Hong Kong futures snap back, SHCOMP soars on reserve cut
Hong Kong China Enterprise Futures recouped virtually all their Friday losses in the first minutes of trading Monday morning local time and the Shanghai Composite Index soared another 1.5% on top of Friday’s more than 2% rally, after China’s central bank cut bank reserve requirements, releasing up to 1.4 trillion yuan of lending capacity.
Hong Kong China Enterprise Futures fell 4% Thursday night after China restricted margin leverage, taking popular China ETF’s like FXI down with them. Asia Unhedged called it a buying opportunity. That’s our story, and we’re sticking to it.