[Today’s Guide]
> Winter Olympics host city to unveil, sports industry to see rapid development
> Shanghai Disneyland holds online release activity, China Aerospace Science & Industry to introduce UAV plus
> Cau Technology and Xianglong Power Industry bought by CSC Huitong through secondary market acquisition to 5 pct limit
> Geo-jade Petroleum to repurchase 50 mln shares, Red Sun, etc. to resume trading with good news
[XFA Focus]
○Winter Olympics host city to unveil, sports industry to see rapid development
------
The International Olympic Committee (IOC) will select the host city of the 2022 Winter Olympics on July 31. The CEO of the second biggest ski resort completed the inspection on the ski resorts in China on July 14 and expressed confidence in Beijing to host the Winter Olympics. Winter sports enjoy a huge market in China. Xinhua News Agency published an article focusing on the winter sports manufacturing industry in China, mentioning that the enthusiasm on winter sports has been increasing in recent years as Beijing bids for the Winter Olympics. The tourists at the Chongli Wanlong Ski Resort increased nearly 80 percent last winter. Listed companies are also developing the industry. Beijing Hualu Baina Film & TV Inc. (300291.SZ) recently announced that it would contribute 1 billion yuan with Hebei Province in developing the winter sports industry. They will conduct marketing activities focusing on the Winter Olympics. China United Travel Co., Ltd. (600358.SH) and Guirenniao Co., Ltd. (603555.SH) also invested in the sports industry this year.
Comment: Driven by supporting policies, upgrading consumption and the bid for the Winter Olympics, the sports industry in China is experiencing rapid development. Companies engaged in sportswear and sports equipment and media as well as infrastructure and environmental listed companies in Beijing and Zhangjiakou City will continue to benefit.
[XFA Selection]
○ The executive meeting of the State Council convened on July 15 planned policies and measures to boost the stable growth in import and export, proposing to actively facilitate the development of cross-border e-business.
○ The GDP in the second quarter, the industrial added value in June and other economic data beat the market expectation. Positive fiscal policies are likely to boost the increase in infrastructure investment in the third quarter.
○ Institutes surveyed indicated that the margin financing business is conducting normally. Regulatory authorities are expected to divide new and old businesses and the current business will gradually exit.
○ Last week saw a net margin inflow of 175.7 billion yuan. A total net inflow of 457.2 billion yuan was recorded in recent two weeks.
○ Thai Commerce Minister indicated that the Sino-Thai Railway project will commence construction in the year end and Thailand will actively participate in other projects along the One Belt and One Road.
[Industry Information]
○Shanghai Disneyland holds online release activity, local companies to see increasing tourist consumption
------
Shanghai Disneyland held an online release activity on July 15. Disney chairman and CEO Robert Iger appeared at the display activity held at the Shanghai Expo Center on the same day. It is the first time he returned to Shanghai after the Shanghai Disneyland commenced construction. Shanghai Disneyland is scheduled to open in the Spring Festival in 2016.
Comment: Institutes estimate that based on a ticket of 400 yuan for each person and an average tourist of 25 million every year multiplies an economic leverage of 10 times, the opening of Shanghai Disneyland will bring an additional consumption of 100 billion yuan every year. Among listed companies, Shanghai Yuyuan Tourist Mart Co., Ltd. (600655.SH) is a leader in the sale of gold and jewelry in Shanghai and will benefit from the increasing tourists brought by the opening of Shanghai Disneyland. Shanghai Jielong Industry Group Corporation Limited (600836.SH) owns an industrial land reserve of 300 mu around the Shanghai Disneyland. The company raised 513 million yuan by issuing shares at 28.78 yuan per share through private placement. The latest market price of the company is 19.99 yuan per share.
