Today’s Top Picks INVESTMENT DAILY NOTEpg.jrj.com.cn/acc/Res/CN_RES/INVEST/2016/7/20/8e59... · Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests

Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests and Disclaimer, please read the last page of this report.

20 Jul 2016

INVESTMENT

DAILY NOTE

Market Highlights

Tsui Wah (1314.HK) made an announcement for a possible disposal of the shares of the company which may result in a change in control of the company. Currently the potential vendors in aggregate hold 878,956,000 Shares, representing approximately 62.28% of the issued shares. It will resume for trading today and stock price may be volatile.

China Overseas Property (2669.HK) announced a positive profit alert, stating that it is expected that the profit for the period attributable to equity shareholders for the six months ended 30 June 2016 will be approximately doubled YoY. It is estimated that the stock price of it and China Overseas Land & Investment would be beneficiaries.

Equity Indices

Close d-d (%) YTD (%)

Hang Seng Index 21,673 (0.6) (1.1)

HSCEI 8,989 (1.1) (7.0)

Shanghai Comp 3,037 (0.2) (14.2)

Shenzhen Comp 2,034 0.3 (11.9)

DJIA 18,559 0.1 6.5

S&P 500 2,164 (0.1) 5.9

Nasdaq Comp 5,036 (0.4) 0.6

FTSE 100 6,697 0.0 7.3

DAX 9,981 (0.8) (7.1)

CAC 40 4,330 (0.6) (6.6)

Nikkei 225 16,596 (0.8) (12.8)

Taiwan Weighted 9,035 0.3 8.4

Hong Kong Market Turnover

HK$bn d-d (%)

HSI 17.9 -6.08%

HSCCI 5.3 13.60%

HSCEI 9.3 -9.16%

Main Board 55.0 -1.06%

External Market Conditions

S&P and NASDAQ dropped following the worse-than-expected earnings report by Netflix, while Dow rose for eight straight sessions. Dow closed at 18,559, up 26 points. S&P 500 closed at 2,164 points, down 3 points. NASDAQ closed at 5,036 points, down 19 points.

ADRs dropped in the U.S. market, with their closing prices effectively putting HSI down 108 points, closing at 21,564

Oil prices tumbled as IMF adjusted global economic growth downwards. New York crude oil futures closed at US$44.65/bbl, down US$0.59. New York gold futures settled at US$1,332.30/oz, up US$3.00.

Yesterday’s Hong Kong Equities

Hong Kong stocks ended their six-day rising streak as investors cashed in after the recent rally of over 1,200 points. The HSI dropped 129 points to close at 21,673. The HSCEI closed at 8,988, down 102 points. Total turnover was HK$54.9bn.

The PBOC commenced its RMB227bn medium-term lending facility (MLF); yet, China banking stocks headed south. China Construction Bank (939.HK, HK$5.39) and Agricultural Bank of China (1288.HK, HK$2.84) declined 1.1% and 1% respectively.

On the individual stock front, Bank of East Asia (23.HK, HK$31.15) was served an unfair prejudice petition filed by its shareholder Elliot, a hedge fund. Its share price lost 1.7%.

Content Trends of HSI, HSCEI

Market and HSI Up/Down Ratios

Result Calendar

Stock in Focus

Today’s Top Picks

Overview of Sector Performance

Forward P/E and Valuations of Major

Indices

Market Data

Previous day’s best and worst

performers;

HSCI volume filter;

Most short sold stocks;

Interest rates, exchange rates,

precious metals and commodities

A-share premium to H-share

Top 20 most traded ETFs

Economic data and event calendar

2

3

4

5-6

7

8

9-10

10

11

12

13

14


2

20 Jul 2016 INVESTMENT DAILY NOTE

Trends of HSI and HSCEI

HSI:

Closed at

21,673

Source: Bloomberg and SHKF

HSCEI:

Closed at

8,988



3


Market and Hang Seng Index Up/Down Ratios It captures the proportion of rising /falling stocks of the market */HSI in the past seven trading days to evaluate the market performance. *About 1,700 listed companies in mainboard, excluding growth enterprise market(GEM), ETF, unlisted and suspended companies.

