CS：China Market Strategy

01.03　　　４页　　.pdf

With our cautious view on the absolute performance of the China market as a whole in 2007, we recommend investors
UNDERWEIGHT sectors such as banks and insurance as well as
consumer goods (ex. auto goods) in which a major re-rating has
taken place in 2006 and the valuation is hard to justify, even given the higher-than-market-average profit growth. Relatively speaking,the valuation of cyclical stocks is less demanding, and we OVERWEIGHT sectors like energy, industrials, and materials. The anticipated strength in the Chinese economy should also be positive for these sectors．．．．．