○China Aerospace Science & Industry to introduce UAV plus, military-civil integration to boost industry growth
------
Xinhua News Agency reported that the China Aerospace Science & Industry Corp. proposes to implement the “UAV plus” strategy to introduce various low-cost UAV products serving the national security and economic development based on the advantages in military technology and civil demands. An insider responsible for the implementation of the strategy said that the group has consolidated the current resources and applied such advanced aviation technologies as formation flying, network communication and three-dimensional prevention and controlling into the research and development of technologies for the UAV system in industrial areas. It has obtained 13 technical patents on the UAVs.
Comment: Unlike general civil UAVs, military UAVs can perform more tasks thanks to the advantages of military technologies. With the promotion of the military-civil integration, the UAVs will be applied in more areas in the future and bring more growth opportunities to listed companies with UAVs businesses. Jiangsu Jiecheng Vehicle Electronic Information Project Co., Ltd., a subsidiary of Aerospace Communications Holdings Group Co., Ltd. (600677.SH), conducts businesses related to the UAVs. Jiangsu Xiangyi Aerospace Technology Co., Ltd., a subsidiary of Changshu Fengfan Power Equipment Co., Ltd. (601700.SH), is engaged in the research and development of UAVs.
[Announcement Interpretation]
○Guohua Life increases shareholding in Shanghai Tianchen
------
Guohua Life, a company under Liu Yiqian, increased the shareholding in Shanghai Tianchen Co., Ltd. (600620.SH) by purchasing 22.89 million shares (accounting for 5 percent of the share capital) at an average price of 12.07 yuan with 276 million yuan on July 15. Guohua Life may continue to increase the shareholding in the company in the following six months. Shanghai Tianchen surged by the daily limit of 10 percent in opening hours for two consecutive days after resumed trading on July 13 and even surged by the daily limit on July 15. Guohua Life bought the share through secondary market acquisition to the 5 percent limit when it increased by about 8 percent and closed at a hike of the daily limit.
○Cau Technology and Xianglong Power Industry bought by CSC Huitong through secondary market acquisition to 5 pct limit
------
CSC Huitong (Shenzhen) Equity Investment Fund Company Limited, a company under China Science & Merchants Investment Management Group (CSC Group), increase shareholding in Shenzhen Cau Technology Co., Ltd. (000004.SZ) by 412,300 shares at an average price of 31 yuan per share, accounting for 0.49 percent of the company’s total share capital. Upon completion of shareholding increase, CSC Huitong totally holds 5.01 percent of the company’s shares. At the meantime, CSC Huitong bought 18.79 million shares of Wuhan Xianglong Power Industry Co., Ltd. (600769.SH) at 8.25 yuan per share on July 15 and its shareholding in the company reaches 5.01 percent, reaching the five percent limit of share acquisition through secondary market acquisition.
Comment: 10 stocks, including San Bian Science & Technology Co., Ltd. (002112.SZ), Netac Technology Co., Ltd. (300042.SZ), Changzhou Tiansheng New Materials Co., Ltd. (300169.SZ), Maanshan Dingtai Rare Earth & New Materials Co., Ltd. (002352.SZ), Dalian Sunasia Tourism Holding Co., Ltd. (600593.SH), Shenzhen Cau Technology Co., Ltd. (000004.SZ), Shenzhen Hirisun Technology Incorporated (300277.SZ), BGRIMM Magnetic Materials & Technology Co., Ltd. (600980.SH), Baocheng Investment Co., Ltd. (600892.SH) and Wuhan Xianglong Power Industry Co., Ltd. (600769.SH), are bought by CSC Group through secondary market acquisition to the five percent limit by now. CSC Group’s shareholding in Netac Technology reaches 13.29 percent and its shareholding in Maanshan Dingtai Rare Earth & New Materials is 9.80 percent, while its shareholdings in the rest companies are controlled within 5.01 percent. Cau Technology was bought by Liu Yiqian through secondary market acquisition to the five percent limit on July 8.
