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Market review: April 11, 2016

Fang submitted 2016-04-11 15:31:05

Market review:

China stocks rallied on lower than expected CPI, with SHA reclaimed 3000.

Research Notes:

Money flowed into Consumer Retail, Steel and Textile sectors the most. Wuhan Steel(600005.sh) rallied to limit-up for Gov may encourage it to merge with other smaller steel makers to reduce redundant capacity.

China CPI for March released as 2.3%, lower than the expected 2.4%, with PPI also beats. Investors for now believed that CPI could not change Gov ‘s easy policy, at least for April and May. We also expect FDI , M2 and Fixed Asset Investment following can also beat expectations and SHA,in our opinion, got some momentum to climb to 3200.But investors should be cautious on some profit taking before Friday GDP release.

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