As I outlined yesterday, China hasn't done enough to crank up its real economy and that's led to some heavy selling in Chinese equities. The question is: Will more fiscal stimulus come?
The answer might come Saturday.
Chinese Finance Minister Lan Fo'an is set to hold a press conference on Saturday at 10 am local time to discuss the country's plans for intensifying countercyclical adjustments to its fiscal policy, according to an invitation sent to media. It says the briefing aims to outline strategies for promoting high-quality economic development.
The 'high-quality' part may argue against broader stimulus and a real shift in sentiment but that might be overthinking it.
Technically, I think the Hang Seng is probably the best chart to use because it was open last week. It bounced today from the 50% retracement and that's about where China ETFs are as well, like MCHI.
The bulls may try to nibble here as anticipation ahead of Saturday builds.
