[Today's Guide]
> Minmetals Development announced trading suspension, asset consolidation of China Minmetals Corporation kicks off
> Football reform to make significant step, endogenous drive for development to activated
> Huangtai Wine-Marketing Industry to transform into tomato business, CSF becomes top shareholder of Eastern Gold Jade, Baiyunshan Phar., etc.
> Controlling shareholder of Guangdong Highsun Group to increase shareholding, CDB invests in Originwater Technology through private placement
[XFA Focus]
○Minmetals Development announced trading suspension, asset consolidation of China Minmetals Corporation kicks off
------
Minmetals Development Co., Ltd. (600058.SH) announced trading suspension from Aug. 17 for mulling significant events. The company continuously made investments in e-commerce field this year and established a small loan company in July to build a closed loop of supply chain finance. Statistics show that China Minmetals Corporation owns five A-share companies, but the asset securitization ratio is only about 33 percent. Institutions are optimistic about the group's consolidation prospect. Among the listed companies under China Minmetals Corporation, China Tungsten and Hightech Materials Co., Ltd. (000657.SZ) has suspended trading and was reported to consolidate tungsten resources of the group; China Minmetals Rare Earth Co., Ltd. (000831.SZ) is expected to play an important role in China Minmetals Corporation's participation in establishing six rare earth groups in China. The competition between Zhuzhou Smelter Group Co., Ltd. (600961.SH) and Hunan Shui Kou Shan Nonferrous Metals Group Co., Ltd. under China Minmetals Corporation is to be tackled.
Comment: This means that the assets consolidation of other central enterprises is also accelerated following the first batch of six central enterprises. The traditional industries with excess production capacity in particular, such as the nonferrous metal industry, are expected to first make breakthrough in the state-owned assets reform. China Metallurgical Group Corporation and China Nonferrous Metal Mining (Group) Co., Ltd. draw more attention from institutions.
◆ Rising Nonferrous Metals Share Co., Ltd. (600259.SH) also announced trading suspension for mulling significant events. Its substantial shareholder Guangdong Rising Assets Management Co., Ltd. is a solely state-owned enterprise in Guangdong Province and operates in four industries, including mining industry, electronics information industry, engineering and real estate and financial investment. Its listed companies include Guang Dong Fenghua Advanced Technology (Holding) Co., Ltd. (000636.SZ), Foshan Nationstar Optoelectronics Co., Ltd. (002449.SZ) and Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. (000060.SZ).
○ Media focus on 60th anniversary of Xinjiang, policies of supporting Xinjiang to launched
------
The news interview team consisting of CCTV, China National Radio (CNR), People's Daily and Xinhua News Agency held a two-day interview in Urumchi City on Aug. 13. This is the first stop of 'CCTV news interview on celebrating the 60th anniversary of the establishment of Xinjiang Uygur Autonomous Region' sponsored by Publicity Department of the Communist Party of China. The whole interview activity will last for half a month. The Publicity Department of the CPC has issued the publicity and reporting plan and requires the state media sparing no pains in publicizing and reporting the celebration of the 60th anniversary of the establishment of Xinjiang.
As the anniversary of the establishment of Xinjiang Uygur Autonomous Region on Oct. 1 approaches, the media pays more attention to Xinjiang. The introduction of policies on supporting the infrastructure, agriculture and other industries are expected to speed up. It is learnt that the preparation of the plan on the state-owned assets reform in the Xinjiang Production and Construction Corps (XPCC) has been completed. The pilot oil and gas exploration and mining reform has been initiated in Xinjiang. As a core area in the Silk Road Economic Belt, Xinjiang is expected to make breakthroughs in the construction of free trade zones. Among local listed companies, Xinjiang Beixin Road ＆ Bridge Group Co., Ltd. (002307.SZ) and Xinjiang Urban Construction (Group) Co., Ltd. (600545.SH) are principally engaged in infrastructure businesses. Xinjiang Talimu Agriculture Development Co., Ltd. (600359.SH) and Xinjiang Sayram Modern Agriculture Co., Ltd. (600540.SH) are engaged in the cultivation and processing of cotton and other agricultural products.
