China Update nr 2 2015 (engelsk version)

OCTOBER 2015

China update.

Contents • macro

Major challenges ahead as China’s economy changes track

By Jan Häggström, Chief Economist

• stock exchange

“Two out of three Chinese stock markets still overpriced”

By Mikael Sens, Fund Manager

• currency

Tortuous path to global currency status

By Johan Malmenbeck, Currency Strategist

• commodities

Turmoil in China puts pressure on commodities

By Martin Jansson, Commodity Strategist

• in brief

Current indicators Everyone in China is talking about …

China update.

Handelsbanken was the first Nordic bank to operate in China. With over 30 years’ experience of doing business on the Chinese market, we are still the most widespread Nordic bank in the region today, with a presence in Shanghai, Beijing, Hong Kong and Taipei.

Publisher: Handelsbanken Production by: Baluba Branded Content Printed by: Ineko AB Contact: Maria Tjernqvist matj01@handelsbanken.se Internet: handelsbanken.se/chinaupdate

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photo: shutterstock

A long-term perspective

T

he impression of China swings back and forth, but never seems to be really fair. One minute it’s the global locomotive, the next, a restraining anchor. From maximum bull to maximum bear.

But the truth is usually somewhere in between.

At the time of writing, the Communist Party plenary meeting has not yet been announced, but we don’t anticipate any major deviations from the path towards greater sustainability and consumption-driven growth that was set out in the previous five-year plan.

But the situation is precarious because, paradoxically, the role of the Party is increasingly important in the structural transition, as Xi Jinping centralises power. It also raises questions about where Xi Jinping really stands.

In the not-too-distant future, at the 19th Party Congress in 2017, much of the old guard will retire, and then we may see the true face of Xi Jinping. But until then, and until Xi Jinping has finally established his power, the priority seems to be not to stir up things too much.

So far, however, the restructuring process has worked well in the eyes of the regime. The statistics show that consumption and the service sector are moving in the right direction, in a more sustainable way. But the transition is complex.

Market liberalisation has not proceeded as quickly as we thought; for example, the initial

target of currency convertibility within 2–3 years has now been delayed.

In the light of the political uncertainty, it is more important than ever to understand the Chinese leadership. The concentration of power – with Xi Jinping taking over chairmanship of the Central Military Commission, the Economic Commission and several key committees – has created a kind of fear of pulling the trigger and making decisions, with everyone waiting for Xi. The turmoil in financial markets is a symptom of this, which also shows that Xi Jinping’s behaviour is less determined by economic considerations than by the leadership’s top priority: the Chinese dream of making a clear imprint on Asia and establishing China as a global superpower.

So for European companies, a long-term perspective has become more important than ever. The way forward has become tortuous.

But although China doesn’t shine as brightly as before, it is still a very interesting market. The country has great needs which European companies and solution providers are well-positioned to provide solutions in, including the areas of environment technology, health care, civil society and services. We are good in the fields where China has the most needs.

Johan Andrén, Branch Manager Handelsbanken Hongkong

2015-10-16 10:50

China update.

MACRO

Major challenges ahead as China’s economy changes track Concerns about China have grown in step with the increasing drama on the stock market and the foreign exchange markets in Asia. Many observers are now wondering if it will be possible to manage the challenges relating to the transition of the economy without putting the brakes on too hard. Across the region, there are major concerns that a collapse of the Chinese markets will take Asia’s export-driven economies with them in the fall.

COMMENT

Jan Häggström, Chief Economist Handelsbanken

T

he shift from an investment-driven economy to growth that is mainly sustained by rising consumption has moved at a furious pace. For the past few quarters, investments have dropped significantly as the economic motor and the contribution of consumption to growth is now the main engine. Production of goods is also becoming less important and is being replaced by production of services. This poses major challenges for both companies and the Chinese leaders.

The current challenge for economic policy is not just to ensure that the economy grows at the right pace. It is also a question of making sure that the resources freed up in the contracting sectors can be moved to the expanding sectors and companies. In the past year, it is heavy industry which has come to a shuddering stop, ranging from steel and cement producers to iron ore mines. These sectors have been hard hit by construction slowing down and entering a much slower phase of expansion.

many companies in these sectors have also

been hit hard by falling prices on the global markets. Chinese iron ore mines, for example, are the producers with by far the highest costs per tonne of ore and most of them are totally unprofitable at the current global prices for iron ore. Their existence is therefore threatened. The steel sector also has major profitability problems since it uses expensive

China_2-2015_eng_lena.indd 2

domestic raw materials and has relatively high energy costs. Many steel companies are selling their products at a loss at prevailing global steel prices, and we can probably expect a wave of closures in the next few years.

