[Today's Guide]
>Accountability methods on environment damage launched, stakes added in environmental protection policies
> Scheme of oil and gas reform to launched faster, Long March V finished significant ground test,
>CSF invests in Markor International Home Furnishings ＆ Yankon Group, China Baoan to sell equities in Baoan Hongji Real Estate
>Shahe Industry ＆ East Lake High Technology saw increases in shareholding, Sotech Smarter Equipment receives big order for intelligent manufacturing
[XFA Focus]
○Accountability methods on environment damage launched, stakes added in environmental protection policies
------
The General Office of the Communist Party of China (CPC) Central Committee together with the General Office of the State Council launched the Accountability Methods on Environment Damage Caused by Leaders and Cadres of the Party and Government (Trial) on Aug.17 in full text. The method will focus on the accountability of the leaders and cadres of the Party and government this time. Those who lead to consequences like environment pollution and ecological damage will be held for responsible, while those who seriously go against with the planning of city and countryside, use of land, environment protection and etc. will also be held for responsible for their actions. The Organizing Department of the Central Committee of the Communist Party of China (CCCPC) indicates that this method will be a powerful tool in urging leaders and cadres of the Party and government to correctly perform their powers.
Comment: 2015 expects sufficient industrial policies for environmental protection: tax laws on environmental protection, the Action Plan for Preventing and Controlling Soil Pollution and etc. might be launched in succession. As measured by the Chinese Academy for Environmental Planning of the State Environmental Protection Administration (SEPA), the total social investment in environmental protection during the thirteenth five-year plan might exceed17 trillion yuan, equal to 500 percent of the figure during the twelfth five-year plan. Environmental protection, as an industry strongly pushed by policies, might be one of the directions benefiting from the state-owned enterprises reform (SOEs reform). Xi'an Qiyuan Mechanical and Electrical Equipment Co., Ltd. (300140.SZ), the only listed platform engaged in environmental protection business under central enterprise China Energy Conservation and Environmental Protection Group (CECEP), plans to acquire environmental protection asset through private placement; Wuxi Huaguang Boiler Co., Ltd. (600475.SH) terminated reorganization in April but indicated that its strategy of quickening transformation towards environment-friendly new energy will remain unchanged. The actual controller of Huaguang Boiler is the State-owned Assets Supervision and Administration Commission (SASAC) of Wuxi City, Jiangsu Province; Zhejiang Feida Environmental Science ＆ Technology Co., Ltd. (600526.SH) plans to fully cover three areas including the treatment of air, solid waste and water through private placement. The actual controller of the company is the SASAC of the People's Government of Zhejiang Province.
○Thirteenth five-year plan for big data to launched within year, hundreds-of-blns-of-yuan market to explored
------
The Ministry of Industry and Information Technology (MIIT) recently organized the first meeting for the formulation of the thirteenth five-year plan concerning big data industry, requiring strengthening special study on industrial big data, trading and security of big data, etc. areas. It is learnt that the plan is expected to be completed in the third quarter and be launched in the fourth quarter. The big data industry sees intensive launch of supportive policies recently. Topics of several executive meetings of the State Council are involved with big data. Notice on applying big data in the service and supervision to market players has been distributed, requiring governmental efforts in promoting the application of big data.
Comment: As an important owner of big data resources, the government will actively lead and promote the development of the industry by exploiting and utilizing data resources. Institutions predict that China's big data market, although still on its initial stage, saw a market scale of 76.7 billion yuan in 2014, and the scale will expand to 800 billion yuan in 2020. Enterprises providing IT infrastructure and solutions, engaged in the collection of big data, holding data resources, etc., such as Business-intelligence Of Oriental Nations Corp., Ltd. (300166.SZ) and Shenzhen Infogem Technologies Co., Ltd. (300085.SZ), will embrace opportunities to expand their market.
[XFA Selection]
○Sun Chunlan, Director of the United Front Work Department of CPC Central Committee, presided over a meeting on Aug. 17. The meeting deliberated on CPC Central Committee delegates' participation in Tibet’s 50th anniversary.
○The Plan on the Adjustment and Reform of Chinese Football Association unveiled on Aug. 17 proposes that Chinese Football Association should separate from the General Administration of Sport, making a breakthrough in football system reform.
○The Ministry of Agriculture released a circular in promoting mechanization of crop production and set a target that 68 percent of the production will be mechanized by 2020.
