[Today's Guide]
>Multi results reached at SCO summit, China pushes interconnection construction of railway, etc.
>Beijing accelerates construction of Tongzhou district as subsidiary administrative center, Issuance of guidelines for Internet finance coming soon
>Over 300 companies to resume trading, more companies to see shareholding increases
>Yangfan Holding and China Vanke bought by 5 pct limit, Guidong Electric Power and Tsinghua Tongfang expects interim performance to surge
[XFA Focus]
○Multi results reached at SCO summit, China pushes interconnection construction of railway, etc.
------
The summit held in the southwestern Russian city of Ufa on July 10 approved the Shanghai Cooperation Organization (SCO) Development Strategy until 2025 and ratified the resolution on starting the procedures of granting India and Pakistan full membership of the organization. Leaders attending the summit all appreciated the Silk Road economy and hoped to be involved in the strategy. In Chinese President Xi Jinping’s speech delivered on the meeting, he promoted exploring potential cooperation and taking bigger steps in the convenience and liberalization of trade and investment; that China is willing to push the construction of 4,000 kilometers railway and over 10,000 kilometers road in next few years to form a structure of regional interconnection.
Comment: For SCO, regional economic cooperation has become a push factor as important as political security. China has advantage in the cost and technology of railway construction, while other member countries of SCO have abundant resources and see slow infrastructure development since the collapse of the Soviet Union. More cooperation in railways might be developed following the 770-kilometer Moscow-Kazan high-speed rail. As for A-share companies, the overseas orders of China Railway Construction Corporation Limited (601186.SH; 01186.HK) and China Railway Group Limited (601390.SH; 00390.HK) see rapid growth; sub-new stock Beijing Ctrowell Technology Corporation Limited (300455.SZ) is principally engaged in the security detection equipment for the operation of railway vehicles.
[XFA Selection]
○Chinese Premier Li Keqiang hosted a conference on the economic situation on July 9 and addressed that “We are confident that the government can ward off any regional or systemic risks in the economy and ensure we have an open, transparent, stable and healthy capital market”.
○China Securities Regulatory Commission (CSRC) indicated on July 10 that there will be no new stocks issued recently and all listed companies are required to formulate specific schemes to maintain stability of their stock prices.
○China Securities Regulatory Commission (CSRC) issued circular on July 12 requiring strict control over the real-name system of securities account; the Office of the Central Leading Group for Cyberspace Affairs required full clearance of advertisement concerning stock investment with financing on that same day.
○The trans-departments work group led by the Ministry of Public Security arrived at Shanghai on July 10. Threads of some trade companies suspected of being involved in manipulating the trading of securities futures, etc. have been found.
○The Shanghai and Shenzhen Stock Exchanges support securitization of the assets of margin trading and short selling. Multi securities companies with balance of margin trading and short selling ranking top are actively pushing forward the project.
○The Economic Observer reported that relevant departments might launch a loan support plan of 200 billion yuan to ensure the implementation of large-scale infrastructure investment.
[Industry Information]
○Beijing accelerates construction of Tongzhou district as subsidiary administrative center, local real estate enterprises might benefit
------
CCTV News reported on July 11 that Beijing actively implements the strategy of Beijing-Tianjin-Hebei coordinated development, orderly decentralizes the non-capital functions of Beijing and deeply optimizes urban structure. Beijing will focus on Tongzhou district and accelerates the construction of subsidiary administrative center. Moreover, Beijing approved the opinions on implementing the outline of Beijing-Tianjin-Hebei coordinated development plan on July 11. The outline specifies that Beijing must stick to its population control target of 23 million people by 2020 and the “subsidiary administrative center” would be "focused" on Tongzhou and its construction must have “remarkable progress” by 2017.
Comment: As an important national strategy, Beijing-Tianjin-Hebei coordinated development will see intensive implementation of policies. Adjustment of main function area, as an important part of that strategy, will also see actual push. Tongzhou district, a suburban district to the southeast, as the subsidiary administrative center of Beijing, will help to optimize Beijing’s city structure and bring development opportunities to industries including local real estate, etc. As for listed companies, Beijing Capital Development Co., Ltd. (600376.SH) takes a large share in Beijing’s real estate market. The company plans to raise 4 billion yuan through private placement and accelerate the development of two real estate projects in Tongzhou district; the 2014 annual report of Hua Yuan Property Co., Ltd. (600743.SH) shows that the company has two projects under construction in Liyuan County of Tongzhou district with a total construction area of 560,000 square meter.
