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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- China tech stocks continue to test new lows in the current environment, mostly driven by the global risk-off sentiment and renewed fears of further crackdown.
- The ‘V-turn’ in ‘liquidity (China TSF 12M Sum) combined with the easing announcements have not been enough to levitate domestic equities, which continue to trade at ‘depressed’ levels.
- The chart below shows that China liquidity has been an important 'driver' of tech stocks in the past cycle; periods of rising liquidity have been associated with higher tech equities and vice versa.
- Tech stocks (CQQQ ETF) are now down 50% since their peak reached in February 2021, which also corresponds to the peak in the Chinese economic activity.
- CQQQ ETF broke back below its 58.63 support this month, which corresponds to the 76.4% Fibo retracement of the 43.19 – 108.61 range.
- Key support to watch on the downside stands at 43.19, which was the low reached in March 2020 following the Covid shock.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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