Market Trend

Between February 22nd and March 8th, MCI index slid 199 points from 6399.9 points to 6200.8 points. The decline could be justified by two factors: First, demand is relatively weaker in the traditionally slow season. Second, amid optimistic outlook in the China market, Chinese government and manufacturers have respectively launched policies and promotions related to CNY holiday to stimulate demand. However, CNY holiday sales figures from retail channels were below expectations, resulting in high inventory build-up. Currently, although the upstream component supply remains relatively tight, we do not rule out the possibility that the inventory build-up may trigger a panel oversupply.