Today’s Top Picks INVESTMENT DAILY NOTEpg.jrj.com.cn/acc/Res/CN_RES/INVEST/2016/2/25/ab79febd-4... · 2016-02-29 · Sun Hung Kai Financial Group For Analysts and the Company’s

Sun Hung Kai Financial Group For Analysts and the Company’s Disclosure of Interests and Disclaimer, please read the last page of this report.

25 Feb 2016

INVESTMENT

DAILY NOTE

Market Highlights

Premier Li Keqiang chaired the State Council on 24 Feb and said the annual purchase ratio of new energy vehicles (NEVs) for central government, departments with new energy vehicle promotions, and public institutions will be raised above 50 percent. We estimate that the news is positive to NEV-related stocks like BYD (1211.HK).

AIA (1299.HK) announced its results for the year ended 30 November 2015. During the FY, net profit declined 18% on constant exchange rates and 22% on actual exchange rates, but final dividend significantly increased by 50%, which may bring support to stock price.

Equity Indices

Close d-d (%) YTD (%)

Hang Seng Index 19,192 (1.1) (12.4)

HSCEI 8,062 (1.3) (16.6)

Shanghai Comp 2,929 0.9 (17.2)

Shenzhen Comp 1,876 (0.0) (18.7)

DJIA 16,485 0.3 (5.4)

S&P 500 1,930 0.4 (5.6)

Nasdaq Comp 4,543 0.9 (9.3)

FTSE 100 5,867 (1.6) (6.0)

DAX 9,168 (2.6) (14.7)

CAC 40 4,155 (2.0) (10.4)

Nikkei 225 16,027 0.7 (15.8)

Taiwan Weighted 8,283 (0.6) (0.7)

Hong Kong Market Turnover

HK$bn d-d (%)

HSI 17.6 2.51%

HSCCI 3.6 4.54%

HSCEI 8.5 -0.79%

Main Board 60.7 3.34%

External Market Conditions

US stocks dropped in early trading session amid lower oil prices and worse-than-expected data for the service sector, but reversed sharp losses later as oil prices rebounded and ended with modest gain. Dow closed at 16,485, up 53 points. S&P 500 closed at 1,929, up 8 points. NASDAQ closed at 4,543, up 39 points.

ADRs dropped in the US market, with their closing prices effectively putting HSI down 38 points, closing at 19,154.

A weekly decline in crude production, along with strong demand for gasoline overshadowed the news of a weekly climb in U.S. crude stockpiles, oil prices ended slightly higher. New York crude oil futures closed at US$30.56/bbl, up US$0.28. US released worse-than-expected data, capital flows toward gold market to hedge, boosting up gold prices to one-week-high. New York gold futures settled at US$1,239.10/oz, up US$16.50.

Yesterday’s Hong Kong Equities

Dragged down by downward movements in external markets, the HSI dropped over 300 points to a day’s low before closing at 19,192, down 222 points. The HSCEI declined 108 points and closed at 8,061. Total turnover of the Main Board was HK$60.6bn.

Standard Chartered (2888.HK, HK$44.75) reported a pre-tax

loss of US$1.5bn in 2015, the first annual loss since 1989. The stock lost 6.3%.

Oil output cuts were nowhere in sight, sending oil stocks lower. PetroChina (857.HK, HK$5.07), Sinopec (386.HK, HK$4.28) and CNOOC (883.HK, HK$7.98) fell 2.1%, 2.7% and 3%

respectively.

