[Today’s Guide]
>Catch the after-market opportunity based on capital magnates’ buying shares of listed companies to 5% limit
>Institutions: event-driven opportunities dominate in short run
>China Calxon Group expected to explore new financing channels for city living room project
> Shangdong Lipeng expected to step up “Internet Plus”
[XFA View]
Catch the after-market opportunity based on capital magnates’ buying shares of listed companies to 5% limit
------
During the trans-normal bailout measures of multiple ministries and commissions, capital magnates, who have kept silent for a long time, also take actions to respond the bailout, and their typical way to make profit is to buy the outstanding shares of the listed companies to the 5 percent limit, which will trigger obvious market trend. Recently, share price will soar by the daily limit of 10 percent in a straight line with impressive continuous rising extent, if the corresponding listed company announces that their shares have been bought by a magnate to the 5 percent limit. Investors may search for excellent investment objects based on capital magnates’ buying shares of listed companies to 5 percent limit, and focus on their following movements to catch the market opportunity.
According to survey of Shanghai Securities News Information, PE magnates including China Science & Merchants Capital Management Group (832168) in NEEQ rapidly released that buy shares of about ten listed companies to the 5 percent limit, which is not simply to make short-term profits, but intend to collect low-price chips for the following ‘shell resource’ and connect their stock project resource. Moreover, capital enters into the market to support the bottom during hasty fall, which is beneficial to lower the original shareholders’ close position risk of collateral equities and reduce the inimical emotion of listed companies’ shareholders to lay the foundation for latter cooperation.
In addition, the listed companies, whose shares are bought to the 5 percent limit, are meticulously selected. According to the statistics, listed companies selected by capital magnates in this round have the following characteristics: Firstly, small and micro listed companies of low capital stock, low share price and low market value. For example, there are 11 listed companies with share bought to 5 percent limit by CSC, and the market value of each listed company reaches 2 to 3 billion yuan. What the CSC done is greatly based on consideration of cost, and the magnate wants to prize more companies with a small amount capital. Secondly, listed companies of shell valuation: seen from the outside, a lot of listed companies with share bought to 5 percent limit have PE ratio of hundreds times, and some are in loss condition, which reflects that valuation of ‘shell company’ will possibly rise again under the delay expectation of IPO suspension or registration system. Thirdly, those are companies involved in the state-owned enterprise reform, such as BGRIMM Magnetic Materials & Technology Co., Ltd. (600980.SH), Shahe Industry Co., Ltd. (000014.SZ), San Bian Science & Technology Co., Ltd. (002112,SZ), Wuhan Xianglong Power Industry Co., Ltd.(600769.SH), Dalian Sunasia Tourism Holding Co., Ltd. (600593.SH), and Grinm Advanced Materials Co., Ltd. (600206.SH). There are signs showing that the upcoming plan on state-owned assets reform will further specify the market expectation. Stocks related will become the hottest ones after the market stabilizes. Investors can select your stocks on the basis.
[Hotspot Investigation]
Institutions: event-driven opportunities dominate in short run
------
After the previous retaliatory rebound, Shanghai and Shenzhen stock markets plunge into an awkward situation. Many investors have no idea of how the market will develop in the future. To assure them, XFA has interviewed mainstream public and private investment institutions in Shanghai and Shenzhen to learn their views on the market and hotspots. There are some of their views for your reference.
◆ Short-run opportunities are mainly driven by events
Both public and private investment institutions interviewed agree that narrow fluctuations might continue in a short period. And as individual stocks and sectors diverge, opportunities, mainly driven by events, will surge. Agile investors can take these opportunities to cautiously participate in the market. Conservative investors can wait until opportunity with higher safe margin appears.
◆ Tied-up investors above 4,000 needs time to digest
Due to the free fall and the lack of liquidity of the stock market, bulks of institutional and individual investors who opened positions above 4,000 points were tied up. Currently, the regulators have determined to wipe off off-market margin financing and investors have yet not recovered from the shock. Time is still needed for recovery. Major institutes also intend to turn over stocks when the stock index comes close to 4,000 points to gradually restore the market.
◆Withdrawal of bailout funds and restart of IPO not likely to occur soon
As for worries about withdrawal of bailout funds and restart of IPO, most institutions believed that in order to tackle obstruction in market liquidity, Chinese monetary authorities injected massive funds to the market, which effectively curbed spread of disaster in stock market. Therefore, the CSRC took expedients of postponing IPO and reviewing refinancing. Objectively speaking, the above-mentioned unconventional measures will be phased out when the market is back on track from crisis. But the immediate withdrawal of all bailout funds or quick restart of IPO is not likely to occur in short term.
