1. LINE

      Text:AAAPrint
      Economy

      Overseas investors still wary despite a strong rebound

      1
      2015-07-07 08:52China Daily Editor: Si Huan

      Overseas investors are still cautious toward A shares despite a rebound on Monday, as international fund managers warned the A-share market may continue to slide due to expensive valuations, and disorderly deleveraging may tighten liquidity.

      The Shanghai Composite Index rose by 2.4 percent and the large-cap CSI 300 surged by nearly 2.9 percent on Monday, after the government announced a series of market stabilization measures during the weekend. The Shanghai Composite Index has tumbled nearly 30 percent in the past three weeks on concern leveraged traders are liquidating bullish bets as equity valuations exceeded levels seen during the country's stock market bubble in 2007.

      Despite the rebound on Monday, foreign investors turned net sellers of 18.45 billion yuan ($2.97 billion) of A shares through the Shanghai-Hong Kong Stock Connect program, the highest sell trade value since the link started in November.

      The northbound trading balance was 26.38 billion yuan, representing 202 percent of the 13 billion yuan daily quota, meaning the sell trade value was larger than the buy order value on Monday.

      These two data indicated overseas investors are cutting their exposures to A shares by capitalizing on the A-share market rebound.

      "We are urging investors to sell mainland brokerage shares when the A-share market rebounds somewhat in the coming days," Bank of America Merrill Lynch said in a research report. "The market appears very expensive to us. We assess that there is still a fairly high chance that the market may fall sharply at a certain point over next few months."

      Liu Ligang, chief economist for greater China at the Australia and New Zealand Banking Group Ltd, said: "The market should be vigilant on the second round effects of the stock market slump. As margin trading has surged in the past few quarters, the deleveraging process, if it takes place in a disorderly manner, could tighten market liquidity. Commercial banks could even refuse to lend to the interbank market due to liquidity concerns over counterparties such as securities houses. Banks would become more cautious in lending to companies, especially to those with big exposure to stock market."

      The central government announced a series of measures like halting initial public offerings in a bid to rein in the recent A-share market rout triggered by excessive margin lending.

      HSBC Holdings Ltd's Hong Kong/mainland equity research head Steven Sun Yu said: "Policy support could prevent further sharp market falls; yet we think investors likely will sell into rebound in order to lower their leverage."

      But Sun said that there is no need for panic because A-share listed companies' cash flow is improving and earnings revisions could turn positive in the second half of the year.

      "In a challenging environment, A-share companies have become more prudent on expenditure, cutting back on investing for the future as well as trying to cut unnecessary expenses. The effort of rebuilding their balance sheets has moderately improved A-share companies' cash positions," Sun said.

      Related news

      MorePhoto

      Most popular in 24h

      MoreTop news

      MoreVideo

      News
      Politics
      Business
      Society
      Culture
      Military
      Sci-tech
      Entertainment
      Sports
      Odd
      Features
      Biz
      Economy
      Travel
      Travel News
      Travel Types
      Events
      Food
      Hotel
      Bar & Club
      Architecture
      Gallery
      Photo
      CNS Photo
      Video
      Video
      Learning Chinese
      Learn About China
      Social Chinese
      Business Chinese
      Buzz Words
      Bilingual
      Resources
      ECNS Wire
      Special Coverage
      Infographics
      Voices
      LINE
      Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.
      主站蜘蛛池模板: 亚洲AV无码一区二区三区DV| 又黄又爽一线毛片免费观看| 亚洲AV无码一区二区乱孑伦AS| 男女男精品网站免费观看| 成人免费看吃奶视频网站| 国产福利免费视频 | 亚洲国产av一区二区三区丶| 久久久久国产免费| 久久久亚洲精品国产| 无码人妻久久一区二区三区免费| 亚洲嫩草影院久久精品| 久久久久国色av免费看| 亚洲一级二级三级不卡| 亚洲免费视频观看| 又粗又大又硬又爽的免费视频| 久久精品熟女亚洲av麻豆| 亚洲Aⅴ无码一区二区二三区软件| 美女视频黄频a免费| AV在线亚洲男人的天堂| 成人A片产无码免费视频在线观看| 久久亚洲精品成人综合| 午夜免费1000部| 亚洲AV永久无码精品网站在线观看| 免费中文字幕一级毛片| 国产特黄特色的大片观看免费视频| 亚洲gv猛男gv无码男同短文| 四虎在线免费视频| 亚洲国产欧美国产综合一区| 久久久久亚洲AV成人网人人软件| 一级做a爰全过程免费视频| 亚洲宅男精品一区在线观看| 免费精品国产自产拍观看| 久久久受www免费人成| 91亚洲国产成人久久精品| 爽爽日本在线视频免费| 国产真人无码作爱免费视频| 亚洲免费中文字幕| 亚洲男人第一无码aⅴ网站| 91精品免费在线观看| 搜日本一区二区三区免费高清视频| 亚洲毛片在线观看|