○Issuance of guidelines for Internet finance coming soon, no more wild growth
------
Zhangtao, head of Legal Affairs Department of the People’s Bank of China (PBOC), disclosed on July 12 that the Guidelines on Promoting Healthy Development of Internet Finance led by PBOC has been approved by State Council and might be announced recently. The Guidelines will set an overall direction for the supervision of Internet finance, define red lines and specify supervision authorities of each division. On this basis, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission will launch detailed supervision rules about P2P, equity crowd-funding and Internet insurance, respectively. Aiming at the new challenges of payment industry, PBOC will also launch management methods on online payment.
Comment: The Guidelines to be issued soon is a framework normative document for the supervision of Internet finance which aims to guarantee consumers’ legal interest and maintain fair competition of the market. Along with the implementation of normative document and supporting policies, Internet finance industry might say goodbye to wild growth. www.yyfax.com under Yonyou Network Technology Co., Ltd. (600588.SH) and Banklake under Panda Financial Holding Corp., Ltd. (600599.SH), as normative Internet finance platforms with first-mover advantage, will benefit from the improvement of industrial concentration.
[Announcement Interpretation]
○Over 300 companies to resume trading, more companies to see shareholding increases
------
More than 300 listed companies will resume trading on July 13, most of which have bullish news.
Most of the companies will see shareholding increases. Cai Rongjun, the actual controller of Shenzhen O-film Tech Co., Ltd. (002456.SZ) and other key shareholders and management will contribute no less than 500 million yuan in increase the shareholding in the company. The company also proposes to acquire 100 percent equities of ShenZhen Temobi Science & Tech Co., Ltd. with no more than 550 million yuan. According to the performance commitment, the net profit of the latter from 2015 to 2017 will be no less than 50 million yuan, 60 million yuan and 72 million yuan. In addition, Zhao Meiguang, the controlling shareholder of Chifeng Jilong Gold Mining Co., Ltd. (600988.SH), plans to increase the shareholding in the company with no less than 50 million yuan. Certain directors, supervisors and senior management of Zhejiang Wansheng Co., Ltd. (603010.SH) intend to contribute no less than 40 million yuan in increase the shareholding in the company when the stock price of the company is less than 35 yuan per share in the following six months. The stock of the company closed at 23.95 yuan before trading suspension. Certain directors, supervisors and senior management and main member of the operation team of Inner Mongolia Jinyu Group Co., Ltd. (600201.SH) also committed that they will invest no less than 34.93 million yuan in increasing the shareholding in the company in the following 12 months. Fortune Ng Fung Food (Hebei) Co., Ltd. (600965.SH) announced that it substantial shareholder proposes to increase the shareholding with no less than 100 million yuan.
Meanwhile, Suzhou Thvow Technology Co., Ltd. (002564.SZ) plans to repurchase no less than 2.7 million shares at a price of no more than 11 yuan per share. The total amount for repurchasing will be no more than 30 million yuan. The stock price of the company closed at 8.14 yuan per share before trading suspension. Nanjing Gaoke Company Limited (600064.SH) and Xinjiang Yilite Industry Co., Ltd. (600197.SH) also introduce repurchase plans.
Sichuan Lutianhua Co., Ltd. (000912.SZ) announced that the equities of Lutianhua Group Co., Ltd., the substantial shareholder of the company, have been transferred from Sichuan Chemical Industry Holding (Group) Co., Ltd. to the State-owned Assets Supervision and Administration Commission (SASAC) of Luzhou for free. The latter has become the new actual controller of the company. Luzhou SASAC indicated that it proposed to further the state-owned enterprises reform and improve the resources allocation to facilitate the industrial transformation and upgrading as well as the sustainable development of Lutianhua Group and its affiliated enterprises.
○Zhongtian Development increases shareholding in Yangfan Holding
------
Zhenjiang Hengshun Investment Co., Ltd., the shareholder of Hubei Yangfan Holding Co., Ltd. (600421.SH), increased the shareholding in the company by 9.15 million shares from June 30 to July 9, accounting for 4.68 percent of the share capital of the company. Shanghai Tianji Investment Co., Ltd. increased the shareholding by 680,000 shares or 0.35 percent of the share capital of the company. Both companies are wholly-owned subsidiaries of Zhongtian Development Holding Group Co., Ltd., which totally holds 15.08 percent of the shares of the company, exceeding the 5 percent limit for the third time. Currently, the shareholding proportion of the Yang Fan family, the actual controller of the company, is about 20 percent and it is likely be surpassed by Zhongtian Development.