[Information Radar]
China Calxon Group expected to explore new financing channels for city living room project
------
China Calxon Group Co., Ltd. (000918.SZ) has striven to develop city living room project since this year and launched private placement tailed for this project with prices of additional stocks no less than 6.22 yuan per share in June. Due to the long period of refinancing, the company is expected to raise funds via other channels to quicken construction of the project. The city living room project is positioned as a one-stop urban reception room under new urbanization. In terms of commercial activities, it integrates functions of government affairs service, public service, experience business, catering and entertainment and O2O, etc. In addition to major commercial resources, it is also equipped with civil square, pharmacy, clinic and China Welfare Lottery, etc.
[News to Confirm]
Shangdong Lipeng expected to step up “Internet Plus”
------
The news is basically true. Shangdong Lipeng Co., Ltd. (002374.SZ) announced on July 22 that it will increase capital in its co-partnership mobile internet company. The market expects that the company will step up “Internet Plus” and the details are expected to disclose soon. Lipeng Corporation declared in May this year that it would set up a mobile internet joint venture. Investment institutions hold that by virtue of its many years’ accumulation in technology and channel resources, Lipeng is expected to establish a mobile internet platform between consumers and manufacturers. It may realize introducing customers to online by printing two-dimension code on bottle caps in the future, which is another way to earn profit.
News Tracking E-hualu Info Technology expected to quicken expansion of transportation operation platform market
------
XFA learned that Beijing E-hualu Info Technology Co., Ltd. (300212.SZ) is currently engaging in the system building and data operation work for the transportation operation platform project of Liaoning province. It’s predicted that this platform will be in formal operation in Sept. News has it that E-hualu Info Technology intends to forge the Liaoning project into a sample project and then promote it to other cities and provinces. Market expects that the companies’ move in Heilongjiang province and Jilin province are also both possible to step up.
After finishing the project, E-hualu Info Technology will share a certain percentage of the traffic fines and forfeitures. The company has spent nearly 70 million yuan on each of the transportation management platform projects. In addition, it will go into the auto after-service market and internet insurance market of the provinces that it has operated with via this platform. XFA will continue to report on the progress of the companies’ businesses.
>Catch the after-market opportunity based on capital magnates’ buying shares of listed companies to 5% limit
>Institutions: event-driven opportunities dominate in short run
>China Calxon Group expected to explore new financing channels for city living room project
> Shangdong Lipeng expected to step up “Internet Plus”
[XFA View]
Catch the after-market opportunity based on capital magnates’ buying shares of listed companies to 5% limit
------
During the trans-normal bailout measures of multiple ministries and commissions, capital magnates, who have kept silent for a long time, also take actions to respond the bailout, and their typical way to make profit is to buy the outstanding shares of the listed companies to the 5 percent limit, which will trigger obvious market trend. Recently, share price will soar by the daily limit of 10 percent in a straight line with impressive continuous rising extent, if the corresponding listed company announces that their shares have been bought by a magnate to the 5 percent limit. Investors may search for excellent investment objects based on capital magnates’ buying shares of listed companies to 5 percent limit, and focus on their following movements to catch the market opportunity.
According to survey of Shanghai Securities News Information, PE magnates including China Science & Merchants Capital Management Group (832168) in NEEQ rapidly released that buy shares of about ten listed companies to the 5 percent limit, which is not simply to make short-term profits, but intend to collect low-price chips for the following ‘shell resource’ and connect their stock project resource. Moreover, capital enters into the market to support the bottom during hasty fall, which is beneficial to lower the original shareholders’ close position risk of collateral equities and reduce the inimical emotion of listed companies’ shareholders to lay the foundation for latter cooperation.
In addition, the listed companies, whose shares are bought to the 5 percent limit, are meticulously selected. According to the statistics, listed companies selected by capital magnates in this round have the following characteristics: Firstly, small and micro listed companies of low capital stock, low share price and low market value. For example, there are 11 listed companies with share bought to 5 percent limit by CSC, and the market value of each listed company reaches 2 to 3 billion yuan. What the CSC done is greatly based on consideration of cost, and the magnate wants to prize more companies with a small amount capital. Secondly, listed companies of shell valuation: seen from the outside, a lot of listed companies with share bought to 5 percent limit have PE ratio of hundreds times, and some are in loss condition, which reflects that valuation of ‘shell company’ will possibly rise again under the delay expectation of IPO suspension or registration system. Thirdly, those are companies involved in the state-owned enterprise reform, such as BGRIMM Magnetic Materials & Technology Co., Ltd. (600980.SH), Shahe Industry Co., Ltd. (000014.SZ), San Bian Science & Technology Co., Ltd. (002112,SZ), Wuhan Xianglong Power Industry Co., Ltd.(600769.SH), Dalian Sunasia Tourism Holding Co., Ltd. (600593.SH), and Grinm Advanced Materials Co., Ltd. (600206.SH). There are signs showing that the upcoming plan on state-owned assets reform will further specify the market expectation. Stocks related will become the hottest ones after the market stabilizes. Investors can select your stocks on the basis.
