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Market review: April 21, 2016

Fang submitted 2016-04-21 15:31:05

Market review:

China stocks stabilized as investors are back for some bargain hunting after the selling-off yesterday.

Research Notes:

Money flowed into International Trade, Steel and Metal sectors the most. Jiangmen Powder Metallurgy Co (002600.sz) rallied to limit-up for a second day as speculation the gov tightening the supply of rare earth.

As the bull-run on the commodity market continues, we felt that the selling in equity market could be overdone, at least for now. The inflation expectation‘s getting strong and it also support price of equity price. The only thing investors should worry could be the “sell in May” sentiment and some liquidity tightening by the end of the month, which itself could provide some buying opportunity for sectors we recommended, such as high tech and consumer staples.

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