On December 1^st, 2012, the China Merchant Securities 2013 Investment Strategy Seminar (Shenzhen) and the Award Ceremony of the Second “Zhiyuan Wealth Management Cup” China Stock Market Actual Transaction Investment Contest was held successfully at the Huaxia Art Center in Shenzhen. At the event, the China Merchant Securities’ 2013 macroscopic strategy judgment and investment strategy in the industries of real estate, machinery and medicine were published. An award ceremony was also held for the Second “Zhiyuan Wealth Management Cup” China Stock Market Actual Transaction Investment Contest that lasted for ten months.

Wang Yan, president and CEO of the China Merchants Securities, introduced that the continual fluctuation on domestic and foreign capital markets delivered large impact on the investment psychology of the investors and relevant investment performance. In order to spread the knowledge on securities investment, guide their clients to establish a scientific concept in investment, exchange investment experience and improve investment standards, the China Merchants Securities held the Second “Zhiyuan Wealth Management Cup” China Stock Market Actual Transaction Investment Contest. At the contest, an investment platform was built for the investors in 96 operations in 55 cities. It was held this year from January 4^th to October 31^st, 2012. New and old investors of the China Merchants Securities were attracted to participate in the contest with great enthusiasm. The total of the clients who participated in the contest reached nearly 500,000. A total of nearly RMB 20 billion yuan assets were put into the contest. Under the general condition that the A share market fell into a relatively low market, the participants still made excellent performance in the contest. Among them, the champion, runner-up and second runner-up of the contest achieved returns on investment respectively of 288.72%, 155.30% and 138.66% during the contest.

The China Merchants Securities’ strategy research team believes that it is still a bear market at present. But valuation bubbles have virtually been eliminated, although there are some structural bubbles at the time. China’s economy will be slightly better than or the same as this year. It will show features of the bottom of an L-type economy. In history when an economy hit the bottom and started to recover, the stock market would mostly be a volatile stock market. After the bottoming processes of both economy and profit, there will be a band market brought about by a wave of profit recovery. After the market responds to this profit recovery, it will adjust again. After the completion of de-stocking, the fall of the real economy in both quantity and price will end. The profit of the enterprises will see a phase of improvement. It is estimated that the improvement of a wave of profits will bring market rebound in the first half of the next year.