○The Information Office of the State Council will held a press conference on Aug. 18 where leaders from China Food and Drug Administration will present the progress of the approval system reform of drugs and medical equipment.
○State-owned Assets Supervision and Administration Commission of Jiangxi Province recently held a meeting, urging to accelerate works in state-owned assets reform. Principals of Xinyu Iron ＆ Steel Group Co., Ltd. attended the meeting.
[News Tracking]
○COC submitted bid for Asian Games in Hangzhou
------
Chinese Olympic Committee (COC) has officially submitted to the Olympic Council of Asia (OCA) the bid for the 19th Asian Games in Hangzhou, capital city of Zhejiang Province in 2022, Xinhua News Agency reported. The OCA will vote for the host city of the 2022 Asian Games in Ashkhabad, Turkmenistan at its 34th congress on Sept. 16, 2015.
Comment: XFA reported on Aug.13 that Hangzhou's application for holding the Asian Games had attracted an investment of hundreds of billions of yuanin infrastructure, which activated the related real estate industry greatly. Among the listed companies, Hangzhou Iron ＆ Steel Co., Ltd. (600126.SH) is the only large-size iron and steel complex in Zhejiang Province and its actual controller is the State-owned Assets Supervision and Administration Commission of Zhejiang Province. The main products of Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) and Hangxiao Steel Structure Co., Ltd. (600477.SH) are steel structure products; Lander Real Estate Co., Ltd. (000558.SZ) has changed its name into Lander Sports Development Co., Ltd. on Aug. 18 and the majority premises of the company and Hangzhou Binjiang Real Estate Group Co., Ltd. (002244.SZ) are located in Hangzhou.
[Industry Information]
○Oil and gas reform sees frequent moves in recent days, overall plan to unveiled faster
------
Recently, quite a number of oil and gas reform measures have been taken. On Aug. 4, new head of CNOOC Limited (NYCEO) Yang Hua has organized a meeting for leaders on deepening reform at which the optimization and integration plan for oil refining and chemical industry was passed. In addition, the events that the import rights of local oil refining enterprises have been opened up and Xinjiang has initiated the invitation for bids in six zones have both demonstrated that the oil and gas reform is speeding up. As required by the spirit of the 2015 working conference on national economic system reform, the research on oil and gas reform plan will be accelerated and now it is approaching the deadline.
Comment: At present, oil price is at its low, which is favorable for the acceleration of reform. Moreover, according to the report of media, the Thirteenth Five-Year Plan for the oil and chemical industry has been initially drafted, which will strictly control total production volume and dissolve excessive capacity, a move indicating that industrial integration will quicken. In the aspect of companies, Sinopec Shangdong Taishan Petroleum Co., Ltd. (000554.SZ) and Yueyang Xingchang Petro-chemical Co., Ltd. (000819.SZ) under Sinopec, and Daqing Huake Company Limited (000985.SZ) and Jinan Diesel Engine Company Limited (000617.SZ) under PertroChina, have relatively low market value and so are expected to attract the attention of market.
○ Long March V finished significant ground test, aerospace manufacturing to see rapid development
------
The launch vehicle of Long March V rocket successfully made a second trial run of core secondary powertrain in Beijing at 16:35 on Aug. 17. This trail run is the final test of significant ground tests, laying foundation for the joint training at launching site and the first flight. The Long March V rocket is developed by the China Academy of Launch Vehicle Technology under the China Aerospace Science and Technology Corporation. It is expected to conduct the first flight test in 2016 and launch Chang'e V prober for the third phase of lunar exploration project at Hainan launching site around 2017.
Comment: The Long March V is a launch vehicle with the largest carrying capacity in China at present. Its development can drive the development of precision manufacturing of new materials and complex structural components and other fields. Companies engaged in aerospace manufacturing will see rapid development. Among the listed companies, Luoyang Bearing Science ＆ Technology Co., Ltd. (002046.SZ) provided supportive bearings and other related R＆D services for projects such as the Long March Four I and Chang'e series. The hydraulic transmission system of Shaanxi Aerospace Power Hi-Tech Co., Ltd. (600343.SH) was included in product series of a key national defense model with its development of technologies related to aerospace liquid-propellant rocket engine.