Source：Bloomberg and SHKF

47.7% 48.9% 39.9% 38.9% 35.5% 33.9% 32.2%

27.5% 25.1% 34.9% 34.2% 37.8% 39.3% 41.7%

24.8% 25.9% 25.1% 26.9% 26.7% 26.8% 26.0%

20,400

20,600

20,800

21,000

21,200

21,400

21,600

21,800

22,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

11-Jul 12-Jul 13-Jul 14-Jul 15-Jul 18-Jul 19-Jul

Han

g Se

ng

Ind

ex

%

Date

Market Up/Down Ratio

Unchange

Down

Up

HSI

94% 96%

72%

86%

97%

72%

24%

4% 2% 26% 14%

57% 24% 72%

20,400

20,600

20,800

21,000

21,200

21,400

21,600

21,800

22,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

11-Jul 12-Jul 13-Jul 14-Jul 15-Jul 18-Jul 19-Jul

Han

g Se

ng

Ind

ex

%

Date

Hang Seng Index Up/Down Ratio

Unchanged

Down

Up

HSI


4


Result Calendar This table may not be exhaustive and is for reference only. Investors can refer to HKEx.

Date Stock Name Stock Code Type Period

26/07/2016 CH POLYMETAL 2133 INT RES 6-MTH-ENDED30/06/16

28/07/2016 CH AUTOMATION 569 INT RES/DIV 6-MTH-ENDED30/06/16

28/07/2016 HANG LUNG GROUP 10 INT RES/DIV 6-MTH-ENDED30/06/16

28/07/2016 HANG LUNG PPT 101 INT RES/DIV 6-MTH-ENDED30/06/16

28/07/2016 QPL INT'L 243 FIN RES Y.E.30/04/16

2/8/2016 HUTCHTEL HK 215 INT RES/DIV 6-MTH-ENDED30/06/16

2/8/2016 HYSAN DEV 14 INT RES/1ST INT DIV 6-MTH-ENDED30/06/16

9/8/2016 CLEAR MEDIA 100 INT RES/DIV 6-MTH-ENDED30/06/16

10/8/2016 HK&S HOTELS 45 INT RES/DIV 6-MTH-ENDED30/06/16

10/8/2016 HKEX 388 INT RES/DIV 6-MTH-ENDED30/06/16

11/8/2016 FAR EAST GLOBAL 830 INT RES/DIV 6-MTH-ENDED30/06/16

16/08/2016 HAECO 44 INT RES/1ST INT DIV 6-MTH-ENDED30/06/16

16/08/2016 MMG 1208 INT RES 6-MTH-ENDED30/06/16

17/08/2016 CATHAY PAC AIR 293 INT RES/1ST INT DIV 6-MTH-ENDED30/06/16

17/08/2016 PING AN 2318 INT RES/DIV 6-MTH-ENDED30/06/16

17/08/2016 TENCENT 700 INT RES/DIV 6-MTH-ENDED30/06/16

18/08/2016 GEELY AUTO 175 INT RES 6-MTH-ENDED30/06/16

18/08/2016 SWIRE PACIFIC A 19 INT RES/1ST INT DIV 6-MTH-ENDED30/06/16

18/08/2016 SWIRE PACIFIC B 87 INT RES/1ST INT DIV 6-MTH-ENDED30/06/16

18/08/2016 SWIREPROPERTIES 1972 INT RES/1ST INT DIV 6-MTH-ENDED30/06/16

23/08/2016 SHANGHAI PECHEM 338 INT RES 6-MTH-ENDED30/06/16

26/08/2016 JIANGSU EXPRESS 177 INT RES 6-MTH-ENDED30/06/16

29/08/2016 CHINA SHIP DEV 1138 INT RES 6-MTH-ENDED30/06/16

30/08/2016 NANJING PANDA 553 INT RES/DIV 6-MTH-ENDED30/06/16

31/08/2016 CHINA EB LTD 165 INT RES/DIV

PERIOD

ENDED30/06/16

14/07/2016 DAOHE GLOBAL 915 FIN RES/DIV Y.E.30/04/16

14/07/2016 FAST RETAIL-DRS 6288 QUARTER RESULTS 9-MTH-ENDED31/05/16

19/07/2016 CHINESE EST H 127 SP INT DIV Y.E.31/12/16

19/07/2016 VINDA INT'L 3331 INT RES/DIV 6-MTH-ENDED30/06/16

26/07/2016 CH POLYMETAL 2133 INT RES 6-MTH-ENDED30/06/16

Source：HKEx http://www.hkexnews.hk/reports/bmn/ebmn.htm


5


Stock in Focus

CHINA

MOBILE (941.HK)

