Markets rebounded. China indices power ahead. Weekly observation 10Dec2021

CN(risk-on) SG(risk-off) HK(risk-off)

Markets rebounded. China indices power ahead. Weekly observation 10Dec2021
Photo by Yiorgos Ntrahas / Unsplash

The past 2 weeks were terrible markets for global stock markets. This week, the stock markets rebounded across the board. The major U.S indices like S&P500, Nasdaq100, Dow Jones Industrial Average staged a strong rebound in terms of percentage gain. Unfortunately, the rebound was in lower volume compared to last week. U.S markets have yet to recover.

Shanghai Composite Index(SSEC) and Shenzhen Composite Index(SZSC) have been rising for 5 consecutive weeks. This week was another good week and it was accompanied by good volume as well. SZSC even hit a 52-week high. This strong performance is despite Evergrande defaulting for the first time on USD1.2 billion of bond debt. Evergrande owes USD300 billion in total debt.

This week, Renminbi was so strong that China's central bank (PBOC) tried to curb its rise with a surprise weak fix. I wonder how much of Renminbi's strength was due to foreign capital inflow into Chinese stocks.

Global stock indices 03Dec2021-10Dec2021 sorted in descending order with respect to the 50-day moving average (*percentage over exponential moving averages)

Tables above show where the stock indices fare with respect to the moving averages, sorted in descending order with respect to the 50-day moving average. It is quite obvious several stock indices made good improvements this week, moving up above their 50-day moving average.

Hang Seng Index continues to remain at the bottom of the table.

On a personal front, my China portfolio suffered some damage this week. The damage looks acceptable, given the gains in the past weeks.

Here is the performance of the stocks that I revealed in past weekly updates.

Weekly performance of some stocks in portfolio (10Dec2021)

Broad market statistics 03Dec2021 - 10Dec2021

The broader markets in Singapore and HK markets made improvements but not good enough to get aggressive in these markets.

China's stock market gets my attention at this point in time.


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