Nasdaq Golden Dragon China Index rises over 1.7% at one point

Nasdaq Golden Dragon China Index rises over 1.7% at one point

The Nasdaq Golden Dragon China Index (NDXG) surged over 1.7% at one point on August 18, 2023, marking a significant increase amidst broader market fluctuations. This upward movement was driven by substantial gains in Chinese tech stocks, particularly iQiyi and Xunlei, which saw increases of over 20% and nearly 20% respectively. The index's performance comes on the heels of a robust showing in recent days, with the Shanghai Composite Index reaching a 10-year high and the total market capitalization of A-shares surpassing 100 trillion yuan for the first time [1].

The strong performance of Chinese stocks reflects growing global interest in Chinese assets. However, the cryptocurrency market experienced a significant downturn, with Bitcoin falling below $115,000 and over $500 million in liquidations, affecting digital asset-related stocks [1]. This volatility highlights the risk associated with cryptocurrencies and their impact on related markets.

Looking ahead, the global financial market is closely watching the Jackson Hole Symposium, where Federal Reserve Chairman Jerome Powell is scheduled to speak on August 22. Market expectations are high that the Federal Reserve will cut interest rates by 25 basis points at its September meeting, with a 92% probability according to rate swap traders. This anticipated rate cut is seen as a response to recent economic data and a means to support continued growth in the U.S. economy [1].

On August 19, the Nasdaq Golden Dragon China Index fell 0.90%, with mixed performance among Chinese concept stocks. XPeng Motors rose 4.30%, while NIO increased by 4.00%. However, TSMC fell by 3.58%, and JD.com decreased by 1.67%. Other notable movements included Pinduoduo rising by 0.62%, and Baidu dropping 1.18% [2].

Despite the mixed performance of Chinese concept stocks, the overall market sentiment remains positive, driven by the growing interest in Chinese assets and the anticipation of economic support from the Federal Reserve. Investors should closely monitor the upcoming Jackson Hole Symposium and the potential impact of interest rate cuts on global markets.

References:
[1] https://www.ainvest.com/news/chinese-stocks-surge-1-nasdaq-golden-dragon-china-index-jumps-1-2-2508/
[2] https://www.ainvest.com/news/chinese-concept-stocks-nio-xpeng-surge-nasdaq-golden-dragon-index-dip-2508/