Content Trends of HSI, HSCEI

Stock in Focus

Today’s Top Picks

Overview of Sector Performance

Forward P/E and Valuations of Major

Indices

Market Data

Previous day’s best and worst

performers;

HSCI volume filter;

Most short sold stocks;

Interest rates, exchange rates,

precious metals and commodities

A-share premium to H-share

Top 20 most traded ETFs

Economic data and event calendar

2

3

5

6

7

8-9

10

11

12


2

25 Feb 2016 INVESTMENT DAILY NOTE

Trends of HSI and HSCEI

HSI:

Closed at

19,192

Source: Bloomberg and SHKF

HSCEI:

Closed at

8,061



3


Stock in Focus

AAC TECHNOLOGIES (2018.HK)

Last Close 52.95

Entry 50.00

Target 58.00

Stop-loss 44.00

YTD／1M／3M／12M % Change 4.7%／6.1%／-3.7%／4.6%

Market Cap HK$65.02bn

3M Average Daily Volume 4.19mn shares

FY1 Forward P/E 17.6

AAC Technologies: Buy

on positive capital gain

and dividend outlooks

AAC Technologies (2018.HK, HK$52.95), a supplier of parts to Apple, staged a decline earlier when Apple announced a cut in iPhone production. AAC Technologies indeed has sound fundamentals and it is flashing buy opportunities after the correction. AAC Technologies is a supplier of acoustic parts. The company is going through business transformation. It is actively developing businesses in addition to acoustic parts, extending to haptic engine, radio frequency and optic devices. Its products can be used in smartphones, tablet computers, wearable devices and notebook computers. In H1 2015, compared with the previous year, the company’s revenue and gross profit grew 26.7% and 27.7% while net profit increased 24.1%. The company is engaged in high gross margin businesses. Its gross margin and net margin went up 41.5% and 26.1% respectively, similar to 2014. Benefiting from business transformation, it registered a significant improvement in revenue distribution. Revenue from acoustic parts used to be as much as 80% for the company; yet, in H1 2015, the proportion of revenue from haptic engines jumped from 2.7% to 31.5%, and the segment’s gross margin was 50%, which can help diversify business risks. AAC Technologies shows stability in profitability that besides a strong cash flow from operating activities, average revenue and return on equity were respectively 28.6% and 29.1% from 2010 to 2014. The latest data shows the company has a debt ratio of only 10.4%. This low debt ratio offers more flexibility in dividend policy. Its dividend payouts have been stable since 2008 with an average payout ratio of 40%. According to Bloomberg’s estimates, for 2016, AAC Technologies will post earnings per share growth of 18.6% and a forward P/E of 14.8x. The share price is still inside a large upward channel. Its 10-day moving average has broken above its medium and long-term moving averages. The stock may go up further. Buy at HK$50 to target HK$58, and set a stop loss at HK$44.


4


AAC TECHNOLOGIES: Target price HK$58



5


Today’s Top Picks “Today’s Top Picks” selects a list of stocks whose prices are expected to increase. The selection is made through the analysis of the daily most updated market information, including price movement and technical analysis, as well as corporate news, such as change of ownership, results announcement, merger or acquisition.

The above column is also published in the “Broker Challenge” of Hong Kong Economic Times Investment and Finance Section every Tuesday to Saturday.

Pico Far East

（752）

Last Trading Day Closing

Price：HK$ 1.82

Purchase Price：current

Target Price：HK$ 2.00

Stop-loss Price：HK$ 1.63

Reason: Support is seen at

bottom, stock price may

bounce back.

Source: Bloomberg, SHKF (as of 24 Feb 2016)

Zhongzhi Pharm

（3737）

Last Trading Day Closing

Price：HK$ 2.15

Purchase Price：current

Target Price：HK$ 2.36

Stop-loss Price：HK$ 1.93

Reason: Stock price

gradually picked up, may

place a small bet.

Source: Bloomberg, SHKF (as of 24 Feb 2016)


6


Overview of Sector Performance

Last day’s best performing sectors

d-d (%) 5D (%) 1M (%)

