China Weekly Kickstart:China edged higher this week;rates cut late on Friday

类型：投资策略机构：高盛高华证券有限责任公司研究员：高盛高华证券研究所日期：2015-11-26

Performance

    Offshore: MXCN was flat at 0.6% withChemicals (5.6%), Transportation (2.7%) andAuto (2.3%) outperformed while Metals &Mining (-5.6%), Materials (-3.3%) and Energy(-1.8%) lagged.

    A-share: CSI300 rose 1.1% led by Health Care(5.6%), Insurance (3.0%) and Discretionary(2.6%) while Energy (-2.0%), Chemicals (-1.3%) and Metals & Mining (-1.1%) declinedmost.

    Earnings and valuations

    I/B/E/S Consensus 2015E/16E earnings growthis 0.1%/5.6% and 14.3%/11.5% for MXCN andCSI300, respectively.

    2015E EPS was revised down 12.6%/4.0% ytdfor MXCN/CSI300 both with Utilities being themost positively revised sectors inMXCN/CSI300, +1.4%/+3.8% ytd.

    MXCN/CSI300 12m fP/E are at 9.6x/12.3x.

    Policies, reforms, and industry trends

    President Xi made a state visit to the UK fromOct 20 to Oct 23 signing GBP 40bn worth ofcontracts with GBP 6bn in nuclear projects.

    Premier Li announced that China will continueto develop energy-saving and new-energyvehicles, and to build 4.5 million energycharging stations by 2020.

    Key reports

    Portfolio Strategy Commentary: ChinaMusings: Q&As on ADRs inclusion in MSCI

    Metal Detector: Copper - China’s drivetowards renewable energy and NEVs to havelimited impact

    China: Real Estate Developers: Septconstruction activities and land sales pickedup from low base