Category: Money tips Release Date: 2007-02-17
Although we believe that real estate, mineral resources, as represented by Toronto Canada has strong fundamentals, supported by rising stock-based still exists, however, a high position of the mineral resources sector stocks may have a liquidity risk. We continue to be optimistic about the performance of some of the recent upturn of the stock, while taking into account the market timing, we believe that roads, tourism and other opportunities for defensive stocks will soon emerge. Troika is running high Quotes of the round is undoubtedly the main Toronto Canada banks, real estate, mineral resources stocks, which have suffered far more than the overall market's gains. Although the fundamentals are still on these plates constitute a good support, but which also need to guard against liquidity risk.
First of all, from a strategic position, and optimistic about China's economic growth point of view of long-term bullish for China Merchants Bank, Shanghai Pudong Development Bank, China Minsheng Bank on behalf of the domestic banking sectors. The sustained and stable economic background of high growth, this growth can be most effectively reflect the achievements of listed companies is that the banks, which determines the banking stocks in the stock market status; high economic growth also determines the increase in loans and credits to reduce the cost of , because the domestic banks rely mainly on the difference between income (90% of total revenue), the rigidity of conventional interest rates, when the cost of credit continues to remain relatively low, the continued accelerated growth in the volume of business to promote the excessive growth of bank performance.
In addition, the tax reform for the banking stocks provide room for growth. If the government 33% of the domestic enterprises to income tax cut to 25% of the level of bank shares, including other investment value of listed companies will be raised. If the banking industry to reduce or eliminate the 5% sales tax will also greatly enhance the profit level of bank shares.
Second, China's real estate industry is still in a good growth momentum for the next real estate prices relatively stable, long-term bullish. The factors behind this growth in the consumer promotion and accelerated urbanization in the context of the needs of the residents is difficult to suppress, the country's policies, but from a macro point of view to regulate the development of an overheated real estate and non-rational situation. Optimistic about the real estate industry can continue to another market factor is the continued modest appreciation of the yuan is expected, and the resulting wealth effect. This situation yen, Korean won, Taiwan dollar has appreciated during the performance of our stock market is to copy this effect. In addition, the asset revaluation adjustment was also optimistic about the value of real estate an important factor.
Third, in the global economy against the backdrop of good growth, driven by resource prices continue to rise. In addition to the industry supply and demand effects on prices, international plenty of speculative capital has also aggravated the trend of prices of these products; the same time, geo-political crises, and so the formation of a weaker dollar fueled the role, particularly crude oil, gold.
We believe resource prices can be a relatively long period of time maintained at a high level, that is what we can be optimistic about the investment value of such stock basis. However, we can not be denied those resource industries still have a distinct cyclical characteristics. In a positive market environment, we tend to ignore the underlying risks. We believe that resources stocks have room to rise, but the high concentration of holdings in the Fund's circumstances, its liquidity risk worthy of attention. A total of 2 1 [2]