The Chinese currency has risen sharply along with the US dollar in the past year, and combined with rapid wage increases in recent years, this has also created problems in terms of competitiveness and profitability in sectors other than basic industry. Profits for the steel industry are strongly negative, but have also slowed down significantly in the textile industry, for example.

At the same time, more advanced sectors are emerging, with China moving forward its positions in the global market as a result of heavy investments in research and development. This is happening, for example, in IT and communications technology, where China has quickly established itself as one of

the most important players and has already eliminated several US and European competitors. This has taken place not only as a result of low production costs, but perhaps primarily due to its success in creating high-quality, advanced products. china is thus rapidly moving in the direction that its leaders have long been aiming for. It is moving up the value chain by cutting back on production of relatively simple products, where low wages are the primary means of competition, and increasing production of more sophisticated products where competitiveness is primarily generated by large investments in research and development. At the same time, this also offers the opportunity to cut down on activities with very negative environmental consequences. Over a year ago, the political leaders sent a signal that it was desirable to

China Profit performance for manufacturing (Up to 31 August 2015) % 60

IT

Textiles

Automotive

Steel

50 40 30 20 10 0 -10 -20 -30 -40 -50 -60

2014

2015

Source: Macrobond

2015-10-16 10:50

China update.

MACRO

photo: all over press

China’s economy is no longer growing as quickly as before and the rapid structural transition is creating new opportunities, but also major challenges, for the companies and regions which are now threatened by closures and weak or non-existent growth.

But China’s strong public finances provide the conditions for making the transition less brutal.

close thousands of inefficient steel mills – not for reasons of profitability, but for the sake of the environment. Now, market forces are contributing to forced implementation of this wish based on economic considerations

Proportions of GDP (Up to 31 August 2015) 50

%

Service sector

Industry

rather than environmental policy.

The rapid transition will create new opportunities, but also major challenges for the companies and regions now threatened by closures and weak or non-existent growth.

There is also a major challenge for the regions and companies which are in the expanding parts of the economy. For them, it is a matter of finding enough skilled staff rather than laying off workers. for the economic and political decision-

45 40 35 30 25 20 1980 1985 1990 1995 2000 2005 2010 2015 Source: Macrobond

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makers, there are various ways of managing this type of process. They can, of course, try to help the weak regions and companies and make the transition a little slower, for example, by allowing the currency to weaken.

However, our interpretation of the signals from the political leaders is that they do not intend to let the currency fall drastically.

They are thus forced to use other means to try to facilitate the shift, with fiscal policy as the main tool, since an overly expansionary monetary policy could create overheating in the rapidly expanding parts of the economy.

Fortunately, China’s public finances are relatively strong, with fairly low debt, at least at the central level, and they therefore have

the opportunity to use selective methods to make the transition less brutal.

In general, China is moving in a desirable direction and of course, they don’t want to stop the expansion in the sectors of the future.

It is more a matter of taking care of the negative effects of the structural shift in the form of increased unemployment and reduced income for some regions and companies than of trying to slow down the parts of the economy that they want to be the China of the future. For economic policy, it is therefore, as before, a matter of a balancing act between managing the short-term problems that arise, while keeping their sights on the long-term goals. the overall economy is not growing as

quickly as before, but this is partly due to the structural shift away from production of goods towards services. The new challenge is the dramatic increase in growth differentials between sectors and regions. This means that China has several new factors to consider. So far, China’s leaders have demonstrated great ability to work on several levels simultaneously, but the challenges may now be greater than ever before. n

2015-10-16 10:50

China update.

STOCK EXCHANGE

“Two out of three Chinese stock markets still overpriced” As most people are now aware, the past year has been very eventful on the Chinese markets.

But despite the falls of the summer, both the Shanghai and Shenzhen markets seems to remain overpriced. However, the opposite can be said regarding the Hong Kong market.

