CSI 300 – The economy continues to signal strenght

The CSI 300 index closed the fourth consecutive session in positive territory, with an increase of 1.3%. At this rate, December could become the third positive month in a row, the sixth of the last seven.

The year-to-date performance for a euro investor is close to + 20%.

China’s economy is now providing indications of strength on all fronts, both economic and financial at a daily rate.

The large international banks that took care of the secondary placement of Chinese companies already listed on the domestic market during the year will close 2020 with approximately 1.73 billion dollars in commissions, more than double compared to 2019 and very close to the 2010 record.

China's oil demand could peak at 740 million tons per year in 2025 before gradually falling to 310 million tons per year by 2050 due to the carbon-neutral scenario. This is indicated by the latest report of the CNPC (China National Petroleum Corporation) economics and technology research institute.

China's refining capacity could grow to 1 billion tons per year by 2025.

Oil demand grew an average of 6% annually from 1990 to 2019, but growth slowed to 3.7% annually from 2016 to 2020.

Demand for diesel, gasoline and kerosene could reach a combined peak of 380 million tons by 2025 and drop to 250 million tons by 2050.

Finally, demand for petrochemicals will account for 37.3% of total oil demand by 2050, up from 18.7% in 2020.

Technical analysis

The CSI 300 index has neatly consolidated the rally initiated by the lows of last spring and is now showing renewed signs of strength. The violation of the upper part of the channel highlighted below should favour an extension towards historic highs of 2015 in the area of ​​5,380 points.

From an operational standpoint, it’s possible to accompany the rise with purchases on strength and by taking advantage of any pullback up to 4,700/4,500 points with purchases on weakness. Alert in case of return below 4.400 points.