Deutsche Bank: China to continue to adjust short-term stock market rally does not change the medium-term

Night network, nightlife network Finance YORK, May 6 news, on April 28 hit 4572.After the bull market high of 39 points, A shares into the short-term trend of adjustment。As of Wednesday's close, the Shanghai Composite Index reported 4231.33 points, down 1 day.62%。Deutsche Bank (Deutsche Bank) have been bullish on include A shares and Hong Kong stock markets, including China, but think short-term pullback will continue for some time。  Compared to A shares, Deutsche Bank Hong Kong stocks are expected to moderate some of the callback。  Why is the adjustment of prices is not over yet?Deutsche Bank analysts pointed out three major reasons。First, after the A shares continued to surge, there are some subtle changes in the tone of the policy, including the Commission [microblogging] supervision of financial leverage, the major brokerage firms raise margin requirements, government officials frequently prompted stock market risk, IPO approval acceleration signal。Second, the market capital inflows decline。We can see an IPO stocks rose the freezing of funds, a net redemption of ETF shares listed overseas rises, margin debt slowdown in capital inflows as well as Hong Kong stocks fall。In addition, China's stock market valuation advantage has declined。Shanghai and Shenzhen 300 index currently expected earnings of 12 times, 22 times that of non-financial stocks, small cap stock valuations of up to 32 times。Hong Kong stocks slightly lower than the valuation of emerging markets and the Asia-Pacific market, excluding Japan, but non-financial stocks price-earnings ratio 16 times higher than the historical average has a standard deviation。  Nevertheless, Deutsche Bank medium-term trend is still bullish on China's stock market, in particular, believe that Hong Kong's re-rating process is not over yet, the main reasons include: 1) China's further reform and easing measures will also improve investors' cyclical and structural prospects It expected; 2) global co-loose monetary policy and the Chinese private sector capital to reconfigure will drive capital into Hong Kong, mainland China and overseas funds, including funds。(Shofu compilation)

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