Market Summary:

Last week, there was generally decrease over the market. SSE Composite Index (000001.SH) changed -2.90 % to 2598.87

As for the overall market valuations, they remain at low level in a longer historical view.

Credit spread between A-rate corporate bonds and treasury bond almost unchanged. As for the spread between Shibor Rates and Treasury bonds yield, all terms (1M,6M, IY) of them experienced some fluctuations and now hold an inverse structure. As for treasury bond yield, there was a slightly increase for short term yield. The interest rates are still at relatively low level.

As for exchange rate, there were depreciation for both inland and offshore rates, that CNY/USD increased 0.79% (up to 16:30 of last Friday) and CNH/USD increased 0.70%.

As for foreign fund flows via both Shanghai and Shenzhen-Hong Kong Stock Connect, last week there were both net inflows for Shanghai and Shenzhen markets. The net inflow over last week was 5.12 billion CNY and the cumulative net inflow was 609.67 billion CNY at last Friday and creates another historical new high. Specifically, more inflow in Shanghai market than Shenzhen market.

In sum, last week, the market experienced a significant drop. The rebound is not simple and takes time.

News:

(1)China Securities Net: regulators said that the ‘125 Plan’ is a directional goal, not a rigid assessment target, credit standards were not relaxed, and every bank was not "one size fits all". "125" means that in the new corporate loans, the loans of large banks to private enterprises are no less than 1/3 and that of small and medium-sized banks are no less than 2/3. After three years' implementation, the proportion of loans from banks to private enterprises in the new corporate loans is no less than 50%.

(2)CCTV: the first China International Import fair was successfully closed today (November 10th). Sun Chenghai, deputy director of China International Import Exposition Bureau, said at the closing news briefing of the Expo this afternoon that 3617 enterprises from 151 countries and regions around the world participated in the Expo. According to preliminary statistics, there are more than 570 new products and technologies or services in the world or mainland China. The first import fair also attracted more than 3600 overseas buyers from 72 countries and regions. The first import Fair has achieved fruitful results in transaction and procurement. According to one-year plan, the total intention was 57 billion 830 million US dollars. Among them, 16.46 billion US dollars were traded in intelligent and high-end equipment exhibition area, 43.33 billion US dollars in consumer electronics and household appliances exhibition area, 11.99 billion US dollars in automobile exhibition area, 3.37 billion US dollars in clothing, apparel and consumer goods exhibition area, 12.68 billion US dollars in food and agricultural products exhibition area, 5.76 billion US dollars in medical equipment and health care exhibition area. the service trade exhibition area clinches a deal of 3 billion 240 million dollars. In addition, the total number of countries along the "one belt and one road" plan was 4 billion 720 million USD. .

(3)The central bank issued its third quarter report on the implementation of China's monetary policy, saying that in the next stage, it will maintain policy continuity and stability and improve policy foresight, flexibility and pertinence. A triangular supporting framework is formed between the implementation of a sound neutral monetary policy, the enhancement of micro-economic vitality and the full play of capital market functions, so as to promote the virtuous circle of the national economy as a whole. The central bank's monetary policy report clarifies the main policy ideas for the next stage: to implement the bond financing support tools for private enterprises, to study and establish equity financing support tools, to improve the financing channels for private enterprises such as credit, bonds and equity, and to expand them by using such policy tools as directional reduction, rediscount of re-loans and mortgage supplementary loans. Large and medium-term lending facilitates the scope of qualified collateral and increases financial support for key areas and weak links such as small and micro enterprises.

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