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Market review: August 30, 2016

Fang submitted 2016-08-30 17:51:01

Market review:

China stocks stabilized with SHA climbed 0.15%.The sentiment got some support from gov’s PPP push and incoming G20 meeting in Hangzhou.

Research Notes:

Money flowed into Entertainment, Banking and Aviation the most.Shijiangzhuang Bosun Tools Co.(002282.sz),a diamind tools producer, rallied to limit-up as it won project with China rail way group.

DXY continued to rise for investors still readjusting the probability of rate hike in September of Fed. CNYUSD challenged the 6.68 level with the strength of USD.The strong dollar also hurt the commodity market, with rebar, glass and plastics led the decline. Coal and sugar are among very few materials that rallied against the dollar, for supply cut of coal and increased consumption of sugar for incoming mid-autumn holiday. Environment protection, water treatment and biomedicine are still in favored as supported by G20-related speculation, and such improved the sentiment in our opinion could bring SHA back to 3100 level or above in the coming weeks. But investors should remember to take some profit before the FOMC in September for some dip could happen around that date.

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