Market review:

China stocks rebounded to reclaim 3200 threshold with SHA rose about 0.11%.

Research Notes:

Money flowed into Electronic Generation, Ship Building and Waterway Transportation sectors the most.Sicuan Yibin Tianyuan Group Co.(002386.sz), a chlor-alkali chemicals producer rallied to limit-up for it reported over 200% month on month profit growth in Q3, as the rebound of crude oil boosted prices of its major products.

DXY overnight remained strong over 100 as several Fed governors, including Chair Yellen, are expected to give hawkish talk on Thursday and Friday yet the bull run of Dow also offered Fed room to maneuver with the rate hike. CNYUSD stayed weak around 6.87 yet Chinese investors seems prefer real estate over gold and silver to preserve their purchasing power and the recent selling off of bonds showed that it’s difficult to pick a low risk asset to counter the weakening of Yuan in domestic market. In commodity market, blockboard, rapeseed and methanol led the rally with thin traing volume while money running out of metals and coals with CSRC’s after the over-speculation and many steel makers increased the output with price still stayed high. Two exchanges are already thinking about to cease night session of coals and ferrous metal to cool the speculation, with many algo traders involved. The sectors we favored are still those benefit from International Trade, helped by weak Yuan, robotic manufacturing, which received gov support and those of high tech.3300 of SHA could be reached if money out of commodity and bond could rotate into the equity market for the next 2 months.