Last Close 93.50

Entry 92.00

Target 103.00

Stop-loss 87.00

YTD／1M／3M／12M % Change 6.9%／9.5%／5.4%／-4.8%

Market Cap HK$1,914.46bn

3M Average Daily Volume 14.93mn shares

FY1 Forward P/E 15.0

China Mobile: Upbeat 4G

end-user sales and

positive outlook for

fixed-line business

China Mobile (941.HK, HK$93.50) is one of the three telecommunications operators in China. In Q1, the company’s results came in as follows (compared with the previous year): net profit edging up 0.5%; earnings before interest, taxes, depreciation and amortisation (EBITDA) up 7%; and operating revenue rising 8.7%. It is forecast that fixed-line business development and accelerated 4G subscription will drive up the company’s performance. China Mobile has been aggressively promoting 4G end-user sales to speed up customer migration to 4G. This is a positive share price catalyst. In Q1, the company recorded a YoY growth of 148% in mobile data traffic, exceeding the 143.7% a year earlier, by which revenue from data sales had increased 38% YoY. The average monthly usage flow of 4G is three times that of 3G. The 2015 earnings data of the three Chinese operators shows that in 2015: China Mobile added over 200 million 4G users to a total of 300 million; China Telecom (728.HK) had 58.46 million 4G end-users; and China Unicom (762.HK)’s 4G end-users totalled 44.16 million. China Mobile therefore has substantially more 4G customers than the other two’s combined total. China Mobile, based on its advantage from scale, is more endowed to introduce business strategy to convert mobile traffic to revenue. In Q1, its average revenue per user (ARPU) rose 19.5% YoY to HK$57.6, flagging potential for profit growth. Moreover, China Mobile’s advantage is extending to fixed -line services. Regarding the number of fixed-line broadband users, in May, China Mobile saw a net increase of 926,000 to 62.647 million, while the respective figures of China Unicom were 167,000 and 73.689 million. If China Mobile can keep this growth momentum, it will surpass China Unicom in the number of cable broadband users in one year. It is expected that China Mobile’s integrated offer of fixed-line and mobile services will bring synergy and result in enhanced customer loyalty. China Mobile shows a dividend yield of 3%. Buy at below HK$92 to target HK$103 with a stop loss of HK$87.


6


CHINA MOBILE: Target

price HK$103



7


Today’s Top Picks “Today’s Top Picks” selects a list of stocks whose prices are expected to increase. The selection is made through the analysis of the daily most updated market information, including price movement and technical analysis, as well as corporate news, such as change of ownership, results announcement, merger or acquisition.

The above column is also published in the “Broker Challenge” of Hong Kong Economic Times Investment and Finance Section every Tuesday to Saturday.

Everchina Int'l

(202)

Last Trading Day Closing

Price：HK$ 0.28

Purchase Price：current

Target Price：HK$ 0.315

Stop-loss Price：HK$ 0.255

Reason: Share price rallied

strongly with increasing

turnover, may place a small

bet.

Source: Bloomberg, SHKF

Talent Ppt Gp

(760)

Last Trading Day Closing

Price：HK$ 0.153

Purchase Price：current

Target Price：HK$ 0.173

Stop-loss Price：HK$ 0.145

Reason: Stock price

bottomed out, expected to

test 100-day MA.



8


Overview of Sector Performance

Last day’s best performing sectors

d-d (%) 5D (%) 1M (%)

Medical 1.3% 0.2% 2.1%

Logistics 1.1% 3.4% 10.2%

Gas 0.6% -0.7% 2.4%

Agriculture 0.3% 1.9% -1.7%

Handset and related accessories 0.2% -2.7% -0.6%

REITs 0.2% 1.9% 9.0%

Heavy Machinery 0.1% -2.0% -0.1%

Other Metals 0.1% -3.4% 13.1%

HK Consumer Group 0.1% -0.1% 9.0%

Chinese Property 0.0% 0.8% 7.5%

Technology 0.0% -0.4% 2.2%

Durable Consumables 0.0% 3.2% 10.5%

Local Property -0.1% 4.1% 10.3%

Department Store -0.1% 0.4% 0.6%

Sports accessories -0.1% 5.9% 10.4%

Major stocks of best performing sectors

Medical Trad Chi Med ( 570 ) , Sinopharm ( 1099 ) , Sino Biopharm ( 1177 ) , Fosun Pharma ( 2196 ) , SH Pharma ( 2607 )

Logistics Kerry Log Net ( 636 ) , SITC ( 1308 )

Gas China Gas ( 384 ) , Beijing Enterprises ( 392 ) , ENN Energy ( 2688 ) , CIMC Enric ( 3899 ) , China Res Gas ( 1193 )

Agriculture First Tractor ( 38 ) , Sinofert ( 297 ) , Ko Yo Group ( 827 ) , National Agri ( 1236 ) , China Bluechem ( 3983 )