○Qianhai Life Insurance increases shareholding in China Vanke
------
China Vanke Co., Ltd. (02202.HK; 000002.SZ) announced that Qianhai Life Insurance Co., Ltd. has bought 553 million shares of the company by July 10, accounting for 5 percent of the total share capital of China Vanke. It focuses building positions in July with a range of transaction prices from 13.28 yuan to 15.47 yuan per share. China Vanke also announced on July 6 that the company planned to invest no more than 10 billion in repurchase with no more than 13.7 yuan per share. The latest close price of China Vanke is 14.97 yuan.
○Anke Biotech to acquire AGCU to develop gene biology
------
Anhui Anke Biotechnology (Group) Co., Ltd. (300009.SZ) intends to acquire 25 percent equities of AGCU ScienTech Inc. with no more than 113 million yuan. AGCU is a key project introduced and a high-tech enterprise under the first “530 plan” of Wuxi City. It currently conducts biologic gene sequencing, DNA testing and other businesses. The categories of its forensic scientific products are the most complete in the world.
[Financial Reports Express]
○Guidong Electric Power proposes high share conversion
------
ZR Group, the controlling shareholder of Guangxi Guidong Electric Power Co., Ltd. (600310.SH), proposes a 10-for-10 conversion of capital surplus into shares combined with 10 shares for every 10 shares according to its half-year profit distribution proposal. It expects its net profit to increase of 600 percent to 900 percent in the first half year on year. The board of directors of Beijing Jingyuntong Technology Co., Ltd. (601908.SH) proposes a 10-for-10 conversion of capital surplus into shares. It expects its net profit to increase of 150 percent to 250 percent year on year according to its interim report.
○Tsinghua Tongfang expects performance to surge
------
Tsinghua Tongfang Co., Ltd. (600100.SH) expects its net profit in the first half to surge 1,662 percent to 1,710 percent year on year. Sinodata Co., Ltd. (002657.SZ) expects its net profit in the first half to increase 170 percent to 200 percent year on year. Guotai Junan Securities Co., Ltd. (601211.SH) expects its net profit in the first half to jump 342 percent to 356 percent year on year. Southwest Securities Co., Ltd. (600369.SH) expects its net profit in the first half to hike 350 percent to 400 percent year on year. Yantai Moon Co., Ltd. (000811.SZ) expects its net profit in the first half to increase 190 percent to 230 percent year on year.
[Weekly Review]
○Time for value investment
------
It is fair to say that the stock market was dominated by the plummeting by the daily limit of 10 percent in the first half of last week and the soaring by the daily limit in the second half. Someone called it a bullish candle stick changes belief. But the investment is to prepare various solutions to various potential possibilities and change solutions when the conditions change, isn’t it?
Admittedly, it is important to understand the situation clearly first to successfully changes the measures while it needs calm and objective analysis to understand the situation clearly. During last week, XFA focused on the market and made various rational voices in the market panic, which assisted investors in making after-market decisions. On July 6, XFA indicated that the signs of liquidity recovery appeared. We pointed out that the pressure on margin trading reduced and more and more companies entered the buy range of value investors on July 8. On July 9, we formally proposed that the crisis on liquidity has been eliminated. The market saw recovered liquidity and confidence with the pace and saw full rebound in the last trading days.
The deep adjustment of the market started from deleveraging. The leverage is just an instrument and it has no effect on the economic conditions and the fundamentals of enterprises without liquidity crisis. After the liquidity crisis is eliminated, the market will return to the original operation logic—namely cutting interest rates, increasing direct financing, advancing SOEs reform and economic transformation.
Investors should be clear that the “quick bull” in the first half is unlikely to appear again in short time as a result of the deleveraging. The evolution from recovery to reversion also takes a long time with the process of eliminating the false and retaining the true. It is the worst of times and it is the best of times. The devastated K line made investors scared, but it also brings opportunities to value investors to buy good companies at appropriate prices. With the wave of shareholding increasing approaches and many companies increasing the shareholding in listed companies, we can only say that it is the time for value investors.