◆ The Export-Import Bank of China established the first secondary branch in Kashgar on Aug. 16, which will provide more and better policy-based financial services to the real economy, the import and export trade, the supporting projects in Xinjiang, the construction of development zones and the China-Pakistan Economic Corridor.
[XFA Selection]
○ The China Securities Regulatory Commission (CSRC) indicated that the China Securities Finance Co., Ltd. (CSF) will not exit in the following years and it will still play a stabilizing role when the market experiences significant and abnormal fluctuations.
○ The Central Huijin Investment Ltd. indicated that it has been transferred certain stocks from the CSF. It will strive to achieve the value maintenance and appreciation while following the long-term investment concept.
○ The RMB exchange rate closed slightly higher on Aug. 14. Experts interviewed are rosy that the stabilized two-way fluctuation of exchange rate will boost the market confidence.
○ The opinions on the overall revitalization of Northeast and other old industrial bases are likely to be introduced in the fourth quarter, which will attract more private capital to invest in the construction of infrastructure and other industries.
○ Changjiang ＆ Jinggong Steel Building (Group) Co., Ltd. (600496.SH) indicated on its interactive platform that the CSF has become the third biggest shareholder of its tradable stocks. It will strive for the business opportunities brought by Hangzhou's bidding for the Asian Games.
○ The documents on the shareholding in U.S. stocks show that Warren Buffett and George Soros bought cable TV stocks in the second quarter.
[Industry Information]
○Football reform to make significant step, endogenous drive for development to activated
------
According to the www.cnr.cn, the General Administration of Sport of China will convene all full members of the Chinese Football Association (CFA) on Aug. 17 to convey and implement the matters related to the CFA reform. Liu Peng, Director of the General Administration of Sport of China, will attend the meeting and make an important speech. Based on the information currently disclosed, it means that the CFA is likely to be officially separated from the General Administration of Sport of China. The Overall Plan for Reform and Development of Chinese Football released on Feb. 27 this year explicitly proposed to reform the football management system and carry out the "separation of administrative functions from communities and enterprises and the separation of government regulation from management".
Comment: It is a significant step for the CFA to separate from the General Administration of Sport of China, which is likely to break the bottleneck on the development of China's professional football if it is finally implemented. The market's endogenous drive for development will be greatly activated. In terms of listed companies, China Sports Industry Group Co., Ltd. (600158.SH) is the largest joint stock enterprise in China's sport industry with rich competition resources. The substantial shareholder of Jiangsu Sainty Corp., Ltd. (600287.SH) owns the Jiangsu Guoxin Sainty Football Club. Ledman Optoelectronic Co., Ltd. (300162.SZ) is a sponsor of the Chinese Super League.
○ Central gov. requires intensified remediation for safety production, demand for monitoring equipment to up
------
According the report of Xinhuanet.com, Chinese President Xi Jinping made important indications on Aug. 15 that Tianjin Port event on Aug. 12 and other recent accidents highlighted the prominent problems in safety production again. The safety production responsibility system shall be determinedly implemented with the Chinese Communist Party and the government jointly bearing the responsibilities. The early warning and emergency mechanism should be improved and the fundamental capacity building for safety production shall be intensified. On the same day, the State Council held a video and telephone conference on China's safety production to make arrangement on the overall safety production inspection. The Work Safety Committee of the State Council issued an emergency notice on Aug. 14, determining to immediately and deeply conduct the specialized remediation on dangerous chemicals, flammables and combustibles in the whole nation. It requires local governments and enterprises increasing input in safety production safely product, establishing an inspection and prevention system for hidden dangers and a safety prevention and control system.
