Investment Watch: Low-cost funds continue to flow into the stock market

The director of the Group Yi Securities (Hong Kong) Research Division, Zengyongjin US corporate performance and recent economic data, has largely failed to disappoint the market and has not reversed the market's vision of a turnaround in the second half of the US and global economy. Retail sales in the United States rose 0.6% in June, up from 0.5% in May and 0.4% per cent in the market, excluding cars below market expectations and last month's figures, reflecting the tendency of Americans to reduce consumption in the context of the deleveraging of financial institutions, a process that will microbicides US growth in the future. There is no denying the creation of negative effects. 　　However, the Fed's continuous infusion of capital to the market can temporarily offset the contraction of the financial institutions ' deleveraging process on the real economy. On the other hand, as in the case of China, the central bank injected large sums of money into the market until now, it seems not very effective direct flow to the real economy, but in fear of the future of vicious inflation is increasingly worried about the arrival of Low-cost funds to the stock market, because of China's strong economic recovery, 　　As the most convenient and free place to invest in China-related projects, Hong Kong has become a haven for capital, and this trend is expected to continue this year. It is suggested that investors bargain for China's overseas Development (0688), the company's first six-month real estate sales increased by 66% over the same period last year, has reached the annual sales target of 28 billion yuan 94%, cumulative sales area of 2.827 million square meters, the annual growth of 92.4%. I believe that the Chinese government will continue to maintain the healthy development of the housing market goals. The stock valuation is low, proposed to absorb 16 yuan, 12-month target price: 19.8 yuan (equal to 2010 estimated P/E ratio of 20 times times).