Investment Daily Note

HKEx (388.HK)is scheduled to release results for 1Q 2016. Market views were quite negative, expecting that 1Q net profits would drop 4% to 7% yoy. However, we believe the quarter results shouldn’t be a concern when it has priced in, while the matter should be laying on the execution and timing of Shenzhen-HK Stock Connect. We even think any retreat may offer a good buying opportunity.

The US Energy Information Administration (EIA) has revised up the average price of crude oil in 2016, from US$40.52 per barrel estimated in April, up US$6 to US$40.52 per barrel that would likely stimulate oil-related stocks to rally.