Comment: Institutes estimate that with the safety production inspection and the investment increase by the government at different levels, the demand for dangerous chemicals and equipment for the surveillance of underground pipe network is likely to increase. In terms of listed companies, Chongqing Mas Sci.＆ Tech. Co., Ltd. (300275.SZ) is principally engaged in the production of products for the surveillance of coal mine safety production. It is actively developing the urban underground pipe network and gas surveillance businesses. Beijing SDL Technology Co., Ltd. (002658.SZ) is a leader in the environment monitoring equipment. Its products targeted at volatile organic compounds have put into use, which is expected to be a new profit growth point.
[Announcement Interpretation]
○Huangtai Wine-Marketing Industry to transform into tomato business with RMB3.4 bln, Zhang Guoxi to take charge
------
Gansu Huangtai Wine-Marketing Industry Co., Ltd. (000995.SZ) plans to raise 3,356 million yuan by issuing 288 million shares at 11.67 yuan per share through private placement to expand to the production of tomatoes. Upon completion of issuance, Xinjiang Guohong Zhixiang Equity Investment Partnership (Limited Partnership), actually controlled by Zhang Guoxi, will hold 17.58 percent equities of Huangtai Wine-Marketing Industry, and Zhang will become the company's new controlling shareholder.
Zhang, the new actual controller of the company, once acted as the Director and General Manager of Xinjiang Tunhe Group Company Limited. He also acts as the Director of Xinjiang Fruit Industry Co., Ltd. from 2009 to now and holds 12.30 percent equities of the company.
○CSF becomes top shareholder of Eastern Gold Jade, Baiyunshan Phar., etc.
------
Eastern Gold Jade Co., Ltd. (600086.SH) announces that as of July 31, China Securities Finance Corporation Limited (CSF) directly held 18,672,300 shares of the company, indicating a shareholding proportion of 4.15 percent. CSF ranked as its third substantial shareholder; meanwhile, 10 CSF asset management plans totally held 5.8 percent equities of the company. Semiyearly report of Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (600332.SH; 000874.SZ) announces that as of July 31, CSF held 42.53 million A shares of the company, accounting for 3.29 percent of its total share capital, and CSF ranked as its second largest A-share shareholder.
Sichuan Chuantou Energy Co., Ltd. (600674.SH) discloses that by Aug. 11, CSF, holding 132 million shares of the company (a shareholding proportion of 2.99 percent), ranked as the third among its top 10 shareholders of tradable shares; semiyearly report of Shanghai Shenhua Holdings Co., Ltd. (600653.SH) discloses that by end-July, CSF held 6,646,400 shares of the company, ranking as its fifth largest shareholder.
In addition, Beijing Hualu Baina Film ＆ TV Inc. (300291.SZ) announces that as of Aug. 14, Central Huijin Investment Ltd. held 7.71 million shares of the company, accounting for 1.09 percent of its total share capital. And, 10 funds totally held 23,017,000 shares of the company through CSF asset management plan. The above 11 shareholders totally held 30.73 million shares of the company, accounting for 4.34 percent of its total share capital.
○Controlling shareholder of Guangdong Highsun Group to increase shareholding with RMB250 mln
------
Highsun Group, the controlling shareholder of Guangdong Highsun Group Co., Ltd. (000861.SZ) proposes to increase shareholding in the company with no more than 250 million yuan. Meanwhile, the company terminates its acquisition of Shanghai Harvest Network Technology Co., Ltd., and plans to acquire 30 percent equities of Highsun Small-Loan Co., Ltd. held by Highsun Group with 45 million yuan, equal to the amount of the group's initial contributions.
○CDB invests RMB5.4 bln in Originwater Technology through private placement, becoming its third largest shareholder.
------
Beijing Originwater Technology Co., Ltd. (300070.SZ) has raised 6,231 million yuan through private placement. CDB Innovation Assets Co., Ltd., a subsidiary of China Development Bank (CDB), has approved two asset management plans. It acquires 10.48 percent equities of Originwater Technology with 5,434 million yuan, becoming the third largest shareholder of the company. This is the first time that CDB invests in water protection enterprises through equity investment and it is also the first one to do so in the industry.
