Investment Daily Note

Market Highlights

China Development and Reform Commission lowers oil prices for the fourth consecutive time, gasoline and diesel prices will be lowered by RMB220 and RMB215 per ton respectively commencing 5 August. This may widenthe price gap with gas, and gas stocks may be under pressure again.

China plans to issue at least RMB1tr of special bonds through private placement by policy banksfor infrastructure projects to boost the economy. The first batch of special financial bonds is RMB300bn in scale, and 0.5% to 1% project cost of capital. China Railway Construction (1186.HK) announced winning the bid of RMB17.199bn in Chengdu Subway Line 5 project, which is around 2.91% of its revenue last year. With policy supporting infrastructure constructions, projects are expectedto come.