Handset and related

accessories

Tongda Group ( 698 ) , AAC Tech ( 2018 ) , Sunny Optical ( 2382 ) , Coolpad Group ( 2369 ) , TCL Comm ( 2618 )

REITs Yuexiu REIT ( 405 ) , Fortune REIT ( 778 ) , Prosperity REIT ( 808 ) , LINK Reit ( 823 ) , Champion REIT ( 2778 )

Heavy Machinery Sany Int'l ( 631 ) , Zoomlion ( 1157 ) , Lonking ( 3339 ) , Sinotruk ( 3808 )

Other Metals Jiangxi Copper ( 358 ) , CMOC ( 3993 ) , Zhaojin Mining ( 1818 ) , Zijin Mining ( 2899 )

HK Consumer Group Sa Sa Int'l ( 178 ) , Cafe De Coral ( 341 ) , Luk Fook ( 590 ) , Bonjour ( 653 ) , I.T ( 999 )

Chinese Property COLI ( 688 ) , China Res Land ( 1109 ) , Sunac ( 1918 ) , Country Garden ( 2007 ) , Evergrande ( 3333 )

Technology Kingdee ( 268 ) , Chinasoft ( 354 ) , Tencent ( 700 ) , NetDragon ( 777 ) , Kingsoft ( 3888 )

Durable Consumables Welling Hldg. ( 382 ) , Skyworth Digital ( 751 ) , Hisense Kelon Elec ( 921 ) , TCL Multimedia ( 1070 )

Local Property CK Hutchison ( 1 ) , Henderson Land ( 12 ) , SHK Prop ( 16 ) , New World Dev ( 17 ) , Sino Land ( 83 )

Department Store NWDS China ( 825 ) , Springland ( 1700 ) , Intime ( 1833 ) , Golden Eagle ( 3308 ) , Parkson Group ( 3368 )

Sports accessories 361 Degrees ( 1361 ) , Xtep Int'l ( 1368 ) , Peak Sport ( 1968 ) , Anta Sports ( 2020 ) , Li Ning ( 2331 )


9


Forward P/E and Valuations of Major Indices

HSI

8

10

12

14

16

Oct-11 Oct-12 Oct-13 Oct-14 Oct-15

Prospective P/E Average +/- 1 s.d.

Shanghai Composite

6

8

10

12

14

16

18

20




HSCEI

6

8

10

12

14

16



S&P 500

10

12

14

16

18

20



Valuations and estimated earnings growth of major indices

FY16E P/E (X) Long-term avg. fwd.

P/E (X)

Deviation from avg.

(%)

FY1 EPS growth

(%)

FY2 EPS growth

(%)

Hang Seng Index 12.1 11.0 10.3 (11.0) 10.9

HSCEI 7.7 7.9 (2.6) (8.9) 9.0

Shanghai Comp 14.0 10.7 29.9 19.9 12.9

S&P 500 18.4 15.3 20.2 9.2 13.3


10


Market Data

Previous day’s best and worst performers

Stock

code

Price

(HK$)

1D

chg

(%)

5D

chg

(%)

1M

chg

(%)

YTD

chg

(%)

Turnover

(HK$m)

FY1 P/E (X) FY2 P/E (X)

Best

ESPRIT HLDGS 330 .HK 6.670 9.7 16.6 15.0 -22.1 114.5 N/A N/A

SIHUAN PHARM 460 .HK 1.860 8.8 8.8 17.7 -57.5 263.2 7.7 7.9

UNIVERSAL HEALTH 2211 .HK 0.415 7.8 -1.2 -14.4 -86.2 6.4 1.6 1.4

AJISEN CHINA HOL 538 .HK 3.550 5.0 10.9 15.6 3.2 3.6 16.9 16.3

ASIA CEMENT CH 743 .HK 1.630 3.8 10.9 18.1 -11.9 0.3 N/A 64.0

Worst

NORTH MINING SHA 433 .HK 0.159 -9.7 -19.7 40.7 38.3 24.3 N/A N/A

CHINA SINGYES SO 750 .HK 2.920 -7.3 -1.7 9.0 -47.3 101.4 4.6 4.2

GREAT EAGLE 41 .HK 34.850 -6.1 8.9 16.6 47.0 19.6 13.5 13.4

ANGANG STEEL-H 347 .HK 3.690 -5.6 -6.3 14.2 17.5 144.8 796.7 63.7

MAANSHAN IRON-H 323 .HK 1.720 -5.0 -7.5 11.7 3.6 39.4 N/A N/A

Note: Best and worst performers from HSI, HSCEI, HSCI

HSCI volume filter

Company Stock

code

Price

(HK$)

1D chg

(%)

Avg. vol.

