$Direxion FTSE China Bear 3X(YANG.US) rose about six points, while at the same time $EFUND HKEX TECH 100 ETF(03456.HK) was falling. A leveraged tool that shorts China surged, while a long-only China tech ETF weakened, perfectly aligning in direction. This indicates that capital is bearish on China concept stocks: when Hong Kong tech stocks weaken, the short side amplifies its gains. Is this bearishness a short-term emotional release, or is it the start of a new downtrend for China concept stocks? I bet on the former—the surge in a 3x short tool is mostly driven by sentiment. China concept stock valuations are already low, leaving limited room for systematic bearishness.
PinnedOne chart to understand|E Fund HKEx Tech 100 ETF (3456) launched today!
$BABA-W(09988.HK) $TENCENT(00700.HK) $SMIC(00981.HK) $HUA HONG GRACE(01347.HK) $CATL(03750.HK) $ASMPT(00522.HK) $HORIZONROBOT-W(09660.HK) $UBTECH ROBOTICS(09880.HK) $WUXI BIO(02269.HK)











