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Market review: August 4, 2016

Fang submitted 2016-08-04 16:34:25

Market review:

China stocks mostly held the position with SHA climbed about 0.13%. And vanke rise limit up as the sector’s hot these days then money could find vanke undervalued after some killing slump.

Research Notes:

Money, for a second day, flowed into Real Estate sector the most, with Software and Landscape Development sectors following up.Suzhou Yangtze New Material Co.(002652.sz) rallied to limit-up as several major shareholders revoked shares pledge.

As global investors are preparing for US unemployment data due Friday, DXY rebounded back to above 95 region and sent CNYUSD to falling again. Yet with sluggish US data in July, we didn’t expect that unemployment data could shake current expectation of Fed inaction. In commodity market, coal, cotton and palm oil futures led the rally, with coal made a new height of past one year, fueled by cut of production. The coal related equity sectors also worth watching as the profit margin of producers improved significantly. Besides coal sector, new energy, wine brewing and finance sectors are still on our watch list, for seasonality strength and some regulation relaxation could materialized in the rest time of the year.


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