StockWatchCommentary

After all the MSCI rebalancing last week...the focus will be in HK where the market will focus on HSI rebalance which will see HSBC and China Mobile weighting reduced by about 3.23ppt and 4.94ppt by the close of this Friday. Will be interesting to see how the rest of Asia namely Singapore and Malaysia react to HK.
It is still China that remains the most interesting with the big market potential as well as the wealth growth there. ...only it probably has to run through the gamut of recalls on safety standards set by their 'corporate-buyers' who ordered them. Hey, I dont think we should blame China entirely given that these 'corporate-buyers' were motivated by profits when they ordered their made-in-China OEMs, I had to agree that the design of the products which were given to the Chinese OEMs did not specify the excat standards of safety. Still, these news will only ensure that Chinese Govt will work towards upping their safety standards as the clock continues to ticktock forwards towards the Olympics next year.
One thing for sure, there are lots of broker reccomendations these week compared to 3 weeks ago where most were staying clear until it gets less cloudy. Certainly 80% more reccommendations of buys and switches and lesser calls to sell in their strategy reviews on the markets. At UOBKH, an analyst based on technicals, is adopting a sell into strength strategy via SGX.
Here is an interesting news article to read ->WSJ Investors Hope This September