Investment Daily Note

Market Highlights

According to the speech of Chinese President Xi Jinping at the Central Military Reform Work Conference, reform of national defense and the military will be deepened. Under the backdrop of the terrorist attacks in France and the shot down of a Russian fighter jet, international military alert is escalating, which will be beneficial to the military sector capital inflows. AviChina (2357.HK)and COMEC (317.HK)shares are expected to benefit.

CITIC Securities (6030.HK) and Guosen Securities are under investigation by China Securities Regulatory Commission because of alleged violations of securities supervision and management regulations. Stock prices are expected to be under pressure, nevertheless, both companies are still operating under normal conditions, sharp decline in stock prices is quite unlikely.