China Stocks are About to Jump

It’s Wednesday, my fellow traders! The day is filled with news and events you need to know, and here’re some of them.

Events to follow

BOC Rate Statement, 18:00 GMT+2

BOC Overnight Rate, 18:00 GMT+2

Chinese protests and HK50

Chinese imports and export plummeted due to Covid-19 restrictions. The current trade activity is the lowest since 2020, with a 10.6% year-on-year decrease in imports and an 8.7% decrease in export. Also, because of protests across the country, Chinese President Xi said the Omicron variant is less dangerous, giving hopes for further relief in lockdowns.

As for the primary gauge of the Chinese economy, the HK50 index, it’s moving under the critical trendline and 200-daily MA. As strict measures loosen, we will likely see a breakout and a bullish wave over the following weeks. On the other hand, a further tightening of the Covid—19 policy would mean the HK50 plunge to 17 000.

Other news you should know

Australian quarterly GDP turned out to be lower than expected (0.6% actual vs. 0.7% forecast).
The US housing market collapsed by 30% year-on-year, which makes this correction the harshest since 2008. The monthly drop of -2.3% in Great Britain is the largest seen since October 2008, too.
Microsoft and Nintendo agreed to a 10-year deal to bring Call of Duty to Nintendo gaming platforms. However, the agreement depends on Microsoft closing its $69 billion acquisition of Activision Blizzard.
Binance exchange entered the Japanese market again after it was forced to leave a year ago.

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usd

cad - canadian dollar

china

pbc - people's bank of china

Author: FBS Analyst Team

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