On Tuesday, Shanghai and Shenzhen stock markets continued previous weak fluctuations, of which, Shanghai composite index fell by 13.07 points or 0.76% at 1706.70 points, while Shenzhen component index dropped by 2.68% at 5668.81 points. Three of the top ten weighted stocks ended with loss; only agriculture, forestry, animal husbandry & fisheries industry gained while other sectors all saw setbacks; real estate retreated by 4.8% while excavating, construction and building materials industry suffered over 3% decline. Total turnover of the two markets amounted to Rmb34.6bn, slightly above that of the previous trading day.
Political aspect and macro economy of domestic market witness little variation recently, we forecast supervision level will continue putting forward favorable policies in future; however, most of them will be on fundamental system construction reform, which is helpful to stabilize the market in the long run, yet with limited effects in short run. As for international market, American stock market closed high and interest rate of inter-bank market stayed low for several days; it indicates that credit crunch within financial system has been slightly relieved. We believe A-share market will maintain weak fluctuation in short term before any obvious changes from different aspects.