Dim Sum Express

A-Share Market

    Macro: Dec PMI suggests continued economic expansion at slower speed 。

    Dec PMI data suggest that the economy continues to recover but at a slower pace. The fact that this year’s CNY falls in Jan means Jan-Feb economic data might be quite substantially skewed. We believe real GDP growth in 1Q17 should remain stable with previous quarters given continued strength in infrastructure development, continued manufacturing restocking, and the low comparable base for export growth. However, nominal GDP growth might pick up further as the PPI and CPI should remain high in 1Q17. Infrastructure development is the most noteworthy among the five investment ideas we have highlighted for 2017.

    E-Commerce: 13th FYP shifts focus from pace of growth to quality of growth

    The 13th FYP for e-commerce development has been issued. It is worth noting that the focus of industry development has now shifted from achieving a rapid pace of growth to the quality of growth. Overall e-commerce transactions is targeted to grow at a CAGR of 12.9% during the 13th FYP (vs 31.9% during 12th FYP), with online retail volume to grow at a CAGR of 20.9% (vs 42.4% during 12th FYP). In addition, the role of e-commerce is also transitioning from a “strategic emerging industry” to “an economic growth engine”.