China stocks turned firmer after 5 days of falling, with SHA climbed about 0.37%.The market got boosted with Premier Li released a tech innovation plan for China high tech sector. Money flowed into Steel, Internet and Telecommunication sectors the most. Qingdao Hanhe Cable Co. rallied to limit-up as it upgraded some products with superconductive technology. CNYUSD rallied for another day with optimism from equity market, which in our opinion could be a short term short-covering. In commodity market, iron ore, coal and rebar rallied to level near limit-up with NDRC also released a plan to boost infrastructure building-up, and similar to CNY, we considered it could mostly be short-term event driven. We still prefer sectors of new energy, sport and precious metal, investors can reduce more risk exposure with the rally , especially with the ones of strong cyclical sectors, such as steel and ferrous metal mining, for SHA still presents mid-term downside risk, despite the short term rally.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.