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Monday 29 June 2015

Feng Shui and China Stock Market 2015

Good Feng Shui year for Chinese Stocks in 2015


2015 has proven to be a good Feng Shui year for China stock market so far.  Despite the recent sharp correction, the Shanghai Composite Index has registered more than 100% return so far in 2015.  Why has Chinese equities performed so well this year?  Ever since the steep slow down in the economy a few years ago, the Chinese government has been trying to revive the sentiment in the stock market to steer investment away from the overheated property market  as a mean to provide a much needed wealth effect to boost consumption as well as giving over-leveraged corporates to issue stock to deleverage their balance sheets.  These efforts have been in vain till the recent run up in stocks which began in late 2014.  It seems that the timing of this hugely impressive run-up in the stock market coincides with the auspicious flying stars which visit China in 2015!

Based on Flying Star Feng Shui, the annual flying star which visits the Northeast (where China is located on World Map) in 2015 is the metal star No 6. This star is a wealth star and the metallic element symbolizes wealth in the financial sector. This is in sharp contrast to the year 2014 when the flying star which visited China is the inauspicious Star No 7 which symbolizes political dispute, robbery, violence, and legal entanglement.  Please see my post on Feng Shui and Stock Market Forecast 2014.
Based on the Bagua (Pa kua), the original residing star in Northeast is Star No 8 of the Earth element which is the most auspicious star in this Period. Moreover, the period flying star in Northeast is Star No 2, also of the Earth element.

Based on the Five Element Interaction theory, Earth produces or enhances Metal. The Earth elements of Star No 2 and No 8 will enhance the auspicious metallic element of Star No 6, boosting the financial wealth effect brought on by this star in 2015.  No wonder China stock markets performed so well early this year!

Feng Shui on Reminbi's inclusion into SDR, MSCI Index, and AIIB


Three financial events related to China this year are worth mentioning here. First, the Chinese government has been lobbying hard to get China stocks included in the MSCI indices (so far they have only been  included in FTSE indices). Second, they are also trying to get into their Renminbi currency to be included into the IMF's Special Drawing Rights (SDR) basket. Both efforts have so far been in vain. The third push is to propose the launch of the Asian Infrastructure Investment Fund (AIIB). Their success in luring several western countries to join the programme has boosted its international standing in the financial and economic arena.

The strong push by the Chinese government to boost its status in the financial (investment) arena should not surprise any investors who are familiar with the Flying Star School of Feng Shui. The annual flying star No 6 symbolizes financial wealth and status. In 2015, this star visits the Northeast.

The follow up question now is: will China succeed in having its currency included into SDR and will their stocks be included into MSCI indices? Both are difficult questions to answer and there are so many factors influencing its outcome. But suffice to say, China is enjoying the Feng Shui tailwind on their back. If they are going to be successful, then the months of August , September and November will be crucial from the Feng Shui point of view.

In August, the monthly flying star that will come into play is Star No 2. This star is of the Earth element which will enhance the metallic element of the financial Star No 6.

In September, Star No 1 comes into play and the combination of Star No 1 and No 6   is an auspicious combination symbolizes financial achievement or status. Thus, September is probably the best month for China's twin push for its currency and stocks.

In November,Star No 8 comes into play and the Earth element of highly auspicious star will further enhance Star No 6.

Nothing will happen in July, and October and December are unlikely as well.  But January 2016 is also a possibility as the monthly flying star is also Star No 6, forming 6-6 combination, highly auspicious for financial pursuits.

Investors should await exciting events to unfold in 2H 2015!