Market review:
China stock showed some strength in relative to the global selling-off in the spring festival holiday and closed at 2746.20. As PBOC chief given a talk of confidence of RMB and CNYUSD made a significant turning back move hurting most RMB bears, China, for now, look like a safe haven.
Research Notes:
Money flowed into Mining, Energy and Entertainment sectors, Eastern Jingyu, a gold mining company led the rally.
In a liquidity perspective, Q1 could be a period when market run with sufficient cash and funds busy to position for the year, the recent strength in China is somehow not that unexpected. However, in a longer term view, we believe that there’s still have a tough year ahead, more bad news expected than good news in incoming quarters. So better stay cautious and unload some cyclical shares with any significant rally.
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