Agriculture 2.9% 6.4% 3.2%

Aluminum 1.4% 6.1% 10.2%

Other Metals 0.9% 9.7% 15.7%

HK Telecoms 0.5% 1.7% 6.5%

Brokerages 0.4% 4.3% 5.0%

Heavy Machinery 0.2% 4.9% 1.1%

REITs 0.1% 1.5% 0.2%

Sports accessories 0.0% 1.9% -2.3%

Durable Consumables 0.0% 2.3% -3.3%

Department Store 0.0% 1.2% -0.5%

Logistics -0.1% 3.7% 10.1%

Building Materials -0.1% 3.1% 1.8%

Chinese Telecoms -0.3% 3.2% 6.2%

Telecoms Equipment -0.3% 3.7% 6.0%

Airline -0.4% 2.5% -3.6%

Major stocks of best performing sectors

Agriculture First Tractor ( 38 ) , Sinofert ( 297 ) , Ko Yo Group ( 827 ) , National Agri ( 1236 ) , China Bluechem ( 3983 )

Aluminum Chalco ( 2600 ) , China Hongqiao ( 1378 ) , China Zhongwang ( 1333 ) , RUSAL ( 486 )

Other Metals Jiangxi Copper ( 358 ) , CMOC ( 3993 ) , Zhaojin Mining ( 1818 ) , Zijin Mining ( 2899 )

HK Telecoms HutchTel HK ( 215 ) , Smartone ( 315 ) , HKT-SS ( 6823 )

Brokerages First Shanghai ( 227 ) , Central China Sec. ( 1375 ) , CITIC Sec. ( 6030 ) , Haitong Sec. ( 6837 ) , China Galaxy Sec. ( 6881 )

Heavy Machinery Sany Int'l ( 631 ) , Zoomlion ( 1157 ) , Lonking ( 3339 ) , Sinotruk ( 3808 )

REITs Yuexiu REIT ( 405 ) , Fortune REIT ( 778 ) , Prosperity REIT ( 808 ) , LINK Reit ( 823 ) , Champion REIT ( 2778 )

Sports accessories 361 Degrees ( 1361 ) , Xtep Int'l ( 1368 ) , Peak Sport ( 1968 ) , Anta Sports ( 2020 ) , Li Ning ( 2331 )

Durable

Consumables

Welling Hldg. ( 382 ) , Skyworth Digital ( 751 ) , Hisense Kelon Elec ( 921 ) , TCL Multimedia ( 1070 )

Department Store NWDS China ( 825 ) , Springland ( 1700 ) , Intime ( 1833 ) , Golden Eagle ( 3308 ) , Parkson Group ( 3368 )

Logistics Kerry Log Net ( 636 ) , SITC ( 1308 )

Building Materials Shanshui Cement ( 691 ) , Anhui Conch ( 914 ) , China Res Cement ( 1313 ) , BBMG ( 2009 ) , CNBM ( 3323 )

Chinese Telecoms China Telecom ( 728 ) , China Unicom ( 762 ) , China Mobile ( 941 )

Telecoms Equipment China Com Service ( 552 ) , ZTE ( 763 ) , Trigiant ( 1300 ) , Comba ( 2342 )

Airline Cathay Pacific ( 293 ) , China East Air ( 670 ) , Air China ( 753 ) , China South Air ( 1055 )


7


Forward P/E and Valuations of Major Indices

HSI

8

10

12

14

16

Oct-11 Oct-12 Oct-13 Oct-14 Oct-15

Prospective P/E Average +/- 1 s.d.

Shanghai Composite

6

8

10

12

14

16

18

20



Source: Bloomberg, SHKF

HSCEI

6

8

10

12

14

16



S&P 500

10

12

14

16

18

20



Valuations and estimated earnings growth of major indices

FY16E P/E (X) Long-term avg. fwd.

P/E (X)

Deviation from avg.

