Dennis' Dreamfield——面包师的钱袋子®

    The data of macroeconomic released by government last week indicate an robust recover in China’s economic although external condition remains uncertain. The economic is recovering under a series of policy proposed by the central government on various industries, including real estate, infrastructure, home appliances, automobile, retail and so on. Yet although the trough of economic setback resulted from financial crisis in 2008 is thought to be behind us, the degree of the recovery still remains unclear and deserves our further observation. The optimistic market atmosphere caused by plentiful liquidity will not change in the short run.

    I suggest that we focus on the industries that are highly relevant with the previous government’s stimulating plans. The assets should be relocated to less risky industries such as real estate, automobile and other relevant sectors—steel, cement, home appliances, etc. In addition, the continuously easy monetary policy is beneficial to those industries that are sensitive to interest rate and monetary supply (such as bank, insurance company, security firm) and those enterprises that have high debt ratio.

    We could also find from the data of April that the domestic demands for both housing and automobile are still on robust growth which implies an optimistic expectation of market for the future. 

    Overall, I think the trend of growth remains unchanged though there might be some rectification for overrated stocks in short term.