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Market review: February 20, 2017

Fang submitted 2017-02-20 23:32:44

Market review:

China stocks rallied as investors believed the infrastructure investment could stabilize the China economy.

Research Notes:

SHA climbed about 1.18% with money flowed into Banking, Real Estate and Wine Brewing sectors the most. Shandong Zhongrun Resources Investment Corporation (000506) rallied to limit-up as the controlling shares holders announced to increase the shares holding by 3.92%.


CNYUSD fell to 6.87 as PBOC resumed rev-repo to ease inter-bank money tightness. In commodity market, coals, rebar and bitumen rose the most as investors inspired by the news that 23 provinces released infrastructure plan summed to 40-trillion-RMB, which could support the econ growth. And it’s a large number compared to China GDP around 70-trillion in 2016. As SHA rising toward 3300 threshold, investors can hold their positions in Petrochemical, Free Trade Zone and One Belt One Road sectors, as the current bull run could continue into weeks of People’s Congress in March, when investors can consider taking profit by then.


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