Finally, 沪港通 kicked off on 17-November. The long waiting connection which allow the cross trading between the two cities, Hong Kong and Shanghai.
Let's recap what happened over the past two days. On the first day, the entire quota for purchases of A-shares was filled by mid afternoon and only 16% of the purchases of H-share was used by end of trade. On top of the volume, let's switch to a piece of news on that day. "Shocking Japan GDP". "Once again Japan goes nto recession". On the same day, Nikkei went down about 500 points. Overall Asia markets were affected. Shanghai index not excluded.
Because of panic, on Tuesday, the second day, 72% of A-shares still avaliable by midday and only 5% of H-shares was used. After market closed, we saw numbers of articles like connection gets second day "meh"..........we even have so called analyst experts came out to say stay out from those A-shares because of this and because of that..........
Shanghai market has this psychology level - 1950 to 2000. For 2 years, wherever it touches this level, it will rebound. Before the actual launching, Shanghai index has went up from 2000 point to 2500. An upside of 25%. If you were to be China investors, what will you do on the first day of launching? Yes, sell and take profit. Let the price comes down before you start to buy again.
As you can see from the trading volume done, foreigner investors concentration is on the A-shares. I see the potential and opportunity on this 沪港通. Things that investors need to watch out is the policies. If you do watch how RMB moved, you will understand what I mean. Last but not least, make sure you get a reliable broker firm to trade China A-shares.
Let's recap what happened over the past two days. On the first day, the entire quota for purchases of A-shares was filled by mid afternoon and only 16% of the purchases of H-share was used by end of trade. On top of the volume, let's switch to a piece of news on that day. "Shocking Japan GDP". "Once again Japan goes nto recession". On the same day, Nikkei went down about 500 points. Overall Asia markets were affected. Shanghai index not excluded.
Because of panic, on Tuesday, the second day, 72% of A-shares still avaliable by midday and only 5% of H-shares was used. After market closed, we saw numbers of articles like connection gets second day "meh"..........we even have so called analyst experts came out to say stay out from those A-shares because of this and because of that..........
Shanghai market has this psychology level - 1950 to 2000. For 2 years, wherever it touches this level, it will rebound. Before the actual launching, Shanghai index has went up from 2000 point to 2500. An upside of 25%. If you were to be China investors, what will you do on the first day of launching? Yes, sell and take profit. Let the price comes down before you start to buy again.
As you can see from the trading volume done, foreigner investors concentration is on the A-shares. I see the potential and opportunity on this 沪港通. Things that investors need to watch out is the policies. If you do watch how RMB moved, you will understand what I mean. Last but not least, make sure you get a reliable broker firm to trade China A-shares.
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