Nobody Owns Enough China

China tech indices like KWEB and ChiNext are breaking through major resistance levels amid light investor positioning. The report suggests a constructive tactical setup ahead of a mid-May Trump-Xi meeting with significant upside potential.

Key Takeaways

• 1.China tech indices (KWEB and ChiNext) are breaking above significant historical resistance levels and 50-day moving averages.
• 2.Market positioning in China remains light despite the recent aggressive price action, suggesting potential for a continued squeeze.
• 3.A tactical tailwind exists ahead of an expected meeting between Trump and Xi in mid-May, creating an asymmetric risk/reward to the upside.

Table of Contents

• Nobody Owns Enough China
• Massive in KWEB
• Catch up
• The setup
• ChiNext
• Upside convexity

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