Salient to Investors:

Li Jun at Central China Securities said investors think the economy may have bottomed, especially since the PMI showed positive signs, but we need more liquidity for any gains to last.

Lu Ting at Bank of America sees increasing evidence for green shoots in China – upped Q4 GDP growth estimate to 7.8 percent from 7.5 percent.

948 companies in the Shanghai Composite index reported Q3 profit with an average drop of 1.6 percent from a year earlier. The index trades at 10 times estimated earnings versus the 17.8 average multiple since 2006.

China Business News reports sales volume in 54 Chinese cities rose more than 51 percent in September and October, while SouFun Holdings said new home prices rose for a fifth month showing government curbs are helping stabilize the property market, 

Read the full article at http://www.bloomberg.com/news/2012-11-02/most-chinese-stocks-fall-as-drugmakers-drop-energy-shares-gain.html