Standard Chartered Bank Eyes HSI 28,000 This Year

The HSI CBBC ratio last Thursday was 61:39. Although the biggest volume of HSI CBBC is still the callable bull contracts callable at 22,700 level, it is unlikely the market will go south to eliminate them. Instead, having breached 23,350, Hong Kong analysts and brokers are expecting the HSI to test 23,500 and then the year-to-date high at 23,945. Around 50% of all HSI callable bear contracts callable between 23,200 and 23,500 are distributed between 23,200 and 23,600, and this morning's rally to 23,512 has already elimanted nearly 40% of the bear contracts. The market will likely go further north to kill more bear contracts.

(Hong Kong and Shanghai time: 11:30 am Monday, May 20, Report by CSV)