[Hotspot Investigation]
Institutions: event-driven opportunities dominate in short run
------
After the previous retaliatory rebound, Shanghai and Shenzhen stock markets plunge into an awkward situation. Many investors have no idea of how the market will develop in the future. To assure them, XFA has interviewed mainstream public and private investment institutions in Shanghai and Shenzhen to learn their views on the market and hotspots. There are some of their views for your reference.
◆ Short-run opportunities are mainly driven by events
Both public and private investment institutions interviewed agree that narrow fluctuations might continue in a short period. And as individual stocks and sectors diverge, opportunities, mainly driven by events, will surge. Agile investors can take these opportunities to cautiously participate in the market. Conservative investors can wait until opportunity with higher safe margin appears.
◆ Tied-up investors above 4,000 needs time to digest
Due to the free fall and the lack of liquidity of the stock market, bulks of institutional and individual investors who opened positions above 4,000 points were tied up. Currently, the regulators have determined to wipe off off-market margin financing and investors have yet not recovered from the shock. Time is still needed for recovery. Major institutes also intend to turn over stocks when the stock index comes close to 4,000 points to gradually restore the market.
◆Withdrawal of bailout funds and restart of IPO not likely to occur soon
As for worries about withdrawal of bailout funds and restart of IPO, most institutions believed that in order to tackle obstruction in market liquidity, Chinese monetary authorities injected massive funds to the market, which effectively curbed spread of disaster in stock market. Therefore, the CSRC took expedients of postponing IPO and reviewing refinancing. Objectively speaking, the above-mentioned unconventional measures will be phased out when the market is back on track from crisis. But the immediate withdrawal of all bailout funds or quick restart of IPO is not likely to occur in short term.
[Information Radar]
China Calxon Group expected to explore new financing channels for city living room project
------
China Calxon Group Co., Ltd. (000918.SZ) has striven to develop city living room project since this year and launched private placement tailed for this project with prices of additional stocks no less than 6.22 yuan per share in June. Due to the long period of refinancing, the company is expected to raise funds via other channels to quicken construction of the project. The city living room project is positioned as a one-stop urban reception room under new urbanization. In terms of commercial activities, it integrates functions of government affairs service, public service, experience business, catering and entertainment and O2O, etc. In addition to major commercial resources, it is also equipped with civil square, pharmacy, clinic and China Welfare Lottery, etc.
[News to Confirm]
Shangdong Lipeng expected to step up “Internet Plus”
------
The news is basically true. Shangdong Lipeng Co., Ltd. (002374.SZ) announced on July 22 that it will increase capital in its co-partnership mobile internet company. The market expects that the company will step up “Internet Plus” and the details are expected to disclose soon. Lipeng Corporation declared in May this year that it would set up a mobile internet joint venture. Investment institutions hold that by virtue of its many years’ accumulation in technology and channel resources, Lipeng is expected to establish a mobile internet platform between consumers and manufacturers. It may realize introducing customers to online by printing two-dimension code on bottle caps in the future, which is another way to earn profit.
News Tracking E-hualu Info Technology expected to quicken expansion of transportation operation platform market
------
XFA learned that Beijing E-hualu Info Technology Co., Ltd. (300212.SZ) is currently engaging in the system building and data operation work for the transportation operation platform project of Liaoning province. It’s predicted that this platform will be in formal operation in Sept. News has it that E-hualu Info Technology intends to forge the Liaoning project into a sample project and then promote it to other cities and provinces. Market expects that the companies’ move in Heilongjiang province and Jilin province are also both possible to step up.
After finishing the project, E-hualu Info Technology will share a certain percentage of the traffic fines and forfeitures. The company has spent nearly 70 million yuan on each of the transportation management platform projects. In addition, it will go into the auto after-service market and internet insurance market of the provinces that it has operated with via this platform. XFA will continue to report on the progress of the companies’ businesses.
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