Investment Daily Note

Market Highlights

Shanghai and Shenzhen Stock Exchanges tightened short selling restrictions yesterday, announced securities lending (borrow securities and then short sell) "T+1" with immediate effect, i.e. allow to close positions on the next trading day after securities lending (originally "T+0"). Since this measure may increase the risk of short selling, investors are expected to reduce short selling activities, thus easing selling pressure on the market.

SinosoftTech (1297.HK)announced its half-year results yesterday, net profit rose 23% to RMB56.8mn. This may provide a clearer message of the business outlook for the recent weakness in software stocks.