Great Fortune Securities: peripheral European and American economies become market focus

Tai Fook Securities Made/Wang Hongzhi Market performance in Wednesday, the general moderate rebound in Hong Kong, while the big city transactions fell. Despite the repeated performance of overseas markets, the mainland stock market continued to be good, with the Shanghai-Shenzhen 300 index rising by more than 5% in the past 6 trading days, which also helped to stimulate Hong Kong equities to build better. The relatively stable performance of the Chinese stock, led to a rebound in the state-owned enterprises Index 2.4%, and index rose 2%. The market's confidence in commodity prices has also improved as a result of the fact that oil, the main oil supply and demand sides, and the European Union have accepted a $70-80 per barrel as a reasonable level of oil prices. In addition, under the prospect of bank loan growth this year, Chinese banking stocks have also become the target of investors ' low intake. Investors are also confident that the central government will continue to promote the property and vehicle markets to stimulate personal consumption.　　However, the low prices of big cities reflect investors ' lack of confidence in the sustainability of the market rally. A consortium of Magalli (0083.HK,$12.50, Holdings) and Hopewell Industries (0054.HK,$23.50, Holdings), which has been set up by the Shenzhen Municipal Bureau for the construction of a hot-spot equity, Wan Chai Lee Tung Street, has stimulated two shares to rise by 3.6% and 1.7% respectively. With a site area of about 88,500 sq ft, the project will provide a maximum gross floor area of about 835,000 sq ft, of which 730,000 sq ft will be earmarked for residential use and the remaining area will be developed as a theme commercial shop named "Marriage Garden". The successful consortium has agreed to pay advance payment to the URA, however, there is no disclosure of the relevant amount and the consortium will equally share the sales revenue of the residential part of $6.2 billion apart from the URA on the basis of 50:50, that is, about $8,490 per sq ft and the commercial portion of the dividend is 60. : 40, the relevant part will be used for leasing purposes. If the development site is launched for public auction, we consider that the land premium will be $8,000 per sq ft, that is, the site value is $6.7 billion. The developer has cut its initial development expenditure according to the dividend arrangement to minimise its investment risk. We estimate that the development will make ends meet at $6,500 per sq ft. In the economic downturn, the sale of many new flats is still selling a full house, which gives real estate developers confidence in the replenishment of the land reserve, and we are still bullish on the local property unit, and in the Real Estate development Unit and the property collection and rental unit, we are respectively using Sun Hung Kai Property (0016.hk,$92.15, Buy) and Swire 0019.hk,$ 72.45, Buy) as the first glare of economic dynamics the latest release of second-hand housing sales by the National Association of Real Estate Brokers has raised investors ' hopes for a bottoming out of the US housing market. According to the monthly report, the seasonally adjusted second-hand housing sales in May were 4.77 million annual, although this figure was lower than the 4.82 million set by the market, but it was still 2.4% higher than the 4.66 million downward revision in April and the first consecutive two-month increase since September 2005. However, bearish investors may be looking at a 3.6% reduction in second-hand home sales last month compared with the 4.95 million set in May 2008.The median price for second-hand housing sold last month was $173,000 trillion, down 16.8% per cent year-on-year. The stock of second-hand housing available for sale at the end of May was 3.8 million, equivalent to 9.6 months ' supply, less than that of April 10.1 months. The job market is closely linked to the real estate market, so the June employment report, released by the U.S. Department of Labor on July 2, will be the focus.　　The market expects non-farm payrolls to drop by 363,000 this month, with unemployment at 9.6%, compared with 345,000 non-agricultural jobs and a 9.4% per cent unemployment rate in May. City outlook under the continued threat of new influenza, the EMB announces that the early summer holidays of local primary schools and kindergartens, although this will affect the number of visitors to Hong Kong in a certain extent, but do not detract from the investment climate of Hong Kong stocks. The market focus will remain on the peripheral economies of Europe and the United States, and our economic performance will generally be affected by the economies of Europe and the United States. The central government is encouraging a limited outflow of capital to relieve the pressure of excess liquidity and stimulate external demand, and more specific measures should give Hong Kong stocks an upward momentum. It is expected that the major cities will continue to be in the upper and lower form, but the volatility will fall to a relatively low level in the near future to reflect more rationally the current market fundamentals.　　Stocks with more reasonable valuations include local property units and Chinese consumption shares. The connected company of the Great Fortune Information Research Limited has made a market-making activity for the securities and/or any warrants or options mentioned in this article.