With National People’s Congress in Beijing this week, people are expecting announcement on the country’s directions from Wen Jiabao this Friday morning (March 5 2010). People are mainly expecting the government will:
i) Continue to promote consumption inside the country
ii) Promote agriculture and increase the living standard of its citizens, particularly the inland western areas
iii) Slow down the increase in real estate price, slowly deflating the asset bubble
Sectors of the week
This should benefit the following sectors:
Consumer (discretionary and staples), Agriculture
and affect the following sectors negatively:
Banks, Real Estate
Stock picks of the week:
Digital China (861 HK) (IT stock, P/E relatively low – 15 times)
Chaoda (623 HK) (Agriculture stock, low P/E – 7 times)
China Green (904 HK) (Agriculture stock, low P/E – 15 times)