(%)

FY1 EPS growth

(%)

FY2 EPS growth

(%)

Hang Seng Index 9.8 11.0 (10.3) (13.6) 11.8

HSCEI 6.3 7.9 (20.6) (5.0) 10.2

Shanghai Comp 12.1 10.7 12.4 27.9 12.6

S&P 500 16.1 15.3 5.4 7.9 13.2


8


Market Data

Previous day’s best and worst performers

Stock

code

Price

(HK$)

1D

chg

(%)

5D

chg

(%)

1M

chg

(%)

YTD

chg

(%)

Turnover

(HK$m)

FY1 P/E (X) FY2 P/E (X)

Best

CHINA PUBLIC PRO 1094 .HK 0.182 18.2 23.8 9.0 -17.3 44.9 N/A N/A

CHINA BLUECHEM-H 3983 .HK 1.800 6.5 9.1 9.1 -14.7 33.7 8.9 9.0

GOLDEN EAGLE RET 3308 .HK 9.110 5.9 7.1 6.7 -2.7 49.8 13.9 13.6

ALUMINUM CORP-H 2600 .HK 2.860 5.9 17.2 20.7 11.3 460.2 N/A N/A

G-RESOURCES GROU 1051 .HK 0.223 5.2 0.0 17.4 21.2 12.9 N/A N/A

Worst

SJM HOLDINGS LTD 880 .HK 5.050 -9.8 -6.7 6.5 -8.7 226.1 13.6 18.0

CRTG 269 .HK 0.106 -7.8 -15.2 17.8 -41.8 2.1 N/A N/A

PACIFIC BASIN 2343 .HK 1.200 -7.0 -4.8 -15.5 -29.4 12.7 N/A N/A

CHINA HARMONY AU 3836 .HK 4.440 -6.7 -4.1 2.5 -18.8 25.0 8.8 7.2

SPT ENERGY GROUP 1251 .HK 0.580 -6.5 3.6 -7.9 -18.3 1.1 N/A N/A

Note: Best and worst performers from HSI, HSCEI, HSCI

HSCI volume filter

Company Stock

code

Price

(HK$)

1D chg

(%)

Avg. vol.

(m shares)

Prev. vol.

(m shares)

% increase FY1 P/E

(X)

FY2 P/E

(X)

CHINA PUBLIC PRO 1094 .HK 0.182 18.2 37.8 263.8 597.2 N/A N/A

CHINA TRAVEL HK 308 .HK 2.780 3.7 11.2 56.4 401.7 15.4 15.1

GOLDEN EAGLE RET 3308 .HK 9.110 5.9 1.1 5.5 382.3 13.9 13.6

SINOPEC KANTONS 934 .HK 3.710 0.0 2.5 10.8 329.6 11.3 7.6

ALUMINUM CORP-H 2600 .HK 2.860 5.9 41.6 163.7 293.7 N/A N/A

CHINA BLUECHEM-H 3983 .HK 1.800 6.5 5.1 19.0 271.9 8.9 9.0

WANT WANT CHINA 151 .HK 5.140 -1.2 28.2 97.3 244.5 15.0 13.8

SJM HOLDINGS LTD 880 .HK 5.050 -9.8 13.2 44.3 235.6 13.6 18.0

HAITIAN INTL 1882 .HK 10.600 2.9 1.9 5.7 197.2 10.8 10.0

BLOOMAGE BIOTE 963 .HK 15.300 -5.4 0.4 1.2 176.8 21.8 17.1

Note: Based on volume change from last 30 trading days’ average of HSCI constituents

Most short sold stocks

Company Stock

code

Price

(HK$)

1D chg

(%)

Shortsell

turnover

(HK$m)

% of total

shortsell

turnover

% of own

turnover

FY1 P/E

(X)

FY2 P/E

(X)

