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Market review: July 04, 2016

Fang submitted 2016-07-04 16:07:48

Market review:

China stocks posted biggest rally since May 31th with SHA rose about 2%.Investors believed that Fed Minutes , due to be released on Wednesday, should show that Fed would delay the rate hike further into next year.

Research Notes:

Money flowed into Non-Ferrous Metal, Finance and Aviation sectors the most. Anhui Water Resources Development Co.(600502.sh) rallied to limit-up for major flood had devastated several provinces along the Yangtze River in the recent 2 months.

The widely watched Vanke Co. resumed trading and suffered from a limit-down, could be the first of several, but it didn’t affect the sentiment of investors as for now the risk appetite is high. The selling of CNYUSD continued despite the relatively weakness of DXY. But the selling of RMB didn’t deteriorate the equity market as it used to do. Commodity market stayed in spotlight, with tin, silver and nickel rallied to limit-up, climbed about 6%, followed by agri-commodities, which also fueled by flood speculation. We believed that such strength in commodity market could outperform equity in the next month, and investors could overweight those mining and agri-producers which can benefit from a commodity bull run.

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