Investment Daily Note

Federal Reserve Chair Janet Yellen attended a testimony at a House hearing and said the Fed expect further improvements in the labor market and inflation. She continued that if the stable economic growth continued, then December would be a “live possibility” for a rate hike. As a rate hike next month remains uncertain, global equities market would turn more volatile early next month.

Latest release by China Banking Regulatory Commission showed that, by the end of September, non-performing loan (NPL) ratio of commercial banks stood at 1.59%, compared with 1.5% at the end of the second quarter. Rising NPL ratio is expected by the market; with valuation of some Chinese banks lower than warranted, long-term investors may buy on dip.