Something very strange is happening in global markets and in particular one key eurodollar signal that hardly anyone pays much attention to. Everywhere you look, investors are acting like the party is back on. U.S. stocks are surging. Tech stocks are ripping. Semiconductors are 1999-ing it right now. But then there is Hong Kong. Its main stock index, the Hang Seng is not joining the celebration. It’s going in the opposite direction and has for some time now. That’s big because HK is a major Asian money center for not just mainland China. Eurodollar University&#x27;s Money &amp; Macro Analysis ---------------------------------------------------------------------------------- What if your gold could actually pay you every month… in MORE gold? That’s exactly what Monetary Metals does. You still own your gold, fully insured in your name, but instead of sitting idle, it earns real yield paid in physical gold. No selling. No trading. Just more gold every month. Check it out here: https://monetary-metals.com/snider ---------------------------------------------------------------------------------- Webinar June 2026: Why Smart Investors Keep Missing Every Major Economic Turning Point It isn&#x27;t that they&#x27;re buying the wrong assets. They&#x27;re using a broken map of the monetary system — and getting it wrong leads to catastrophic decisions. Let&#x27;s fix that. Sunday, June 28 @ 5:30pm ET. Sign up below. https://webinar.eurodollar-university.com/home ---------------------------------------------------------------------------------- China’s $300 Billion Pile of Bad Consumer Debt Threatens Economy https://www.bloomberg.com/news/articles/2026-06-17/china-s-economy-recovery-threatened-by-300-billion-in-bad-consumer-debt China’s Tilt to Bonds From Loans Gives PBOC Broader Easing Tool https://www.bloomberg.com/news/articles/2026-06-18/china-s-tilt-to-bonds-from-loans-gives-pboc-broader-easing-tool https://www.eurodollar.university Twitter: https://twitter.com/JeffSnider_EDU I’ll also be active on Bravais Social - a new AI-centered social network designed for professionals and knowledge workers. The platform aims to bring together a wider range of tools and functionalities tailored specifically for professional interaction, research, and knowledge exchange in one place. You can find me here: https://bravais.social/profile/edu

A Rare Eurodollar Warning Signal Just EXPLODED

Eurodollar University

# Full Transcript

**Podcast:** Eurodollar University

## Participants

- **Jeff Snider** (None)

## Transcript

Something very strange is happening in global financial markets, and in particular, to one key Eurodollar signal that nobody pays attention to. Everywhere else, investors are acting like the party is right back on. U.S. stocks are surging, tech is soaring, semiconductors are vertical. But then there's Hong Kong. Its main stock market index, the Hang Seng, is not joining in the celebration. In fact, it's going in the opposite direction.

And that's important because Hong Kong and the Hang Seng are major money centers, and not just for money that's heading into mainland China, but also across the rest of Asia. In fact, while so many other markets are caught up in another wave of euphoria, over in Hong Kong, the stock index has been falling hard, seriously underperforming, sending a very different message. Hong Kong has long been one of the major financial gateways into and out of China.

Money flows through Hong Kong when investors believe in China, when trade is strong, when dollar funding is abundant, basically when global risk appetite is improving. So when the rest of the world is chasing tech and semiconductors, but Hong Kong is moving the other way, you've got to ask a very uncomfortable question. What is Hong Kong seeing that everyone else is ignoring? Or better yet, what is all the Hong Kong money seeing? And part of that answer is sitting inside of China's credit markets.

Now, they have just crossed a line that you do not want to see cross, as I'll explain here. And as that line does get crossed, it leads to all sorts of global implications. That would at the very least affect all that money that is sitting in Hong Kong. That usually gets invested in the Hang Seng, but over the last several months is being pulled out. Now, the big story in China right now is not just that growth is weak and getting weaker.

I told you about that last week, the really grim macro and banking data. It's that the structure of credit is changing in a way that might look good on the surface, but in reality is deeply troubling underneath. The People's Bank of China Governor Peng Gong Shang described the shift from loans toward bonds as part of what he called a profound adjustment in the economy structure. The official explanation is that China is moving away from property and infrastructure and toward a future of high-tech growth, capital markets, and more efficient financing.

And that sounds reassuring. But the markets are not fully buying it, and Hong Kong may be the clearest signal. The Hang Seng's weakness stands out precisely because so many other stock markets are moving in the opposite direction and moving quickly. If this really was a clean transition into a healthier, more advanced Chinese economy, Hong Kong should be participating.

It should be benefiting from China optimism, from tech enthusiasm, from easier financial conditions, and of c...

A Rare Eurodollar Warning Signal Just EXPLODED

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

A Rare Eurodollar Warning Signal Just EXPLODED

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.