UBS 瑞银：中国A股市场 周刊

UBS Investment Research China A-share Weekly Monitor

－Record high again

04.10 　28页　　英文

􀂄 Strong market performance
The SHCOMP Index rose 4.4% to 3,324 last week. The Rmb168bn average daily
trading value was the second-highest, lower only than the average for the
preceding week.
􀂄 Stretched valuation and very high liquidity
The historical and forward PEs were 55x and 31x, respectively, while the
historical and forward P/BV multiples reached record highs of 5.6x and 4.0x,
respectively. Retail interest in the market has strengthened, with many new
accounts being opened. Retail investor interest in mutual funds has diminished, as
the majority of mutual funds underperformed in March.
􀂄 Small caps continued to dominate
In terms of market style, size underperformed 2.9% while price outperformed
2.4% last week, with little change for value/growth and quality. Year-to-date,
small-cap, low-quality, and low absolute price have dominated.
􀂄 Price target changes
On 30 March, we raised our price target on Sinotrans from Rmb6.08 to Rmb10.05
and maintained our Reduce 2 rating. On 2 April, we raised our price target on
Guangxi Liugong from Rmb20.00 to Rmb21.80 and maintained our Buy 2 rating.