Investment Daily Note

Sa Sa (178.HK)announced a profit warning. For the year ended 31 March 2016, the profit for the period is expected to record a decline of over 50% yoy, primarily due to the worsening operating environment of the retail sector which has led to significant drops in both sales and gross profit and reduced operational efficiency. It is estimated that stock price would suffer from downward pressure.

    HSBC Holding (5.HK)‘s subsidiary, HSBC Private Bank (Suisse) SA, is appealing the largest fine of HK$605 million fine imposed by Securities & Futures Commission of Hong Kong with regard to its sales of Lehman Brothers structured products between 2003 and 2008, because of failures in internal control and sales practices. As currently HSBC is surrounded by negative factors, we estimate that it would continue the weakness.