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Market review: April 20, 2016

Fang submitted 2016-04-20 15:31:05

Market review:

Not only that 3100 point is a tough resistance to overcome, the liquidity is some tightening for end of month. A risk off tone filtered through stock market and SHA slumped 2.31 percent to make an intraday low of 2905.05, almost erasing the gain in April.

Research Notes:

Money outflowed from Software, Electronics and Real Estate sectors the most. Jiangmen Powder Metallurgy Co(002600.SZ) rallied to limit-up for rising rare earth prices support the price of its products.

We believed that the selling off is also for the combination of profit taking before new round of CB meetings and seasonality risk aversion. For some sectors, SHA below 2950 created a good opportunity to pick some bargains. It’s still too early to call SHA peaked for the year and we didn’t expect Fed’s rate hike in April.

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