COMMENT

Mikael Sens, Fund Manager Handelsbanken

A

s recently as summer 2014, share price valuations on the Chinese markets were attractive, providing a favourable starting point for a rise in share prices. The main rise started in July last year and quickly accelerated in November, when ShanghaiHong Kong Stock Connect started up and the People’s Bank of China reduced key interest rates at more or less the same time. After some consolidation in early 2015, the market gained fresh momentum in March following a further cut in interest rates. After that, the direction was just up, up and up, until the bubble burst in the third week of June, when the authorities prohibited the margin lending that had been built up via unofficial channels. The market hysteria of April, May and early June was very similar to the IT bubble that occurred in the Western world early in 2000. The rise was fuelled by optimistic press articles, bloggers and stockbrokers spurring on activity, a high inflow of new investors and significantly increased volume of margin lending. Many different companies and business concepts were able to attract capital via the market. IT companies, in particular, had high valuations and in our discussions with “normal” companies, we noted that they saw an opportunity to spin off and list smaller businesses with an IT connection. A large number of Chinese companies which are listed in the US also started to plan to transfer their listings to China, since the valuations of similar companies had become significantly

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higher there. At the beginning of June, the average value on ChiNext – the Chinese list of growth stocks – hit a breathtaking P/E ratio of 147. the creation of stock market bubbles – and

the fact that they eventually burst – is not a new phenomenon in global stock markets, and has also been experienced previously in China. As recently as 2007, we saw a major stock market bubble in China. The major problem on this occasion was the failure of the authorities to correctly analyse the situation, together with their attempts to restrain the collapse at a level that was far too high and with measures which were not in keeping with market practice. For example, allowing large numbers of companies to suspend trading in their shares indefinitely and banning major shareholders from selling shares destroys confidence in the whole market. The creation of a stabilisation fund is less controversial, but allowing it to purchase shares at price levels that were clearly too high

– and which have fallen during the summer – is a sign of a lack of knowledge. Although we respect the explanation provided by the authorities – the desire to avoid a systemic crisis – we do not share their opinion. It is our assessment that the market would have found a new equilibrium point at lower levels during the summer. As a result of this major state involvement, the risk premium in the market will probably be higher for several years to come than would otherwise have been the case. Investors now also feel more uncertain about all of the country’s reform work, which had its sights set on letting market forces have a greater impact on the allocation of resources in the Chinese economy. Basically, we are very favourably disposed to the reform work being undertaken in China, and hopefully the hastily implemented market measures this summer are a one-off event, but – as they say – “seeing is believing”.

Despite the falls of the summer, it is our view that both the Shanghai and Shenzhen markets remain overpriced. However, we

Chinese stock market index performance Chinese stock market performance is reminiscent of the IT bubble in the West Shanghai Composite Index

Shenzhen Composite Index

Hang Seng Index 5 000 28 000

3 000

4 500

2 500

26 000

4 000 24 000

2 000

3 500

1 500

3 000

2 500 20 000

1 000

2 000 Source: Bloomberg

22 000

2012

2013

2014

18 000

2015

2015-10-16 10:50

China update.

STOCK EXCHANGE

photo: all over press

The stock market hysteria in China this spring was very reminiscent of the IT bubble in the West in the early 2000s.

consider the Hong Kong market to be underpriced. The Shanghai market is currently trading at a P/E ratio of 13, based on the year’s expected profits. Excluding the low-valued financial sector, Shanghai is trading at a P/E of 18. The Shenzhen market has a P/E ratio of 25 and ChiNext still looks very expensive with a P/E ratio of 55. The Hong Kong Hang Seng index is at a P/E ratio of 11 and Chinese stocks which have dual listings in China and Hong Kong are trading at a low P/E of 7 in Hong Kong. This group of companies includes several banks which, on paper at least, have very low values. A very clear signal that the Hong Kong stock market is more attractively priced than Shanghai and Shenzhen is that the stocks with dual listings are, on average, 35% more expensive on the Chinese mainland than in Hong Kong. This difference in valuations is actually completely unjustified, but can be explained by the purchases made by authorities to support the market and other forms of intervention which are keeping the Shanghai and Shenzhen markets at high levels. In the longer term, these valuation differences may disappear.

