Market review:
The bull run for China stocks continued for the 6th days. The sentiment, in our opinion, are supported by a stabilized USDCNY rate and hot property market, which signaled that Gov would opt econ stimulus more similar to the infrastructure boosting, the relative old ways.
Research Notes:
Money flowed into Software, Non-bank Financials and Entertainment the most. WUS Printed Circuit Co. (002463.sz) rallied to limit-up , as investors speculated its moving into unmanned vehicle business.
Though we are optimistic on the last of current upbeat sentiment, maybe for 1~2 weeks, we remain our stance to sell above SHA 3000, which could be reached in the next several trading days, given our scenario that many investors could book profit around this psychological threshold, unless we can see further evidence that Gov would push further into the infrastructure driven stimulus.
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