Market Review:
China market triggered a trading half in equities, futures and options market on the first trading day of 2016.
Research Notes:
1.Weak PMI showed a series of interest-rate cuts and increased fiscal stimulus have failed to boost flagging growth by the nation’s manufactures.
2.The limit of holders selling shares expired on Jan 8th.And Technology companies are the most vulnerable to sell-off once the restriction is removed after they led a rebound since the benchmark index’s August low.
3.Herd behavior. Individual investors, who drive more than 80 percent of trading in A-share market, may have rushed to sell after the first circuit breaker took effect to avoid getting stuck in positions by the 7 percent suspension.
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