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Market review: August 24, 2016

Fang submitted 2016-08-25 19:00:22

Market review:

China stocks ended declined after a day of volatile trading, with SHA fell about 0.12%.Investors generally stayed cautious before US GDP data and Jackson Hole Meeting.

Research Notes:

Money outflowed from Real Estate, Finance and Construction sectors the most. Haerbing Dongan Auto Engine Co (6000178.sh). rallied to limit-up for investors believed it will benefit from the recent released national standard of man-less vehicles.

DXY rebounded to challenge the 95 level as investors cut their dollar shorts before Fed Chair Yellen speech late this week. CNYUSD weakened and fell to 6.65 level with some liquidity injection from PBOC. Rebar and Hot-rolled coil led the rally in commodities, but most of raw materials fell with funds taking profit before macro event this week. Silver, egg and PVC futures are the one slumped the most. As funds switched to a defensive mode, water and air treatment, environment conservation and recycling business sectors had become shelter for money. Though we didn’t expect Yellen to offer more clue of rate hike at Jackson Hole, it’s better to keep exposure light with SHA around 3100~3070, dip toward 3000 could be short term buy signal if investors are overreacting to some better than expected US data. Yet we did believe the bull-run needs Fed to stay put into the end of this year.


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