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					                                             EQ Market Pulse
                                                  April 21st, 2010

Market Pulse
Market temporarily treated as a technical rebound and will remain volatile
After 460 points down the day before yesterday, Hong Kong stocks followed the external rebound yesterday. HSI
closed 219 points up, reported 21 624, H-share Index rose 175 up at 12,429 points with a total turnover 62.5 billion. As
the market has fallen below and covered the previous rising gap, coupled with the mainland against overheating
property market, so the market can temporarily treated as a technical rebound. The market will remain volatile as a
vision of raising interest rates by suppressing the inflation in the mainland will lead to stock market’s continued
downward adjustment with a target of 20,905. Investors may see this as an opportunity and re-enter the market.
For industry sectors, mainland bank and property stocks both rebounded yesterday, in which MINSHENG BANK
(1988) and CMB (3968) delivered the best performance up 2.68% and 2.5% each. A sensational weak rebound of
about 1% posted in mainland property stocks under the policy pressure. Resource stocks failed fully bounce yesterday
while coal mining stocks declined against market’s upward, ANGANG STEEL (347) fell 2.35%; MAANSHAN IRON
(323) fell 0.5%. YANZHOU COAL (1171) rose 2.8%; CHINA COAL (1898) rose 2.65%, PETROCHINA (857) rose
1.54%. Tele stocks outperformed the market, CHINA MOBILE (941) 3.28% up; CHINA TELECOME (728) 4% up;
CHINA UNICOM (762) 3.3% up. Auto stocks were also buyout, BRILLIANCE CHI (1114) soared 15%, DONG FENG
(489) rose 2.14%, and GEELY AUTO (175) rose 2.5%. Expo-related stocks had buying support, as CHINA EAST AIR
(670) 3.23% up, CHINA SOUTH AIR (1055) 3.25% up, CHINA TRAVEL HK (308) 1.5% up. Policy stocks speculated,
WUYI PHARMA (1889) soared 11.96%, BROAD INTELL (1149) soared 20.80%



         INDEX                   CLOSE              CHANGE
 DOW INDEX                11117.06      +25.01      +0.22%
 NIKKEI 225               10900.68       -8.09      -0.07%
 TAIEX                     7900.42      +46.20      +0.58%
 SEOUL COMPOSITE          1718.03       +12.73      +0.74%
 SHANGHAI A SHARES        3123.64        -0.91       -0.02%
 SHENZHEN A SHARES        1238.02       +4.09       +0.33%
 FTSE100                  5783.69       +55.78      +0.97%
 DAX                      6264.23      +101.79      +1.65%
 CAC40                    4026.65       +56.18      +1.41%


                                                                                    CHINA COM CONS (1800)




                        Hang Seng Index                                               LENOVO GROUP (992)
                        Source: PROSTICK                                                 Source: ET Net
DAILY FOCUS:
Short term buy: HARBIN                                                                 Supported by renewal energy policy, stock
                          BUY:     $6.15     TARGET:     $6.80      STOP:   $6.10
POWER (1133)                                                                           price relatively low
Short term buy: GEELY
                          BUY:     $3.53     TARGET:     $4.50      STOP:   $3.20      Policy support, short-term oversold
AUTO (175)
Short term buy: CHINA                                                                  Mainland domestic consumption stock,
                          BUY:     $5.00     TARGET:      $6.00     STOP:   $4.80
DONGXIANG (3818)                                                                       good business performance


1M Portfolio                                 Cross Reference             20726        Previous Close 21623
Status    Equity Name            Buy in Price    Close           Amount             Target    Stop      Reason
Hold      GEELY AUTO             $3.58           $3.70           60,000 Shares      $4.50     $3.20     Short term oversold
          (175)
Hold      CHINA COMM             $7.13           $7.56           26,000 Shares      $8.00     $6.95     Short term oversold
          CONS (1800)
Hold      LENOVO GROUP           $5.23           $5.65           60,000 Shares      $5.85     $5.00     Speculation on its
          (992)                                                                                         industry
Hold      BANK OF CHINA          $4.08           $4.11           60,000 Shares      $4.48     $3.98     Short term oversold,
          (3988)                                                                                        less influences from
                                                                                                        same industry loan
Portfolio Market Value ->         $1,004,160
Cash Balance ->                   $100,060
Amount Value ->                   $1,104,220 (+10.42%)
Buy 60,000 Shares of BANK OF CHINA (3988) at $4.08



                                             1M Portfolio



                           Cash
                          9.37%
                                           Geely Auto
                                            20.12%
                                                                            Geely Auto(automobile)
          Bank of China
            22.90%                                                          China Comm Cons(Construction)
                                                                            Lenovo Group (Export)
                                             China Comm Cons
                                                  17.36%                    Bank of China (Mainland Banking)
                                                                            Cash
                          Lenovo Group
                             29.39%
Tuesday                                                                                         April 20th, 2010
    GMT+8                 Event                                                                                       Actual                Consensus                   Previous
      4:00                USD FOMC Member Duke Speaks
      6:45                NZD CPI q/q                                                                                0.40%                      0.60%                    -0.20%
      6:45                NZD FPI m/m                                                                                0.20%                                               -1.30%
      7:50                JPY Tertiary Industry Activity m/m                                                        -0.20%                     -0.90%                     2.90%
      9:30                AUD Monetary Policy Meeting Minutes
     14:00                EUR German PPI m/m                                                                         0.70%                      0.50%                     0.00%
     16:00                EUR Current Account                                                                         -3.9B                      -5.3B                     -1.7B
     16:30                GBP CPI y/y                                                                                3.40%                      3.20%                     3.00%
     16:30                GBP Core CPI y/y                                                                           4.40%                      2.80%                     2.90%
     16:30                GBP RPI y/y                                                                                3.00%                      4.10%                     3.70%
     17:00                EUR German ZEW Economic Sentiment                                                            53                         45.2                      44.5
     17:00                EUR ZEW Economic Sentiment                                                                   46                         38.9                      37.9
     21:00                CAD BOC Rate Statement
     21:00                CAD Overnight Rate                                                                         0.25%                      0.25%                     0.25%


Wednesday                                                                                           April 21st, 2010
    GMT+8                  Event                                                                                      Actual                 Consensus                  Previous
    0:00                   EUR Buba President Weber Speaks
    8:30                   AUD MI Leading Index m/m                                                                  0.50%                                                0.20%
 21st-29th                 AUD NAB Quarterly Business Confidence                                                                                                             18
   16:30                   GBP Claimant Count Change                                                                                             -5.7K                    -32.3K
   16:30                   GBP MPC Meeting Minutes                                                                                               0-0-9                     0-0-9
   16:30                   GBP Average Earnings Index 3m/y                                                                                      2.50%                     0.90%
   16:30                   GBP Unemployment Rate                                                                                                7.80%                     7.80%
   20:30                   CAD Wholesale Sales m/m                                                                                              1.30%                     3.00%
   22:30                   USD Crude Oil Inventories                                                                                                                       -2.2M


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                                                                  BWC SECURITIES LIMITED
                                                                         KEITH KAN

				
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posted:5/10/2010
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