China's finger bombs 1.5% to 10,663 points Citigroup praises Chinese stocks prospects

Chinese stocks in Hong Kong rebounded slightly this morning, unaffected by the weak CPI and PPI data. The H-Share index is now 158.8 points 0 or 1.51%, at 10663.12, with a turnover of HK $6.631 billion. Citi's report is bullish on the outlook for Chinese stocks, and believes that new lending in 5 June is expected to maintain momentum in April, making the overall economic performance in the second quarter better than in the previous period.　　Thinking that money will eventually spur the real economy, demand for commodities will rise markedly in the coming months.　　Citigroup also believes that ample capital will continue to push up asset prices, and that China's financial sector is expected to rise in earnings, with Chinese stocks strongly rising to more than twice times the average market rate (PB, which is the lower of the share price divided by the nominal value, the less attractive) level. However, Tangzhigang, executive director of UBS Securities and the mainland equity strategist, said the latest review of the bank's earlier target level to 12,000 points, is a comprehensive historical valuation range, basic factors and the future cash flow valuation results.　　But at a time when the country is close to the past, the market will become very nervous, and any light news could trigger a correction, and then estimate the country's adjustment range between 15% and 20%. But Tangzhigang also said that despite the recent rebound in the dollar triggered the market, but the U.S. low interest rates are expected to change in the next year or two, will lead to a weaker dollar, the relatively strong renminbi, which is another reason to attract capital inflows. If the US does not raise interest rates, China will not raise interest rates significantly, and the underlying liquidity of this bull market is unprecedented.