Investment Daily Note

The People’s Bank of China (PBOC) announced that starting from 25th January, banks participating in offshore Renminbi(RMB) business are subject to required reserve rules; this may lead to higher offshore RMB inter-bank interest rates and increase the cost of RMB speculation and in turn stabilize RMB exchange rate; that should benefit equities market sentiment.

The EU and U.S. lift the economic sanctions against Iran which span oil trade and finance. With Iran re-entering global oil market, the supply-demand fundamentals will deteriorate; we expect oil-related stocks to remain under pressure.