The property sector problem in China remains a cause for concern.
The yuan has surged to its highest level in three months, largely attributed to the weakening of the dollar. Additionally, China's decision for companies emphasizing exports to convert their dollar profits to yuan has started impacting the yuan's strength. Moreover, the People's Bank of China (PBOC) decided to maintain the benchmark loan prime rates for one year and five years.
The PBOC held the loan prime rates in November as anticipated by investors, keeping the one-year loan prime rate (LPR) at 3.45% and the five-year LPR at 4.2% for the fifth consecutive month. Consequently, the severe impact on the real estate sector has intensified, despite some government economic stimulus measures being in place.
China's ongoing economic stimulus contrasts with most central banks, as they ease monetary policies to revive a slowing economy. However, further reductions in interest rates could widen the yield gap with the United States, potentially leading to yuan depreciation and capital outflows. Some economists predict a 20-basis-point rate cut by the PBOC in the first quarter of 2024.
China's new home prices dropped by 0.1% year-on-year in October, marking the fourth consecutive monthly decline. Although the Chinese government has economic stimulus measures, they have yet to effectively address the persistent downturn in the real estate market. Prices continued to decline in Shenzhen and Guangzhou by 2.8% and 2.0%, respectively, while new home prices in Beijing increased at a slower rate of 2.1%.
Foreign Direct Investment (FDI) into China decreased by 9.4% year-on-year to 987.01 billion yuan in the first ten months of 2023. Ministry of Commerce data revealed a 15.9% reduction in FDI in the service sector to 672.10 billion yuan, while the manufacturing sector saw a 1.9% increase to 283.44 billion yuan. Notably, investments surged in high-tech manufacturing by 9.5% and electronic equipment manufacturing by 14.8%. Increased investments came prominently from Canada (110.3%), the United Kingdom (94.6%), France (90.0%), Switzerland (66.1%), and the Netherlands (33.0%).
Techical analysis data (5H)
Resistance: 7.1440, 7.1486, 7.1551
Support: 7.1329, 7.1264, 7.1218
Pivot Points November 21, 2023 04:27 PM GMT+7
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
| Classic | 7.1218 | 7.1264 | 7.1329 | 7.1375 | 7.1440 | 7.1486 | 7.1551 |
| Fibonacci | 7.1264 | 7.1306 | 7.1333 | 7.1375 | 7.1417 | 7.1444 | 7.1486 |
| Camarilla | 7.1363 | 7.1374 | 7.1384 | 7.1375 | 7.1404 | 7.1414 | 7.1425 |
| Woodie's | 7.1228 | 7.1269 | 7.1339 | 7.1380 | 7.1450 | 7.1491 | 7.1561 |
| DeMark's | - | - | 7.1297 | 7.1359 | 7.1407 | - | - |
Buy/Long 1: If the price touches support in the price range of 7.1264 - 7.1329 but cannot break the support at 7.1329, you may set a TP at approximately 7.1486 and SL at around 7.1218 or according to your acceptable risk.
Buy/Long 2: If the price breaks the resistance in the price range of 7.1440 - 7.1486, you may set a TP at approximately 7.1551 and SL at around 7.1264 or according to your acceptable risk.
Sell/Short 1: If the price touches resistance in the price range of 7.1440 - 7.1486 but cannot break the resistance at 7.1440, you may set a TP at approximately 7.1264 and SL at around 7.1551 or according to your acceptable risk.
Sell/Short 2: If the price breaks the support in the price range of 7.1264 - 7.1329, you may set a TP at approximately 7.1218 and SL at around 7.1486 or according to your acceptable risk.
Technical Indicators November 21, 2023 04:27 PM GMT+7
| Name | Value | Action |
| RSI(14) | 11.367 | Oversold |
| STOCH(9,6) | 20.594 | Sell |
| STOCHRSI(14) | 0.000 | Oversold |
| MACD(12,26) | -0.034 | Sell |
| ADX(14) | 65.585 | Sell |
| Williams %R | -96.465 | Oversold |
| CCI(14) | -136.1309 | Sell |
| ATR(14) | 0.0140 | High Volatility |
| Highs/Lows(14) | -0.0614 | Sell |
| Ultimate Oscillator | 26.593 | Oversold |
| ROC | -1.654 | Sell |
| Bull/Bear Power(13) | -0.1040 | Sell |
|
Buy:0 Sell:7 Neutral:0 Summary:Strong Sell |
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