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Dim Sum Express Summary

Key Index Performance (Sept 5, 2018)

Core Content:

• The table shows the performance of various global and regional equity indices over different time horizons, including daily, monthly, and year-to-date changes, as well as earnings and P/E ratios for 2018 and 2019.

Hong Kong ADRs

Core Content:

• The table provides the local and ADR prices for major Hong Kong-listed companies, along with their daily percentage changes.

A-Share Market Analysis

Banking Sector:

• Performance: Banking stocks have delivered excess returns, acting as a stabilizer for the index.
• Earnings Growth: 2Q18 earnings growth improved compared to the previous quarter, driven by credit growth and recovering spreads.
• Asset Quality: Asset quality has improved, with the >90-day loan/non-performing loan ratio at most banks lower than at the end of 2017.
• Risks: Potential risks include global economic and financial risks, financial supervision tightening, interest rate fluctuations, and trade disputes escalating.

Retail Sector:

• July Performance: Retail sales rose 7.8% YoY in July, down from 12% in June.
• Mainland Visitor Impact: The slowdown in retail sales growth is attributed to a high comparable base and a decline in mainland visitor arrivals growth.
• Jewelry Sales: Jewelry sales growth (16.8% YoY) remained the highest, possibly due to the fall in gold prices.
• Other Categories: Cosmetics, apparel, and department stores saw slower growth.
• Tourist Numbers: July recorded the highest monthly tourist numbers YTD, with 5.46 million visitors, of which 4.4 million were from the mainland.
• Future Outlook: HK retail sales growth is expected to slow to single digits in the second half of 2018 due to high base, trade disputes, and a weak renminbi.

Rating Definitions

Company Ratings:

• Buy: Expected to outperform the benchmark by more than 15%.
• Accumulate: Expected to outperform the benchmark by more than 5% but not more than 15%.
• Hold: Expected relative performance ranges between -5% and 5%.
• Underperform: Expected to underperform the benchmark by more than 5%.

Sector Ratings:

• Positive: Expected to outperform the benchmark by more than 10%.
• Neutral: Expected relative performance ranges between -10% and 10%.
• Cautious: Expected to underperform the benchmark by more than 10%.

Analyst Certification & Disclosure

• The analyst certifies that the views expressed reflect their personal opinions and that their remuneration is not directly tied to specific recommendations.
• No proprietary trading division or affiliated companies hold shares in the mentioned securities.
• No investment banking relationships with the companies mentioned in the past 12 months.
• Analysts and their associates do not serve as officers of the companies and have no financial interests in the securities.

Disclaimer

• This report is for informational purposes only and does not constitute an offer to buy or sell securities.
• The information may be subject to change without notice.
• GF Securities (Hong Kong) accepts no liability for any loss arising from the use of the materials.
• Investments involve risks, and past performance does not guarantee future results.

Copyright

• Copyright © GF Securities (Hong Kong) Brokerage Limited.
• Unauthorized copying or redistribution is prohibited.