>Multi results reached at SCO summit, China pushes interconnection construction of railway, etc.
>Beijing accelerates construction of Tongzhou district as subsidiary administrative center, Issuance of guidelines for Internet finance coming soon
>Over 300 companies to resume trading, more companies to see shareholding increases
>Yangfan Holding and China Vanke bought by 5 pct limit, Guidong Electric Power and Tsinghua Tongfang expects interim performance to surge
[XFA Focus]
○Multi results reached at SCO summit, China pushes interconnection construction of railway, etc.
------
The summit held in the southwestern Russian city of Ufa on July 10 approved the Shanghai Cooperation Organization (SCO) Development Strategy until 2025 and ratified the resolution on starting the procedures of granting India and Pakistan full membership of the organization. Leaders attending the summit all appreciated the Silk Road economy and hoped to be involved in the strategy. In Chinese President Xi Jinping’s speech delivered on the meeting, he promoted exploring potential cooperation and taking bigger steps in the convenience and liberalization of trade and investment; that China is willing to push the construction of 4,000 kilometers railway and over 10,000 kilometers road in next few years to form a structure of regional interconnection.
Comment: For SCO, regional economic cooperation has become a push factor as important as political security. China has advantage in the cost and technology of railway construction, while other member countries of SCO have abundant resources and see slow infrastructure development since the collapse of the Soviet Union. More cooperation in railways might be developed following the 770-kilometer Moscow-Kazan high-speed rail. As for A-share companies, the overseas orders of China Railway Construction Corporation Limited (601186.SH; 01186.HK) and China Railway Group Limited (601390.SH; 00390.HK) see rapid growth; sub-new stock Beijing Ctrowell Technology Corporation Limited (300455.SZ) is principally engaged in the security detection equipment for the operation of railway vehicles.
[XFA Selection]
○Chinese Premier Li Keqiang hosted a conference on the economic situation on July 9 and addressed that “We are confident that the government can ward off any regional or systemic risks in the economy and ensure we have an open, transparent, stable and healthy capital market”.
○China Securities Regulatory Commission (CSRC) indicated on July 10 that there will be no new stocks issued recently and all listed companies are required to formulate specific schemes to maintain stability of their stock prices.
○China Securities Regulatory Commission (CSRC) issued circular on July 12 requiring strict control over the real-name system of securities account; the Office of the Central Leading Group for Cyberspace Affairs required full clearance of advertisement concerning stock investment with financing on that same day.
○The trans-departments work group led by the Ministry of Public Security arrived at Shanghai on July 10. Threads of some trade companies suspected of being involved in manipulating the trading of securities futures, etc. have been found.
○The Shanghai and Shenzhen Stock Exchanges support securitization of the assets of margin trading and short selling. Multi securities companies with balance of margin trading and short selling ranking top are actively pushing forward the project.
○The Economic Observer reported that relevant departments might launch a loan support plan of 200 billion yuan to ensure the implementation of large-scale infrastructure investment.
[Industry Information]
○Beijing accelerates construction of Tongzhou district as subsidiary administrative center, local real estate enterprises might benefit
------
CCTV News reported on July 11 that Beijing actively implements the strategy of Beijing-Tianjin-Hebei coordinated development, orderly decentralizes the non-capital functions of Beijing and deeply optimizes urban structure. Beijing will focus on Tongzhou district and accelerates the construction of subsidiary administrative center. Moreover, Beijing approved the opinions on implementing the outline of Beijing-Tianjin-Hebei coordinated development plan on July 11. The outline specifies that Beijing must stick to its population control target of 23 million people by 2020 and the “subsidiary administrative center” would be "focused" on Tongzhou and its construction must have “remarkable progress” by 2017.
Comment: As an important national strategy, Beijing-Tianjin-Hebei coordinated development will see intensive implementation of policies. Adjustment of main function area, as an important part of that strategy, will also see actual push. Tongzhou district, a suburban district to the southeast, as the subsidiary administrative center of Beijing, will help to optimize Beijing’s city structure and bring development opportunities to industries including local real estate, etc. As for listed companies, Beijing Capital Development Co., Ltd. (600376.SH) takes a large share in Beijing’s real estate market. The company plans to raise 4 billion yuan through private placement and accelerate the development of two real estate projects in Tongzhou district; the 2014 annual report of Hua Yuan Property Co., Ltd. (600743.SH) shows that the company has two projects under construction in Liyuan County of Tongzhou district with a total construction area of 560,000 square meter.
