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Market review: October 20, 2016

Fang submitted 2016-10-20 20:15:52

Market review:

China stocks generally stayed stable with SHA declined about 0.01%.

Research Notes:

Money outflowed from Electronic Devices, Logistic and IT Equipment sectors the most. Chengdu Guibao Science & Technology Co.(300019), a manufacturer of RTV silicone sealants, rallied to limit-up as it forecasted a 20% growth in profit for the first three quarters of the year.

DXY climbed again to 98 as new round of Fed official speaks signal high probability of rate hike in the last two months of the year. CNYUSD seems to stabilize around 6.75 level as Shibor rebounded with liquidity becoming tighter into the end of the month. In commodity market, corn starch, bitumen and soybean rallied the most as CME agriculture sector continued to rally supported by China import demand, strong crude oil price and the return of weather market of South America. As US presidential debate ended, investors can focus on the incoming communist conference in China. The top picks for this event are still SOE reform, Railway and Environment Protection. Yet investors should prepare to take some profit once SHA breaches 3100 threshold in the recent weeks.

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