Investment Daily Note

Market Highlights

China plans to announce the framework proposal on state-owned enterprise (SOE) reform this month, and it could be rolled out as early as this week, Bloomberg reported, citing people with the knowledge of the matter. According to the report, SOEs would be subject to regulation based on their functions, with state-owed capital operating firms to be set up. We think the latest news would help stocks with SOE reform themes to continue rallying.

The State Council has issued proposal on the reform of Chinese Football Association (CFA), proposing separation of CFA from General Administration of Sport of China. Atthe same time, National Development and Reform Commission would draft plans on the medium-to-long-term development of football industry and football facilities construction in China. We expect sports-related stocks would continue to rally.