HSI --- the perfect market

My guess would be people buying to arbitrage A shares Vs HK H shares vs Long institutions using the liquidity to get out ahead of their perception of US tanking over next few weeks/months taking global markets down with it.
 
It is true. A-share PE is much higher.

China has $1.4T reserve now and it needs a way to spend it (to avoid asset appreciation growing out of control).

The newly announced policy is not for all cities in mainland China. Only the Bank of China (Tianjin Branch) is allowed to do so. But all local Chinese can wire their money to this branch first and use it as a window for investment in HK. Besides, there used to be a cap on max amt invested per yr (USD50k) but it is now waived. And the investors can keep all profits they make without converting them back to RMB.

Behind the whole thing, the key is that China is moving to opening its capital account. They need a mature established market (HK) and they need a window (Bank of China Tianjin Branch).

Quote from mokwit:

My guess would be people buying to arbitrage A shares Vs HK H shares vs Long institutions using the liquidity to get out ahead of their perception of US tanking over next few weeks/months taking global markets down with it.
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People buying in anticipation of the actual buying - a bit like the way people used to buy the swissie ahead of those buying the Swissie ahead of those buying the Swissie because USSR said something about tanks , West, and butter mountains.
 
although very easy to be stopped out, the gain is also much larger. if i can choose, i will choose this kind of daily volatility:)

but anybody knows HOW LONG will it last?
 
Hey guys, I did not realize that there are so many HSI/HHI traders here until just recently. What about the idea of having an Asian Stock index trading chat room ? We can be online during the normal Asian trading session. Anything about Asian stock index may be discussed during the day,we can exchange ideas about market , or some information that will effect the market, such as HK observatory issues another typhoon 8 signal and the HKEX trading will be terminated soon , or China raised interest rate by 0.2%(which they actually announced last night August 21 ),or Korea summit meeting yields some unexpected outcome ( which may or may not happen shortly) , this chartroom can cover not only HSI/HHI, but also NIKKEI/SGXNK, KOSPI 200, Taiwan index, etc.

My question would be, is there a good free chatroom service online ? Or since kiwitrader once advised me of a chatroom, Kiwi, can we still make use of that now ?
 
Paltalk is free, and stays free if the room is under 100 or so people. I would love to particpate in one, but I found if very distracting if trading on short term basis. I used to skype with few friends, and we all missed trades while replying, so we stopped it.
 
we can use the one right here in EliteTrader.
It is not the best, but it works, and you don't need to register again or download any software.

Let's try it today and see.

I will be there.
 
Quote from joesan:

It is because China announced last night that it now allow individual mainlander to invest in HK security market. Previously mainland Chinese can only buy A-shares listed at Shanghai or Shenzhen stock exchange, now they have one more alternative: HK stocks

I placed buy orders at the open today :-)
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OK.

So, seemingly as a result of this the HSI has gone from perfect to perfect crap.

Spreads have gone from interesting to astronomical ( 15pt moves, 27pt slippage etc etc ). I doubt that the size of moves outweighs the risk associated with a disordered market.

So, I didn't trade today and am getting out my Nikkei strategy and having another look at SPI and STW. Just in case HSI doesn't come right in a few days.

So, can anyone say if its likely to go back to just wild as opposed to cyclonic. Def?? Anyone with some insight??
 
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