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Market review: May 03, 2016

Fang submitted 2016-05-03 15:31:05

Market review:

China stocks rose on speculation on more stimulus plan after weak econ data released. Both NBS and Caixin PMI of April lower than expectation which could lead Gov to push harder on, at least monetary policy side.

Research Notes:

Money flowed into Finance, Software and Food & Beverage sectors the most. Zhejiang Jiuli High-tech Metals (002318.sz), a stainless pipe producer, rallied to limit-up for slump of steel price which could reduce its cost.

As the accommodative monetary policy can go on, both domestically and globally, we believed that SHA can climb back to 3000 then higher into June, and yet it seems like a 2900~3000 fluctuation in May, maybe boring. It’s worth watching the consumer staples and agriculture sectors which could benefit more from some volatile summer weather events in China this year.

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