If we look more closely at how the 90 or so dual-listed stocks are priced on the different markets, it is clear that only four stocks are trading at a discount in Shanghai: Anhui Conch Cement, Ping An Insurance, China Pacific Insurance Group and China Vanke (property developer). All these can be considered to be market-leading quality companies. The companies with the greatest

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premium valuations in Shanghai are often in the commodity sector and other traditionally cyclical sectors. The relative pricing of the different companies clearly shows that the Chinese are significantly more focused on speculative investment than international investors. our cautious view of the mainland markets

is also based on analysts’ profit forecasts still appearing to be too high. Profit performance for Chinese companies is currently weak and on several occasions this year, analysts have been forced to revise their forecasts downwards for both 2015 and 2016. We probably haven’t seen the last of such revisions. The lower energy prices are having a negative impact on oil, gas and coal extracting companies, and increasing competition has adversely impacted vehicle manufacturers and other consumption companies. Low commodity prices and weak demand for capital goods have impacted negatively on companies in these sectors. The important construction market will continue to weaken some way into 2016. While the demand for e-commerce and other internet services is continuing to grow very rapidly, tougher competition is hampering profit growth.

Stockbrokers and insurance companies reported large profit increases during the first six months of the year. However, the worsened climate in the market will pulverise stockbrokers’ profits looking ahead, and lower investment profits will slow activities for

insurance companies. The banks are under pressure as a result of lower interest rate margins and increasing loan losses.

As anticipated before the start, international investors have used the new trading channel to a greater extent than the Chinese.

Foreigners’ accumulated net share purchases in Shanghai since the start in November last year amount to CNY 143 billion. The corresponding figure for purchases made by Chinese purchasers is CNY 90 billion. The three Shanghai stocks that have been most purchased by international investors in the new channel are International Airport, Kweichow Moutai (manufacturer of spirits) and Ping An Insurance. The first two cannot be traded in Hong Kong and are therefore new additions to the portfolios of international investors. Both companies can be considered high quality companies in their respective sectors. Ping An is also listed in Hong Kong, but the share is one of just a few with dual listings which are cheaper in Shanghai. Chinese trading interests in Hong Kong mainly focus on Hong Kong Exchanges and Clearing, CRRC (manufacturer of trains) and Tencent. Large purchases were also made in the scam company Hanergy Thin Film Power before trading in the share was stopped. the chinese interest in small caps also

became clear in April/May when Chinese investors started making large-scale purchases on the Hong Kong market via the new trading channel. Investors focused on small companies whose share prices rocketed. Within a few days, share prices doubled for many Hong Konglisted small companies. During the summer crash, these stocks came back to earth.

Private Chinese equity investors have long had a reputation for being extremely receptive to taking risks and speculative purchases. The past year’s market performance, trading and valuation patterns really confirm that this reputation is well-justified. n

2015-10-16 10:50

China update.

CURRENCY

Tortuous path to global currency status The turbulence on the Chinese currency market has caused headaches, particularly for the US central bank — the Fed — which faces an impending rate hike. It has also given the ECB and the Swedish Riksbank more food for thought.

The Chinese central bank’s actions have been a surprise, starting with a weakening of the currency in the fixing, followed by supportive purchases of the currency and measures to reduce speculation of a further weakening.

COMMENT

Johan Malmenbeck, Currency Strategist Handelsbanken

T

he uncertainty about the health of the Chinese economy, together with expectations of a continuing decrease in economic growth, has led to significant falls in both stock markets and commodity prices recently.

The Chinese currency has also been put to the test. In mid-August, the Chinese central bank, the People’s Bank of China, PBOC, devalued the yuan by about 3.5 per cent against the US dollar. This action came after a long period of weak economic statistics, including declining export figures, attributable to significant wage inflation and a relatively strong currency.

During the past year, China has lost some of its competitive edge to its Asian neighbours. Whilst the Chinese currency has been stable against the US dollar at around 6.20, the Russian rouble has weakened by 50 per cent, the Malaysian ringgit by around 30 per cent and the Indonesian rupiah by just over 20 per cent at most. In the light of this, the Chinese actions don’t appear particularly dramatic. Nevertheless, it is the largest weakening of the currency since the dollar peg was abandoned in 2005.

The PBOC also announced that setting the daily fixing rate would not only depend on market supply and demand in the future, but also on rate movements in other major currencies. This is a step towards a more market-adapted currency, which has been a goal of the central bank for several years.

To dampen speculation about further

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photo: all over press

currency devaluations, the PBOC decided to introduce a reserve requirement for banks on currency purchases against the yuan in the domestic currency market. This means that banks must reserve 20 per cent of their customers’ forward currency positions in an interest-free dollar account with the central bank.