(m shares)

Prev. vol.

(m shares)

% increase FY1 P/E

(X)

FY2 P/E

(X)

TOM GROUP LTD 2383 .HK 2.060 0.5 2.0 16.0 703.3 N/A N/A

ESPRIT HLDGS 330 .HK 6.670 9.7 3.0 17.7 491.7 N/A N/A

CONSUN PHARMACEU 1681 .HK 3.880 0.8 0.5 3.0 489.7 10.5 9.1

CHINA SINGYES SO 750 .HK 2.920 -7.3 7.3 34.8 376.6 4.6 4.2

CARNIVAL GROUP 996 .HK 0.940 1.1 46.3 200.1 332.3 72.3 37.6

KERRY LOGISTICS 636 .HK 10.680 3.1 0.8 3.4 324.6 15.9 14.9

LIFESTYLE INTL 1212 .HK 10.840 -1.3 0.6 1.9 229.7 10.1 9.6

NEWOCEAN ENERGY 342 .HK 2.270 -4.6 0.9 3.0 228.4 3.0 2.5

EMPEROR INTL 163 .HK 1.720 0.6 1.0 3.0 192.6 N/A N/A

CHOW SANG SANG 116 .HK 14.700 -1.9 0.3 0.8 147.4 10.8 9.7

Note: Based on volume change from last 30 trading days’ average of HSCI constituents

Most short sold stocks

Company Stock

code

Price

(HK$)

1D chg

(%)

Shortsell

turnover

(HK$m)

% of total

shortsell

turnover

% of own

turnover

FY1 P/E

(X)

FY2 P/E

(X)

