First, any investment has its own risk, there is no free (risk free) lunch. some volatility is inevitable.
Second I guess, today partially is short squeez. Before, the annuancement of first around of stimulus, a lot of hedge funds, and long only managers were shorting or underweighting Chinese stocks--A Shares and/or ADRs. As of last friday, a lot of them are not yet close their short or under exposure to Chinese market. Some of them thought the announced stimulus were not enought to turn Chinese economy round. They were waiting holiday data, and new announcement. Bang! here comes the data mid day today.
third. Holiday news.
a. Beijing houseing market were hot
b. 深圳 housing market were hot
c. 美團發布的“十一”黃金周消費數據顯示，全國生活服務到店消費同比增長41.2% , 其中，遊客日均消費較上年假期增長69.6%
The rebound of housing market in some first tier cities, and increase of travel spending can not entirely attributed to reboud of stock market. In my view, it is because peopel become more postitive about the future about economy, about their future earnings, abouth their jobs, and very imporantly , about the market. Consumers behavor so far tells us, China can tell the economy around with right medicine, and never under estimate Chinese consumers animal spirit, which is the driving force of prosperious.
I guess, the short sellers were paniced. Look at todays Ashr volume. The z-score of the volume is shooting the moon, whether you look at 1 year, 5 year, or the entire history available on Yahoo finance.
I would guess still a lot of short sellers and underweighers are still scratching their head or pulling their hairs.
d. individual are rushing to open brokerage accounts, and institution were working around the clock to help them .
e. Do not contribute last weekes market phenomenial to chinese gambling habit( 賭性). It was driven by US investors here.
Again, this is not a trade recommendation.
