Wednesday, 24 June 2009 (Mid-day Post)

Summary
Hang Seng Index 17,771.75 (Change: +233.38/1.33%)
Range: 17,484.06 - 17,823.07
Turnover HKD30.209B

Hang Seng Index
Up across the board in Asia this morning, Tokyo's Nikkei +0.7%, Taiwan's Taiex +3.5%, Shanghai and Shenzhen also up +0.7% and +1.4%, respectively. Hong Kong's evidently following suit after yesterday's over-selling. Strong resistence at the 50-day average is keeping HSI afloat; however, turnover continues to remain low, which is a point to note and to worry. I fear subsequent to June, it might not be able to sustain it's position.

Rumour also has it that PBOC may lower the minimum reserve requirement for Chinese banks. This news is beneficial for financials of course, and should help boost up prices come this afternoon for H-shares. CCB (0939.HK) and ICBC (1398.HK) remain the favourites - worth watching how their prices should do - anticipating CCB to close ~HK$5.78 - 5.82, while ICBC should close ~HK$5.20 - 5.25.

Goldman Sachs also upgraded their target prices on China Life (2628.HK) and Ping An Insurance (2318.HK) to HK$32 and HK$62, respectively. Meanwhile Nomura also upgraded GOME Electronic Appliances (0493.HK) to HK$2.10.