HYDOO INTERNATIO 1396 .HK 0.940 1.1 0.0 0.0 100.0 N/A N/A

CHINA RESOURCES 291 .HK 15.520 0.1 18.6 0.3 67.0 38.4 27.9

MMG 1208 .HK 1.910 0.0 1.4 0.0 66.4 N/A 12.3

CHOW TAI FOOK JE 1929 .HK 5.970 0.7 7.7 0.1 61.7 18.4 16.9

CATHAY PAC AIR 293 .HK 12.200 -2.9 81.1 1.5 61.2 9.3 8.5

SWIRE PACIFIC-A 19 .HK 91.450 -0.5 39.8 0.7 51.0 14.4 13.6

TSINGTAO BREW-H 168 .HK 27.350 -2.0 21.8 0.4 48.2 21.6 20.4

UNI-PRESIDENT CH 220 .HK 5.910 1.0 10.8 0.2 47.3 21.1 19.9

TINGYI 322 .HK 6.880 -1.0 28.2 0.5 46.4 22.2 18.9

LI NING CO LTD 2331 .HK 4.140 0.5 14.2 0.3 44.7 23.2 14.5

Note: Based on short-selling turnover of constituents of HSI, HSCEI, HSCI


11


Interest rates

Latest (%) 5D chg (bps) 1M chg (bps) YTD chg (bps) y-y % chg

U.S. 2-year Treasury yield 0.6898 2.47 -5.53 -35.79 -1.63



HK 1-month HIBOR 0.2416 -0.27 2.11 2.05 0.47

HK 3-month HIBOR 0.5561 0.25 2.89 16.25 17.01

SH 1-month HIBOR 2.7950 -1.50 -6.40 -20.70 -25.60

SH 3-month HIBOR 2.8650 -2.30 -9.18 -22.02 -28.70

Exchange rates

Latest 5D % chg 1M % chg YTD % chg y-y % chg

USD Dollar Index 97.0370 0.9 3.7 -1.6 -1.0

USD/HKD 7.7556 0.0 0.1 -0.1 -0.1

EUR/USD 1.1017 -0.7 -2.6 1.5 1.8

USD/JPY 106.07 -1.5 -2.0 13.2 17.2

GBP/USD 1.3100 -0.3 -10.9 -11.1 -15.8

USD/CHF 0.9856 0.0 -2.4 1.7 -2.1

AUD/USD 0.7501 -1.4 0.6 2.9 1.7

NZD/USD 0.7028 -3.4 -1.3 2.9 7.0

USD/CAD 1.3028 -0.4 -1.7 6.2 -0.3

USD/CNY 6.6983 -0.2 -1.8 -3.1 -7.3

USD/CNH 6.7107 -0.3 -1.8 -2.1 -7.4

Precious metals and commodities

Latest 5D % chg 1M % chg YTD % chg y-y % chg

CRB Index 186.1 -2.2 -4.3 5.7 -12.2

Comex Gold 1,333.0 -0.8 3.2 25.7 20.4

Comex Silver 19.975 -2.1 14.1 44.7 35.4

Nymex WTI Crude 44.76 0.0 -9.3 20.8 -10.7

ICE Brent Crude 46.86 1.3 -7.5 25.7 -17.3

LME Copper 4,984.00 2.4 9.5 5.9 -9.1

LME Aluminum 1,647.00 -1.7 2.0 9.3 -2.9

CBT Wheat 417.50 -5.1 -11.7 -11.2 -21.6

CBT Corn 342.75 -5.3 -18.6 -4.5 -15.4

CBT Soybean 1045.50 -6.9 -8.6 20.0 3.7


12


Companies listed on both the A-share and H-share markets

A-share premium to H-share

Company H

share

code

Price

(HK$)

A share

code

Price

(RMB)

A-share

premium

to H-share

(%)

Company H

share

code

Price

(HK$)

A share

code

Price

(RMB)

A-share

premium to

H-share

(%)

