But for now, with benchmark indexes stalled, a gauge of the speed of sector rotation in China’s stock market is at a record high, brokerages say. This shows stock investors are directionless and gains not sustainable.
The volatility implied by the prices of major equity options is low as investors refrain from big bets, and options pricing does not give clear signals whether investors expect shares to rise or fall, analysts said. Full-time retail investor Lu Deyong has halted trading for a week after booking profits from a frenzy in trading artificial-intelligence shares on the success of Microsoft’s ChatGPT.
Guidance from economic data is also delayed, as China tends to lump January and February numbers together to smooth out year-to-year differences in major holidays, and most companies report earnings only in March or April.The risks around Taiwan and China-U.S. relations, as well as broader risk-taking as the Federal Reserve vows to keep rates higher for longer, have stalled foreign flows into mainland stocks and bonds.