By Samir Al Khoury,
Since the beginning of June, the Hang Seng and CSI300 indices have continued their upward trend for the second day in a row, recording 18,541 and 3,622 points, respectively.
Last week, the official manufacturing purchasing managers index (PMI) dipped to 49.5, lower than expectations (50.5) and the previous reading (50.4). However, the Caixin manufacturing PMI, a non-governmental survey, grew to 51.7 yesterday, exceeding expectations (51.6) and the previous reading (51.4).
Chinese stocks remain attractively valued compared to global peers like Japan and the US. For instance, the Hang Seng Index boasts a P/E ratio of approximately 9.
Analysts are watching closely for the release of China’s export/import data later this week, alongside US non-farm payroll (NFP) figures, the unemployment rate, and average hourly wages. These indicators are expected to have a direct impact on Chinese financial markets, particularly the stock market.
Year-to-date, the Hang Seng Index has gained roughly 8%. From its January 22nd low of 14,794 points, it climbed approximately 25% to its May 7th peak of 18,638 points. The next hurdle for the index is surpassing a key resistance level: the 20-day moving average, currently at 18,811 points. Additionally, the Relative Strength Index (RSI) has breached the neutral zone, currently sitting at 51 points, suggesting some upward momentum for the Hang Seng.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.
Taurex is the trading name of Zenfinex Global Limited, Stochastic Africa SL Ltd, Zenfinex Global LLC, and Zenfinex Limited.
Zenfinex Global Limited is registered in the Republic of Seychelles with registration number: 8428731-1 and is regulated by the Financial Services Authority of Seychelles (license number SD092). Its registered office address is F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.
Stochastic Africa (SL) Limited is a company registered in Sierra Leone with Company Number: SL270319STOCH05271 and is licensed by the Bank of Sierra Leone under license number BSL/SAL/2023 and with the registered office at 148D Wilkinson Road, Freetown, Sierra Leone.
Zenfinex Global LLC is a company registered with the Financial Services Authority in Saint Vincent and the Grenadines under registered number 138 LLC 2019. Its registered office is Hinds Building, Kingstown, Saint Vincent, and the Grenadines.
Zenfinex Limited is a company registered in England and Wales under registered number: 11077380. Authorised and regulated by the Financial Conduct Authority under firm reference number 816055. Its registered office is 4th Floor, 4 Eastcheap, London, EC3M 1AE, United Kingdom.
*All trading involves risk.
