Salient to Investors:
Wu Kan at Dazhong Insurance said investors are avoiding stocks related to traditional manufacturing industries, while the selloff in Japan has spread risk-off sentiment across the region.
The Shanghai Composite is at 9.3 times 12-month estimated earnings versus a 7-yr average of 15.7 times.
Ken Peng at BNP Paribas said the slowdown is really bad and there is a big probability that China’s Q2 GDP growth rate will be lower than Q1. Societe Generale expects official manufacturing data due on June 1 to show a contraction.
The Chinese Academy of Social Sciences said China should refrain from micromanaging the automotive industry and allow market competition to spur innovation and weed out weaker automakers.
Goldman Sachs said new rules in the government crackdown on hot-money flows will end commodity-financing deals, which would be bearish for prices.
Read the full article at http://www.bloomberg.com/news/2013-05-23/china-s-stock-index-futures-decline-before-manufacturing-report.html
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