Readiness to sell Chinese stocks rises
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01 June 2015
Posted in
Special research
At high speed the sentix Strategic Bias currently falls for Chinese mainland stocks. The indicator stands for investors’ basic conviction for a market. Its sharp decline signals that a substantial readiness to sell has now emerged for Chinese equities.
With the strong correction of the Chinese leading index CSI 300 last Thursday not only (short-term oriented) investors’ sentiment has fallen markedly. Also, market participants’ medium-term perspectives for Chinese shares deteriorate sig-nificantly. This is what the sentix Strategic Bias for the CSI 300 shows which was polled via the latest sentix Global Investor Survey. Statistical analyses prove that this indicator points in a highly reliable manner to the basic direction of a market. As it recedes strongly this week, it now signals a heightened readiness to sell among investors.
The overall picture for China stocks thus gets cloudy from a sentiment point of view. What sticks out positively is that investors now should definitely have got a sense for the extreme developments at the Chinese equity market. And the chart-technical side remains – despite the high volatility – constructive for the CSI 300. Below 4,800 points this assessment would change, though, and the observable high readiness to sell would then probably take its toll.
