A50 surged, and the yuan soared 500 points! Chinese assets exploded in the middle of the night

China assets surge.

U.S. stocks opened slightly higher on Thursday local time, with the Dow Jones Industrial Average up 0.04%, the Nasdaq up 0.55%, and the S&P 500 up 0.31%. As of the time of writing, the Dow has turned negative, falling 0.16%.

On the employment front, the number of Americans filing for unemployment benefits for the first time last week was 221,000, compared with an estimate of 222,000 and a revised figure of 218,000 from the previous week.

The market is now waiting for the Federal Reserve's upcoming interest rate decision. The market generally expects a 25-basis-point cut, but the key lies in what policy guidance the Fed will give.

On November 7, the Bank of England announced that it would lower its base rate by 0.25 percentage points to 4.75%. In its statement, the Bank of England said that its monetary policy aims to keep inflation under control at a target of 2% and maintain economic growth and employment, and the current inflation level is gradually falling to the target level.

Hot Chinese stocks rose broadly, with the Nasdaq China Dragon Index up 3%, Pegasus Auto up more than 8%, Futu Holdings up nearly 8%, Tigris Securities up more than 7%, Neta Auto up over 4%, JD and PDD up nearly 4%.

The 3x leveraged FTSE China ETF rose more than 13%.

The iShares MSCI China ETF rose 4.2%, the iShares China Large-cap ETF rose 4.2%, and the KraneShares CSI China Internet ETF rose 3.9%.

On the exchange rate front, the offshore yuan against the U.S. dollar rose 500 points or 0.8% during the day and broke through 7.15.

Today, the futures of the FTSE China A50 index soared more than 4%. A-share markets exploded, with the Shanghai Composite Index up more than 2% and the ChiNext up nearly 4%; Hong Kong stocks also strengthened, with the Hang Seng Index and the Hang Seng Technology Index both up more than 2% in the afternoon.

Recently, as China's economic policies continue to strengthen, policy optimism has increased, and more and more foreign institutions have spoken out "bullish" on China's assets.

Moreover, not only foreign institutions are rushing to enter the market, but domestic institutions are also active. From the two-way margin balance, as of November 5, the two-way margin balance was Rmb1.74tn, continuing to climb. Among them, as one of the "wind indicators" to observe market sentiment, the financing balance increased for 14 consecutive trading days from October 14 to October 31, and slightly decreased on November 1, but increased again on November 4 and 5, reaching a new high this year on November 5, indicating that incremental funds are coming in continuously.