○Geo-jade Petroleum to repurchase 50 mln shares
------
Geo-jade Petroleum Corporation (600759.SH) plans to repurchase no more than 50 million shares, accounting for 2.21 percent of its total share capital, at no higher than 18 yuan per share. Calculated on the highest price, the total fund used to repurchase shares will not exceed 900 million yuan. The repurchase will be done within two months after it is approved by the company’s general meeting. The repurchased shares will be transferred to staff shareholding plan or canceled. The latest stock price of Geo-jade Petroleum closed at 10.12 yuan per share.
○Red Sun, etc. to resume trading with good news
------
Shanghai Red Sun Investment & Financial Leasing Company, a wholly-owned subsidiary under Nanjing Red Sun Co., Ltd. (000525.SZ), plans to invest 225 million yuan in Guoxi Financial Leasing Company in Shanghai Free Trade Zone, indicating a shareholding proportion of 75 percent. Previously, controlling shareholder of the company plans to subscribe its entire private placement with 1 billion yuan. The company’s stock price is 13.95 yuan per share now, lower than 14.12 yuan per share (offering price of its private placement); Limin Chemical Co., Ltd. (002734.SZ) announces to launch a staff shareholding plan of no more than 15 million yuan at a leverage ratio of 2:1; Jiangsu Xiuqiang Glasswork Co., Ltd. (300160.SZ) launches a staff shareholding plan of no more than 26.10 million yuan.
The asset acquisition applications through stock issuance and paying cash of Jiangxi Special Electric Motor Co., Ltd. (002176.SZ) and Pubang Landscape Architecture Co., Ltd. (002663.SZ) are approved unconditionally by China Securities Regulatory Commission (CSRC); the asset acquisition through stock issuance and significant asset reorganization application of Shenyang Chemical Industry Co., Ltd. (000698.SZ) is approved unconditionally by CSRC; Integrated Electronic Systems Lab Co., Ltd. (002339.SZ) plans to join hands with Guangxi Guidong Electric Power Co., Ltd. (600310.SH) to push in-depth integration of traditional power industry and emerging energy Internet industry; Fuzhou Fuxing Pharmaceutical Co., Ltd., a subsidiary under Livzon Pharmaceutical Group Inc. (000513.SZ; 01513.HK), applies to be listed on the Small and Medium-Sized Enterprises (SME) Board.
○Dayang Trands bought by Chance Capital Management through secondary market acquisition to 5 pct limit
------
Eight asset management plan products under Beijing Chance Capital Management Co., Ltd. totally increase shareholding in Dalian Dayang Trands Co., Ltd. (600233.SH) by 10,598,000 shares (accounting for 6.42 percent of the company’s total share capital) from July 1-9 at an average price of 11.21 yuan per share, totaling 119 million yuan. Chance Capital Management indicates that it is open to continue the shareholding increase in next 12 months. The latest stock price of Dayang Trands records 13.99 yuan and the company’s market value is around 2.3 billion yuan.
○Topband signs cooperation agreement with MXCHIP
------
Shenzhen Topband Co., Ltd. (002139.SZ) cooperates with Shanghai MXCHIP Company Limited in the development, application and promotion of intelligent hardware and Internet of Things solutions system. MXCHIP, whose main shareholders include Alibaba Group, is an Internet enterprise focusing on embedded wireless modules and products. Now its products have seen massive application in areas including white household appliances, remote medical service, intelligent power grid, intelligent traffic, etc. The cooperation will promote the companies’ development in Internet of Things industry.
[Financial Reports Express]
○Eastern Airlines see explosive performance growth
------
China Eastern Airlines Corporation Limited (600115.SH; 00670.HK) expects its net profit in the first half year to see a year-on-year growth of 24900~26329 percent.
○Shindoo Chemi-industry proposes high share conversion
-----
Shindoo Chemi-industry Co., Ltd. (002539.SZ) proposes a 15-for-10 conversion of capital surplus into shares in its semiyearly profit distribution plan.
