18-04-2018

Equity markets remain volatile amid heightening political risks. Investors are getting more nervous to every headline, including President Donald Trump threated to impose $100 billion of additional tariffs against China, the U.S. Department of Commerce has banned American companies from selling components to a leading Chinese telecom equipment maker and US alongside UK and French allies initiated precision strikes in Syria as a response to an alleged chemical weapons attack against civilians by Syrian President Bashar al-Assad. Yesterday, China’s central bank said it will cut the reserve requirement ratio (RRR) by one percentage point which resulting in a net injection of 400 billion yuan funds for Chinese banks, however, the Chinese and HK equity markets seem not yet getting encouraged by the news so far. Investors should be suggested to further reduce their positions in equities and overweight on cash and bonds for better portfolio management amid still heightening market risks.

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