koolgal
03-13

🌟🌟🌟The sun rises in the East and sets in the West is a fitting comment applicable to the current situation of the rise in Hong Kong stocks and the drop in US stocks especially the Magnificent 7. 

I believe that the Hong Kong stocks are still very much undervalued compared to the US stocks.  Therefore their upside potential is grater than their US counterparts. 

Hong Kong stocks also provide a great diversification instead of just having a US centric stock portfolio.  I like the Terrific 10 which represents the best of Hong Kong/ Chinese stocks.  $BABA-W(09988)$  $TENCENT(00700)$  $MEITUAN-W(03690)$  $XIAOMI-W(01810)$  $BYD COMPANY(01211)$  are just 5 of the Terrific 10 which I can invest in through the Singapore SDRs equivalent. 

Best of all I do not have to pay commission for the SDRs as Tiger Brokers have a zero commission promotion till the end of March. 

It is time for Hong Kong stocks to rise.  However in the short term there could be volatility due to geopolitical trade tensions between the US and China due to trade tariffs by the Trump administration. Nonetheless this is a golden opportunity to buy Hong Kong stocks at great prices as in the long term, they can only rise. 

@Tiger_comments  @Tiger_SG  @TigerClub  @CaptainTiger  @TigerStars  

Is East Rising and West Setting True? How Did HK Stocks End the Bull Market?

@Tiger_comments：
Recently, $S&P 500(.SPX)$ pulled back, while $HSI(HSI)$ has risen over 20%+. The gains in Hong Kong's newly listed stocks have been astonishing, with $LAOPU GOLD(06181)$ rising by 1600%. However, the market is now starting to worry that this independent trend in the Hong Kong market may come to an end. The AI boom sparked by DeepSeek has continued for more than a month. Can the Hong Kong stock market really maintain its independent trend during a pullback in U.S. stocks? There have been only six instances since 2012 when the Hong Kong market showed an independent trend: Hong Kong stocks rose while U.S. stocks fell, and the excess return exceeded 10%. The first instance occurred in April 2015, when China's asset bull market accelerated after a slight pullback in U.S. stocks, triggered by regulatory tightening and the collapse of the bubble. The next three instances were in 2022 (January, June, December), driven by changes in the economic conditions of China and the U.S., along with stagflation trades. The fifth instance occurred in April-May 2024, related to changes in macro policies and U.S. stagflation trades. This current market trend is the sixth instance and differs from previous ones due to the driving factors of China's market fundamentals. The popularity of DeepSeek and Manus has driven the "revaluation logic" of Chinese assets. Based on past experience, there are two scenarios where the independent trend of the Hong Kong market could end: 1. when the driving fundamental factors behind the recovery are disproven (the actual economic conditions failed to materialize); 2. when there is no new incremental information in the fundamentals and the liquidity suddenly tightens, causing the valuation bubble to burst. Can the East Rising, West Setting logic hold? Bull Case: The logic of revaluation driven by AI. 2. China's fiscal stimulus expansion vs. Trump's government spending cuts. 3. The speculation in newly listed like $MAO GEPING(01318)$ stocks may not have stopped yet. Bear Case: The East Rising, West Setting logic has not yet materialized. China's GDP is lower than that of US. The surge in southbound funds could mean the market is peaking. Southbound funds exploded into Hong Kong stocks, with a net inflow of 29.6 billion HKD in a single day, setting a record high. Looking back at history, each time southbound funds bought heavily into Hong Kong stocks, it was almost at a market peak. The full circulation of newly listed stocks like $LAOPU GOLD(06181)$ might lead to a decline. How do you view the East Rising, West Setting logic? Do you think it holds? How long can this independent trend in the Hong Kong stock market last? Do you believe the newly listed Hong Kong stocks will continue to surge? Leave your comments and also post to win tiger coins~
Is East Rising and West Setting True? How Did HK Stocks End the Bull Market?
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  • Valerie Archibald
    Β·03-13
    TOP
    I don't have any problem making money on China. Tencent, Maitland, and BABA all have a buy rate of over 93%. Prices are way under value. Get in, make money, and get out. Isn't that the objective.
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    • Valerie ArchibaldReplying tokoolgal:Β 
      Thank you
      03-13
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    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
      03-13
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    • koolgal:Β 
      May you have lots of winning trades πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
      03-13
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  • 1PC
    Β·03-13
    TOP
    Congratulations πŸŽ‰πŸ‘ to Hit 🎯 5 of the HK SDR [OMG]...... me [Look back] ZERO [Cry] 😭... Agreed that HK has the "Wind 🌬️" ... will sell house sell liver sell plate 🍽️ .... to try to participate in HK [Anger] @Jes86188 @Gis
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    • koolgal:Β 
      All the best πŸ€πŸ€πŸ€
      03-14
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    • koolgal:Β 
      Only buy what you like
      03-14
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    • koolgal:Β 
      Thanks for sharing 😍😍😍
      03-14
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  • Venus Reade
    Β·03-13
    TOP
    baba is only on the way up. $200 by summer $300 by eod
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    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
      03-14
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    • koolgal:Β 
      Thanks for sharing 😍😍😍
      03-14
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    • koolgal:Β 
      To the moon πŸš€πŸš€πŸš€πŸŒ›πŸŒ›πŸŒ›πŸ’°πŸ’°πŸ’°
      03-14
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  • Tiger_comments
    Β·03-13
    TOP
    Thanks for sharing[666][666] Yes, the volatility is true. Stay care when we go long on HK.
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    • koolgal:Β 
      However I believe that patience and my time in the Hong Kong markets will be rewarded with a long term horizon .πŸš€πŸš€πŸš€πŸŒ›πŸŒ›πŸŒ›πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
      03-13
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    • koolgal:Β 
      Yes it is good to exercise caution when investing in the current climate of volatility.
      03-13
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    • koolgal:Β 
      My pleasure πŸ₯°πŸ₯°πŸ₯°
      03-13
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  • CMLeong
    Β·03-14
    TOP
    θ¬θ¬εˆ†δΊ«β˜˜οΈ
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    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
      03-14
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    • koolgal:Β 
      Happy weekend 🌈🌈🌈
      03-14
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    • koolgal:Β 
      My pleasure 😍😍😍
      03-14
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  • zuma
    Β·03-14
    thx
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    • koolgal:Β 
      Best of luck πŸ€πŸ€πŸ€
      03-14
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    • koolgal:Β 
      Have a great weekend ahead 🌈🌈🌈
      03-14
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    • koolgal:Β 
      My pleasure 😍😍😍
      03-14
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