Comment: In the mixed ownership reform, it is common that private capitals acquire equities of state-owned enterprises (SOEs), while it is rare for state-owned capitals to inject into private enterprises. After the introduction of new Environmental Protection Law and the Water Pollution Prevention Action Plan, environmental protection has risen to a national strategy. CDB's investment will significantly facilitate Originwater Technology in exploiting PPP mode projects that China is advocating.
○Hisoar Phar. to expand medical and dye business with RMB2 bln through private placement
------
Zhejiang Hisoar Pharmaceutical Co., Ltd. (002099.SZ) proposes to raise 2,075 million yuan by issuing 100 million shares at no less than 20.75 yuan per share through private placement. The proceeds will be invested in six projects in two main businesses: medicine and dye, including the expansion of crude drugs ＆ mid-body CMO center. The crude drugs ＆ mid-body CMO center project, the technical improvement project for solid preparation with 3-billion-tablet production, and the upgrading and supporting project for the dye industry will gain a net profit of 110 million yuan, 86.33 million yuan and 260 million yuan respectively after they reach designed capacity.
○Xinhua Commercial bought by Shanghai Baoyin through secondary market acquisition to 5 pct limit for fifth time
------
The shares of Xinhua Commercial (Group) Co., Ltd. (600785.SH) were bought by Shanghai Baoyin Chuangyin Investment Management Company Limited through secondary market acquisition to the 5 percent limit for the fifth time, accounting for 25 percent equities of the company. It was just a month away from the last-time buying. The average price of this round of buying is about 28 yuan per share while the company's newest share price is 29.67 yuan per share. At present, Beijing Wumart Commercial Group Holding Co., Ltd. (01025.HK), the major shareholder of Xinhua Commercial, holds 30.76 percent of its stocks and intends to increase the shareholding, while Shanghai Baoyin may also continue to fortify the shareholding in pertinence to this act and proposes to reelect the board of directors and set up investment company in coalition with the listed company.
[Financial Reports Express]
○Huadong Medicine expects net profit increase in Q1-Q3
------
Huadong Medicine Co., Ltd. (000963.SZ) predicts that in Jan.-Sept., its net profit will increase 55-70 percent, the main reason for which is the growth of the performance of its subsidiary, Sino-American Huadong Medicine Co., Ltd.
[Weekly Review]
○Thematic investment continues to demonstrate power
-----
Though indexes did not rise sharply last week, the themes such as state-owned enterprise reform, shareholding by China Securities Finance Co., Ltd. and the Asian Games in Hangzhou, etc. have continued to demonstrate their power, and many investors have made a profit.
XFA has focused on the trading suspension of a number of subsidiaries of China COSCO Holdings Company Limited (601919.SH) and China Shipping (Group) Company Limited since last week, pointing out that central enterprises reform had entered the acceleration stage and reminding that two state-owned enterprises, China CSSC Holdings Limited (600150.SH) and China Shipbuilding Industry Corporation (601989.SH), had shifted their leaders in march and the previous one and CSSC Offshore ＆ Marine Engineering (Group) Company Limited had surged by more 30 percent in that week. Later, XFA kept sensitive to state-owned enterprise reform and reported on this theme for three of the subsequent four days. Careful readers may find that in the Announcement Interpretation column, XFA intentionally gathered all the announcements made by China Securities Finance Corporation and that Guangdong Meiyan Jixiang Hydro Co., Ltd. (600868.SH) had excellent performance on this board. The stocks on the theme of Asian Games held in Hangzhou were also performing well because they suit the major theme of sport industry and the long-term trend of economic transition and consumption upgrading; it's expected that in the future, this theme will repeatedly prosper.
Multiple research institutions hold that systemic slump of A shares is unlikely to happen and there are no obvious bright spots of the economic fundamentals, so the themes such as the state-owned enterprise reform will continue to prevail in the market.
