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Market review: June 16, 2016

Fang submitted 2016-06-16 15:31:05

Market review:

China stocks declined despite the dovish result of Fed minutes.

China macro data overnight showed that companies holding more cash as investment opportunities getting rare.

Research Notes:

Money outflowed from Software, Petrochemical and Finance sectors the most.

Zijin Mining(601899.sh) rallied to limit-up as investors considered Fed decision could support metal prices, especially for gold, a major product of the company.

CNYUSD showed some strengthen overnight as USD weakened. But it failed to support prices of agri-commodities as weather in US growing regions improved.

Corn starch and corn fell over 3% on possible Gov reserve selling while plastics and iron ore futures led the rally of industrial raw materials.

Though SHA failed to rebound is kind of out our expectation but given the UK EU membership voting ‘s more uncertain, we considered it’s quite understandable to sell before this event.

Hence we maintained our speculation that SHA may approach 2800 or lower facing the UK voting, but this dip could also provide some opportunities to own some shares from new energy, food and beverage and agriculture sectors, as our picks for the summer season.

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