By Zheng Buchun

Shanghai Composite rose for 3 days at the first week of 2017. Although the index was rising, prices of many stocks actually fell at the later time of last week, especially sub-stocks. SME board and growth enterprises market also show sluggish growth.

Personally, I think the stock trend of last week is largely in line with the changes in foreign exchange rates. Tougher foreign exchange control has contributed the rising trend at the first few days of the New Year, while the failing trend may be affected by the appreciated RMB.  

As offshore RMB appreciates, oversea speculators are expected to buy green backs and unload renminbi. To avoid risks, the central banks tightened the economy with reverse repos last week.

Concept stocks and reform stocks are good choices. In addition, stocks that benefit from inflations are also worth investing. However, in over 3000 individual stocks, they account for only a very small fraction. Under such circumstances, A-share investors are hard to make rewards.

(Zheng Buchun is NBD's columnist)

Email: tanyuhan@nbd.com.cn