Market review:
China stocks generally stayed stable as gov started a new round of bad loans checking and notes & bills business regulation, which could put some pressure on bank sector. But can try diging around and some bargain hunting in this weak as fin sec has a significant decline in Q1.
Research Notes:
Money flowed into Agriculture, Plastics and Petrochemical sectors the most. Zhejiang Golden Eagle Co. (600232.sh),a textile machinery producer, rallied to limit-up for its expansion into lithium business, which under spot light as investors believed that the price of lithium could rise further for supply deficit in the next 5 years.
We noted many stocks hit new highs so far despite the slump of SHA index, and most of them are from sectors such as new energy automobile, other high tech, commodity manufacturers, especially those meat producers, and beverage producers. So once SHA started to rebound, those sectors could mostly outperform more. Hence we recommend to seek some undervalued firms in those industries when SHA ‘s stay in range around 2800 where risk-reward profile improved.
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