Chinese stocks BREAK OUT as investors turn bullish
Investors around the world have turned bullish on Chinese stocks in recent weeks, and in Asia overnight a bellwether index for Chinese tech stocks, made a major move.
A break out in the Hang Seng Tech Index has been highlighted by leading Stansberry Research analyst, Brian Tycangco.
“Hang Seng Tech Index breakout from its month-long channel this morning (Thursday, Jan 26),” said Tycango.
“Good, strong move following the long Chinese New Year weekend holiday.”
Over the past 12 months, the Hang Seng Tech Index remains down around 14%. However, from its historic lows recorded in October 2022, it has surged around 45%.
The index represents the 30 largest technology companies listed in Hong Kong – most of which are Chinese companies.
The current stocks that make up the index are as follows.
| Hong Kong Stock Code | Company Name |
| 20 | SENSETIME – W |
| 241 | ALI HEALTH |
| 268 | KINGDEE INT’L |
| 285 | BYD ELECTRONIC |
| 700 | TENCENT |
| 772 | CHINA LIT |
| 909 | MING YUAN CLOUD |
| 981 | SMIC |
| 992 | LENOVO GROUP |
| 1024 | KUAISHOU – W |
| 1347 | HUA HONG SEMI |
| 1810 | XIAOMI – W |
| 1833 | PA GOODDOCTOR |
| 2015 | LI AUTO – W |
| 2018 | AAC TECH |
| 2382 | SUNNY OPTICAL |
| 3690 | MEITUAN – W |
| 3888 | KINGSOFT |
| 6060 | ZA ONLINE |
| 6618 | JD HEALTH |
| 6690 | HAIER SMARTHOME |
| 9618 | JD – SW |
| 9626 | BILIBILI – W |
| 9698 | GDS – SW |
| 9866 | NIO – SW |
| 9868 | XPENG – W |
| 9888 | BIDU – SW |
| 9961 | TRIP.COM – S |
| 9988 | BABA – SW |
| 9999 | NTES – S |
Chinese stocks benefit from China normalisation
The key reason for the surging investor confidence in Chinese stocks is the reopening of the world’s second-largest economy.
China imposed some of the world’s most draconian COVID-19 containment measures, however the ruling party is now intent on re-opening the nation and boosting the economy.
As noted by the Shanghai Macro Analyst newsletter this month, key data points show the country is well and truly on the path of reopening and returning to normal.
“To be honest, even I was quite surprised by how fast domestic mobility is recovering,” said the author, referring to a sudden uptick in traffic congestion data in 10 major Chinese cities.
Want to invest in Chinese stocks, but don’t know where to start? Check out our guide – 5 easy ways to begin investing in Chinese Stocks in 2023.