PHOENIX SATELLIT 2008 .HK 1.590 1.3 0.6 0.0 97.3 N/A N/A

ASIA CEMENT CH 743 .HK 1.620 -2.4 0.0 0.0 93.6 54.5 N/A

COUNTRY GARDEN 2007 .HK 2.950 -1.0 16.1 0.2 68.6 5.5 5.1

HANG SENG BANK 11 .HK 131.100 0.2 164.2 2.3 63.0 14.1 12.9

BANK EAST ASIA 23 .HK 24.350 -2.8 63.6 0.9 56.7 12.5 11.9

HONG KG CHINA GS 3 .HK 13.840 -1.7 60.1 0.8 51.6 21.4 20.1

WHARF HLDG 4 .HK 39.350 -0.9 100.7 1.4 51.3 10.4 9.7

ORIENT OVERSEAS 316 .HK 28.650 -0.9 4.8 0.1 50.8 8.7 7.0

CHINA AGRI-INDUS 606 .HK 2.250 -2.2 8.3 0.1 48.2 N/A 19.7

MINSHENG BANK-H 1988 .HK 6.770 -0.1 42.4 0.6 46.5 4.5 4.4

Note: Based on short-selling turnover of constituents of HSI, HSCEI, HSCI


9


Interest rates

Latest (%) 5D chg (bps) 1M chg (bps) YTD chg (bps) y-y % chg

U.S. 2-year Treasury yield 0.7539 6.06 -10.28 -29.38 15.13

U.S. 10-year Treasury yield 1.7484 0.88 -25.28 -52.10 -22.04

U.S. 30-year Treasury yield 2.6064 -0.22 -17.80 -40.94 3.66

HK 1-month HIBOR 0.2932 -7.64 -9.32 7.21 5.65

HK 3-month HIBOR 0.6054 -6.25 -8.75 21.19 22.11

SH 1-month HIBOR 2.7590 -8.00 -23.10 -24.30 -231.70

SH 3-month HIBOR 2.9010 -6.60 -13.00 -18.42 -199.90

Exchange rates

Latest 5D % chg 1M % chg YTD % chg y-y % chg

USD Dollar Index 97.4580 0.7 -2.1 -1.2 3.1

USD/HKD 7.7687 0.2 0.3 -0.2 -0.1

EUR/USD 1.1016 -0.8 1.5 1.5 -3.0

USD/JPY 112.05 1.1 5.6 7.1 6.1

GBP/USD 1.3932 -2.8 -2.2 -5.5 -10.3

USD/CHF 0.9891 0.4 2.4 1.3 -4.1

AUD/USD 0.7190 0.4 3.4 -1.3 -8.8

NZD/USD 0.6658 0.2 3.1 -2.6 -11.9

USD/CAD 1.3705 0.2 4.3 0.9 -9.3

USD/CNY 6.5314 -0.2 0.8 -0.6 -4.2

USD/CNH 6.5391 -0.2 1.1 0.4 -4.1

Precious metals and commodities

Latest 5D % chg 1M % chg YTD % chg y-y % chg

CRB Index 161.5 -0.6 -1.4 -8.3 -27.3

Comex Gold 1,227.1 0.1 11.0 15.7 2.1

Comex Silver 15.235 -1.3 6.9 10.4 -7.3

Nymex WTI Crude 32.01 4.0 5.5 -13.6 -37.2

ICE Brent Crude 34.41 -0.3 6.9 -7.7 -41.3

LME Copper 4,642.00 1.2 4.5 -1.3 -19.8

LME Aluminum 1,567.00 3.2 5.8 4.0 -13.4

CBT Wheat 442.75 -5.5 -6.9 -5.8 -12.5

CBT Corn 359.75 -2.0 -2.8 0.3 -4.7

CBT Soybean 867.50 -1.7 -1.0 -0.4 -14.6


10


Companies listed on both the A-share and H-share markets

A-share premium to H-share

Company H

share

code

Price

(HK$)

A share

code

Price

(RMB)

A-share

premium

to H-share

(%)

Company H

share

code

Price

(HK$)

A share

code

Price

(RMB)

A-share

premium to

H-share

(%)