○Issuance of guidelines for Internet finance coming soon, no more wild growth
------
Zhangtao, head of Legal Affairs Department of the People’s Bank of China (PBOC), disclosed on July 12 that the Guidelines on Promoting Healthy Development of Internet Finance led by PBOC has been approved by State Council and might be announced recently. The Guidelines will set an overall direction for the supervision of Internet finance, define red lines and specify supervision authorities of each division. On this basis, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission will launch detailed supervision rules about P2P, equity crowd-funding and Internet insurance, respectively. Aiming at the new challenges of payment industry, PBOC will also launch management methods on online payment.
Comment: The Guidelines to be issued soon is a framework normative document for the supervision of Internet finance which aims to guarantee consumers’ legal interest and maintain fair competition of the market. Along with the implementation of normative document and supporting policies, Internet finance industry might say goodbye to wild growth. www.yyfax.com under Yonyou Network Technology Co., Ltd. (600588.SH) and Banklake under Panda Financial Holding Corp., Ltd. (600599.SH), as normative Internet finance platforms with first-mover advantage, will benefit from the improvement of industrial concentration.
[Announcement Interpretation]
○Over 300 companies to resume trading, more companies to see shareholding increases
------
More than 300 listed companies will resume trading on July 13, most of which have bullish news.
Most of the companies will see shareholding increases. Cai Rongjun, the actual controller of Shenzhen O-film Tech Co., Ltd. (002456.SZ) and other key shareholders and management will contribute no less than 500 million yuan in increase the shareholding in the company. The company also proposes to acquire 100 percent equities of ShenZhen Temobi Science & Tech Co., Ltd. with no more than 550 million yuan. According to the performance commitment, the net profit of the latter from 2015 to 2017 will be no less than 50 million yuan, 60 million yuan and 72 million yuan. In addition, Zhao Meiguang, the controlling shareholder of Chifeng Jilong Gold Mining Co., Ltd. (600988.SH), plans to increase the shareholding in the company with no less than 50 million yuan. Certain directors, supervisors and senior management of Zhejiang Wansheng Co., Ltd. (603010.SH) intend to contribute no less than 40 million yuan in increase the shareholding in the company when the stock price of the company is less than 35 yuan per share in the following six months. The stock of the company closed at 23.95 yuan before trading suspension. Certain directors, supervisors and senior management and main member of the operation team of Inner Mongolia Jinyu Group Co., Ltd. (600201.SH) also committed that they will invest no less than 34.93 million yuan in increasing the shareholding in the company in the following 12 months. Fortune Ng Fung Food (Hebei) Co., Ltd. (600965.SH) announced that it substantial shareholder proposes to increase the shareholding with no less than 100 million yuan.
Meanwhile, Suzhou Thvow Technology Co., Ltd. (002564.SZ) plans to repurchase no less than 2.7 million shares at a price of no more than 11 yuan per share. The total amount for repurchasing will be no more than 30 million yuan. The stock price of the company closed at 8.14 yuan per share before trading suspension. Nanjing Gaoke Company Limited (600064.SH) and Xinjiang Yilite Industry Co., Ltd. (600197.SH) also introduce repurchase plans.
Sichuan Lutianhua Co., Ltd. (000912.SZ) announced that the equities of Lutianhua Group Co., Ltd., the substantial shareholder of the company, have been transferred from Sichuan Chemical Industry Holding (Group) Co., Ltd. to the State-owned Assets Supervision and Administration Commission (SASAC) of Luzhou for free. The latter has become the new actual controller of the company. Luzhou SASAC indicated that it proposed to further the state-owned enterprises reform and improve the resources allocation to facilitate the industrial transformation and upgrading as well as the sustainable development of Lutianhua Group and its affiliated enterprises.
○Zhongtian Development increases shareholding in Yangfan Holding
------
Zhenjiang Hengshun Investment Co., Ltd., the shareholder of Hubei Yangfan Holding Co., Ltd. (600421.SH), increased the shareholding in the company by 9.15 million shares from June 30 to July 9, accounting for 4.68 percent of the share capital of the company. Shanghai Tianji Investment Co., Ltd. increased the shareholding by 680,000 shares or 0.35 percent of the share capital of the company. Both companies are wholly-owned subsidiaries of Zhongtian Development Holding Group Co., Ltd., which totally holds 15.08 percent of the shares of the company, exceeding the 5 percent limit for the third time. Currently, the shareholding proportion of the Yang Fan family, the actual controller of the company, is about 20 percent and it is likely be surpassed by Zhongtian Development.
