HK - Market Direction 01 (Jan 12 - Jul 15)

[winston]

China says to launch mutual fund recognition with Hong Kong on July 1

A long-awaited scheme to allow funds domiciled in Hong Kong and China to be sold in each others' market will be launched on July 1, regulators said on Friday, in a move to facilitate cross-border investment.

The project is another key step after the landmark Shanghai-Hong Kong stock connect that was rolled out last November, as China accelerates the pace to open up its capital market and internationalise its currency.

Deng Ge, a spokesman for the China Securities Regulatory Commission, said the initial quota for mutual fund recognition would be 300 billion yuan in each direction.

"This will help attract overseas capital into the domestic capital markets," Ge told a weekly news conference in Beijing.

He added that funds would need to have been established for at least one year and based on that criteria, around 100 Hong Kong-based and 850 mainland funds will qualify.

Chief Executive of the Hong Kong Monetary Authority Norman Chan said in a statement: "This is another milestone in the liberalisation of the mainland's capital account after the establishment of mutual stock market access between Shanghai and Hong Kong."

Regulators in China and Hong Kong started discussing mutual recognition for fund products in 2012 and reached a preliminary agreement in 2013.

However, the plan had been on the backburner since as Beijing focused on other schemes to liberalise its capital market, notably the stock connect between Shanghai and Hong Kong, industry players said.

Under the mutual fund recognition scheme, Hong Kong is aiming to encourage money managers to base their funds in the city as it looks to correct a historic skew that has reduced it to largely a sales and marketing hub for funds.

It will give fund managers greater incentive to set up more Hong Kong-domiciled funds, lead to more jobs in the city and consolidate Hong Kong's position as the leading asset management hub in Asia.

To Chinese asset managers, the scheme also offers a good opportunity for them to expand overseas and tap foreign investors as they aim to play a more important role in the international stage.

China had an estimated 145 trillion yuan (15 trillion pounds) in total investable assets as of end-2013, which is expected to grow to 260 trillion yuan by 2020, according to data from international consultancy Oliver Wyman

Source: Reuters

[winston]

The Hang Seng Index fell 626 points or 2.2 percent to 27,454 on turnover of HK$206 billion.

Initial support is at 27,000 and it looks unlikely for the HSI to slip below 26,300.

Wait for further dips to accumulate blue chips after a healthy correction.

Source: Dr Check, The Standard HK

[behappyalways]

投資導航：六月中港股市四大隱憂
http://hk.apple.nextmedia.com/financees ... 1/19166335

[behappyalways]

內地基金短炒王：　
喪炒「港A股」　
單日買賣40次
http://hk.apple.nextmedia.com/financees ... 8/19176291

[winston]

<Research Report>Citi's Latest Top Picks for Chinese Stocks (Table)

Citigroup, in its report, listed the top picks for Chinese stocks:

Top Picks for H Shares:
Stock/ Target Price (HK$)

PING AN (02318.HK)/142
CHINA RES LAND (01109.HK)/ 31.2
CCB (00939.HK)/ 9.4
CHINA CINDA (01359.HK)/ 5.7
TENCENT (00700.HK)/ 210
CHINA SOUTH AIR (01055.HK)/ 10.6
HN RENEWABLES (00958.HK)/ 4.3
CHINA RAIL CONS (01186.HK)/ 18
CSPC PHARMA (01093.HK)/ 8.6
BRILLIANCE CHI (01114.HK)/ 20

Source: AAStocks Financial News

[winston]

Hang Seng Index

Meanwhile, the index breached the 50-day moving average (27244) to close at 27038.

Correction continues until the Slow Stochastic rebounds from the horizontal support line in the oversold zone.

Immediate support is situated near the previous upside gap bottom at 26248, where the index may strike a rebound to re-test the 52-week high of 28589.

If 26248 fails to hold, the index will then test the deeper upsdie gap bottom at 25298.

Source: Phillips

[winston]

JP Morgan Lists 5 Investment Themes for China Shares

JP Morgan said in a report that MSCI China Index has outperformed the emerging markets, and the key drivers include
1. the earlier-than-expected rate cut by PBOC in May;
2. the efforts in pushing forward debt swap,
3. the State Council's support of PPP mode,
4. the industry upgrade as a result of the introduction of “Made in China 2025” plan;
5. the upcoming launch of the China-Hong Kong mutual recognition of funds arrangement on 1 July and
6. the permission for Chinese BANKS to issue certificates of DEPOSIT.

According to the BROKER, there are give investment themes for Chinese shares, i.e.
(1) IT (e commerce/Internet plus PC consolidation);
(2) thematic infrastructure: New silk road, Jing-Jin-Ji region megalopolis, clean energy/pollution control, railroads;
(3) expanding the social safety net: Insurance (beneficiaries of more policy easing, positive earnings revisions, strong premium growth, low penetration);
(4) PBoC put (Mainland banks may benefit due to the decline of rates; and
(5) SOE reform: certain telecom shares (such as FDD full licenses and tower company).

The broker also unveiled its 10 High-conviction recommendation list which include
AIR CHINA (00753.HK) -0.180 (-2.055%) Short selling $51.80K; Ratio 0.139% ,
BEIJING AIRPORT (00694.HK) +0.140 (+1.606%) Short selling $2.65M; Ratio 5.523% ,
BANK OF CHINA (03988.HK) -0.040 (-0.771%) Short selling $38.23M; Ratio 4.299% ,
GEELY AUTO (00175.HK) +0.050 (+1.316%) Short selling $15.74M; Ratio 38.218% ,
COUNTRY GARDEN (02007.HK) -0.070 (-2.011%) Short selling $6.30M; Ratio 9.654% ,
SINOPHARM (01099.HK) -1.000 (-2.688%) Short selling $1.52M; Ratio 3.166% ,
HENGAN INT'L (01044.HK) -0.500 (-0.551%) Short selling $405.48K; Ratio 2.035% ,
CHINA LONGYUAN (00916.HK) -0.260 (-3.006%) Short selling $235.02K; Ratio 0.366% ,
PING AN (02318.HK) -1.000 (-0.898%) Short selling $179.12M; Ratio 25.278% and
Alibaba (BABA).

Source: AAstocks.com

[behappyalways]

大媽愛股急跌　醞釀散水潮
深港通傳延期　港股考驗26000
http://hk.apple.nextmedia.com/financees ... 7/19187223

[winston]

CICC's Top Picks of Chinese Stocks for 2H2015 (Table)

CICC released a H-Share strategy report for the second half of the year. The broker listed 17 Top Picks from a top-down strategy approach.

Stock Name
SHANGHAI PECHEM (00338.HK)
BJ ENT WATER (00371.HK)
FUFENG GROUP (00546.HK)
CHINA SOUTH AIR (01055.HK)
BBMG (02009.HK)
CHINA RAIL CONS (01186.HK)
BANK OF CHINA (03988.HK)
BOC HONG KONG (02388.HK)
NCI (01336.HK)
HKEX (00388.HK)
CHINA OVERSEAS (00688.HK)
TENCENT (00700.HK)
CHINA TRAVEL HK (00308.HK)
CHINA FOODS (00506.HK)
MENGNIU DAIRY (02319.HK)
TONG REN TANG (01666.HK)
SINO BIOPHARM (01177.HK)

Source: AAStocks Financial News

[behappyalways]

同股不同權夭折
證監秒殺港交所　陳家強：屬最後決定
http://hk.apple.nextmedia.com/financees ... 6/19198422