GUANGZHOU (Fund China) - BOC Fund strategy latest monthly report said that in the steel and paper and materials companies were revalued after the market it is difficult to find the real valuation, with blue chip further enhance the level of premium, the risk premium in the market has become increasingly low level of demand, a lack of reasonable benchmark market , the variables are gradually increasing.

BOC Fund said, despite the negative message to foreign markets and the impact of the macro-control policy, but in August the A-share market as early expectations, in the shock of record high in the world’s major stock markets in the brightest. In such shocks in the market, BOC’s three stock funds and give full play to the characteristics of solid growth, superior performance.

BOC Fund is expected that the excess liquidity under the premise of the market risk premium in the reduction of the request, in September some thematic investment opportunities may be favored. From the point of view of industry segment, when valuations were gradually filled depressions, with growth of the market needs to explain the current high valuations, growth is mainly from two aspects: First, endogenous growth of listed companies, two listed companies, the endogenous growth from the current market situation, some sectors, endogenous growth cause for concern, mainly reflected in the assets into context. The growth of the company, primarily due to the increased demand for capacity expansion and higher prices.

Copyright Fund China 2008.

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