Disclaimer: The contents are for general opinions and do not constitute any investment advice. All remarks are solely for your information purpose and should be treated as education only. Trading and investment involving monetary fund carry RISK.
The National Security Law on Hong Kong
On 21 May 2020, this would become the memorable day for China as the Beijing Government announced a draft national security law to be imposed on Hong Kong. On 28 May, this draft was approved and will be implemented before year-end. The law is aimed at prohibiting secession, subversion of state power, terrorism activities and foreign interference.
Obviously, the U.S. officials and Congress reacted in anger and criticized the move by Chinese Government. On 27 May, Secretary of State Pompeo has declared Hong Kong to lose its autonomous status form China and new sanction will be imposed against the island.
Hong Kong has been a British colony for 99 years and was returned to China in 1997. Since then, China has promised to let Hong Kong be a self-regulating administrative state under the "One country; Two system" policy for 50 years. In other words, Hong Kong is permitted to have its legal and financial structure on its own that is totally different from China.
Many European and American institutions have been grounded on Hong Kong since the autonomous ruling system and benefiting in many ways when they dealt with the Chinese monies. Practically, Hong Kong is the gateway for the super rich families and high net worth individuals to move their humongous funds to-and-fro the banks setting onshore Hong Kong.
Besides the fact that the highest court in Hong Kong is sat mainly by foreign judges, literally 15 foreigners out of 23 other judges, Hong Kong is also the notorious "Casablanca" of the East with at least 5 intelligence agencies operated by the Western forces. Ironically, China has no mainland security and intelligence agencies in Hong Kong; furthermore with no enforcement power in the city!
It is believed the Hong Kong Central protest erupted in 2014 and the recent student protest in 2019 were implicated by foreign intelligence forces. Supply of funds, militia explosives, resources are all sustained by foreign forces when Hong Kong itself has not military departments for such instruments.
As the China is imposing the new security law before year-end and taking back Hong Kong into full ruling order, what we could expect next is the flee of foreign funds and high net worth monies from the island. However, the country might attain peace and orderly growth in long-term economic growth.
Despite the sanction and marginalization of Hong Kong by U.S. Congress, it is still questionable by many men in the streets on why American Government has to bother about Hong Kong status when the Parent nation takes charge of their own administrative land. Anyway, to keep the story short, we foresee the global and western funds will return to Hong Kong in less than 3 years since the capital market has always yield high returns in investment opportunities!
With RMB and HKD both in strong growth and positive interest rates, it won't be too long for investors to realize that monies from negative interest rate countries always flee to the fast growing nations with positive yields in banks!
The U.S. stimulus worth USD1.9 Trillion has been approved by the House and waiting to be signed into law by President Biden. Target timeline to complete the signatory on the dotted line is today, 14 March 2021. That also means President Biden has to execute his pen power in order to continue the issuance of unemployment benefits to low-income Americans after the expiry date. Last week, Dow Jones market clocked the historical fresh high again on Wednesday when it closed at 32,297 points. The worries on inflation pressure as an eye-washer to long traders have become a bear-trap. Sometime back, we have mentioned in this snippet on the ironical sarcasm of inflation in U.S. economy while so many Americans are cash-strapped due to loss of jobs. Since we are expecting the U.S. stimulus to be rolled out in March, the expanse of this public fund will be able to last for estimate 5-6 months. Practically, we expect the inflation will build up at strongest level sometime in mid-April to end
Hello everyone. It’s a bit late to do analysis for trading today. Here is my analysis support and resistant guide for your. FUTU support level is 123 now. Please take note. It must close above 126, then, you can continue to hold. Otherwise, your sell some profit first. To average down your cost. Once the price breakdown 123, will look for the support at 116. If the price breakup 126 and we can continue to hold. I will give your future resistant. TESLA for short trade, it went to above 600 and drop again. It still look’s good. If not breakdown to 550 again. We still look for TESLA sideway between 550~600 for the next 3 to 5 trading days. APPLE, no matter how still at the normal price range movement. Support at 122, resistant at 128. I dont think it breakdown 120 yet. Still can hold for long term. NIO looks went to 34.9 and drop again. If it hit 32 and not breakdown, it can hold for long term. It look’s good for NIO. Dont need to worry too much. Anyway, market movement we cant predic
After the price movement and Q1 2021 Financial report, FUTU Just hit above 130 yesterday premarket. So, I provide 120 as support level. Because the prive movement, the market support level is up. Once breakdown 124, i suggest take profit first. 130 still today’s resistant. Once can stay above 130, we look for next higher resisant at 140.If the price breakdown below 120, please do not buy as low first. Next support level at 112. Good Luck.