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Market review: April 01, 2016

Fang submitted 2016-04-01 15:31:05

China fundamental:

A little and symmetrical laugh burst from China stocks market today , as Standard & Poor’s downgrade rating outlook on China to negative from stable VS China PMIs for March show signs of econ stabilization.

Research Notes:

Money outflowed from Furniture, Power Generation and Construction the most. CITIC Heavy Industries (601608.sh) rallied to limit-up for the second day for investors tried to follow the state funds’ buying.

Given the significant increase of new loan in Jan and Feb we considered that it’s not a surprise that PMIs show some improvement. But whether the momentum can continue is our major concern. In our opinion that both the Gov’s cooling down on property market and banks becoming reluctant to issue new loans at the pace similar to Jan and Feb can restricted the perspective of econ growth. It’s prudent to reload some positions when SHA’s ever retreated to 2900 or lower level, instead of buying at 3000 where selling pressure‘ s persistent.

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