(Bloomberg) -- Chinese stocks are having a stunning week with the Hang Seng Index on track for its best week since 2011.

The Hang Seng Index is up almost 10%, driven by strong US earnings and a string of positive local narratives including Tencent’s gaming approvals, bond extensions for Chinese developers, and persistent Stocks Connect inflows given easing ETF rules.

HSI is rising on higher volume as the index crosses above the 200-DMA, a very bullish sign showing underlying strength.

Southbound Stocks Connect sees 20 straight days of inflows.

HSTECH’s outperformance against Nasdaq 100 this week is the biggest since China reopening in late 2022

MSCI China is nearly 20% higher since January bottom

NOTE: Ernest Tsang is a markets producer for Bloomberg TV. The observations are his own and not intended as investment advice. For more markets analysis, see the MLIV blog.

--With assistance from David Ingles.

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