Market review:

China stocks resumed to decline as regulators signaled more methods to curb the insurance money pouring into stock market.

Money outflowed from Construction, Finance and Software Development sectors the most. Shanxi Nafine Chemical Industry Group Co. (000737) rallied to limit-up as the recent rally of crude oil following the supply-cut agreement of OPEC supported price of most chemicals.

DXY weakened as investors taking some profit before the FOMC. CNYUSD also stayed soft despite China New Loan for November beat the expectation. Officials from PBOC claimed that exchange rate of RMB need to be stabilized yet they don’t want to hike the rate with the Fed in the short term as the tightness in inter-bank market continued. In commodity market, methanol, rubber and coke led the rally, boosted by a new round of cold front to sweep China, also for the strength of crude oil. Iron ore, sugar and rebar fell the most.For sugar, investors worried that NDRC may add some import quota to curb the price of sugar before the holiday season. The lower than expected housing loan also hurt the prices of rebar and iron ore. The pressure from Fed and NDRC knocked the stock index hard, yet we consider this as an opportunity for bargain hunting in agriculture chemical, new energy and precious metal sectors, for macro factors, such as OPEC agreement and seasonal trend, as agriculture would enjoyed the more attention in Q1 as gov always put it as the priority in the new year econ plan. Investors yet have to stay patience and better trade with a released FOMC statement.