LUOYANG GLASS-H 1108 4.55 600876 35.35 824.1 BYD CO LTD-H 1211 37.55 002594 55.02 74.3

SHENJI GROUP-H 300 2.99 600806 12.18 384.5 CHINA SHIPPING D 1138 4.80 600026 6.99 73.2

SINOPEC OILFIE-H 1033 1.71 600871 6.93 382.0 AIR CHINA LTD-H 753 4.84 601111 7.04 73.0

SHANDONG MOLON-H 568 2.57 002490 9.27 329.0 CHINA SOUTHERN-H 1055 4.63 600029 6.73 72.9

ZHEJIANG SHIBA-H 1057 7.16 002703 25.28 319.9 ZIJIN MINING-H 2899 2.32 601899 3.33 70.7

NORTHEAST ELEC-H 42 2.21 000585 7.44 300.4 CHINA VANKE-H 2202 17.16 000002 24.43 69.3

CHINA SHIPPING-H 2866 1.58 601866 5.10 283.9 DALIAN PORT PD-H 2880 2.97 601880 4.22 69.0

GUANGZHOU AUTO-H 2238 6.90 601238 20.94 261.0 CRRC CORP LTD -H 1766 7.34 601766 10.26 66.3

JINGCHENG MAC-H 187 3.34 600860 10.07 258.6 CHINA RAIL CN-H 1186 7.74 601186 10.75 65.2

CHONGQING IRON-H 1053 0.95 601005 2.80 250.6 BAIYUNSHAN PH-H 874 16.60 600332 22.49 61.1

CMOC-H 3993 1.23 603993 3.58 246.2 SHANDONG CHEN-H 1812 5.90 000488 7.81 57.4

YANZHOU COAL-H 1171 3.25 600188 9.32 241.1 CIMC-H 2039 11.80 000039 15.44 55.6

SHANDONG XINHU-H 719 4.02 000756 11.50 240.3 CITIC BANK-H 998 4.38 601998 5.70 54.8

HISENSE KELON -H 921 2.83 000921 7.66 221.9 HUADIAN POWER-H 1071 4.35 600027 5.55 51.8

SHANGHAI ELECT-H 2727 3.40 601727 8.87 210.3 ANGANG STEEL-H 347 3.33 000898 4.22 50.7

CSSC OFFSHORE -H 317 11.28 600685 29.35 209.5 CHINA LIFE-H 2628 17.56 601628 22.13 49.9

NANJING PANDA-H 553 5.39 600775 13.53 198.6 MINSHENG BANK-H 1988 6.77 600016 8.50 49.3

ZHENGZHOU COAL-H 564 3.00 601717 7.52 198.1 LIVZON PHARM-H 1513 35.40 000513 43.98 47.8

METALLURGICAL-H 1618 1.80 601618 4.49 196.7 CHINA SHENHUA-H 1088 11.40 601088 13.85 44.5

FIRST TRACTOR-H 38 4.50 601038 11.05 192.1 HUANENG POWER-H 902 6.08 600011 7.29 42.6

ANHUI EXPRESS-H 995 6.09 600012 14.11 175.6 BANKCOMM-H 3328 4.47 601328 5.32 41.6

CHINA COSCO HO-H 1919 2.74 601919 6.34 175.2 HANG SENG CHINA AH PREMI

