The bull-run of China stocks continued for another day, with SHA conquered 3125, a climb of 2.44%.Money went on to chasing property related sectors as investors believed that gov would rely the industry for economy stimulus, as they often did in an econ slowing down period. Money flowed into Finance, Software Development and Real Estate sectors the most. Zhejiang Meidu Energy, a real estate developer, rallied to limit-up as it resumed trading with plan to expand into new energy business. As investors believed the overall reform plans has to be released in months September and October, including Shenzhen-Hong Kong Equity Link, and some would be talked in G20 meeting, which is set in Sep 4th, money had started to position accordingly. Yet we didn't see such optimism in forex market with CNYUSD fluctuating in 6.63~6.66 range, supported by a soft DXY.In commodity market, palm oil led the rally as food producers stocking up the veg oil for mid-autumn festival with coal, the former leader, declined about 5.6% on heavy profit taking. We had to admit that the strength of recent rally toped our expectation, and SHA 3200 is quite likely with such momentum. We recommend sectors highly related with topics in G20, such as "One-Belt-One-Road" related sectors, harbor companies, SZ-HK connection sectors and innovative internet finance providers as short term bets and investors can gradually switch back into consumer staples sectors with SHA breaks 3200 level.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.