China KISS

(Keep It Simple Shrub)

Back in January 2024, the Chinese Stock Market was getting destroyed and it was a very lonely time to be buying Chinese Stocks. Thankfully, we figured out the Reaction Function of the Chinese Policy Makers (aka the Chinese Tamagotchi), which ended up being as simple as this:

“ HSI = 15,000 —> ACT!!!”

i.e. the HSI Index below the 15,000 level was the Chinese Policy Makers’ pain threshold which triggered them to do “stuff” and defend that “Red Line”. And “stuff” they did: They cut the RRP and they launched Stock Market rescue programmes, such as not allowing some funds to sell - those “evil sellers” had it coming (We wrote about it here: "To Stop Falling Chopsticks, you need a Tamagotchi")

We enjoyed a nice 30% rally in the HSI. We gave thanks.