By: Jia Baoli & Zheng Yan
Compiler: Fund China

Securities Investment Fund 2007 second quarter, disclosed quarterly meeting today. Most fund managers in the Bulletin said that the third quarter is expected to be the second half of the domestic economy continued to grow rapidly, CPI likely to remain high, inflation pressures will continue. Monetary policy will continue to be increasingly tending to increase pressure on interest rates. By issuing new shares to accelerate, the market repo rate would show greater volatility.

E Fund Month Income Fund said on the trade surplus and rapid growth in consumption circumstances, business investment is also difficult to suppress the desire to domestic economic growth sufficient internal drive. OECD leading indicator is also an indication of the international economic environment will be improved. Hence, it is expected the second half to three quarters of the domestic economy will continue to grow rapidly. Meat price rises is not going to disappear soon, in the short term inflationary pressure is still quite strong. In this environment, further raise interest rates and other monetary policy tightening is now inevitable.

Fullgoal Tianshi Currency Fund think, Third quarter monetary policy will continue to change amid tensions, CPI may move up the market participants will increase the fear and market a wait-and-see atmosphere, and will increase expectations of an interest rate increase, It is expected a year-up to the possibility of two more. Interest tax reduction is imperative. It is expected the second half of the monetary policy and financial, fiscal and tax policies to facilitate the strengthening, the State may continue to import and export tariffs, export rebates and quota policy adjustments to address external imbalances contradictions.

Guotai Jinlong Bond Fund, said that he expected the third quarter of 2007 inflationary pressures will continue to rise even further. In monetary policy, the Central Bank will continue to take, including interest rate and the deposit reserve ratio of the combination of monetary policy tools to regulate it. Taking into account the possible future introduction of the interest tax relief and the issue of special treasury bonds, the central bank’s monetary policy tightening efforts remains to be seen.

Given the above reasons, the majority of the Fund said that the next phase, Fund investment will continue to interest rate risk and liquidity management as a primary consideration. Many fund managers said that the second half will actively participate in the reverse repo operations, to enhance portfolio investment income. Many bond fund managers said, will actively participate in new stock purchase, and to bring low-risk investment income surplus.

CITIC all bond funds, three quarters, will be maintained on holding CITIC all bond index strategic interests and the allocation of assets moderate category configuration, focused on financing leveraged use of assets in cash and issuing new shares of stock and quality of refinancing and risk control, under the premise timely and appropriately dynamic adjustment of interest-type asset allocation ratio, and strive to ensure a stable value fund assets at the same time, bring investment to low-risk excess receipts.

Copyright Fund China 2009.

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