Since economic trend basically merges, short-term negative elements release and impetus of falling stock market is restrained to some extent; obscure anticipation on policies will help maintain market stability, yet different anticipations will restrain rebound space, thus it is likely to see market concussion and priorities should be given to structural opportunities.
Macro-economic reverse trend takes shape and short-term adverse impact of data releases to some extent. Since Q1 2009, China’s macro economy began to stabilize and rebound, yet the uptrend turns downward in Q2 2010. Viewed from short term, economic data’s adverse impact releases, yet whether the falling range of following several quarters will exceed expectation is still significant element of the market.
As of policies, macro regulation faces a plenty of dilemmas, thus investors expect to see relax policy. Up to now, policy is still a significant element to impact on A-share market, and a leading indicator as well. Anticipation of relax policies will cause positive influence, which helps maintain market stability and makes for market rebound; however, obscure policy and different anticipations will restrain rebound space.
Fluidity of interbank market turns better. Loan-to-deposit ratio is down to 66% and rate of money market sees substantial decline compared with that of June 2010; after capital supplement to interbank market, lending ability strengthens, and enthusiasm and initiative of providing loans are likely to increase.
Investors may hold optimistic view based on properly cautious attitude, and take flexible operation as main measures. Falling impetus and space are limited in short term; attentions should be given to structural opportunities among the market concussion.