The Chinese markets rallied with strength yesterday after an agreement was reached between the Chinese and Hong Kong regulators to allow greater freedom between investors domiciled in these countries to take part trade in each other share markets. Under the scheme Chinese mainland investors will now be able to trade up to $1.7 billion a day in Hong Kong equities, while investors with a Hong Kong broker account will be able to trade in the CSI 300. Expect the Hang Seng and H-shares index to do nicely out of this deal, especially as the turnover and liquidity should improve significantly. Once again, China is highlighting it is committed to accelerating the pace of capital account liberalisation and the 3% level of foreign ownership in its domestic market should increase significantly over the next five years or so.

Chris Weston

CSI 300 - short term looks good, having rallied 9.4% since March 21. Momentum and trend indicators on daily looks constructive and the index held the 76.4% retrace of 2331 to 2077 move. I'd be a buyer of pullbacks if I could, but we cant trade this market...A50 cash is best option...this is the top 50 mainland companies, but futures trade in Singapore.. the correlation between the two is high

Canaccord Colts

That's interesting Chris - how does the SSEC chart look to you technically at the moment?