We are net seller of the week of Hang Seng

We off loaded 0939 建設銀行 at HKD 7.80, 0717 英皇證券 at HKD 1.20, 0163 英皇國際 at HKD 1.93 besides of last updated profit taking. We think long term HSI may move up further due to China led Asia-infrastructure Bank. A move we believe China is trying to further liberalize RMB in long run. This will lift up funds that restrict to buy into RMB or A Share listed in HSI with ultra low PEs counters.

However, temporarily pull back is expected after the sharp rally. Also late night Friday policy announced by China authority dragged down HSI future. All pointing to a week for correction together with Euro Greece problem and Dow Jones Friday selloff.

We will hold HKD as cash for the moment and wait for a better opportunity.