For most westerners, the Chinese stock market is a mystery. For one, the Shanghai market has remained closed to foreigners for many years and only recently opened up via the HK connect. And its well known that the investor base in China is often overwhelmed with retail 'hot money' flows into momentum stocks and fads. That said, the Chinese stock market is still a big one and there are more and more institutional investors getting involved, so prices discovery is becoming more like western markets.
Submitted July 16, 2018 at 04:46PM by abeecrombie https://ift.tt/2mjNxca
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