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Global Financial Market Earthquake, Chinese Assets Soar Against the Trend

On October 1, 2024, the global financial market suddenly experienced a violent shock. Stock markets in Europe and America plummeted collectively, and the digital currency market was in utter despair. However, who could have imagined that Chinese assets would rise against the trend in this financial storm, leaving people stunned! What exactly happened?

The stock markets in Europe and America continued to decline, and the digital currency market was in a state of chaos.

On October 1, the stock markets in Europe and America were like drunkards, staggering in all directions. The three major U.S. stock indices all fell, with the Dow Jones index down by 0.41%, the S&P 500 index down by 0.93%, and the Nasdaq Composite Index down by 1.53%. The European stock markets were not much better, with the German DAX index down by 0.58% and the French CAC40 index down by 0.81%. These numbers may not seem too terrifying, but you must remember that these are some of the most important stock market indices in the world!

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The digital currency market was even worse, a complete disaster. Bitcoin fell to around $60,000, and Ethereum's daily drop exceeded 5%. The most tragic part was that more than 150,000 people's positions were liquidated within 24 hours! What a concept! It's as if 150,000 people lost all their money in a single day! It's heartbreaking to think about.

So, why did this happen? It is said to be mainly due to the escalation of the situation in the Middle East and the increased uncertainty of the global economy. However, this explanation always seems to be lacking, after all, the situation in the Middle East is not a new issue, so why did it happen precisely on this day?

Chinese concept stocks take off against the trend, and international investment institutions are optimistic.

Just when the stock markets in Europe and America and the digital currency market were crying out for help, Chinese assets suddenly began to rise against the trend. The NASDAQ Golden Dragon China Index rose by more than 5%, as if it had taken off like a rocket!When it comes to individual stocks, the situation is even more exaggerated. Beike jumped by 17.43%, Bilibili rose by 14.33%, Futu Holdings increased by 12.43%, and Li Auto climbed by 11.50%. Even the usually inconspicuous Pinduoduo, JD.com, and Alibaba also saw respective increases of 8.03%, 7.33%, and 6.24%. These gains are simply more intense than taking a stimulant!

What's more interesting is that international investment institutions have also begun to change their attitudes towards Chinese assets. BlackRock has upgraded its rating on Chinese stocks from neutral to overweight, Abrdn has started selectively purchasing Chinese stocks, and Goldman Sachs has raised its target prices for Chinese e-commerce stocks. These big players' attitude shifts make one wonder: Do they know some insider information?

Why are Chinese assets rising against the trend? Experts are baffled.

Faced with this bizarre market trend, even experts are scratching their heads. Some say it's due to adjustments in China's economic policies, but they can't specify what exactly has been adjusted. Others argue that Chinese assets have been undervalued for too long and are now finally returning to their value, but this argument seems too general.

Some also presented a set of data: the combined market value of China's three major e-commerce stocks (Alibaba, Pinduoduo, JD.com) is only a quarter of Amazon's. This comparison is indeed astonishing, but can it explain this counter-trend rise? It still feels a bit lacking.

In fact, the most puzzling thing is why Chinese assets perform so well precisely when the global market is turbulent. Has the Chinese economy become completely independent of the global economy? This statement sounds too exaggerated.

What will the future market trend be? Opinions are divided.

So, what will the market do next? Opinions and views from various experts and investors are diverse.

Some believe that this is just a short-term rebound and the market will soon return to rationality. They think that the fundamentals of Chinese assets have not undergone any fundamental changes, and this rise is more due to fluctuations in investor sentiment.Some people believe that this could be a turning point, signifying a fundamental shift in the attitude of global investors towards Chinese assets. They argue that as China's economic policies are adjusted and reforms deepen, the value of Chinese assets will increasingly gain recognition.

Others, however, adopt a more cautious stance. They think it is too early to draw conclusions and that more time and data are needed to verify whether this upturn is sustainable.