LUOYANG GLASS-H 1108 4.61 600876 27.83 599.0 CHINA SHIPPING D 1138 4.45 600026 6.36 65.5

ZHEJIANG SHIBA-H 1057 9.50 002703 30.73 274.6 GREAT WALL MOT-H 2333 7.05 601633 9.89 62.4

JINGCHENG MAC-H 187 3.05 600860 9.40 256.9 PETROCHINA-H 857 5.40 601857 7.35 57.6

NANJING PANDA-H 553 6.11 600775 17.31 228.0 AIR CHINA LTD-H 753 5.81 601111 7.85 56.4

SHENJI GROUP-H 300 2.32 600806 6.47 222.9 CRRC CORP LTD -H 1766 7.03 601766 9.33 53.7

SHANDONG MOLON-H 568 3.32 002490 9.22 221.6 BAIYUNSHAN PH-H 874 19.82 600332 26.25 53.4

SINOPEC OILFIE-H 1033 1.50 600871 4.16 221.1 SHANDONG CHEN-H 1812 6.58 000488 8.60 51.3

CSSC OFFSHORE -H 317 12.00 600685 31.32 202.2 CHINA COAL ENE-H 1898 4.33 601898 5.64 50.8

FIRST TRACTOR-H 38 4.00 601038 9.92 187.2 LIVZON PHARM-H 1513 38.90 000513 50.53 50.4

SHANGHAI ELECT-H 2727 3.25 601727 8.01 185.4 ZIJIN MINING-H 2899 2.94 601899 3.79 49.3

YANZHOU COAL-H 1171 5.07 600188 12.48 185.0 CHINA COM CONS-H 1800 8.66 601800 10.92 46.0

CHINA SHIPPING-H 2866 1.70 601866 4.18 184.7 CITIC BANK-H 998 4.95 601998 6.17 44.3

ANHUI EXPRESS-H 995 6.20 600012 15.22 184.2 HAITONG SECURI-H 6837 12.72 600837 15.64 42.4

CMOC-H 3993 1.79 603993 4.35 181.4 SHENZHEN EXPRE-H 548 6.96 600548 8.47 40.9

NORTHEAST ELEC-H 42 2.80 000585 6.73 178.3 CHINA LIFE-H 2628 17.54 601628 21.33 40.8

GUANGZHOU AUTO-H 2238 10.38 601238 23.50 162.1 MINSHENG BANK-H 1988 7.90 600016 9.50 39.2

TIANJIN CAP-H 1065 3.59 600874 8.02 158.7 BYD CO LTD-H 1211 52.55 002594 62.80 38.4

DATANG INTL PO-H 991 1.91 601991 4.06 146.1 CHINA RAIL GR-H 390 5.86 601390 7.00 38.3

SHANDONG XINHU-H 719 5.48 000756 11.50 143.0 CHINA VANKE-H 2202 15.30 000002 17.11 29.5

CHINA OILFIELD-H 2883 6.16 601808 12.66 138.0 ANGANG STEEL-H 347 3.69 000898 4.12 29.3

HISENSE KELON -H 921 4.14 000921 8.32 132.7 HANG SENG CHINA AH

PREMI

N/A 128.91 N/A N/A 28.91

CHINA COSCO HO-H 1919 2.79 601919 5.39 123.7 GUANGSHEN RAIL-H 525 3.71 601333 4.09 27.6

ZHENGZHOU COAL-H 564 3.33 601717 5.92 105.8 CEB BANK-H 6818 3.47 601818 3.82 27.5

DALIAN PORT PD-H 2880 3.46 601880 6.15 105.8 BANKCOMM-H 3328 5.17 601328 5.65 26.5

SICHUAN EXP-H 107 2.70 601107 4.77 104.6 ABC-H 1288 2.84 601288 3.10 26.4

ZOOMLION HEAVY-H 1157 2.39 000157 4.21 104.0 TSINGTAO BREW-H 168 27.35 600600 29.83 26.3

BEIJING NORTH-H 588 2.48 601588 4.25 98.4 SHANGHAI PHARM-H 2607 17.88 601607 19.08 23.6

CHINA SOUTHERN-H 1055 4.84 600029 8.18 95.7 FOSUN PHARMA-H 2196 19.56 600196 20.84 23.4

JIANGXI COPPER-H 358 9.44 600362 15.86 94.5 BANK OF CHINA-H 3988 3.17 601988 3.32 21.3

SINOPEC SHANG-H 338 3.74 600688 6.24 93.2 ICBC-H 1398 4.33 601398 4.30 15.0

DONGFANG ELECT-H 1072 6.16 600875 10.12 90.2 CHINA SHENHUA-H 1088 15.10 601088 14.98 14.9

METALLURGICAL-H 1618 2.37 601618 3.89 90.1 CM BANK-H 3968 17.36 600036 17.12 14.2

HUANENG POWER-H 902 4.46 600011 7.18 86.4 CHINA RAIL CN-H 1186 9.39 601186 9.14 12.7

CHINA EAST AIR-H 670 4.32 600115 6.95 86.3 CITIC SEC-H 6030 17.10 600030 16.60 12.4

CIMC-H 2039 9.07 000039 14.20 81.3 CHINA PACIFIC-H 2601 27.95 601601 27.13 12.4

MAANSHAN IRON-H 323 1.72 600808 2.67 79.7 CCB-H 939 5.39 601939 5.13 10.2

DONGJIANG ENV-H 895 12.14 002672 18.83 79.6 GF SECURITIES-H 1776 17.74 000776 16.80 9.7

BBMG CORP-H 2009 2.62 601992 4.06 79.4 WEICHAI POWER-H 2338 8.76 000338 8.27 9.3

ALUMINUM CORP-H 2600 2.60 601600 4.01 78.6 PING AN-H 2318 36.10 601318 32.38 3.9

CHONGQING IRON-H 1053 1.65 601005 2.52 76.8 SINOPEC CORP-H 386 5.72 600028 4.85 -1.8

XINJIANG GOLD-H 2208 10.70 002202 16.06 73.8 JIANGSU EXPRES-H 177 10.80 600377 8.84 -5.2

NEW CHINA LIFE-H 1336 28.15 601336 41.29 69.8 ANHUI CONCH-H 914 19.40 600585 15.48 -7.6

HUADIAN POWER-H 1071 3.49 600027 5.11 69.5 FUYAO GLASS IN-H 3606 19.44 600660 15.36 -8.5

ZTE-H 763 10.38 000063 14.88 66.0


13


Top 20 most traded ETFs

Price (HK$) 1D chg (%) 5D chg (%)

