Barclays said the performance of A shares will exceed 5% of H Shares of RMB appreciation

the U.S. Federal Reserve announced the second round of quantitative easing (QE2), to stimulate a general increase in global financial markets. Barclays said the QE2 will continue to flow after the capital region, favorable stock market performance, A-share market will surpass the performance of H shares, the RMB will appreciate by 5%.

Asian strategist at Barclays Wealth Manpreet Gill pointed out that the second round of the U.S. policy of quantitative easing and the market scale is expected to close, but should focus on the case of observing the next six months to see how the market will digest, and can enhance confidence and increase Great investment. He believes that after the release of the QE2, there will be more capital inflows to emerging markets will help the stock market performance.

Asian equity strategist at Barclays Wealth Lurui Bin said that the Chinese stock market will continue to outperform the market, due to the current trading price of A shares is still below the historical average valuation, it is expected to surpass the performance of A shares H shares. An industry point of view, he suggested investors to overweight financial stocks, industrial stocks and consumer discretionary stocks and underweight consumer discretionary shares. In addition, because the Government is still concerned about the prices, domestic housing stock should have a cautious attitude.

Barclays also believes that the U.S. make a lot of funding will enable Asia-Pacific currencies, suggest that investors optimistic about the Asian currencies, especially the yuan. June this year, the mainland government announced the resumption of the RMB exchange rate flexibility after international pressure and inflation pressure, the RMB exchange rate has obvious gains, the bank predicted RMB appreciation in the coming year will be 5%.

But the bank also does not recommend investors to buy yuan, while the appreciation of space largely affected by the government, on the other hand the RMB NDF (non-deliverable forward foreign exchange) has been reflected in the price appreciation of 2.5% of the additional . In contrast, other Asian currencies would be better investments, the Bank recommends that investors should overweight the Singapore dollar, Taiwan dollar, Indian rupee, rupiah and Korean won, and holdings of U.S. dollars, euro and yen.

For this morning, the Financial Secretary, Mr Tsang said "QE2 will cost the Hong Kong stock, add the property market and exchange rate market pressure", Manpreet Gill said that as the peg with the U.S. dollar, so the Government can do is not much, but he that the Government should work to prevent bubbles.

Macroeconomic front, Barclays forecasts about economic growth this year in Mainland China 10.1%, and next year will be slightly slower to 9%, mainly due to higher base this year, and the upcoming China next year, "second five" policy orientation plan to focus on long-term development and high quality growth