[Data Speaks]
○Semiyearly performance of listed companies on SME Board and Chinext Board shaped, leading enterprises contribute to growth
------
By July 15, disclosure of semiyearly performance forecast of listed companies on the SME Board and the Chinext Board have been completed. Based on the lower level of forecasted performance range, the overall profit of companies with comparable data on the two boards sees a year-on-year growth of 9 percent and 13.7 percent, respectively. But performance differentiation within sectors grows even worse. On the one hand, traditional profit giants like Bank of Ningbo Co., Ltd. (002142.SZ) and Huayi Brothers Media Corporation (300027.SZ) are still main contributors of sector performance, while on the other hand, 95 companies and 41 companies on the SME Board and the Chinext Board, respectively, see loss in the first half year (including those suffering loss for the first time and those seeing consecutive loss), accounting for 12.4 percent and 8.5 percent of all companies on the two boards, respectively. The figures are higher than the 10.5 percent and 6.3 percent in the same period of last year.
○Institutions buy stocks in Internet finance area against trend
------
The trading volume ranking list on July 15 shows that institutions bought stocks in Internet finance area against trend. Sinodata Co., Ltd. (002657.SZ) was bought by four institutions with a total of 400 million yuan, accounting for 19 percent of its intraday turnover. No institutions sold it; Shenzhen Infogem Technologies Co., Ltd. (300085.SZ) was bought by four institutions with a total of 330 million yuan, accounting for 23 percent of its intraday turnover. Two institutions totally sold out 136 million yuan.
Comment: Semiyearly reports of both companies forecast large performance growth. Institutions believe that their performance verifies their high growth. Internet finance will see huge potential in the future and may enjoy certain premium valuation.
[Trading Alarms]
○Several structured funds see risk of discount, B proportion might suffer huge loss
------
The A share market saw wide range of drop on July 15. Some structured funds are faced with the nightmare of discount. According to statistics, 25 discount events occurred since June 26 and some B proportion suffered loss of over 50 percent after discount. Calculated on current net value, if the parent funds continue to drop by around 6 percent, “One Belt and One Road” B proportion (150266), Tongrui B (150065) proportion, etc. will trigger discount.
> Winter Olympics host city to unveil, sports industry to see rapid development
> Shanghai Disneyland holds online release activity, China Aerospace Science & Industry to introduce UAV plus
> Cau Technology and Xianglong Power Industry bought by CSC Huitong through secondary market acquisition to 5 pct limit
> Geo-jade Petroleum to repurchase 50 mln shares, Red Sun, etc. to resume trading with good news
[XFA Focus]
○Winter Olympics host city to unveil, sports industry to see rapid development
------
The International Olympic Committee (IOC) will select the host city of the 2022 Winter Olympics on July 31. The CEO of the second biggest ski resort completed the inspection on the ski resorts in China on July 14 and expressed confidence in Beijing to host the Winter Olympics. Winter sports enjoy a huge market in China. Xinhua News Agency published an article focusing on the winter sports manufacturing industry in China, mentioning that the enthusiasm on winter sports has been increasing in recent years as Beijing bids for the Winter Olympics. The tourists at the Chongli Wanlong Ski Resort increased nearly 80 percent last winter. Listed companies are also developing the industry. Beijing Hualu Baina Film & TV Inc. (300291.SZ) recently announced that it would contribute 1 billion yuan with Hebei Province in developing the winter sports industry. They will conduct marketing activities focusing on the Winter Olympics. China United Travel Co., Ltd. (600358.SH) and Guirenniao Co., Ltd. (603555.SH) also invested in the sports industry this year.
Comment: Driven by supporting policies, upgrading consumption and the bid for the Winter Olympics, the sports industry in China is experiencing rapid development. Companies engaged in sportswear and sports equipment and media as well as infrastructure and environmental listed companies in Beijing and Zhangjiakou City will continue to benefit.
[XFA Selection]
○ The executive meeting of the State Council convened on July 15 planned policies and measures to boost the stable growth in import and export, proposing to actively facilitate the development of cross-border e-business.
