Daily Report 150816

Stock Index
Last week stock index was strong. Real estate section sharply increased with Hengda concept. Wanke reached limit. Banks, securities and small-cap stocks sections’ performance is general. News side, Firstly, Xinhua News Agency English website released comment that China won’t adopt radical easing monetary policy, until economy is substantially changed. Secondly, CSRC require institutions self-inspect and reform about asset management stop promising break-even and decrease leverage. Thirdly, since July, 52 listing companies released terminate significant capital recapitalization, relating capital is more than 100 billion. Lastly, credit and loan for real estate companies is tight domestic.
Domestically, soybean meal followed overseas section tendency. Oil against meal ratio rolled back. Northeast China district soybean is bearish and stable. Filtered grain purchasing price is RMB 3800-3900/ton. Old soybean is at an advantage with quantity and price. Traders are not enthusiastic about purchasing soybean of 2015. North China soybean actuals supply is not sufficient and price keeps high. New soybean is lack of quantity. Purchasing and sales concentrate on old soybean. Soybean meal side, actuals quotation is stable this week. Oil plants change rhythm following overseas section. Market actuals trading is good. Coastal main oil plant quotation is RMB 3080-3150/ton. Import soybean quantity dropped. As for operation, short at high point and arbitrage with buying oil and selling soybean meal.
Last week PP futures was bearish with fluctuation. Upstream side, till last Thursday night, FOB Korea PP average price was $720/ton. Actuals side, domestic PP market is mixed with up and down. Crude oil futures tendency is unsure, but Sinopec raise price, which bolstered the price. Market price is under up and down dilemma. Trader’s quotation is strong; downstream factory contradicts with high price source of goods, and unwilling to receive goods. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7950-8100/ton, RMB 8350-8450/ton and RMB 8350-8450/ton, respectively. As for operation, current moving average system changes to downward; MACD exposure downward extended as weak pattern.
Last week copper market rolled back after rally, and sharply dropped on Friday. LME physical discount enlarged on the second half year. Domestic physical premium also decreased. Import copper stress on domestic market. Last week three main exchanges inventory increased 4462 tons to 445000 tons. In which SHFE increased 9324 tons, LME decreased 5367 tons, and COMEX increased 513 tons. Global copper output released as predicted. Domestic cable industry is not good. Bearish basic level stresses on copper price. Technically, copper price is bearish. Afternoon market still has the possibility of drop at the low point. Pay attention to resistant position of average 60; $4760 LME and domestically RMB37200.
Dong LV (Investment Certificate NO. TZ008452)