Investment Daily Note

Market Highlights

Shanghai Lujiazui International Financial Asset Exchange (“Lufax” hereafter), an associate of Ping An (2318.HK), said it was planning its initial public offering (IPO) in domestic or overseas market for second half of this year, with valuation at around HK$144.3 billion; Ping An is expected to benefit from its over 40% stake in Lujiazui. Coupled with currently attractive valuation of Ping An, long-term investors may now buy Ping An, notwithstanding the poor market sentiment.

Iran is returning to international crude oil market and maintained its plan to raise daily production by 500,000 barrels within this year. Market is worried that would exacerbate over-supply of crude oil, which sent Brent and WTI down 1.3% and 1.6% respectively. With oil price poised to fall further, oil-related stocks may remain under pressure.