The highest market-cap stocks in the US, Hong Kong, and A-share markets: $Apple (AAPL.US)$Down 21.55% year-to-date, $TENCENT (00700.HK)$Down 21.37% cumulatively, $Kweichow Moutai (600519.SH)$Only slightly down 0.50% year-to-date.
Since the beginning of this year, Guizhou Maotai has been heavily bought by northbound funds, showing a reversal in performance, while Apple has retreated significantly under the pressure of US interest rate hikes on the stock market, and Tencent has also been hit by the reduction of its stake by Naspers, which needs to cash out to revitalize other loss-making investments.
These subtle signs indicate that Chinese assets are starting to gain favor with international capital, as evidenced by Guizhou Maotai's recent frequent acquisition by southbound funds, and also by the fact that Tencent’s major shareholder had to reduce its stake to sustain other investments, showing the strong appreciation potential of Chinese assets. No wonder some Wall Street giants suggest that Chinese stocks may become a safe haven.
As the saying goes, 'The wheel of fortune turns,' when will it be A-shares and Hong Kong stocks' turn? It's coming soon.
The sun rises in the east while it rains in the west
Half of 2022 has already passed, with the first half of the year seeing significant turbulence in global capital markets. The main issues remain inflation, supply chains, and geopolitics.
The inflation problem in Europe and the US can no longer be taken lightly. With the persistent widening gap in energy and food supply and demand, both the US and Europe have witnessed a steady rise in inflation rates.
The three factors of inflation, supply chain, and geopolitics are intertwined, and it seems that no way out has been found yet: Geopolitical tensions, through supply and transportation...