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Market review: April 25, 2016

Fang submitted 2016-04-25 15:31:05

Market review:

China stocks declined early morning as some analysts being vigilant in inflation expectations, but we don’t think can raise the rate this year, that’s why money pick up commodities as a safer bet. Also a slow rally after 11:00 a.m. enabled SHA to recoup some of the losses.

Research Notes:

Money outflowed from Furniture, Finance and Electronics sectors the most. Nanjing Zhongbei Group (000421.sz), a public transportation company, rallied to limit-up for its expansion into new energy automobile business and China New Energy Car summit on Tuesday.

Though some risk aversion before FOMC ‘s justified, we kept our expectation that Fed won’t hike the rate , probably before June this year. We believed that risk appetite will recover after the Fed decision and the selling before the event provide some good opportunity to load some shares in IT and Medicine sectors.

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