China stock declined after hitting new high at morning hours. SHA fell about 0.49% with money outflowed from Banking, Finance and Real Estate sectors the most for some profit taking. Xinjiang Chalkis Health Industry, a tomato products manufacturer, rallied to limit-up as some investors speculating that it may be taken over by other firms. DXY weakened overnight as some housing data biased to disappointed side. CNYUSD went firmer with optimism from equity market and seems it could break the 6.6 level. In commodity market, coal, iron ore and rebar rallied to prices around limit-up as investors won't give the idea that supply would be cut deep into the rest of the year, as both G20 and supply-reform reshaping the fundamental of these industrial materials. We maintained our recommendation to chase SZ-HK Connection sectors, and companies would be benefit from gov reform plan on SOE, the taking profit level could be raised to 3200 but a time limit to G20 meeting start should also be considered as funds could retreat before such major events.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.