2800 TRACKER FUND HK 22.20 -0.67 1.83

2828 HS H-SHARE ETF-H 91.45 -1.19 1.39

2822 CSOP FTSE CH-HKD 11.18 -1.06 -1.06

2823 ISHARES FTSE A50 10.10 -1.17 -0.79

3188 CHINAAMC 300-HKD 38.25 -1.03 -2.05

83188 CHINAAMC 300-CNY 33.15 -0.30 -1.92

2840 SPDR GOLD SHARES 983.50 0.00 -2.24

82822 CSOP FTSE CH-RMB 9.67 -0.92 -1.12

2825 CSI HK100 TRACK 19.02 0.00 1.82

3087 DBX VIETNAM 194.80 -0.56 3.07

3147 CSOP SZSE ETF-HK 9.69 0.31 -0.10

3020 DBX MSCI USA 432.20 -0.32 0.61

2833 HSI ETF-HKD 221.00 -0.45 2.22

3036 DBX TAIWAN 1C 168.90 0.06 2.55

3126 VG FTSE JAP I EF 20.65 -0.48 -0.24

2836 ISHARES S&P BSE 18.58 -0.21 -0.54

3081 VALUEGOLD ETF 32.30 0.31 -1.82

2805 VANG-FTSE-AEJ-ET 18.90 -1.15 1.29

2846 ISHARES CSI 300 21.15 -0.47 -1.63

3021 CSOP MSCI T50 ET 3.87 0.26 0.52


14


Economic data and event calendar

Source：Bloomberg, SHKF

Note：HK Time

P=Preliminary；F=Final

Country/ Date Event Period Survey Prior

Mon 18 Jul

Eurozone Bloomberg July Eurozone Economic Survey

Tue 19 Jul

US Housing Starts Jun 1170k 1164k

Wed 20 Jul

US MBA Mortgage Applications 15-Jul -- 7.20%

Eurozone Consumer Confidence Jun -8 -7.3

Thu 21 Jul

Eurozone ECB Main Refinancing Rate 21-Jul 0.00% 0.00%

US Initial Jobless Claims 16-Jul -- 254k

Fri 22 Jul

Japan Nikkei Japan PMI Mfg Jul -- 48.1

US Markit US Manufacturing PMI Jul 51.5 51.3


15


Analyst：Kenny Wen

Disclosure of Interests

Research Analyst Certification

The views about any and all of the subject securities and issuers expressed in this report accurately reflect the personal views of the research analyst(s) primarily responsible for this report; and the analysts are paid in part based on the profitability of Sun Hung Kai Investment Services Limited ("SHKIS") and its affiliates (collectively called "SHKF") which includes revenue from investment banking activities.

Research Analyst Conflicts

Financial Interests: The research analyst(s) who prepared this report and/or his/her/their associates has/have no financial interests in relation to listed corporation(s) covered in this report. Relevant Relationships: The research analyst(s) who prepared this report and his/her/their associates do not serve as officer(s) of listed corporation(s) covered in this report.

SHKF's Financial Interests and Business Relationships

SHKF may make a market in, or may, as principal or agent, buy or sell securities (or derivatives thereon) of issuer(s) mentioned in this report. SHKF may have a financial interest in the issuer(s) mentioned in this report, including a long or short position in its/their securities and/or options, futures or other derivative instruments based thereon, or vice versa. Likewise, SHKF, including its officers or employees may serve or have served as an officer, director or in an advisory capacity for any issuer(s) mentioned in this report. SHKF may also, from time to time, solicit, perform or have performed investment banking, underwriting or other services (including acting as adviser, manager, underwriter or lender) within the last 12 months for any issuer(s) referred to in this report. Information about conflicts of interest relevant to this report is available at this SHKF website: http://www.shkresearch.com/rp/disclosureOfInterests.html

Disclaimer This report is provided for information and discussion purposes only. None of the views contained in this report constitute a solicitation or an offer by any member of SHKIS, their directors, representatives and / or employees to buy or sell, whether as principal or agent, any securities, futures, options or other financial instruments. This report is intended for receipt by those to whom it is supplied by SHKIS and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject SHKIS to any regulatory requirement within such jurisdiction or country. Any person or entity who is in possession of this report and who intends to act or rely upon the information contained in it must satisfy himself / herself that he / she is not subject to any local requirement which restricts or prohibits him / her from doing so. Although the information in this report is obtained or compiled from sources that SHKIS believes to be reliable, it does not represent or warrant, whether expressly or impliedly, the accuracy, validity, timeliness or completeness of any such information. SHKIS expressly disclaims any warranties whether express or implied, of fitness for a particular purpose, or duties of care, in favor of any third party relying upon this report. Information contained in this report may change at any time and SHKIS gives no undertaking to provide notice of any such change. Opinions and estimates stated in this report are a reflection of the views of the relevant analysts as at the date of this report and may also change at any time. SHKIS gives no undertaking to provide notice of any such change. If in doubt, you should consult your qualified financial and/ or other professional adviser. The instruments and investments discussed in this report may not be suitable for all investors, and this report has no regard to the specific investment objectives, investment experience, financial situation or needs of any particular recipient. Investors must make their own investment decisions based on their own investment objectives and financial position. The value of, and income from, an investment may vary because of changes in interest rates or foreign exchange rates, changes in the price of securities or indices, changes in operational or financial conditions of companies and other factors. There may be time limitations on the exercise of, or the exercise of rights associated with, the instruments and investments discussed in this report. Past performance is not necessarily a guide to future performance. In no event will SHKIS or any other member of SHKF be liable or have any responsibility for loss of any kind, whether direct, indirect, consequential or incidental, resulting from the act or omission of any third party occurring in reliance upon the contents of this report even if SHKF is aware of such act or omission at the time that it occurs. © 2016 SHKIS. All rights reserved. This report may not be reproduced or redistributed, in whole or in part, without the written permission of SHKIS and SHKIS accepts no liability whatsoever for the actions of third parties in this respect.

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