<P><FONT face=黑体 size=5><STRONG>GS 高盛：中国市场策略-A股纠错的思考</STRONG></FONT></P>
<P><FONT face=黑体 size=5><STRONG>02.01      5页    pdf</STRONG></FONT></P>
<P><FONT size=4> China: Portfolio Strategy Thoughts on A-share market correction</FONT></P>
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<P><FONT size=4>Domestic A share market slumped 5% on January 31, losing over US$70bn<BR>of total market cap in one day. The A-share correction is long overdue<BR>given the strong rally last year and ytd. Before the correction, A-share<BR>valuation had reached a theoretically stretched valuation level of around<BR>25x P/E, which was almost discounting China's growth at US COE (8.5pct).<BR>The correction was triggered by hawkish comments from NPC Vice<BR>Chairman Mr. Chen Siwei on the heels of a series of tightening measures<BR>and warnings from government bodies. PBOC raised the reserve ratio in<BR>early January and made it clear that it will consider asset prices in making<BR>monetary policy decisions. CBRC warned commercial banks not to lend<BR>money as consumer loans to retail investors for stock market investments.<BR>CSRC stopped launching new mutual funds. SASAC head Li Rongrong<BR>stated that SOEs should not speculate in the stock market.</FONT></P>