Investment Daily Note

Xinhua News Agency released guidelines from Chinese President Xi Jinpingon 13th Five-Year Plan, which include minimum level of annual economic growth during 2016-2020 is 6.5% or above. The guidelines also mention issues like reform of equities and bond trading system, intelligent manufacturing, deepening reform of state-ownedenterprises, environmental protection and energy conservation. We expect investors to keep go after those sectors.

StanChart (2888.HK)announced a 2-for-7 rights issue at 465 pence per share and a global layoff of 15,000 headcount. StanChartdropped sharply last night at London on the news, and closed at 666 pence (approx. HK$79.25). Having considered the rights issue and revised business strategy, we slashed target price of StanChart to HK$97 and expect continued pressure on its price, but long-term investors may buy at around HK$80 with a stop-loss at HK$67.