Shanghai surges, (update)


It looks like the Chinese are intervening again. We saw the Shanghai Comp hovering around 3k earlier today and now, into the final hour of the trading, the index suddenly surges by 5%. Seems like the government chose the round 3k level as an intervention threshold and acts in the final hour to get a good close for an impression.

Hang Seng is feeling the love as well, surging out of the triangle but the resistance at 10k looks very strong.

update: there is a rumour that the Chinese A shares could be added to the MSCI indices. However, we think it’s suspicious - they were not added few months ago and they would be added now with all this uncertainty surrounding China?