China’s Hang Seng Index has formed a bullish breakout in September. The monthly candle looks very bullish, and I think there is still a lot more upside over the next few years. The Hang Seng Index could rally 200% higher, and many Chinese stocks could provide 200-600% returns from current price levels. While Chinese stocks have started to rally, some investors are also taking this as a warning sign because of China’s decision to provide economic stimulus. They believe this is a red flag that there are some underlying economic problems that could trigger a global recession. So it is still important to be cautious and pay attention to the economic data over the next few months.
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