Currently the market is experiencing quick sector rotation that follows an observablepattern, indicating the gradual entry of additional investor funds and a recovery in investorconfidence. Any short-term corrections in the market would provide buying opportunities,and we believe the average of market indices will climb up slowly. We are optimistic aboutNEVs and 5G networks.    Divergent performance between large- and smaller-cap stocks has continued to be seenso far this year: a coexistence of opportunities and risks specific to the current stage ofstock market development in China. As for the Chinese stock market, although it isgradually opening up, it is yet to see the listing of more international companies. Inaddition, investors should be cautious about the defective mechanism in the IPO listingsystem as well as risks tied to high valuations in the secondary market.    In 2017, many sectors saw increases in both valuations and earnings, with stock pricesexceeding market expectations. In 2018, we are positive on first/second-tier propertystocks, which will benefit from increasing industry concentration and are also likely toshow increases in both earnings and valuations.    The A-share market had shown positive growth for 11 consecutive days as of the end oflast week, indicating that the “spring rally” typically seen at this time of year is stronglyunder way. Liquidity conditions have improved significantly compared with the end of Dec,while the pace of IPO issuance has become much slower. After Christmas, overseasinvestors have begun another round of position building in Chinese stocks; with A sharesset to be included in the MSCI this year, recent share price performance of KweichowMoutai (600519 CH) and Gree Electric Appliances (000651 CH) has testified to such atrend. We are optimistic about undervalued leaders, as well as the baijiu, homeappliances, banking and insurance sectors.

声明：如本站内容不慎侵犯了您的权益，请联系邮箱：wangshiyuan@epins.cn 我们将迅速删除。