○Qianhai Life Insurance increases shareholding in China Vanke
------
China Vanke Co., Ltd. (02202.HK; 000002.SZ) announced that Qianhai Life Insurance Co., Ltd. has bought 553 million shares of the company by July 10, accounting for 5 percent of the total share capital of China Vanke. It focuses building positions in July with a range of transaction prices from 13.28 yuan to 15.47 yuan per share. China Vanke also announced on July 6 that the company planned to invest no more than 10 billion in repurchase with no more than 13.7 yuan per share. The latest close price of China Vanke is 14.97 yuan.
○Anke Biotech to acquire AGCU to develop gene biology
------
Anhui Anke Biotechnology (Group) Co., Ltd. (300009.SZ) intends to acquire 25 percent equities of AGCU ScienTech Inc. with no more than 113 million yuan. AGCU is a key project introduced and a high-tech enterprise under the first “530 plan” of Wuxi City. It currently conducts biologic gene sequencing, DNA testing and other businesses. The categories of its forensic scientific products are the most complete in the world.
[Financial Reports Express]
○Guidong Electric Power proposes high share conversion
------
ZR Group, the controlling shareholder of Guangxi Guidong Electric Power Co., Ltd. (600310.SH), proposes a 10-for-10 conversion of capital surplus into shares combined with 10 shares for every 10 shares according to its half-year profit distribution proposal. It expects its net profit to increase of 600 percent to 900 percent in the first half year on year. The board of directors of Beijing Jingyuntong Technology Co., Ltd. (601908.SH) proposes a 10-for-10 conversion of capital surplus into shares. It expects its net profit to increase of 150 percent to 250 percent year on year according to its interim report.
○Tsinghua Tongfang expects performance to surge
------
Tsinghua Tongfang Co., Ltd. (600100.SH) expects its net profit in the first half to surge 1,662 percent to 1,710 percent year on year. Sinodata Co., Ltd. (002657.SZ) expects its net profit in the first half to increase 170 percent to 200 percent year on year. Guotai Junan Securities Co., Ltd. (601211.SH) expects its net profit in the first half to jump 342 percent to 356 percent year on year. Southwest Securities Co., Ltd. (600369.SH) expects its net profit in the first half to hike 350 percent to 400 percent year on year. Yantai Moon Co., Ltd. (000811.SZ) expects its net profit in the first half to increase 190 percent to 230 percent year on year.
[Weekly Review]
○Time for value investment
------
It is fair to say that the stock market was dominated by the plummeting by the daily limit of 10 percent in the first half of last week and the soaring by the daily limit in the second half. Someone called it a bullish candle stick changes belief. But the investment is to prepare various solutions to various potential possibilities and change solutions when the conditions change, isn’t it?
Admittedly, it is important to understand the situation clearly first to successfully changes the measures while it needs calm and objective analysis to understand the situation clearly. During last week, XFA focused on the market and made various rational voices in the market panic, which assisted investors in making after-market decisions. On July 6, XFA indicated that the signs of liquidity recovery appeared. We pointed out that the pressure on margin trading reduced and more and more companies entered the buy range of value investors on July 8. On July 9, we formally proposed that the crisis on liquidity has been eliminated. The market saw recovered liquidity and confidence with the pace and saw full rebound in the last trading days.
The deep adjustment of the market started from deleveraging. The leverage is just an instrument and it has no effect on the economic conditions and the fundamentals of enterprises without liquidity crisis. After the liquidity crisis is eliminated, the market will return to the original operation logic—namely cutting interest rates, increasing direct financing, advancing SOEs reform and economic transformation.
Investors should be clear that the “quick bull” in the first half is unlikely to appear again in short time as a result of the deleveraging. The evolution from recovery to reversion also takes a long time with the process of eliminating the false and retaining the true. It is the worst of times and it is the best of times. The devastated K line made investors scared, but it also brings opportunities to value investors to buy good companies at appropriate prices. With the wave of shareholding increasing approaches and many companies increasing the shareholding in listed companies, we can only say that it is the time for value investors.
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