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Market review: December 6, 2016

Fang submitted 2016-12-06 16:01:36

Market review:
China stocks declined with SHA fell about 0.16% and lost the 3200 mark. Money out flowed from Internet, Construction, Software Development sectors the most.

Research Notes:
Ningxia Younglight Chemicals Co.(000635),a PVC producer, rallied to limit-up as gov had approved its share transfer plan and many buyers are waiting to acquire its assets.
DXY fell further overnight as investors buying into Euro as they don’t expect the shock caused by Italy constitution vote could place much risk for Euro. CNYUSD also strengthened with some talk of PBOC may under pressure to maintain or raise the borrowing rates to curb the capital outflow when residents get their exchange quota. In commodity market, methanol, iron ore and rebar led the rally, supported by cold weather and disruption of material transportation. Many investment banks also chimed in their bullish outlook for raw materials, especially those used for construction. Though we still favor sectors such as new energy, food and beverage, one belt one road, investors should get ready to hedge some risk caused by the FOMC the next week, yet for the mid-term, 3300 above for SHA ‘s also quite likely for 2017 Q1.

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