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Market review: September 23, 2016

Fang submitted 2016-09-23 01:15:51


Market review:

China stocks declined as investors taking profit after 2 days of rally, with SHA declined about 0.28%.


Research Notes:

Money outflowed from Electronic Devices, Real Estate and Entertainment sectors the most. HeBei Jinniu Chemical Industry Co.(600722.sh), rallied to limit-up as the recent rebound of crude oil price boosted the price of its products.

DXY overnight barely held the 95 level and in our opinion could fall further as Fed no hike until December. CNYUSD stayed around 6.67 with overnight shibor continued to decline as PBOC weekly liquidity injection reached a new high of past 5 months. In commodity market, aluminum, tin and hot coiled steel led the rally as investors believed the demand for these construction materials would stay strong with the real estate boom while agriculture declined as investors considered the recent precipitation in US mid-west could not affect much of the harvest. As national holiday approaching, it’s natural for investors to shrink their risk exposure but considering new energy, environment conservation and advanced electronic devices sectors still present brighter perspective, we suggest investors to buy into those sectors while use index futures or etf options for a short term hedge for the downside.


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