These funds will be locked for one year, thus making currency hedging of Chinese imports in foreign currencies more expensive. This is a step backwards in the process of internationalising the yuan, but at the same time it should promote the use of the yuan in international trade. to reduce pressure on the currency, the

central bank has also intervened in the currency market, which is reflected in a declining currency reserve. The fact that they first decided to weaken the currency in the fixing, and then supported it with currency purchases, and took measures to reduce speculation about a further weakening, may be considered to be both contradictory and somewhat surprising.

Looking to the future, I believe that a widening of the yuan’s trading band against the dollar is the most probable outcome. The last occasion on which the trading band was altered was in March 2014 when the intention was to continue widening the band until “full convertibility” had been achieved. We can therefore expect to see greater volatility in the Chinese currency in the future, once again underlining the importance of hedging

Chinese currency exposure.

In September, President Xi Jinping said that China does not intend to use the currency to stimulate declining exports. On the other hand, widening the trading band would make it possible for the currency to fluctuate more freely and in a more politically correct way. But the question is whether this will be sufficient for China to retain its top ranking as an export country.

For a long time, the IMF has called for the Chinese currency to be more adapted to the market and more easily available. A widened trading band would remove the obstacles which prevent inclusion of the yuan when re-weighting the SDR basket. When the basket was last re-weighted in 2010, it was stated that poor availability was the main reason why the yuan could not be included.

However, the process of a possible reserve status for the yuan is more sluggish than expected. We don’t expect to see a new SDR basket until the second half of 2016. in september , the PBOC also announced that the domestic currency market is being opened up to international central banks. This is a further step in the process of internationalising the currency and it may help China in future SDR discussions. But even though the yuan is on its way to becoming one of the world’s major currencies, the path to achieving this goal will be long and winding. n

2015-10-16 10:50

China update.

COMMODITIES

Turmoil in China puts pressure on commodities The late-summer turbulence in China has dampened the outlook for an economic recovery and continued growth in China’s commodities consumption. This leads to questions about China’s official growth target and the country’s overall future potential.

COMMENT

Martin Jansson, Commodity Strategist Handelsbanken

T

he Chinese devaluation in August and weak Chinese macro data have sent shock-waves through the financial markets. In tumultuous times like this, trade in financial assets tends to become digital – up or down without too many nuances between. We believe that oil has been erroneously dragged into the mire. 70 per cent of Chinese crude oil consumption goes to the transport sector, driven by domestic consumption to a much greater extent than the steel and metal sector, which is driven by infrastructure investments and the export market. Oil imports have been showing a strongly positive trend since oil prices started to fall and are now growing at around 10 per cent annually.

Together with the US, China is the country where lower oil prices can be most clearly translated into increased demand. The currency peg to the US dollar also means that China has retained its purchasing power in dollar-denominated commodities such as oil.

In other developing economies where a lower price normally generates higher demand, the fall in oil prices is largely offset by a weaker domestic currency. alongside the strong demand for oil,

China has also continued to expand its strategic stocks. Since 2007, China has built up long-term strategic stocks in the same way as many OECD countries, and China recently confirmed that its target is 90 days’ consumption in strategic stocks by 2020. So this is a long-term process, and in our opinion, there

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is over-confidence in the view that China’s growing oil imports are only the result of the strategic stockpiling. We believe that it is instead due to increasing consumption. with their capital-intensive facilities and highly cyclical demand, base metals are probably the textbook example of a cyclical industry. Producers will therefore always do their utmost to streamline and cut costs in order to keep production going. In the current downturn, producers in most mining countries have been helped by a weaker currency, but not in China, where the peg to the strong dollar has instead weakened the competitive situation for producers. The recent decline in metal prices is putting pressure on both mining and oil producers, but perhaps even more on the financial institutions that finance them.

In the past twelve months, China has turned into an exporter of aluminium products, stainless nickel-alloyed steel and raw steel, which is depressing prices globally.

But over-production and weak profitability in the West should already have led to closures

in production, with producers in dollars in the worst situation. Nickel mines are faring worst, followed by aluminium smelters, while steel and copper are still bearing up in terms of profitability. Steel is having a bit of a breather, thanks to lower input prices for commodities. We have noted some closures in China’s aluminium production, while new, more cost-effective production has been opened in Inner Mongolia. This kind of production is competitive internationally, with vertically integrated coal-mines, electric power plants, aluminium smelters and processing industries for finished aluminium components in a single long line. So while the expensive production in the coastal provinces is shutting down, this new type is expanding and depressing prices on the export market.