> Minmetals Development announced trading suspension, asset consolidation of China Minmetals Corporation kicks off
> Football reform to make significant step, endogenous drive for development to activated
> Huangtai Wine-Marketing Industry to transform into tomato business, CSF becomes top shareholder of Eastern Gold Jade, Baiyunshan Phar., etc.
> Controlling shareholder of Guangdong Highsun Group to increase shareholding, CDB invests in Originwater Technology through private placement
[XFA Focus]
○Minmetals Development announced trading suspension, asset consolidation of China Minmetals Corporation kicks off
------
Minmetals Development Co., Ltd. (600058.SH) announced trading suspension from Aug. 17 for mulling significant events. The company continuously made investments in e-commerce field this year and established a small loan company in July to build a closed loop of supply chain finance. Statistics show that China Minmetals Corporation owns five A-share companies, but the asset securitization ratio is only about 33 percent. Institutions are optimistic about the group's consolidation prospect. Among the listed companies under China Minmetals Corporation, China Tungsten and Hightech Materials Co., Ltd. (000657.SZ) has suspended trading and was reported to consolidate tungsten resources of the group; China Minmetals Rare Earth Co., Ltd. (000831.SZ) is expected to play an important role in China Minmetals Corporation's participation in establishing six rare earth groups in China. The competition between Zhuzhou Smelter Group Co., Ltd. (600961.SH) and Hunan Shui Kou Shan Nonferrous Metals Group Co., Ltd. under China Minmetals Corporation is to be tackled.
Comment: This means that the assets consolidation of other central enterprises is also accelerated following the first batch of six central enterprises. The traditional industries with excess production capacity in particular, such as the nonferrous metal industry, are expected to first make breakthrough in the state-owned assets reform. China Metallurgical Group Corporation and China Nonferrous Metal Mining (Group) Co., Ltd. draw more attention from institutions.
◆ Rising Nonferrous Metals Share Co., Ltd. (600259.SH) also announced trading suspension for mulling significant events. Its substantial shareholder Guangdong Rising Assets Management Co., Ltd. is a solely state-owned enterprise in Guangdong Province and operates in four industries, including mining industry, electronics information industry, engineering and real estate and financial investment. Its listed companies include Guang Dong Fenghua Advanced Technology (Holding) Co., Ltd. (000636.SZ), Foshan Nationstar Optoelectronics Co., Ltd. (002449.SZ) and Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. (000060.SZ).
○ Media focus on 60th anniversary of Xinjiang, policies of supporting Xinjiang to launched
------
The news interview team consisting of CCTV, China National Radio (CNR), People's Daily and Xinhua News Agency held a two-day interview in Urumchi City on Aug. 13. This is the first stop of 'CCTV news interview on celebrating the 60th anniversary of the establishment of Xinjiang Uygur Autonomous Region' sponsored by Publicity Department of the Communist Party of China. The whole interview activity will last for half a month. The Publicity Department of the CPC has issued the publicity and reporting plan and requires the state media sparing no pains in publicizing and reporting the celebration of the 60th anniversary of the establishment of Xinjiang.
As the anniversary of the establishment of Xinjiang Uygur Autonomous Region on Oct. 1 approaches, the media pays more attention to Xinjiang. The introduction of policies on supporting the infrastructure, agriculture and other industries are expected to speed up. It is learnt that the preparation of the plan on the state-owned assets reform in the Xinjiang Production and Construction Corps (XPCC) has been completed. The pilot oil and gas exploration and mining reform has been initiated in Xinjiang. As a core area in the Silk Road Economic Belt, Xinjiang is expected to make breakthroughs in the construction of free trade zones. Among local listed companies, Xinjiang Beixin Road ＆ Bridge Group Co., Ltd. (002307.SZ) and Xinjiang Urban Construction (Group) Co., Ltd. (600545.SH) are principally engaged in infrastructure businesses. Xinjiang Talimu Agriculture Development Co., Ltd. (600359.SH) and Xinjiang Sayram Modern Agriculture Co., Ltd. (600540.SH) are engaged in the cultivation and processing of cotton and other agricultural products.
