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Market review: January 18, 2016

Fang submitted 2016-01-18 15:31:05

Market review:

The Shanghai Composite Index gained 0.4 percent to 2,913.84 at the close.

Research Notes:

1.China fourth-quarter GDP data due at 10 a.m. local time on Tuesday. With an estimate of 6.9 percent which could signs of China economy’s stabilizing.

2.Fresh funds come in to bottom and they are targeting mostly beaten-down small caps. Also waves of short-covering.

Investors could still stay cautious again after NBS (National bureau of statistics) data release or even go selling after the NBS press conference, like when any of the data goes below expectation. No major rally in trend is expected in the short term, unless we could see stronger than expected push from China gov to further the econ reform, maybe after the spring festival.

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