INVESTMENT DAILY

China stock market rebounded on Monday afternoon trading, however Hang SengIndex still remained weak. The index closed at 21,996 points, falling 71 points.

    HSCEI closed at 9,790 points, decreasing 65 points. Turnover reached $100.7 billion.

    Media reported that the policy of tax benefits in endowment insurance may takeeffect before the year end, Ping An (2318) and China Life (2628) dropped around2%. National Energy Administration announced the documents about reforming ofelectrical industry, Huaneng Power (902) declined 3%.

    US economic data reported on Monday, including Chicago Purchasing ManagerIndex and existing home sales, is weaker than expectation. Besides, retails salesduring Thanksgiving is not encouraging, retail stocks were weak. Together withselling pressure on health care sector stock, the Dow and the Nasdaq closed 79 points(to 17,720) and 19 points (to 5,109) lower respectively.

    HK stock lack of direction, together with turnover remained at low level, it reflectedinvestors prefer to stay sideline. Investors will eye at ECB meeting on Thursday aswell as US unemployment data on Friday. On the other hand, Central governmentlike to gradually reducing its exposure on A share, investors could wait for betterentry opportunity.