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Market review: February 25, 2016

Fang submitted 2016-02-25 15:31:05

Market review:

China stocks draw a sharp pull-back to the level below 2750 before G20 meeting. Investors are closing some positions before this event and People’s Congress meeting with many uncertainties. Thought can blame the expectation of no action in G20.

Research Notes:

Money continued to outflow from Finance, Construction and Entertainment sectors. Zhejiang Great Southeast Corp(002263.sz),a plastic producer, rallied to limit-up as Gov’s certification on its regional tech innovation status. 

As Jacob Lew indicated no bold action needed in G20 meeting for he didn’t see sign of imminent global recession, investors got no many bullish topics in the short term. We considered buying opportunities around SHA 2800 if it retreat to this level, so active investors can grasp this good BTFD time today, and for the week before People’s Congress, we should concern more about risk downside.

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