Market review:
China stocks posted biggest rise since Aug 15th with SHA climbed about 1.4%.
Research Notes:
Money flowed into Constructions, Finance and Banking sectors the most. GEM-Year Industrial Co.(601002), a fastener manufacturer, rallied to limit-up as it won a contract valued 145-million RMB on railway construction project.
Overnight USD declined as investors priced in less uncertainty from US presidential election as Hilary Clinton gained a larger margin in recent polls. CNYUSD fell to a new low as investors considered there’s more room for RMB depreciation as China gov sticks with the easy monetary policy. In commodity market, coal, egg and palm oil led the rally with CME agriculture sector also rebound to enter the weather market of South America. The commodity sector stayed firm with weakening RMB and strong energy price into the heating season. As Chinese Communist Party's key sixth plenum – or assembly meeting of all members, to be held by the weekend, investors expect more reform plan released and benefit sectors such as One Belt One Road, Free Trade Zone and New Energy. We kept our moderate bullish expectation for SHA and we’re optimistic on that 3100 could be reached within these weeks.
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