UBS: CITIC Bank to increase investment in Chinese banks next quarter or adjust to five

Hang Seng Index Day K-line Trend chart "Our News" (reporter Chao Jian, intern reporter Xu) UBS Investment Research department executive director, Chinese capital stock strategist Tangzhigang (see photo), the current Hong Kong equities are not medium and long-term investors "buy and 　　hold"(Buy and hold) The timing, the bull market has not yet, the Hang Seng index in the third quarter of this year may be a correction, the adjustment range of about 20% to 15,000 to 16,000 points, then the time to buy and hold. H-Share index end of the year Tangzhigang April by JPMorgan's Asia-Pacific SME research director of the Post "job-hopping" to UBS yesterday, the first meeting with the media to analyze the latest situation in the stock market. He noted that the recent highs of the Hang Seng index had reached the culmination of a long period of non bull valuations, with a target of 12,000 and 60 at the end of the year for H-shares and Morgan Stanley's MSCI China Index, that is, the potential rise in the current index was only 13% and 11% per cent respectively. 　　He estimates that Hong Kong stocks will likely adjust in the third quarter, when it is time to buy and hold. Tangzhigang points out that while stock investors are expected to face the challenge in the second half of this year, the factors supporting the return of the bull market, including a low interest environment to attract more capital to the stock market and the introduction of the Chinese government to stimulate economic policy, have also alerted investors to the risks they face in the future. These risks involve a slower pick-up in private investment in the mainland and a still weaker external demand, and investors are wary of the risk of a sharp fall in the stock market as the valuations of Chinese stocks are already on the high side. 　　He predicts that the next bull market for Chinese stocks will not emerge for another year or so. The proposal of increasing the Tangzhigang of Chinese banks to invest in Chinese stocks is to increase their holdings in mainland banks, real estate, consumer, Internet, cement and infrastructure, coal and health care industries, and reduce aviation, container shipping, terminals, steel and telecommunications. Among them, he suggested that the specific stocks to be overweight include ICBC (1398), BOC (3988), China Traffic Construction (1800) and so on; the shares included CNOOC (0883), Chinalco (2600), Air China (0753), Cosco Holding (1919) and so on; to move (0941), 　　PetroChina (0857), Sinopec (0386), Zhong (2628), Ping-an (2318) and so on maintain a neutral investment rating. Will the mainland's planned resumption of a-share IPO bring pressure on Hong Kong stocks? Tangzhigang that the impact is relatively minimal because most of the mainland's larger enterprises are listed and the remaining companies waiting to be listed are private enterprises, and the Hong Kong market remains attractive even if they are expected to be listed for a longer period of time.