N/A 141.10 N/A N/A 41.10

CHINA OILFIELD-H 2883 5.84 601808 13.32 171.3 ZTE-H 763 13.16 000063 15.39 39.1

DATANG INTL PO-H 991 2.08 601991 4.31 146.5 SHANGHAI PHARM-H 2607 14.22 601607 16.57 38.6

ZOOMLION HEAVY-H 1157 2.25 000157 4.53 139.5 ABC-H 1288 2.59 601288 2.98 36.8

MAANSHAN IRON-H 323 1.39 600808 2.71 131.9 CEB BANK-H 6818 3.21 601818 3.56 31.9

CHINA COAL ENE-H 1898 2.69 601898 5.20 129.9 HAITONG SECURI-H 6837 11.70 600837 12.97 31.9

BBMG CORP-H 2009 4.38 601992 8.22 123.2 GUANGSHEN RAIL-H 525 3.64 601333 4.02 31.4

BEIJING NORTH-H 588 2.25 601588 4.22 123.1 BANK OF CHINA-H 3988 2.94 601988 3.24 31.1

XINJIANG GOLD-H 2208 9.17 002202 17.07 121.4 WEICHAI POWER-H 2338 7.37 000338 7.90 27.5

SICHUAN EXP-H 107 2.36 601107 4.26 114.7 SINOPEC CORP-H 386 4.28 600028 4.50 25.1

DONGFANG ELECT-H 1072 6.26 600875 11.29 114.5 FOSUN PHARMA-H 2196 18.34 600196 19.23 24.7

SINOPEC SHANG-H 338 3.39 600688 5.94 108.4 ICBC-H 1398 3.93 601398 4.05 22.6

CHINA EAST AIR-H 670 3.74 600115 6.41 103.9 CCB-H 939 4.61 601939 4.73 22.0

TIANJIN CAP-H 1065 5.18 600874 8.73 100.5 CM BANK-H 3968 14.50 600036 14.81 21.5

CHINA COM CONS-H 1800 7.27 601800 11.85 93.9 CITIC SEC-H 6030 15.50 600030 15.42 18.3

GREAT WALL MOT-H 2333 5.61 601633 9.10 92.9 TSINGTAO BREW-H 168 28.80 600600 28.01 15.7

NEW CHINA LIFE-H 1336 24.30 601336 39.28 92.3 GF SECURITIES-H 1776 15.22 000776 14.60 14.1

JIANGXI COPPER-H 358 8.45 600362 13.45 89.3 CHINA PACIFIC-H 2601 25.75 601601 23.85 10.2

ALUMINUM CORP-H 2600 2.86 601600 4.55 89.2 PING AN-H 2318 33.35 601318 30.41 8.5

CHINA RAIL GR-H 390 5.21 601390 8.28 89.0 ANHUI CONCH-H 914 16.24 600585 14.31 4.8

DONGJIANG ENV-H 895 10.26 002672 15.60 80.8 JIANGSU EXPRES-H 177 9.30 600377 7.89 0.9

SHENZHEN EXPRE-H 548 5.88 600548 8.76 77.2 FUYAO GLASS IN-H 3606 16.42 600660 13.80 0.0

PETROCHINA-H 857 5.07 601857 7.53 76.7


11


Top 20 most traded ETFs

Price (HK$) 1D chg (%) 5D chg (%)

