From Seeking Alpha: 2024-06-20 08:19:13

China indices and individual stocks like JD.com and Alibaba Group have experienced significant declines, down close to -19% from their 52-week highs. However, these stocks and indices are now testing structural support, with potential for a rebound due to bullish macro elements like falling risk sentiment and lower global bond yields. Technical charts show indices like Hang Seng and ETFs like KWEB bouncing off support levels, indicating a possible uptrend resumption. Individual stocks such as Pinduoduo, Bilibili, Tencent, and Meituan are also showing signs of strength and potential for outperformance. Additionally, macro forces like fearful risk sentiment and dovish central bank policies could further support a rebound in China stocks. If the Chinese Yuan weakens further against the USD, domestic stocks may benefit. Overall, the outlook for China stocks looks positive, with potential for a rebound after a natural pullback.



Read more at Seeking Alpha: China Stocks Ready To Resume Uptrends (Technical Analysis)