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Market review: March 9, 2017

Fang submitted 2017-03-09 23:36:03

Market review:

China stocks declined with SHA fell about -.74%.

Research Notes:

Money outflowed from Electronic Device, Petrochemical, Non-ferrous Metal sectors the most. Shanghai Maoye Commercial Co.(600828) rallied to limit-up as investors believed the firm expanded into Chengdu Real Estate market could boost its profit perspective.

DXY broke the 102 ceiling as investors believed there should be a rate hike in March FOMC.CNYUSD fell toward 6.92 level, for both strong dollar and PBOC eased the inter bank money tightness with rev repos. And a lower than expected CPI also indicated that PBOC could keep the easy monetary policy further. In commodity market, Manganese Silicon, Rapeseed, Palm Oil rallied the most while most commodities slumped as investors reduce their risk exposure facing FOMC. The Federal Reserve event did weighted on the market, yet we are not that pessimistic on the SHA as some sectors, such as AI and Smart Devices performed strongly with Gov’s supporting plan. Electronic cars and New energy are also in our recommended list, and as CSRC loosening the index futures trading restricts, it’s time to adopt some Alpha Hedge with star stocks and futures. In the mid-term, we considered that the trading range for SHA is around 3150~3300.


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