[Announcement Interpretation]
○ CSF holds shares of Markor International Home Furnishings ＆ Yankon Group
------
Markor International Home Furnishings Co., Ltd. (600337.SH) disclosed that as of Aug. 14, China Securities Finance Co., Ltd. (CSF) directly holds 14,296,500 shares of the company, accounting for 2.21 percent of the total share capital. Central Huijin Investment Ltd. holds 5.03 million shares, accounting for 0.78 percent of the total share capital. The interim report of Zhejiang Yankon Group Co., Ltd. (600261.SH) shows that as of July 31, the CSF holds 45,908,100 shares of the company, accounting for 3.16 percent of the total share capital and ranking as the third largest shareholder of the company.
○China Baoan to sell equities in Baoan Hongji Real Estate at over 70 pct premium
------
A wholly-owned subsidiary of China Baoan Group Co., Ltd. (000009.SZ) proposes to transfer 70.39 million shares in Baoan Hongji Real Estate Group Co., Ltd. (000040.SZ), accounting for 15 percent of the total share capital of Baoan Hongji Real Estate, to Tunghsu Group at 17 yuan per share with a total amount of 1,197 million yuan. China Baoan is expected to obtain a revenue of 820 million if the transaction is successful. Baoan Hongji Real Estate closed at 9.69 yuan before trading suspension. The transfer price represents a premium of over 70 percent.
Comment: Tunghsu Group, controlled by Li Zhaoting, is likely to become the biggest shareholder of Baoan Hongji Real Estate with a shareholding of 15 percent after the transaction. Shenzhen Donghongxin Investment Development Co., Ltd., the second biggest shareholder, holds 14.89 percent shares of Baoan Hongji Real Estate, which is close to that of Tunghsu Group.
○ CSC increases shareholding in Shahe Industry again
------
Shahe Industry Co., Ltd. (000014.SZ) disclosed that from July 29 to Aug. 14, the CSC Huitong (Shenzhen) Equities Investment Fund Co., Ltd. under the China Science ＆ Merchants Investment Management Group (CSC) increased the shareholding in the company by 10,092,900 shares, accounting for 5 percent of the total share capital. After the equities change, the CSC Huitong totally holds 20.22 million shares of Shahe Industry, accounting for 10.01 percent of the total share capital. This is the second time that the CSC has bought the share of Shahe Industry through secondary market acquisition to the 5 percent limit in one month. It may continue to increase the shareholding in the company in the following year.
Comment: Shahe Industry is of the local SOEs reform concept in Shenzhen City. The CSC once bought the share of Bgrimm Magnetic Materials ＆ Technology Co., Ltd. (600980.SH), which is a concept stock with the central enterprise reform concept, through secondary market acquisition to the 5 percent limit. It is reported that the CSC will establish a state-owned assets reform fund with 10 billion yuan to invest in the state-owned assets reform theme.
○ Guohua Life increases shareholding in East Lake High Technology in short time
-----
Wuhan East Lake High Technology Group Co., Ltd. (600133.SH) announced that Guohua Life bought 31.71 million shares of the company in two trading days from Aug. 14 to 17 through secondary market acquisition to the 5 percent limit. The average price for the increase in the shareholding by Guohua Life is 10.22 yuan with a total amount of 324 million yuan. East Lake High Technology soared by the daily limit of 10 percent on Aug. 14 and 17 with the latest stock price of 11 yuan. Previously, Guohua Life also bought the shares of Grinm Advanced Materials Co., Ltd. (600206.SH), Shanghai Tianchen Co., Ltd. (600620.SH), Shanghai New World Co., Ltd. (600628.SH) and Shenzhen Cau Technology Co., Ltd. (000004.SZ) through secondary market acquisition to the 5 percent limit.
○Subsidiary of Sotech Smarter Equipment receives big order for intelligent manufacturing
------
Sotech Smarter Equipment Co., Ltd. (300173.SZ) announced that Jiangxi Holitech Technology Co., Ltd. appointed Shenzhen Dayu CNC Technology limited, a wholly-owned subsidiary of Sotech Smarter Equipment to conduct the construction of the "intelligent factory". Dayu CNC Technology will consolidate the industrial resources and standardize technical services, including the manufacturing of 1,540 units of facilities, including the CNC engraving and milling machine with automatic and uninterrupted manipulators. The total amount is 332 million yuan, accounting for over 170 percent of the operation revenue of the listed company.
