Why China A-share Lagged Hong Kong Recently?
Also thoughts on Ant Group, Alibaba and New Oriental
Key Takeaways
Domestic investors continue to be disappointed by the delayed interest rate cuts in China.
Given the strong recovery in new loans, PBoC is poised to initiate more rate cuts. China A-shares will eventually catch up with Hong Kong stocks.
For high dividend yield stocks, the A-shares will trade very differently from the H-shares given the difference in risk free rates.
Don’t give up hope on Ant Group yet. I still believe China need a solution to the delayed IPO asap. Just that it won’t as simple as what the media portrayed.
The live-streaming sales event of New Oriental was impressive. Some of the video clips went completely viral this weekend. However, this is not enough for a successful turnaround of the company.
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