Deutsche Bank: Hong Kong stocks more attractive than the second half of a share

Night network, network nightlife Wall Street FRANCISCO July 20 news, Deutsche Bank (Deutsche Bank) in the latest report that the Hong Kong stock valuations will attract the interest of global investors in the second half, in contrast, A shares market liquidity support will be lower than in the first half。  Deutsche Bank said the global capital may flow into the second half of Hong Kong, China reasons including improving macroeconomic fundamentals in the second half, Hong Kong stocks lower absolute valuation and relative valuation。  Deutsche Bank wrote in a report: "After Greece and China reached an agreement to stabilize a share, global risk appetite may gradually resume。Hong Kong stocks were severely underweight and cheap valuations。In addition, more signs that the Chinese fundamentals improve, accelerate reform, especially in the financial system in the field, which may be of interest of global investors。"From the AH premium, A-share valuation premium relative to the presence of structural Hong Kong stocks, Deutsche Bank analyst said the case。Currently AH premium of up to 41%, while over the past 10-year average of 17% over the past five-year average of 6%。  Deutsche Bank believe that the current premium levels are not sustainable, second half of the AH premium will narrow。  For A shares, Deutsche Bank analysts believe that market liquidity support will decline, because the second half of comprehensive monetary easing will be reduced, increased local government financing vehicles (LGFV) financing needs, and margin financing will tighten supervision。  Deutsche Bank wrote in a report: "learn the lessons of the recent market turmoil, we expect that the authorities will tighten regulation of margin financing, especially off-financing。This means we may not see a mad bull market in stocks in the first half of the drive lever。"At present, brokerage financing the balance has moved from June 18 peak of 2.3 trillion yuan fell 37% to 1.4 trillion, Deutsche Bank believe that the level of 1-12 trillion looks healthier and more sustainable。(Shofu compilation)