$恒生指数(HSI)$ Hang Seng spot tried desperately trying to hold onto 25,700 and was momentarily above 25,830 before going down to as low as 25,348 in the morning session. By morning close, Hang Seng spot is around 25,420 and the support of 25,000 prove particularly important now.
Like what I had mentioned on 7 August 2021 in the article "7 August 2021: Quick Thoughts on recent Chinese policies actions", China's authorities thinking is both on the scientific and philosophical level. You may wish to read the article, of which the link is as follows:-
https://www.laohu8.com/post/891306142
Readers should also recall on this Monday, 16 August 2021 that I cautioned myself not to take big positions in Chinese stocks. If I am to take positions, it will be small bites in addition to my existing positions. Again, I have taken on small position in $小米集团-W(01810)$ in addition to my existing big block of Xiaomi shares. I have nevertheless cautioned in the price structure of Xiaomi that despite its price resilience, it too cannot "escape" when the other chinese stocks are coming down fiercely. I remain cautiously optimistic of long term future of Xiaomi. Its results will be relreased on 25 August 2021. Readers should note that Xiaomi is not $腾讯控股(00700)$ Tencent. Tencent had released a decent set of results yesterday but it had cautioned that the implementation of new regulations of internet industry is not over. Needless to say, Tencent's share price came down as low as 433 HKD. I will not be surprised if its price came down to 330 to 360 HKD like what I had mentioned before should it not hold onto its current price level.
$阿里巴巴(BABA)$ I have also cautioned about not loading Alibaba shares, which again come under pressure last night in US trading time. The next support level is 160 to 165 USD and should it not hold this level, it too will be down for another leg down ugily to 140 to 150 USD price range. Readers should note that long term investors who currently do not have any equity positions may have a different operation compared to that of parties who already have significant equity positions. For me, I have a decent equity position portfolio but have cash on the sideline so my operation approach is to take small additional position. Considering my thesis that Alibaba may be under more price pressure, I do not intend to own any Alibaba shares in the short to medium timeframe. I would rather buy other chinese companies shares if I do want to acquire position in CHinese shares, for instance I have acquired more and more Xiaomi shares.
For Shanghai and Shenzhen indexes, these two indexes are still a few percentage points above the near term support and I will not be surprised that it would thread closer to these support levels though I do hope that they can hold at this level so that the impact on Hang Seng will be lowered.. Hang Seng suffered from both the US and Chinese markets influences, which are just too bad for market recent concerns of the asset tapering.. Readers should note that I have a short term view of copper and WTI oil, which should see them hitting 4 USD and 50 to 55 USD, respectively.
A quick recap of some falling Hong Kong share prices today is shown in the snapshot above. This is really not the time to go ALL IN into big cap Chinese tech stocks $美团-W(03690)$ . Well i am fine to add on more positions in Xiaomi though despite its price correction. Readers should read my investment thesis on Xiaomi if you are keen to monitor Xiaomi further.
As always, the above should not be construed as any investment or trading advice.
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