○ Guanhao High-Tech to issue employee shareholding plan
------
Guangdong Guanhao High-Tech Co., Ltd. (600433.SH) proposes to issue an employee shareholding plan to raise a total amount of no less than 20 million yuan. It will establish the preferred and secondary proportions at no more than 1:1. Huang Yangxu, the deputy chairman and general manager of the company, will guarantee the realization of the interests of the preferred proportion in the asset management plan. Meanwhile, the company also announced that its subsidiary Beijing Guanhao Technology Development Co., Ltd., proposed to contribute 60 million yuan in the establishment of Beijing Chengtong Zhongcai Technology Development Co., Ltd. with Zhuhai Minsheng Zhongcai E-commerce Co., Ltd. It will hold 60 percent equities of the company. The company will be engaged in Inter-based lottery businesses.
○Huaze Cobalt ＆ Nickel Material to relocate subsidiary and resume trading after industrial upgrading
------
Chengdu Huaze Cobalt ＆ Nickel Material Co., Ltd. (000693.SZ) will relocate its subsidiary Shaanxi Huaze Cobalt ＆ Nickel Material Co., Ltd. at the Kunming Road for industrial upgrading and significant investment. During the trading suspension of the company, the wholly-owned subsidiary and Shaanxi Xingwang Investment Holding Co., Ltd. propose to jointly establish a factory in Indonesia as the new nickel-based materials base.
[Financial Reports Express]
○ NFC expects growth in net profit
------
China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC, 000758.SZ) expects a year-on-year growth of 250 to 300 percent in its net profit in the first three quarters, mainly thanks to the increasing primary businesses and investment income.
○RAAS Blood Products proposes high share conversion
------
Shanghai RAAS Blood Products Co., Ltd. (002252.SZ) proposes a 10-for-10 conversion of capital surplus into shares according to its interim report. It expects its net profit to surge 220 to 250 percent year on year in the first three quarters. Kunming Longjin Pharmaceutical Co., Ltd. (002750.SZ) proposes a 20-for-10 conversion of capital surplus into shares according to its interim report. It expects its net profit to increase 0 to 20 percent year on year in the first three quarters.
[Trading Trends]
○Two institutes buy Anyuan Coal Industry
------
The trading volume ranking list on Aug. 17 shows that two institutional seats bought Anyuan Coal Industry Group Co., Ltd. (600397.SH) with a total of 202 million yuan, accounting for 40 percent of its intraday turnover. No institutional seat sold it.
Comment: The coal sector saw strong performance on the whole on Aug. 17. Institutes believe that Anyuan Coal Industry is actively expanding into new energy business and plans to become a big energy consolidation platform in Jiangxi Province. It is highly expected to conduct SOEs consolidation and reform.
>Accountability methods on environment damage launched, stakes added in environmental protection policies
> Scheme of oil and gas reform to launched faster, Long March V finished significant ground test,
>CSF invests in Markor International Home Furnishings ＆ Yankon Group, China Baoan to sell equities in Baoan Hongji Real Estate
>Shahe Industry ＆ East Lake High Technology saw increases in shareholding, Sotech Smarter Equipment receives big order for intelligent manufacturing
[XFA Focus]
○Accountability methods on environment damage launched, stakes added in environmental protection policies
------
The General Office of the Communist Party of China (CPC) Central Committee together with the General Office of the State Council launched the Accountability Methods on Environment Damage Caused by Leaders and Cadres of the Party and Government (Trial) on Aug.17 in full text. The method will focus on the accountability of the leaders and cadres of the Party and government this time. Those who lead to consequences like environment pollution and ecological damage will be held for responsible, while those who seriously go against with the planning of city and countryside, use of land, environment protection and etc. will also be held for responsible for their actions. The Organizing Department of the Central Committee of the Communist Party of China (CCCPC) indicates that this method will be a powerful tool in urging leaders and cadres of the Party and government to correctly perform their powers.
