Forex

Stock Trader Who Made 6,200% in China Isn’t Worried About Brexit

Published

8 years ago

June 23, 2016

When it comes to timing the Chinese equity market, stock trader Huang Weimin is hard to beat.

The self-taught hedge fund trader gained more than 6,200 percent by riding the boom and bust in Chinese stock-index futures last year, then returned another 60 percent in the first two months of 2016 by turning bearish before the market tumbled. As Chinese shares meandered over the past four months, he played it safe in cash.

Now, Huang says, the time is right to buy.

The Shanghai Composite Index may rally 18 percent next quarter as a delayed rule change for initial public offerings restricts the supply of shares and authorities keep the yuan stable before its official entry into a global basket of reserve currencies in October, Huang said in an interview. He expects Britain to vote against leaving the European Union on Thursday, removing the biggest international risk to asset prices. Even the unlikely event of a Brexit won’t derail the ascent of Chinese stocks, he said.

“There could be a rare rally for global risk assets across the board,” said Huang, 46, who’s now managing separate accounts for clients after liquidating his hedge fund at the end of February as part of his shift into cash. “The third quarter is very much worthy of a rebound for the market, at home and abroad.”

Huang, a virtual unknown in financial circles until last year, became a star of the Chinese futures market after his Yourong Fund surged to the top spot among 310 private funds tracked by Shenzhen Rongzhi Investment Consultant Co. in 2015. His newfound optimism is shared by a growing number of Chinese hedge funds, which are adding to equity positions even after MSCI Inc. refused to include the nation’s local shares in its benchmark indexes this month.

More than half of domestic hedge funds planned to boost stock holdings in June, compared with 4.6 percent that wanted to cut exposure, according to a survey by Shenzhen Rongzhi released June 6. More than 90 percent of the funds said the MSCI rejection won’t change the course of the market, a separate poll after the announcement showed.

Fed Risk

While Huang is turning bullish for the third quarter, he’s less positive about the end of this year and 2017. The Federal Reserve will probably increase interest rates after the U.S. presidential election in November, he said, putting pressure on stocks.

“Before the end of September, the market is in a stability-first mode,” Huang said by phone from Xiamen, in China’s southern Fujian province. “2017 can be risky, when all the support is gone.”

The Shanghai Composite is unlikely to surpass 3,430, or 30 percent above this year’s intraday low of 2,638.30, for the next two to three years, Huang said, citing comparisons with a similar period of range-bound stock movements before a 2005 reform that removed restrictions on previously untradable state-owned shares. The market may reach its high next quarter as the government stabilizes the yuan before its inclusion in the International Monetary Fund’s Special Drawing Rights, he said.

Weakness in the Chinese currency last year helped spark a $5 trillion rout in domestic shares, bringing an end to the country’s longest-ever bull market. Mainland stocks have struggled to recover since then, with the Shanghai Composite losing 18 percent this year through Wednesday.

While authorities are planning a new registration-based system for IPOs that would curb the government’s ability to control the pace of share sales, China Securities Regulatory Commission Chairman Liu Shiyu said in March that policy makers need more time to prepare the rules. More than 800 Chinese companies have applications pending for IPOs.

The nation’s top legislature has granted a two-year window to amend the IPO system, which has given the stock market a reprieve, Huang said. Once it becomes clear that a change is imminent, likely sometime next year, the Shanghai gauge could drop to as low as 2,000, Huang said. He also cited other concerns such as swelling local government debt and a growing number of defaults.

For now, though, Huang is bullish. Among his top picks are agriculture and chemical stocks, which he anticipates will benefit from a rally in commodities.

“I’m expecting some handsome profits in the third quarter.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

2 days ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

2 days ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

3 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.