○ The GDP in the second quarter, the industrial added value in June and other economic data beat the market expectation. Positive fiscal policies are likely to boost the increase in infrastructure investment in the third quarter.
○ Institutes surveyed indicated that the margin financing business is conducting normally. Regulatory authorities are expected to divide new and old businesses and the current business will gradually exit.
○ Last week saw a net margin inflow of 175.7 billion yuan. A total net inflow of 457.2 billion yuan was recorded in recent two weeks.
○ Thai Commerce Minister indicated that the Sino-Thai Railway project will commence construction in the year end and Thailand will actively participate in other projects along the One Belt and One Road.
[Industry Information]
○Shanghai Disneyland holds online release activity, local companies to see increasing tourist consumption
------
Shanghai Disneyland held an online release activity on July 15. Disney chairman and CEO Robert Iger appeared at the display activity held at the Shanghai Expo Center on the same day. It is the first time he returned to Shanghai after the Shanghai Disneyland commenced construction. Shanghai Disneyland is scheduled to open in the Spring Festival in 2016.
Comment: Institutes estimate that based on a ticket of 400 yuan for each person and an average tourist of 25 million every year multiplies an economic leverage of 10 times, the opening of Shanghai Disneyland will bring an additional consumption of 100 billion yuan every year. Among listed companies, Shanghai Yuyuan Tourist Mart Co., Ltd. (600655.SH) is a leader in the sale of gold and jewelry in Shanghai and will benefit from the increasing tourists brought by the opening of Shanghai Disneyland. Shanghai Jielong Industry Group Corporation Limited (600836.SH) owns an industrial land reserve of 300 mu around the Shanghai Disneyland. The company raised 513 million yuan by issuing shares at 28.78 yuan per share through private placement. The latest market price of the company is 19.99 yuan per share.
○China Aerospace Science & Industry to introduce UAV plus, military-civil integration to boost industry growth
------
Xinhua News Agency reported that the China Aerospace Science & Industry Corp. proposes to implement the “UAV plus” strategy to introduce various low-cost UAV products serving the national security and economic development based on the advantages in military technology and civil demands. An insider responsible for the implementation of the strategy said that the group has consolidated the current resources and applied such advanced aviation technologies as formation flying, network communication and three-dimensional prevention and controlling into the research and development of technologies for the UAV system in industrial areas. It has obtained 13 technical patents on the UAVs.
Comment: Unlike general civil UAVs, military UAVs can perform more tasks thanks to the advantages of military technologies. With the promotion of the military-civil integration, the UAVs will be applied in more areas in the future and bring more growth opportunities to listed companies with UAVs businesses. Jiangsu Jiecheng Vehicle Electronic Information Project Co., Ltd., a subsidiary of Aerospace Communications Holdings Group Co., Ltd. (600677.SH), conducts businesses related to the UAVs. Jiangsu Xiangyi Aerospace Technology Co., Ltd., a subsidiary of Changshu Fengfan Power Equipment Co., Ltd. (601700.SH), is engaged in the research and development of UAVs.
[Announcement Interpretation]
○Guohua Life increases shareholding in Shanghai Tianchen
------
Guohua Life, a company under Liu Yiqian, increased the shareholding in Shanghai Tianchen Co., Ltd. (600620.SH) by purchasing 22.89 million shares (accounting for 5 percent of the share capital) at an average price of 12.07 yuan with 276 million yuan on July 15. Guohua Life may continue to increase the shareholding in the company in the following six months. Shanghai Tianchen surged by the daily limit of 10 percent in opening hours for two consecutive days after resumed trading on July 13 and even surged by the daily limit on July 15. Guohua Life bought the share through secondary market acquisition to the 5 percent limit when it increased by about 8 percent and closed at a hike of the daily limit.