Comment: 2015 expects sufficient industrial policies for environmental protection: tax laws on environmental protection, the Action Plan for Preventing and Controlling Soil Pollution and etc. might be launched in succession. As measured by the Chinese Academy for Environmental Planning of the State Environmental Protection Administration (SEPA), the total social investment in environmental protection during the thirteenth five-year plan might exceed17 trillion yuan, equal to 500 percent of the figure during the twelfth five-year plan. Environmental protection, as an industry strongly pushed by policies, might be one of the directions benefiting from the state-owned enterprises reform (SOEs reform). Xi'an Qiyuan Mechanical and Electrical Equipment Co., Ltd. (300140.SZ), the only listed platform engaged in environmental protection business under central enterprise China Energy Conservation and Environmental Protection Group (CECEP), plans to acquire environmental protection asset through private placement; Wuxi Huaguang Boiler Co., Ltd. (600475.SH) terminated reorganization in April but indicated that its strategy of quickening transformation towards environment-friendly new energy will remain unchanged. The actual controller of Huaguang Boiler is the State-owned Assets Supervision and Administration Commission (SASAC) of Wuxi City, Jiangsu Province; Zhejiang Feida Environmental Science ＆ Technology Co., Ltd. (600526.SH) plans to fully cover three areas including the treatment of air, solid waste and water through private placement. The actual controller of the company is the SASAC of the People's Government of Zhejiang Province.
○Thirteenth five-year plan for big data to launched within year, hundreds-of-blns-of-yuan market to explored
------
The Ministry of Industry and Information Technology (MIIT) recently organized the first meeting for the formulation of the thirteenth five-year plan concerning big data industry, requiring strengthening special study on industrial big data, trading and security of big data, etc. areas. It is learnt that the plan is expected to be completed in the third quarter and be launched in the fourth quarter. The big data industry sees intensive launch of supportive policies recently. Topics of several executive meetings of the State Council are involved with big data. Notice on applying big data in the service and supervision to market players has been distributed, requiring governmental efforts in promoting the application of big data.
Comment: As an important owner of big data resources, the government will actively lead and promote the development of the industry by exploiting and utilizing data resources. Institutions predict that China's big data market, although still on its initial stage, saw a market scale of 76.7 billion yuan in 2014, and the scale will expand to 800 billion yuan in 2020. Enterprises providing IT infrastructure and solutions, engaged in the collection of big data, holding data resources, etc., such as Business-intelligence Of Oriental Nations Corp., Ltd. (300166.SZ) and Shenzhen Infogem Technologies Co., Ltd. (300085.SZ), will embrace opportunities to expand their market.
[XFA Selection]
○Sun Chunlan, Director of the United Front Work Department of CPC Central Committee, presided over a meeting on Aug. 17. The meeting deliberated on CPC Central Committee delegates' participation in Tibet’s 50th anniversary.
○The Plan on the Adjustment and Reform of Chinese Football Association unveiled on Aug. 17 proposes that Chinese Football Association should separate from the General Administration of Sport, making a breakthrough in football system reform.
○The Ministry of Agriculture released a circular in promoting mechanization of crop production and set a target that 68 percent of the production will be mechanized by 2020.
○The Information Office of the State Council will held a press conference on Aug. 18 where leaders from China Food and Drug Administration will present the progress of the approval system reform of drugs and medical equipment.
○State-owned Assets Supervision and Administration Commission of Jiangxi Province recently held a meeting, urging to accelerate works in state-owned assets reform. Principals of Xinyu Iron ＆ Steel Group Co., Ltd. attended the meeting.
[News Tracking]
○COC submitted bid for Asian Games in Hangzhou
------
Chinese Olympic Committee (COC) has officially submitted to the Olympic Council of Asia (OCA) the bid for the 19th Asian Games in Hangzhou, capital city of Zhejiang Province in 2022, Xinhua News Agency reported. The OCA will vote for the host city of the 2022 Asian Games in Ashkhabad, Turkmenistan at its 34th congress on Sept. 16, 2015.
Comment: XFA reported on Aug.13 that Hangzhou's application for holding the Asian Games had attracted an investment of hundreds of billions of yuanin infrastructure, which activated the related real estate industry greatly. Among the listed companies, Hangzhou Iron ＆ Steel Co., Ltd. (600126.SH) is the only large-size iron and steel complex in Zhejiang Province and its actual controller is the State-owned Assets Supervision and Administration Commission of Zhejiang Province. The main products of Zhejiang Southeast Space Frame Co., Ltd. (002135.SZ) and Hangxiao Steel Structure Co., Ltd. (600477.SH) are steel structure products; Lander Real Estate Co., Ltd. (000558.SZ) has changed its name into Lander Sports Development Co., Ltd. on Aug. 18 and the majority premises of the company and Hangzhou Binjiang Real Estate Group Co., Ltd. (002244.SZ) are located in Hangzhou.
