里昂证券-07年中国展望

-07.01. 02 _CH_Market in 2007

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Not only about liquidity
! China’s market ran up fast in 4Q06, but is yet to peak, especially factoring in new 25% corporate revenue tax and currency appreciation.
! A benign outlook for the macro economy in 2007, which marks the second year into the 11th Five Year Plan.
! SOE restructuring combines the interests of major and minority shareholders
! Look for a possible uptick in consumption courtesy of China’s baby boomers.
! Industry consolidation to bring more duopolies.
! Risks are external factors and domestic politics.
! Asset allocation should not only look at HK-listed China Stocks.
! We are O-WT telecoms (including tele equipment), consumer plays and conglomerates and IPPs.