Investment Daily Note

Market Highlights

Deutsche X-trackers Harvest CSI 300 China A-Shares ETF, the largest A-share ETF listed in the U.S., jumped more than 11%, which is the largest surge in two months. In addition, Ministry of Finance of China issued announcement saying that the government would implement more supportive fiscal policies. We think A-shares couldbe on its way of bottoming out.

Cheung Kong Infrastructure (1038.HK)proposed a merger with Power Assets Holdings (6.HK)by way of share exchange, with 1 PAH share to be exchanged for 1.04 shares of CKI. After the merger, CKI could make use of PAH's huge cash holdings for investment in non-energy projects, which should be good for its development.