Daily Investment Strategy
Recommended Stocks：CSOP A50 ETF（2822）
China's central bank on Friday (Oct18) officially launched a re-lending facility and a swap program as two new monetary policy tools to boost the country's capital market development. The initial re-lending amount is RMB300bn, with an annual interest rate of 1.75 percent and a term of one year, with the possibility of extension depending on the situation, the PBC said on its official website. If investors want to grasp the potential uptrend of each sector at the same time, CSOP A50 ETF can be considered. Target price: $16; Stop- Loss price: $12.3.
China’s Q3 Economic Growth at 4.6%
Last Friday, China announced its preliminary GDP growth for the third quarter at 4.6%. The GDP growth for the first and second quarters was 5.3% and 4.7%, respectively. This means that China’s GDP growth needs to reach 5.4% in the fourth quarter to achieve the annual growth target of 5% set at the beginning of the year. To catch up with the annual growth target in just three months, measures need to be implemented quickly and effectively.
On Friday, Southbound Trading recorded a net outflow of HKD 3.1 billion. Among them, Alibaba (9988) had the highest inflow at HKD 1.36 billion, followed by Tencent (700). The Tracker Fund of Hong Kong (2800) recorded the highest net outflow at HKD 5.37 billion, followed by the Hang Seng China Enterprises Index ETF (2828).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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