Investment Daily Note

Market Highlights

The State Council issued "Proposal for Comprehensive Implementation of Deepening Rural Reform", demanding execution from all local government departments. Contents of the proposal include complete deepening reform of rural villages by 2020, improvement of rural infrastructure, and further fiscal support of such infrastructure development. Investors could pay attention to agriculture-related stocks.

China Child Care (1259.HK), which rose sharply last week, issued profit warning last night. Its management expected that the company would experience operational loss duringthe third quarter of 2015, with net loss after tax of between RMB35 million and RMB40 million. Major reasons of the quarterly loss include slowing economic growth and intense competition. We expect pressure on the stock price of China Child Care today.