○Cau Technology and Xianglong Power Industry bought by CSC Huitong through secondary market acquisition to 5 pct limit
------
CSC Huitong (Shenzhen) Equity Investment Fund Company Limited, a company under China Science & Merchants Investment Management Group (CSC Group), increase shareholding in Shenzhen Cau Technology Co., Ltd. (000004.SZ) by 412,300 shares at an average price of 31 yuan per share, accounting for 0.49 percent of the company’s total share capital. Upon completion of shareholding increase, CSC Huitong totally holds 5.01 percent of the company’s shares. At the meantime, CSC Huitong bought 18.79 million shares of Wuhan Xianglong Power Industry Co., Ltd. (600769.SH) at 8.25 yuan per share on July 15 and its shareholding in the company reaches 5.01 percent, reaching the five percent limit of share acquisition through secondary market acquisition.
Comment: 10 stocks, including San Bian Science & Technology Co., Ltd. (002112.SZ), Netac Technology Co., Ltd. (300042.SZ), Changzhou Tiansheng New Materials Co., Ltd. (300169.SZ), Maanshan Dingtai Rare Earth & New Materials Co., Ltd. (002352.SZ), Dalian Sunasia Tourism Holding Co., Ltd. (600593.SH), Shenzhen Cau Technology Co., Ltd. (000004.SZ), Shenzhen Hirisun Technology Incorporated (300277.SZ), BGRIMM Magnetic Materials & Technology Co., Ltd. (600980.SH), Baocheng Investment Co., Ltd. (600892.SH) and Wuhan Xianglong Power Industry Co., Ltd. (600769.SH), are bought by CSC Group through secondary market acquisition to the five percent limit by now. CSC Group’s shareholding in Netac Technology reaches 13.29 percent and its shareholding in Maanshan Dingtai Rare Earth & New Materials is 9.80 percent, while its shareholdings in the rest companies are controlled within 5.01 percent. Cau Technology was bought by Liu Yiqian through secondary market acquisition to the five percent limit on July 8.
○Geo-jade Petroleum to repurchase 50 mln shares
------
Geo-jade Petroleum Corporation (600759.SH) plans to repurchase no more than 50 million shares, accounting for 2.21 percent of its total share capital, at no higher than 18 yuan per share. Calculated on the highest price, the total fund used to repurchase shares will not exceed 900 million yuan. The repurchase will be done within two months after it is approved by the company’s general meeting. The repurchased shares will be transferred to staff shareholding plan or canceled. The latest stock price of Geo-jade Petroleum closed at 10.12 yuan per share.
○Red Sun, etc. to resume trading with good news
------
Shanghai Red Sun Investment & Financial Leasing Company, a wholly-owned subsidiary under Nanjing Red Sun Co., Ltd. (000525.SZ), plans to invest 225 million yuan in Guoxi Financial Leasing Company in Shanghai Free Trade Zone, indicating a shareholding proportion of 75 percent. Previously, controlling shareholder of the company plans to subscribe its entire private placement with 1 billion yuan. The company’s stock price is 13.95 yuan per share now, lower than 14.12 yuan per share (offering price of its private placement); Limin Chemical Co., Ltd. (002734.SZ) announces to launch a staff shareholding plan of no more than 15 million yuan at a leverage ratio of 2:1; Jiangsu Xiuqiang Glasswork Co., Ltd. (300160.SZ) launches a staff shareholding plan of no more than 26.10 million yuan.
The asset acquisition applications through stock issuance and paying cash of Jiangxi Special Electric Motor Co., Ltd. (002176.SZ) and Pubang Landscape Architecture Co., Ltd. (002663.SZ) are approved unconditionally by China Securities Regulatory Commission (CSRC); the asset acquisition through stock issuance and significant asset reorganization application of Shenyang Chemical Industry Co., Ltd. (000698.SZ) is approved unconditionally by CSRC; Integrated Electronic Systems Lab Co., Ltd. (002339.SZ) plans to join hands with Guangxi Guidong Electric Power Co., Ltd. (600310.SH) to push in-depth integration of traditional power industry and emerging energy Internet industry; Fuzhou Fuxing Pharmaceutical Co., Ltd., a subsidiary under Livzon Pharmaceutical Group Inc. (000513.SZ; 01513.HK), applies to be listed on the Small and Medium-Sized Enterprises (SME) Board.