[Industry Information]
○Oil and gas reform sees frequent moves in recent days, overall plan to unveiled faster
------
Recently, quite a number of oil and gas reform measures have been taken. On Aug. 4, new head of CNOOC Limited (NYCEO) Yang Hua has organized a meeting for leaders on deepening reform at which the optimization and integration plan for oil refining and chemical industry was passed. In addition, the events that the import rights of local oil refining enterprises have been opened up and Xinjiang has initiated the invitation for bids in six zones have both demonstrated that the oil and gas reform is speeding up. As required by the spirit of the 2015 working conference on national economic system reform, the research on oil and gas reform plan will be accelerated and now it is approaching the deadline.
Comment: At present, oil price is at its low, which is favorable for the acceleration of reform. Moreover, according to the report of media, the Thirteenth Five-Year Plan for the oil and chemical industry has been initially drafted, which will strictly control total production volume and dissolve excessive capacity, a move indicating that industrial integration will quicken. In the aspect of companies, Sinopec Shangdong Taishan Petroleum Co., Ltd. (000554.SZ) and Yueyang Xingchang Petro-chemical Co., Ltd. (000819.SZ) under Sinopec, and Daqing Huake Company Limited (000985.SZ) and Jinan Diesel Engine Company Limited (000617.SZ) under PertroChina, have relatively low market value and so are expected to attract the attention of market.
○ Long March V finished significant ground test, aerospace manufacturing to see rapid development
------
The launch vehicle of Long March V rocket successfully made a second trial run of core secondary powertrain in Beijing at 16:35 on Aug. 17. This trail run is the final test of significant ground tests, laying foundation for the joint training at launching site and the first flight. The Long March V rocket is developed by the China Academy of Launch Vehicle Technology under the China Aerospace Science and Technology Corporation. It is expected to conduct the first flight test in 2016 and launch Chang'e V prober for the third phase of lunar exploration project at Hainan launching site around 2017.
Comment: The Long March V is a launch vehicle with the largest carrying capacity in China at present. Its development can drive the development of precision manufacturing of new materials and complex structural components and other fields. Companies engaged in aerospace manufacturing will see rapid development. Among the listed companies, Luoyang Bearing Science ＆ Technology Co., Ltd. (002046.SZ) provided supportive bearings and other related R＆D services for projects such as the Long March Four I and Chang'e series. The hydraulic transmission system of Shaanxi Aerospace Power Hi-Tech Co., Ltd. (600343.SH) was included in product series of a key national defense model with its development of technologies related to aerospace liquid-propellant rocket engine.
[Announcement Interpretation]
○ CSF holds shares of Markor International Home Furnishings ＆ Yankon Group
------
Markor International Home Furnishings Co., Ltd. (600337.SH) disclosed that as of Aug. 14, China Securities Finance Co., Ltd. (CSF) directly holds 14,296,500 shares of the company, accounting for 2.21 percent of the total share capital. Central Huijin Investment Ltd. holds 5.03 million shares, accounting for 0.78 percent of the total share capital. The interim report of Zhejiang Yankon Group Co., Ltd. (600261.SH) shows that as of July 31, the CSF holds 45,908,100 shares of the company, accounting for 3.16 percent of the total share capital and ranking as the third largest shareholder of the company.
○China Baoan to sell equities in Baoan Hongji Real Estate at over 70 pct premium
------
A wholly-owned subsidiary of China Baoan Group Co., Ltd. (000009.SZ) proposes to transfer 70.39 million shares in Baoan Hongji Real Estate Group Co., Ltd. (000040.SZ), accounting for 15 percent of the total share capital of Baoan Hongji Real Estate, to Tunghsu Group at 17 yuan per share with a total amount of 1,197 million yuan. China Baoan is expected to obtain a revenue of 820 million if the transaction is successful. Baoan Hongji Real Estate closed at 9.69 yuan before trading suspension. The transfer price represents a premium of over 70 percent.
Comment: Tunghsu Group, controlled by Li Zhaoting, is likely to become the biggest shareholder of Baoan Hongji Real Estate with a shareholding of 15 percent after the transaction. Shenzhen Donghongxin Investment Development Co., Ltd., the second biggest shareholder, holds 14.89 percent shares of Baoan Hongji Real Estate, which is close to that of Tunghsu Group.
