“For Asia macro markets, renewed confidence in China’s recovery and its positive spillovers can help to support sentiments against worries of more Fed and ECB rate hikes and higher core rates.”
On Mar 1, a flurry of activity engulfed two popular ETFs. One of these was the liquid Lion-OCBC Sec HSTECH ETF which attempts to replicate the performance of the Hang Seng TECH Index. The second ETF was the Lion-OCBC Sec China Leaders ETF.
This move may have been triggered by China’s February PMI data which points to a stronger-than-expected recovery. “Interest in the China reopening trade saw a bounce after waning in February. The renminbi rallied around 1% on March 1, and Northbound Stock Connect saw RMB7 billion ($1.3 billion) of net purchases (net sales in each of the five days prior),” notes DBS Group Research.
