Investment Daily Note

People’s Bank of China (PBOC) announced that foreign exchange reserves at the end of November was RMB3.438 trillion, decreasing by RMB87.22 billion compared with RMB3.526 trillion at the end of October, which was also the lowest since Feb-2013. Renewed decrease in China’s foreign exchange reserves reflects continual capital outflow, we expect such situation to continue next year and RMB is still under pressure of depreciation.

American International Group (AIG) confirmed to sell 361 million shares of PICC (2328.HK) at HK$16.14 per share, netting US$751 million. After the sale, AIG still holds 851 shares of PICC, equivalent to a 5.74% stake. PICC share price was under pressure upon market opening. However, with valuation getting attractive, investors may consider buying a small amount of it.