In 8 Days Time $15 Billion Could Be Added To Chinese Stocks

MSCI announced plans to increase weightings of Chinese A shares in a 3 steps process that will begin on 28 May and the change will happen in 10 days time. On 28 May the weighting will double to a 1.8% up from the current weighting of 0.9%. This shift will cause billions to be added to the China A share and we are talking about $15 billion of new money. 

you are probably wondering.....the Chinese Stocks are  free falling from the renewed escalation of the US-China trade war. How can the Chinese stocks be going up?

Yes the current negative headwind will continue to weight on stocks but Sifu believe that Trump wants a strong market and needs to reach a deal with China eventually to achieve his re-election goals.

Watch the market as it approaches the 28 May deadline, Sifu expects a strong rebound as the market sentinments shifts towards the positive impact  of new money coming into the chinese market. 

Of course Sifu is not intending to hold Chinese Stocks for indefinitely as  long as the headwind of trade war continues to take centrestage, only suggesting there is a good probably of a rebound when we approach nearer to 28 May. Happy Trading and Happy Vesak Day

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