The technical situation of the CSI 300 index (one of the Chinese stock market’s benchmark indices) looks intriguing.
Copyright DMF New Media – ETFWorld.co.uk
Reproduction prohibited in any form, even partial
The quotations, while remaining within a solid medium-term bearish trend, have recently tested important support zones, the holding of which could favour the construction of a solid accumulation base and create the premises for a rise of a certain consistency.
In fact, the Chinese index fell as low as 3,700 points before starting a fast recovery, fuelled by strong short term overselling, which brought prices back above 3,900.
A first demonstration of strength will come with a return above 4,050 points even if, from a graphical point of view, only the breakout of the resistance located in the 4,170-4,815 points area could provoke a bullish trend reversal and open up interesting areas of growth.
Click on the image to enlarge it.
On the other hand, a descent below 3,670 points would be dangerous, as it could trigger a rapid decline towards the next graphic support positioned in the 3,535-3,500 points area (an area that coincides with the lows reached at the end of October 2022).
Click on the image to enlarge it.
The following ETFs can be used to invest in the Chinese stock market:
Franklin FTSE China, ISIN IE00BHZRR147. It is an ETF with €243m in assets under management, which provides physical replication of the underlying AND which adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.19% per annum.
Xtrackers Ftse China 50, ISIN LU0292109856. This ETF has €101m in assets under management, physical replication of the underlying and adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.60% per annum.
HSBC MSCI China, ISIN IE0007P4PBU1. This ETF has €59m in assets under management, physical replication of the underlying (via a swap) and adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.30% per annum.
Copyright DMF New Media – ETFWorld.co.uk
Reproduction prohibited in any form, even partial
Disclaimer
The contents of these notes and the opinions expressed should in no way be regarded as an invitation to invest. The analyses do not constitute a solicitation to buy or sell any financial instrument.The purpose of these notes is financial analysis and investment research. Where recommendations are made, they are of a general nature, are addressed to an indistinct audience and lack the element of personalisation. Although the result of extensive analysis, the information contained in these notes may contain errors. Under no circumstances can the authors be held liable for any choices made by readers on the basis of such erroneous information.erroneous information. Anyone deciding to carry out any financial transaction on the basis of the information contained in the site does so assuming full responsibility.
Subscribe to Our Newsletter
