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Market review: July 22, 2016

Fang submitted 2016-07-22 16:18:54

Market review:
China stocks resumed to decline as speculators taking profit from the mild rally of yesterday fueled by a gov tech sector roadmap release.


Research Notes:
SHA fell about 0.86% with money outflowed from Ship Building, Environment Protection and Wine Brewing sectors the most.
Heilongjiang Baotailong New Materials Co.(601011.sh) rallied to limit-up as investors believed its graphene products should enjoy profit increase for the demand expansion.
CNYUSD rallied for the fourth day in a row for investors cut the short positions before the July 27th FOMC meeting which could confirm no rate hike in the near term.
In commodity market, palm oil, rapeseed meal and egg led the decline as money continued to bet on a record US autumn crop which could keep food product price low,
as no weather threat ‘s been seen from US growing area for the next two weeks which is critical for soybean and corn yield build up.
Despite some high tech sectors got boosted from Gov’s tech plan, we suggest investors to play defense as such rally could only last in a very limited period,

and investors should load up some shares from defensive sectors, such as Food& Beverage and Medicine , only if SHA could dip below 3000 again.


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