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Market review: April 12, 2016

Fang submitted 2016-04-12 15:31:05

Market review: China stocks declined for profit taking with SHA fell about 0.34%.

Research Notes: Money outflowed from Highway Building, Ship Building and Environment Protection sectors the most. China Real Estate Development Holding rallied to limit-up for optimism in real estate sector earning with significant price-rising for property in Q1 for China tier 1~2 cities.

Though investors intended to close some positions as rise process is some long and arduous one, we believed current bull trend could run into the end of April, with support of easy monetary policies and asset relocation into equity market. Also, Fed would hold the rate hike until 2H 2016. So we restated our mid-term target of SHA 3200 and investors can load up with some firm with bright earning reports to be released.

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