Market review:

China stocks declined as investors closing positions before the Q3 China GDP and other major economy data to be released on Tuesday. Also it’s usual that risk aversion taking place before the final US presidential debate.

Research Notes:

SHA fell about 0.72% with money outflowed from Electronic Devices, Software Development and Real Estate sectors the most. Hubei Sanonda Co.(000553.sz),a pesticides producer, rallied to limit-up as it’s rumored to merge with Sinochem Co., one of the largest chemicals producers in China.

DXY stayed strong around 98 and CNUUSD weakened further to make a new low of the past 6 years. Some investors believed that PBOC could tolerate CNYUSD fall to 7.In commodity market, coal, manganese alloy and palm oil rallied to limit-up with majority of commodity futures rose on a weak RMB. Veg oils soared as investors concern about the production and export could both decline in Malaysia and Indonesia as monsoon rain could disrupt the harvest of palm fruits. As this week is filled up with macro data and major political events, the market could get more volatile, yet we consider there also be more opportunity to buy into the fall as we expected the final debate could reduce the uncertainty from US market and the set back of DXY could support other risky assets by 2nd half of the week. Hereby we maintained our midterm expectation of SHA 3100 before Dec.

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