Strategy: "Liang hui" to spark interest in targeted s-chips
The upcoming Chinese People's Political Consultative Conference (CPPCC) and National People's Congress (NPC) meetings, termed as "liang hui", may bring some focus into specific s-chips.
The CPPCC, the country's top political advisory body, commences its annual meeting today through to 14 Mar, which sets out to contribute ideas to China's five-year development plan from 2016-2020.
Meanwhile, NPC will commence from 5 Mar to 16 Mar. This is the Chinese Parliament, where Premier Li Keqiang will present the government's growth target and budget at the opening address.
"Liang hui" is one of the key events on China's calendar, as investors look for clues on portfolio positioning to ride on policy tailwinds, especially amid a period of slowing growth and volatile markets.
Market watchers expect addresses to the increasingly desperate environmental issues, which may spark investor sentiment for the water treatment stocks such as China Everbright Water, SIIC Environment and Citic Envirotech.
Additionally, railway parts manufacturer Midas could also see expectations for a return of new orders, underpinned by the government's Rmb2.8t investment into the railway sector over the next five years.
China Everbright Water and Midas are on the Market Insight Growth Portfolio