SHCOMP is testing upside resistance of 3,645: Bullish on the SHCOMP
Market sentiment turned soured amid a report saying U.S. President Joe Biden was preparing to amend U.S. sanctions on Chinese companies with ties to the military, including the addition of new targets. Locally, services activity
in China continued to grow in May, despite the softening rate of growth amid persistent inflation pressure. Over the past month, the sector in the CSI that had gained the most is Energy followed closely by Consumer Staples. In addition,
rotation has also been into Energy over the past month. Performance: On Thursday, the Shanghai Composite Index (SHCOMP) fell 12.96 points (-0.36%) to close at 3,584.21. The SHCOMP declined 0.68% over the past five days and
advanced 3.98% for the month. See below for our sector allocation.