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Market review: June 02, 2016

Fang submitted 2016-06-02 15:31:05

Market review:

China stocks rose about 0.2% as investors continued to take profit above the SHA 2900 threshold.

Research Notes:

Money flowed into Glass, Furniture and Plastics sectors the most. HNA Innovation Co.(600555.sh), a travelling company in the Hainan Air Group, rallied to limit-up for its plan to build horse race tracks on Hainan Island.

In commodity market, rapeseed meal and soybean meal both rallied about 3% for incoming flood threat in Southern China. The same weather risk also supported coal futures and other minerals. Market ‘s trying to price a flood with similar scale of the one in 1998 and the weather premium can well run into summer, in our opinion. The decline of CNYUSD took a break as forex traders waiting for ECB decision and it also provided some upbeat sentiment for overall RMB assets. We felt that the momentum can bring SHA back to 3000 and investors can take some profit there, if they loaded shares around level 2800.

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