Daily Report 090916

Stock Index
News side, in dollar terms, imports increased in August by 1.5%, for the first time since November 2014 turned positive, significantly better than expected 5.4% decline in July fell to 12.5%. Thirdly: The State Council inspection teams supervise the economic performance, will involve the implementation of the State Council steady growth policies, as well as supply-side reforms landing this year, the implementation of innovation, protect and improve people's livelihood and other issues. China Insurance Regulatory Commission will allow risk capital participation in Shanghai and Hong Kong through the pilot. Now market lacks hotspot. Rally section lacks long term logic. With promote of reform, de-capacity, state-owned enterprise reform, stronger supervise and deduct enterprise burden, capital is leaving virtual and flowing into real section. The market is not pessimistic. Under the background of lacking capital, short term is strong, but don’t chase rising tendency. Find opportunity of rolling back.
 
Copper
Thursday copper market continues slightly adjusted below 5 weeks average. LME inventory ended 12 continuously days inventory increase. Thursday decreased 1375 tons to 338000 tons. LME physical discount narrowed $0.75 to discount $17.5. Supply side, recent upstream copper mines problem continued. Salvador of Chile CODELCO strike continued. Los Bronces of Anglo American workers are now voting for salary issue, and the result determines whether strike will happen. Salvador planning output of this year is 63000 tons. Los Bronces output of last year was 402000 tons. Chile strike bolstered copper price in the short term. Technically, we focus on the effectiveness of low position bolster. LME is $4690 and domestically RMB 37000.
 
                                                                                                         Dong LV (Investment Certificate NO. TZ008452)