Local Broker Insight:*
Essence Securities:
In September, we expect the new-energy vehicle sector will be driven by favorable policy and robust sales. A unified national catalog of new energy vehicles may be introduced in August, which will help end local protectionism as well as increase production and sales of new energy vehicles with lower costs for car manufacturers. Consumption tax breaks may come in October on top of auto-purchase tax exemptions that will go into effect on September 1.
http://www.essence.com.cn/essence/english/index.jsp
UBS:
We expect July macro data to exhibit a smooth trend in the real economy, aided by a continuous export recovery, stepped-up policy support as well as steady credit expansion in the previous two months and improved business sentiment. We forecast industrial production will continue to see strong growth in July despite a high base figure in 2013.
CICC:
- HK/China Sees 9th Consecutive Week of Inflows; More Upside in Both A&H (Hanfeng WANG)
- Over the week ending Aug 6th, HK & China equity markets saw ~US1.9bn in inflows, the 9th consecutive week of inflow and reflecting sustained interest in Chinese equities.
- We think the heating up of Shanghai-Hong Kong Stock Connect and SOE reform themes may have been the catalyst that has driven fund inflows to their highest levels since 2008.
- While H-share markets consolidated last week on overseas uncertainties (US Fed, geopolitical tensions and surprisingly weaker Eurozone growth prospects) and concerns over liquidity, we think after a breather, markets will rise higher and re-rate on better growth and reforms that are far from over yet.
- For now, we urge investors to focus on fundamentals as interim results are about to flood in over the next few weeks and think growth visibility especially from any potential surprises could be the main return drivers.
- Similar story in A-shares as investors took profits on concerns over room for policy easing, but we remain upbeat on anti-corruption measures improving efficiency, activity and structure as they become a long-term mechanism coupled with reforms
http://www.cicc.com/index_en.xhtml?locale=en