Market review: May 31, 2016

Fang • submitted 2016-05-31 15:31:05

Market review:

China stocks rose with SHA reclaimed 2900 threshold on the last day of May. Investors are buying into A share as the chance of MSCI inclusion ‘s reported high in June and President Xi’s pushing for a new round of technology innovation.

Research Notes:

Money flowed into Software, Finance and Internet sectors the most. And CSI 500 outperformed CSI 300 and SSE 50 by a fat margin. Xiamen Overseas Chinese Electronic Co. (600870.sh) rallied to limit-up as its expansion into Big Data business and investors are loading more tech shares.

The end of month rally though not well expected and with the disturbance of a fat-finger trade set IF 1606 to limit –down, may signal some improvement of sentiment. The period for “Sell in May” ‘s officially over and two bets ahead are MSCI and Fed rate, which would bring much needed volatility. We suggest investors to hold some shares into June and possibly July, as Fed Rate hike, if any, had been mostly factored in. The MSCI inclusion could provide the upside surprise and eventually the world would buy more shares from China. Hence we maintained our mid-term target for SHA 3200, which could be reached in Q3, if MSCI inclusion materialized.

Disclaimer: The information on this website is for general informational purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security, currency, investment, service or to attract any funds or deposits. Save to the extent provided otherwise in the Terms and Conditions for Accounts and Services or other applicable terms and conditions, information in this website has been prepared without taking account of the objectives, financial situation or needs of any particular investor. Therefore, investment products mentioned in this website may not be suitable for all investors. Any person considering an investment should seek independent advice on the suitability or otherwise of a particular investment. Before making any investment, each investor must obtain the investment offering materials, which include a description of the risks, fees and expenses and the performance history, if any, which may be considered in connection with making an investment decision. Each investor should carefully consider the risks associated with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives.

Currently no Comments.

author: Fang

Hot Topics

The 13rd China International Future Forum Financial institutions deep explore commodity market opportunities, commodity index financial products show full-scale trend The Shanghai Derivatives Energy Forum has received extensive attention from relevant industries both within and outside the borders. New indicator to analyze the arbitrage opportunities between sse50 and csi500 The Great China Bubble: Anniversary Lessons and Outlook Market review: January 11, 2017 R-Code for analysis: getKDJ Sleepless in London--Enda Homan(Allied Irish Banks Plc) The arbitraging strategy between CSI300 and SSE50 The hedge strategy between SSE50 and A50--Jan 13,2017 MSCI Rebuffs Chinese Equities for Third Time in Blow to Xi R-Code@June 06, 2016 Quant Investment in China A-share market Soros, Druckenmiller among hedgies profiting in market plunge Market review: June 17, 2016

Links

Contact Me: sherry_ustc@163.com