Investment Daily Note

Market Highlights

Xinyi Glass (868.HK)announced the interim results for the six months ended 30 June 2016. Net profit attributable to the shareholders has increased by 44.9% yoy due to the strong growth of the float glass business and the steady growth of the automobile glass business. It is estimated that the stock price could continue the upswings in mid-term.

Hong Kong retail sales fell for the 16th successive month in June which slid 8.9% yoy due to a continued drop in mainland tourists and weak local spending. Hong Kong retail sales plunged 10.5% in the 1H2016, which is the worst drop in 17 years. We expect retail stocks remain weak.