Market overview:
Valuation for stock index + performance of listed companies+ money market liquidity.
Valuation:
CSI300 index rise 7~8% this year,about the same to the growth of its performance; CSI300 index trade at a reasonable and relatively low valuation by history standards. Considering the current economic environment, no valuation risk now.
Company performance:
Macro-economic has steadily improved since second half of last year,and many listed companies have a good performance this year.Through some marco indicators start to fall,we expect a gradual and gentle delcine, which has little influence. So we believe that the companies' growth can be sustainable.
Fund liquidity:
Money feel tight in China over the past few months due to the gov using an expanded monetary policy toolikt to delevarage.Now CPI is not high, no inflation risk.And liquidity conditions has been easing as the central bank continued to provide funds via open market operations,with signs of bond yield falling and bond futures rising.
Taken together, the relatively low valuation, not bad performance,and relaxed market money, we are positive on China A-share market in the second half.
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