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Market review: May 13, 2016

Fang submitted 2016-05-13 15:31:05

Market review:

China stocks continued to fall as PBOC slowed down the liquidity injection in the repo market. Both RMB and commodities also had been sold for risk appetite deteriorated before the weekend when more China macro data, such as industrial production and new loan for April to be released.

Research Notes:

Money outflowed from Petrochemical, Ship Building and Finance sectors the most. Hangzhou Silan Microelectronics (600460.ss) rallied to limit-up for its breakthrough in OLED devices.

Coal rebar and iron ore futures slumped for another nearly limit down and are probably heading to loss of most gain since the new year, which could serve as a hedge for other long positions in our opinion. For SHA, the threshold of 2800 could be tested on next Monday and we think some bargain hunting opportunities could emerge after the weekend data dump.

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