Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
Big day on Chinese markets as A50 heads back towards 200 day moving average.
00:00, 09 September 2013
The China A50 cash index is currently up 5% on Friday's close. Bank shares have risen sharply on media reports that authorities have held discussions on a pilot program that would allow banks to raise capital by issuing preference shares. This news comes on top of the weekend announcement of a 7% gain in export orders during August. The index is now getting into the range of its 200 day moving average. Tomorrow's data on China's retail sales, industrial production and fixed asset investment might determine if the index can break through this index indicating more potential upside or if the 200 sma will prove to be overhead resistance.