CHINA FOCUS : Waiting For The Star To Fall

I conclude the A50 is the worst performer of all the Chinese indices because it is the most accessible to short sellers !

A50 is up 42.23% over 12 months.
SHCOMP is up 66.41%, CSI 300 is up 62.4% and Shenzhen Composite is up 81.95%.

But it could be much worse because H-shares are now flat on the year as the HSCEI index indicates, driving the A-H shares average premium to 112.28% compared to just 28% this time last year. The market cap weighted premium is now at 56% compared to -4%.

Biggest premiums

1. China Cosco 1919 HK +199.92%
2. China Shipping Container 2866 HK +239.6%
3. Guangzhou Automobile 2238 HK +274.66%
4. Luoyang Glass 1108 HK +288.51%
5. Metallurgical Corp 1618 HK +198.69%

Smallest premiums

1. China Pacific Insurance 2601 HK +16.45%
2, Jingwei Textile 350 HK -4.64%
3. Ping An Insurance 2318 HK +12.26%
4. Shandong Chenming Paper 1812 HK +13.76%
5. Xinjiang Goldwin 2208 HK +14.28%

So if you had bought the 2828 HK ETF versus the 2823 HK ETF, you would not be a happy bunny and the 2828 was popular for the reason of the HK-Shanghai connect that was all the hype last year.

The market is going for the jugular and waiting for the Chinese star to fall now, talking down the place daily and it doesn’t help that we keep getting all those arrests and headlines like these “CSRC ASKS HK BROKERAGES TO PROVIDE TRADING RECORDS: REUTERS”.

Nothing has changed much from last week, in my opinion, and tomorrow we shall have the PMI numbers as we sit and wait to catch the falling star.

Leaving with the indicative prices.