◆ The Export-Import Bank of China established the first secondary branch in Kashgar on Aug. 16, which will provide more and better policy-based financial services to the real economy, the import and export trade, the supporting projects in Xinjiang, the construction of development zones and the China-Pakistan Economic Corridor.
[XFA Selection]
○ The China Securities Regulatory Commission (CSRC) indicated that the China Securities Finance Co., Ltd. (CSF) will not exit in the following years and it will still play a stabilizing role when the market experiences significant and abnormal fluctuations.
○ The Central Huijin Investment Ltd. indicated that it has been transferred certain stocks from the CSF. It will strive to achieve the value maintenance and appreciation while following the long-term investment concept.
○ The RMB exchange rate closed slightly higher on Aug. 14. Experts interviewed are rosy that the stabilized two-way fluctuation of exchange rate will boost the market confidence.
○ The opinions on the overall revitalization of Northeast and other old industrial bases are likely to be introduced in the fourth quarter, which will attract more private capital to invest in the construction of infrastructure and other industries.
○ Changjiang ＆ Jinggong Steel Building (Group) Co., Ltd. (600496.SH) indicated on its interactive platform that the CSF has become the third biggest shareholder of its tradable stocks. It will strive for the business opportunities brought by Hangzhou's bidding for the Asian Games.
○ The documents on the shareholding in U.S. stocks show that Warren Buffett and George Soros bought cable TV stocks in the second quarter.
[Industry Information]
○Football reform to make significant step, endogenous drive for development to activated
------
According to the www.cnr.cn, the General Administration of Sport of China will convene all full members of the Chinese Football Association (CFA) on Aug. 17 to convey and implement the matters related to the CFA reform. Liu Peng, Director of the General Administration of Sport of China, will attend the meeting and make an important speech. Based on the information currently disclosed, it means that the CFA is likely to be officially separated from the General Administration of Sport of China. The Overall Plan for Reform and Development of Chinese Football released on Feb. 27 this year explicitly proposed to reform the football management system and carry out the "separation of administrative functions from communities and enterprises and the separation of government regulation from management".
Comment: It is a significant step for the CFA to separate from the General Administration of Sport of China, which is likely to break the bottleneck on the development of China's professional football if it is finally implemented. The market's endogenous drive for development will be greatly activated. In terms of listed companies, China Sports Industry Group Co., Ltd. (600158.SH) is the largest joint stock enterprise in China's sport industry with rich competition resources. The substantial shareholder of Jiangsu Sainty Corp., Ltd. (600287.SH) owns the Jiangsu Guoxin Sainty Football Club. Ledman Optoelectronic Co., Ltd. (300162.SZ) is a sponsor of the Chinese Super League.
○ Central gov. requires intensified remediation for safety production, demand for monitoring equipment to up
------
According the report of Xinhuanet.com, Chinese President Xi Jinping made important indications on Aug. 15 that Tianjin Port event on Aug. 12 and other recent accidents highlighted the prominent problems in safety production again. The safety production responsibility system shall be determinedly implemented with the Chinese Communist Party and the government jointly bearing the responsibilities. The early warning and emergency mechanism should be improved and the fundamental capacity building for safety production shall be intensified. On the same day, the State Council held a video and telephone conference on China's safety production to make arrangement on the overall safety production inspection. The Work Safety Committee of the State Council issued an emergency notice on Aug. 14, determining to immediately and deeply conduct the specialized remediation on dangerous chemicals, flammables and combustibles in the whole nation. It requires local governments and enterprises increasing input in safety production safely product, establishing an inspection and prevention system for hidden dangers and a safety prevention and control system.
