China - Market Direction 01 (May 12 - Jul 15)

[behappyalways]

While nobody is compelling individual investors to buy shares, government officials and state media have encouraged the rally. China’s official Xinhua News Agency reported last week that the advance in stocks has further to go, while the China Securities Regulatory Commission has said that market gains reflect support for the economy.

Meantime, margin debt on the Shanghai Stock Exchange has soared 10-fold in the past two years to a record 1.27 trillion yuan on May 7, with an additional 635 billion yuan accumulated on the Shenzhen market. Individuals, who account for about 80 percent of trading on mainland exchanges, are paying rates of about 8 percent on the loans.


“My only wish is that securities companies could lend me more money -- the current ceiling for borrowing is not enough for me,” said Li Feixiang, a 40-year-old who works at a financial firm in Chengdu and invests more than 90 percent of his personal wealth in stocks. He claims to have returned 120 percent on his portfolio since November, declining to provide transaction details to Bloomberg News because the information is private.


How China Inc.’s Debt Fix Is Piling Risk on Individual Investors
http://www.bloomberg.com/news/articles/ ... -investors

[behappyalways]

Chinese stocks hit fresh seven-year high
http://www.bbc.com/news/business-32840669


Weak Chinese Demand Is Pummeling Mining Stocks Everywhere, Except in China
http://www.bloomberg.com/news/articles/ ... t-in-china

[behappyalways]

業務與名字不符
「神州高鐵」辦酒店餐飲
央視揭A股改名轉運狂升
http://hk.apple.nextmedia.com/internati ... 5/19159382

[behappyalways]

It's official: Chinese stocks have surged over 100%
http://money.cnn.com/2015/05/26/investi ... index.html


China bust? Fundamentals don’t support market: Expert
http://www.cnbc.com/id/102708335

[winston]

<Research Report>BofAML Sees No A-Share Inclusion by MSCI Next Month

Bank of America Merrill Lynch said in a report that the MSCI Inc. will have an annual review on 9 June to announced whether A shares will be included in the index.

The bank did not expect the inclusion of A shares will happen at that time as the market still has restrictions on A-share coverage and related quota.

The bank also predicted that the Shenzhen-Hong Kong Stock Connect will be announced in May to June this year, and the scheme will be launched in the fourth quarter.

The top picks of the bank include HKEX (00388.HK), GF SEC (01776.HK), Midea Group Co Ltd (000333.SZ) and Gree Electric Appliances Inc (000651.SZ).

Source: AAStocks Financial News

[winston]

<Research Report>BofAML Sees No A-Share Inclusion by MSCI Next Month

Bank of America Merrill Lynch said in a report that the MSCI Inc. will have an annual review on 9 June to announced whether A shares will be included in the index.

The bank did not expect the inclusion of A shares will happen at that time as the market still has restrictions on A-share coverage and related quota.

The bank also predicted that the Shenzhen-Hong Kong Stock Connect will be announced in May to June this year, and the scheme will be launched in the fourth quarter.

The top picks of the bank include HKEX (00388.HK), GF SEC (01776.HK), Midea Group Co Ltd (000333.SZ) and Gree Electric Appliances Inc (000651.SZ).

Source: AAStocks Financial News

[winston]

FTSE Inclusion

The FTSE is to include A shares in indexes, expected to make up 5 percent initially and 32 percent when foreigners can invest freely.

A broker estimates that US$80 billion (HK$624 billion) of new money will go into A shares

It's an important step in paving the way for the Shanghai Composite to be included in the MSCI.

Source: The Standard HK

[behappyalways]

China Brokers Tighten Margin Lending Rules to Limit Rising Risks
http://www.bloomberg.com/news/articles/ ... sing-risks

[winston]

IPOs next week that locked up 5 trillion yuan (HK$6.25 trillion) of liquidity.

Charts indicate initial support for the SCI at 4,430, near its 30-day moving average, which may mean a further 230-point fall.

Source: Dr Check, The Standard HK

[behappyalways]

China Stock Boom Built on Leverage Shows How Fast It Can Reverse
http://www.bloomberg.com/news/articles/ ... an-reverse