2800 TRACKER FUND HK 19.36 -1.33 1.36

2828 HS H-SHARE ETF-H 81.15 -1.46 1.63

2823 ISHARES FTSE A50 9.16 -0.22 0.77

2822 CSOP FTSE CH-HKD 10.66 0.76 2.11

3188 CHINAAMC 300-HKD 37.30 0.27 1.36

82822 CSOP FTSE CH-RMB 8.96 0.79 2.17

2840 SPDR GOLD SHARES 911.00 0.72 0.89

3040 HORIZONS-MSCI CH 19.26 -0.93 1.90

83188 CHINAAMC 300-CNY 31.35 0.16 1.62

2827 CSI 300 CHINA 27.80 0.36 0.72

2833 HSI ETF-HKD 195.50 -1.41 1.14

3147 CSOP SZSE ETF-HK 9.63 0.63 0.52

3081 VALUEGOLD ETF 30.00 1.01 1.18

3087 DBX VIETNAM 172.00 1.30 3.99

2811 HT CSI 300 ETF-H 13.38 -0.30 1.36

2836 ISHARES S&P BSE 15.34 -0.52 -0.78

3019 DBX MSCI WLD 32.50 -0.31 1.56

3027 DBX MSCI RUS CAP 12.34 -2.22 3.35

3117 ETFS SILVER 116.80 0.09 -0.34

3119 ETFS PLATINUM 715.00 1.27 0.49


12


Economic data and event calendar

Source：Bloomberg, SHKF

Note：HK Time

P=Preliminary；F=Final

Country/ Date Event Period Survey Prior

Mon 22 Feb

Eurozone Markit Eurozone Manufacturing PMI Feb P 52 52.3

US Markit US Manufacturing PMI Feb P 52.5 52.4

Tue 23 Feb

US Consumer Confidence Index

Feb 97.5

98.1

Wed 24 Feb

US MBA Mortgage Applications

19-Feb --

8.20%

Thu 25 Feb

Eurozone M3 Money Supply YoY Jan 4.70% 4.70%

Eurozone US

CPI YoY Jan F 0.40% 0.40%

Fri 26 Feb

Eurozone Consumer Confidence Feb P -- --

US U. of Mich. Sentiment Feb P 91 90.7


13


Analyst：Kenny Wen

Disclosure of Interests

Research Analyst Certification

The views about any and all of the subject securities and issuers expressed in this report accurately reflect the personal views of the research analyst(s) primarily responsible for this report; and the analysts are paid in part based on the profitability of Sun Hung Kai Investment Services Limited ("SHKIS") and its affiliates (collectively called "SHKF") which includes revenue from investment banking activities.

Research Analyst Conflicts

Financial Interests: The research analyst(s) who prepared this report and/or his/her/their associates has/have no financial interests in relation to listed corporation(s) covered in this report. Relevant Relationships: The research analyst(s) who prepared this report and his/her/their associates do not serve as officer(s) of listed corporation(s) covered in this report.

SHKF's Financial Interests and Business Relationships

SHKF may make a market in, or may, as principal or agent, buy or sell securities (or derivatives thereon) of issuer(s) mentioned in this report. SHKF may have a financial interest in the issuer(s) mentioned in this report, including a long or short position in its/their securities and/or options, futures or other derivative instruments based thereon, or vice versa. Likewise, SHKF, including its officers or employees may serve or have served as an officer, director or in an advisory capacity for any issuer(s) mentioned in this report. SHKF may also, from time to time, solicit, perform or have performed investment banking, underwriting or other services (including acting as adviser, manager, underwriter or lender) within the last 12 months for any issuer(s) referred to in this report. Information about conflicts of interest relevant to this report is available at this SHKF website: http://www.shkresearch.com/rp/disclosureOfInterests.html

Disclaimer This report is provided for information and discussion purposes only. None of the views contained in this report constitute a solicitation or an offer by any member of SHKIS, their directors, representatives and / or employees to buy or sell, whether as principal or agent, any securities, futures, options or other financial instruments. This report is intended for receipt by those to whom it is supplied by SHKIS and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject SHKIS to any regulatory requirement within such jurisdiction or country. Any person or entity who is in possession of this report and who intends to act or rely upon the information contained in it must satisfy himself / herself that he / she is not subject to any local requirement which restricts or prohibits him / her from doing so. Although the information in this report is obtained or compiled from sources that SHKIS believes to be reliable, it does not represent or warrant, whether expressly or impliedly, the accuracy, validity, timeliness or completeness of any such information. SHKIS expressly disclaims any warranties whether express or implied, of fitness for a particular purpose, or duties of care, in favor of any third party relying upon this report. Information contained in this report may change at any time and SHKIS gives no undertaking to provide notice of any such change. Opinions and estimates stated in this report are a reflection of the views of the relevant analysts as at the date of this report and may also change at any time. SHKIS gives no undertaking to provide notice of any such change. If in doubt, you should consult your qualified financial and/ or other professional adviser. The instruments and investments discussed in this report may not be suitable for all investors, and this report has no regard to the specific investment objectives, investment experience, financial situation or needs of any particular recipient. Investors must make their own investment decisions based on their own investment objectives and financial position. The value of, and income from, an investment may vary because of changes in interest rates or foreign exchange rates, changes in the price of securities or indices, changes in operational or financial conditions of companies and other factors. There may be time limitations on the exercise of, or the exercise of rights associated with, the instruments and investments discussed in this report. Past performance is not necessarily a guide to future performance. In no event will SHKIS or any other member of SHKF be liable or have any responsibility for loss of any kind, whether direct, indirect, consequential or incidental, resulting from the act or omission of any third party occurring in reliance upon the contents of this report even if SHKF is aware of such act or omission at the time that it occurs. © 2016 SHKIS. All rights reserved. This report may not be reproduced or redistributed, in whole or in part, without the written permission of SHKIS and SHKIS accepts no liability whatsoever for the actions of third parties in this respect.

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