Comment: Institutes estimate that with the safety production inspection and the investment increase by the government at different levels, the demand for dangerous chemicals and equipment for the surveillance of underground pipe network is likely to increase. In terms of listed companies, Chongqing Mas Sci.＆ Tech. Co., Ltd. (300275.SZ) is principally engaged in the production of products for the surveillance of coal mine safety production. It is actively developing the urban underground pipe network and gas surveillance businesses. Beijing SDL Technology Co., Ltd. (002658.SZ) is a leader in the environment monitoring equipment. Its products targeted at volatile organic compounds have put into use, which is expected to be a new profit growth point.
[Announcement Interpretation]
○Huangtai Wine-Marketing Industry to transform into tomato business with RMB3.4 bln, Zhang Guoxi to take charge
------
Gansu Huangtai Wine-Marketing Industry Co., Ltd. (000995.SZ) plans to raise 3,356 million yuan by issuing 288 million shares at 11.67 yuan per share through private placement to expand to the production of tomatoes. Upon completion of issuance, Xinjiang Guohong Zhixiang Equity Investment Partnership (Limited Partnership), actually controlled by Zhang Guoxi, will hold 17.58 percent equities of Huangtai Wine-Marketing Industry, and Zhang will become the company's new controlling shareholder.
Zhang, the new actual controller of the company, once acted as the Director and General Manager of Xinjiang Tunhe Group Company Limited. He also acts as the Director of Xinjiang Fruit Industry Co., Ltd. from 2009 to now and holds 12.30 percent equities of the company.
○CSF becomes top shareholder of Eastern Gold Jade, Baiyunshan Phar., etc.
------
Eastern Gold Jade Co., Ltd. (600086.SH) announces that as of July 31, China Securities Finance Corporation Limited (CSF) directly held 18,672,300 shares of the company, indicating a shareholding proportion of 4.15 percent. CSF ranked as its third substantial shareholder; meanwhile, 10 CSF asset management plans totally held 5.8 percent equities of the company. Semiyearly report of Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (600332.SH; 000874.SZ) announces that as of July 31, CSF held 42.53 million A shares of the company, accounting for 3.29 percent of its total share capital, and CSF ranked as its second largest A-share shareholder.
Sichuan Chuantou Energy Co., Ltd. (600674.SH) discloses that by Aug. 11, CSF, holding 132 million shares of the company (a shareholding proportion of 2.99 percent), ranked as the third among its top 10 shareholders of tradable shares; semiyearly report of Shanghai Shenhua Holdings Co., Ltd. (600653.SH) discloses that by end-July, CSF held 6,646,400 shares of the company, ranking as its fifth largest shareholder.
In addition, Beijing Hualu Baina Film ＆ TV Inc. (300291.SZ) announces that as of Aug. 14, Central Huijin Investment Ltd. held 7.71 million shares of the company, accounting for 1.09 percent of its total share capital. And, 10 funds totally held 23,017,000 shares of the company through CSF asset management plan. The above 11 shareholders totally held 30.73 million shares of the company, accounting for 4.34 percent of its total share capital.
○Controlling shareholder of Guangdong Highsun Group to increase shareholding with RMB250 mln
------
Highsun Group, the controlling shareholder of Guangdong Highsun Group Co., Ltd. (000861.SZ) proposes to increase shareholding in the company with no more than 250 million yuan. Meanwhile, the company terminates its acquisition of Shanghai Harvest Network Technology Co., Ltd., and plans to acquire 30 percent equities of Highsun Small-Loan Co., Ltd. held by Highsun Group with 45 million yuan, equal to the amount of the group's initial contributions.
○CDB invests RMB5.4 bln in Originwater Technology through private placement, becoming its third largest shareholder.
------
Beijing Originwater Technology Co., Ltd. (300070.SZ) has raised 6,231 million yuan through private placement. CDB Innovation Assets Co., Ltd., a subsidiary of China Development Bank (CDB), has approved two asset management plans. It acquires 10.48 percent equities of Originwater Technology with 5,434 million yuan, becoming the third largest shareholder of the company. This is the first time that CDB invests in water protection enterprises through equity investment and it is also the first one to do so in the industry.
