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Market review: October 19, 2016

Fang submitted 2016-10-19 18:22:27

Market review:

China stocks stayed stable as GDP data showed no surprise.

Research Notes:

SHA climbed about 0.03% with money flowed into Construction, Finance and Banking sectors the most. Cecep Wind-power Corporation (601016) rallied to limit-up as investors chasing the clear-energy sector as China entered the heating season with coal smog appeared more on headlines.

DXY overnight kept falling with investors embrace more risky assets as US earning season showed some improve profit results for Q4.CNYUSD still stayed weak with speculators eyeing 6.8 level as gov didn’t little to turn around the devaluing expectation. Coal, coke and plastic rallied more than 3% in commodity market. The coal became best performers in raw materials as production declined more than 10% in the first 9 months in China. No other commodities got such significant loss of supply. The incoming Chinese Communist Party's key sixth plenum, which would release more plans on economy reform, could support SHA into next week in our opinion, yet investors should take some profit when SHA breaches 3100, as the curb of real estate market could damp the growth perspective for China in Q4 and make it difficult to keep that 6.7% growth rate.


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