○Dayang Trands bought by Chance Capital Management through secondary market acquisition to 5 pct limit
------
Eight asset management plan products under Beijing Chance Capital Management Co., Ltd. totally increase shareholding in Dalian Dayang Trands Co., Ltd. (600233.SH) by 10,598,000 shares (accounting for 6.42 percent of the company’s total share capital) from July 1-9 at an average price of 11.21 yuan per share, totaling 119 million yuan. Chance Capital Management indicates that it is open to continue the shareholding increase in next 12 months. The latest stock price of Dayang Trands records 13.99 yuan and the company’s market value is around 2.3 billion yuan.
○Topband signs cooperation agreement with MXCHIP
------
Shenzhen Topband Co., Ltd. (002139.SZ) cooperates with Shanghai MXCHIP Company Limited in the development, application and promotion of intelligent hardware and Internet of Things solutions system. MXCHIP, whose main shareholders include Alibaba Group, is an Internet enterprise focusing on embedded wireless modules and products. Now its products have seen massive application in areas including white household appliances, remote medical service, intelligent power grid, intelligent traffic, etc. The cooperation will promote the companies’ development in Internet of Things industry.
[Financial Reports Express]
○Eastern Airlines see explosive performance growth
------
China Eastern Airlines Corporation Limited (600115.SH; 00670.HK) expects its net profit in the first half year to see a year-on-year growth of 24900~26329 percent.
○Shindoo Chemi-industry proposes high share conversion
-----
Shindoo Chemi-industry Co., Ltd. (002539.SZ) proposes a 15-for-10 conversion of capital surplus into shares in its semiyearly profit distribution plan.
[Data Speaks]
○Semiyearly performance of listed companies on SME Board and Chinext Board shaped, leading enterprises contribute to growth
------
By July 15, disclosure of semiyearly performance forecast of listed companies on the SME Board and the Chinext Board have been completed. Based on the lower level of forecasted performance range, the overall profit of companies with comparable data on the two boards sees a year-on-year growth of 9 percent and 13.7 percent, respectively. But performance differentiation within sectors grows even worse. On the one hand, traditional profit giants like Bank of Ningbo Co., Ltd. (002142.SZ) and Huayi Brothers Media Corporation (300027.SZ) are still main contributors of sector performance, while on the other hand, 95 companies and 41 companies on the SME Board and the Chinext Board, respectively, see loss in the first half year (including those suffering loss for the first time and those seeing consecutive loss), accounting for 12.4 percent and 8.5 percent of all companies on the two boards, respectively. The figures are higher than the 10.5 percent and 6.3 percent in the same period of last year.
○Institutions buy stocks in Internet finance area against trend
------
The trading volume ranking list on July 15 shows that institutions bought stocks in Internet finance area against trend. Sinodata Co., Ltd. (002657.SZ) was bought by four institutions with a total of 400 million yuan, accounting for 19 percent of its intraday turnover. No institutions sold it; Shenzhen Infogem Technologies Co., Ltd. (300085.SZ) was bought by four institutions with a total of 330 million yuan, accounting for 23 percent of its intraday turnover. Two institutions totally sold out 136 million yuan.
Comment: Semiyearly reports of both companies forecast large performance growth. Institutions believe that their performance verifies their high growth. Internet finance will see huge potential in the future and may enjoy certain premium valuation.
[Trading Alarms]
○Several structured funds see risk of discount, B proportion might suffer huge loss
------
The A share market saw wide range of drop on July 15. Some structured funds are faced with the nightmare of discount. According to statistics, 25 discount events occurred since June 26 and some B proportion suffered loss of over 50 percent after discount. Calculated on current net value, if the parent funds continue to drop by around 6 percent, “One Belt and One Road” B proportion (150266), Tongrui B (150065) proportion, etc. will trigger discount.
Latest comments