Comment: In the mixed ownership reform, it is common that private capitals acquire equities of state-owned enterprises (SOEs), while it is rare for state-owned capitals to inject into private enterprises. After the introduction of new Environmental Protection Law and the Water Pollution Prevention Action Plan, environmental protection has risen to a national strategy. CDB's investment will significantly facilitate Originwater Technology in exploiting PPP mode projects that China is advocating.
○Hisoar Phar. to expand medical and dye business with RMB2 bln through private placement
------
Zhejiang Hisoar Pharmaceutical Co., Ltd. (002099.SZ) proposes to raise 2,075 million yuan by issuing 100 million shares at no less than 20.75 yuan per share through private placement. The proceeds will be invested in six projects in two main businesses: medicine and dye, including the expansion of crude drugs ＆ mid-body CMO center. The crude drugs ＆ mid-body CMO center project, the technical improvement project for solid preparation with 3-billion-tablet production, and the upgrading and supporting project for the dye industry will gain a net profit of 110 million yuan, 86.33 million yuan and 260 million yuan respectively after they reach designed capacity.
○Xinhua Commercial bought by Shanghai Baoyin through secondary market acquisition to 5 pct limit for fifth time
------
The shares of Xinhua Commercial (Group) Co., Ltd. (600785.SH) were bought by Shanghai Baoyin Chuangyin Investment Management Company Limited through secondary market acquisition to the 5 percent limit for the fifth time, accounting for 25 percent equities of the company. It was just a month away from the last-time buying. The average price of this round of buying is about 28 yuan per share while the company's newest share price is 29.67 yuan per share. At present, Beijing Wumart Commercial Group Holding Co., Ltd. (01025.HK), the major shareholder of Xinhua Commercial, holds 30.76 percent of its stocks and intends to increase the shareholding, while Shanghai Baoyin may also continue to fortify the shareholding in pertinence to this act and proposes to reelect the board of directors and set up investment company in coalition with the listed company.
[Financial Reports Express]
○Huadong Medicine expects net profit increase in Q1-Q3
------
Huadong Medicine Co., Ltd. (000963.SZ) predicts that in Jan.-Sept., its net profit will increase 55-70 percent, the main reason for which is the growth of the performance of its subsidiary, Sino-American Huadong Medicine Co., Ltd.
[Weekly Review]
○Thematic investment continues to demonstrate power
-----
Though indexes did not rise sharply last week, the themes such as state-owned enterprise reform, shareholding by China Securities Finance Co., Ltd. and the Asian Games in Hangzhou, etc. have continued to demonstrate their power, and many investors have made a profit.
XFA has focused on the trading suspension of a number of subsidiaries of China COSCO Holdings Company Limited (601919.SH) and China Shipping (Group) Company Limited since last week, pointing out that central enterprises reform had entered the acceleration stage and reminding that two state-owned enterprises, China CSSC Holdings Limited (600150.SH) and China Shipbuilding Industry Corporation (601989.SH), had shifted their leaders in march and the previous one and CSSC Offshore ＆ Marine Engineering (Group) Company Limited had surged by more 30 percent in that week. Later, XFA kept sensitive to state-owned enterprise reform and reported on this theme for three of the subsequent four days. Careful readers may find that in the Announcement Interpretation column, XFA intentionally gathered all the announcements made by China Securities Finance Corporation and that Guangdong Meiyan Jixiang Hydro Co., Ltd. (600868.SH) had excellent performance on this board. The stocks on the theme of Asian Games held in Hangzhou were also performing well because they suit the major theme of sport industry and the long-term trend of economic transition and consumption upgrading; it's expected that in the future, this theme will repeatedly prosper.
Multiple research institutions hold that systemic slump of A shares is unlikely to happen and there are no obvious bright spots of the economic fundamentals, so the themes such as the state-owned enterprise reform will continue to prevail in the market.
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