Overall, only a small part of China’s over-production has been closed down. Most visible is the steel industry, where the state subsidises unprofitable local iron ore mines so that they can provide local steel mills with cheap iron ore. These mills would otherwise not be competitive. In this way, local provinces subsidise an entire industry. n

Steel production/consumption

Oil imports

15

Production

Consumption

7

Crude

Yoy

30

6,5

12

25

6

9

5,5

6

5

3

4,5

20 15

4

0

10

3,5

-3

5

3

-6

2,5 2013

2014

2015 Source: Macrobond

2006

2008

2010

2012

2014

0

Source: Macrobond

2015-10-16 10:50

China update.

In brief In China everyone is talking about ...

Current indicators

2014

Values GDP 7,3 KPI

2,0 USD/CNY 6,21 EUR/CNY 7,51 SHIBOR O/N 3,68 Currency reserves i USD 3 843

Latest

2015 forecast

7,0 2,0 6,34 7,22 2,1 3 514

7,0 – 6,45 6,97 – –

2016 forecast

2017 forecast

6,5 – 6,6 6,6 – –

6,3 – 6,7 6,7 – –

Figures from 13 October 2015

... how registration regulations and bureau-

cracy are putting a spanner in the works for He Yaxin. Despite having her school’s best study results to date, 18 year-old He Yaxin is not permitted to take the entrance examination to university. The reason? The girl’s parents are migrant workers and He Yaxim is not registered in her current home town. Her parents have tried to get around the bureaucratic obstacles for the university examination, but there doesn’t appear to be a solution. In many respects, the household registration rules have made migrant workers in China second class citizens in their own country. The case of He Yaxin exemplifies why it is so important for China to reform the “Hukou” system as quickly as possible.

Fredrik Andersson, Corporate Advisor, Handelsbanken Shanghai

photo: all over press

... thousands of public officials in Guangdong province suspected of bribery. Chinese statistics indicate that middle-ranking public officials are particularly likely to take bribes. In the wake of urbanisation, where many small communities have quickly grown into towns, it is common for public officials with power to illegally approve land purchases in order to cash in on rapidly increasing land prices. The authorities have now directed their suspicion towards public officials in over 1,000 villages and communities in Guangdong. In total, 2,000 public officials have been forced to hand over their travel permits to the authorities to prevent them fleeing the country if it is proven that they have accepted bribes.

3.7% this was how much Chinese exports declined in September this year compared with the same period last year. Optimists may feel that there is light in the tunnel, since the corresponding figure for August was a decrease of 5.5%.

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The contents are intended exclusively for customers in Sweden. Its aim is to provide general

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information to Handelsbanken’s customers, and it does not represent personal investment advice or a personal recommendation. The information is not intended to be used on its own as a basis for investment decisions.

Customers should seek advice from their advisors and make their investment decisions based on their own experience.

The information in this material is subject

Olive Xu, Chief Executive, Handelsbanken Leasing, Shanghai ... analyst Charlene Chus’s sceptical view of the

bank system. Officially, the proportion of bad loans in the Chinese banking system amounts to an average of 1.5 per cent. However, international bank analysts have argued that the correct proportion is 10 per cent. But now the question is whether this estimate may understate the the true situation. Recently, well-known bank analyst Charlene Chu was asked whether the official statistics could be trusted. To the surprise of many, Charlene Chu said that in her opinion, the figure of the international analysts should be considered a “best-case” scenario.

Her own estimate was closer to 20 per cent in bad loans. In this respect, it should be pointed out that Charlene Chu belongs to a group of sceptical China experts.

Jason Wang, Chief Representative, Handelsbanken Beijing

to change and may differ from the opinions expressed in independent investment analyses by Handelsbanken. The information is based on generally available information and has been taken from sources that are considered to be reliable, but its correctness cannot be guaranteed and the information may be incomplete or abridged. No part of the draft may be repro duced or distributed to any other person without the prior written

consent of Handelsbanken. Handelsbanken is not responsible for any use of the material in a way that is contrary to the ban on forwarding it, or for its publication in violation of the regulations laid down by the bank. The historical returns on a financial instrument are not a guarantee of future returns. The value of financial instruments may increase or decrease, and you may not necessarily recover all your invested capital.

2015-10-16 10:50