US President Donald Trump had criticised China for not taking action against North Korea despite saying that the latter opposes North Korea’s nuclear tests and missile launches.
But on Monday (14 August), China’s Ministry of Commerce officially announced a ban on iron, lead and coal imports from North Korea. Such a move should be able to bring Kum Jong-un’s madness under control to some degree and ease the North Korea situation slightly.
With the ban on North Korean iron, lead, and coal imports, there may be a reason to speculate on resource stocks again.
About market correction
Previously, I have mentioned that the main reason for the current round of market correction that we are seeing is that the stock market had been rising for quite a long time and had accumulated substantial paper profits.
It has reached such a point that investors choose to sell and lock in profits at the sight of the slightest turbulence, even if they might be selling too early. For the time being, we see a lot of intraday transactions.
Looking forward to Tencent’s results
Tencent Holdings Ltd (700.HK) is about to announce its results, but it is hard to guess how its stock will perform post-results. It’s a good thing that the market corrected last week. If it continues to be driven up by speculation, investors will be pressured to dump their stocks upon the announcement of good results.
Many have bought Tencent shares and sold them, which all the more made me believe that Tencent is a superstock. Let’s hope that Tencent won’t let us down. In fact, Tencent had led the rise of the market on Monday, and thus, institutional investors place high hopes on it.
Will Hang Seng Bank bring good news?
Japan stocks fell on Monday despite the generally good performance across the Asia-Pacific stock market. Japan was having a holiday last Friday, and Japan stocks fell later on Monday.
Meanwhile, the Hang Seng Index rose on Monday, but not enough to make up for its losses last Friday. That shows that adjustment pressures have yet to disappear. If adjustment pressures have disappeared, Japan stocks would not have fallen by 0.98 percent (which was not a small decline) on Monday.
Hang Seng Bank (011.HK) has shown the best performance recently, demonstrating very strong resilience. As Hang Seng Bank had already announced its results previously, I believe that the recent rise of its stock is not due to results-related speculation.
So, what exactly is the reason behind the speculation, then?
Is there any potential good news awaiting announcement? If blue chip stocks can rise against the market, it is certainly not something that ordinary market manipulators can achieve. Therefore, I believe that there will be good news worth anticipating.
This article was translated from Chinese to English by Chen Xushuang. Click here to read the original article.