○ CSC increases shareholding in Shahe Industry again
------
Shahe Industry Co., Ltd. (000014.SZ) disclosed that from July 29 to Aug. 14, the CSC Huitong (Shenzhen) Equities Investment Fund Co., Ltd. under the China Science ＆ Merchants Investment Management Group (CSC) increased the shareholding in the company by 10,092,900 shares, accounting for 5 percent of the total share capital. After the equities change, the CSC Huitong totally holds 20.22 million shares of Shahe Industry, accounting for 10.01 percent of the total share capital. This is the second time that the CSC has bought the share of Shahe Industry through secondary market acquisition to the 5 percent limit in one month. It may continue to increase the shareholding in the company in the following year.
Comment: Shahe Industry is of the local SOEs reform concept in Shenzhen City. The CSC once bought the share of Bgrimm Magnetic Materials ＆ Technology Co., Ltd. (600980.SH), which is a concept stock with the central enterprise reform concept, through secondary market acquisition to the 5 percent limit. It is reported that the CSC will establish a state-owned assets reform fund with 10 billion yuan to invest in the state-owned assets reform theme.
○ Guohua Life increases shareholding in East Lake High Technology in short time
-----
Wuhan East Lake High Technology Group Co., Ltd. (600133.SH) announced that Guohua Life bought 31.71 million shares of the company in two trading days from Aug. 14 to 17 through secondary market acquisition to the 5 percent limit. The average price for the increase in the shareholding by Guohua Life is 10.22 yuan with a total amount of 324 million yuan. East Lake High Technology soared by the daily limit of 10 percent on Aug. 14 and 17 with the latest stock price of 11 yuan. Previously, Guohua Life also bought the shares of Grinm Advanced Materials Co., Ltd. (600206.SH), Shanghai Tianchen Co., Ltd. (600620.SH), Shanghai New World Co., Ltd. (600628.SH) and Shenzhen Cau Technology Co., Ltd. (000004.SZ) through secondary market acquisition to the 5 percent limit.
○Subsidiary of Sotech Smarter Equipment receives big order for intelligent manufacturing
------
Sotech Smarter Equipment Co., Ltd. (300173.SZ) announced that Jiangxi Holitech Technology Co., Ltd. appointed Shenzhen Dayu CNC Technology limited, a wholly-owned subsidiary of Sotech Smarter Equipment to conduct the construction of the "intelligent factory". Dayu CNC Technology will consolidate the industrial resources and standardize technical services, including the manufacturing of 1,540 units of facilities, including the CNC engraving and milling machine with automatic and uninterrupted manipulators. The total amount is 332 million yuan, accounting for over 170 percent of the operation revenue of the listed company.
○ Guanhao High-Tech to issue employee shareholding plan
------
Guangdong Guanhao High-Tech Co., Ltd. (600433.SH) proposes to issue an employee shareholding plan to raise a total amount of no less than 20 million yuan. It will establish the preferred and secondary proportions at no more than 1:1. Huang Yangxu, the deputy chairman and general manager of the company, will guarantee the realization of the interests of the preferred proportion in the asset management plan. Meanwhile, the company also announced that its subsidiary Beijing Guanhao Technology Development Co., Ltd., proposed to contribute 60 million yuan in the establishment of Beijing Chengtong Zhongcai Technology Development Co., Ltd. with Zhuhai Minsheng Zhongcai E-commerce Co., Ltd. It will hold 60 percent equities of the company. The company will be engaged in Inter-based lottery businesses.
○Huaze Cobalt ＆ Nickel Material to relocate subsidiary and resume trading after industrial upgrading
------
Chengdu Huaze Cobalt ＆ Nickel Material Co., Ltd. (000693.SZ) will relocate its subsidiary Shaanxi Huaze Cobalt ＆ Nickel Material Co., Ltd. at the Kunming Road for industrial upgrading and significant investment. During the trading suspension of the company, the wholly-owned subsidiary and Shaanxi Xingwang Investment Holding Co., Ltd. propose to jointly establish a factory in Indonesia as the new nickel-based materials base.
[Financial Reports Express]
○ NFC expects growth in net profit
------
China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd. (NFC, 000758.SZ) expects a year-on-year growth of 250 to 300 percent in its net profit in the first three quarters, mainly thanks to the increasing primary businesses and investment income.
○RAAS Blood Products proposes high share conversion
------
Shanghai RAAS Blood Products Co., Ltd. (002252.SZ) proposes a 10-for-10 conversion of capital surplus into shares according to its interim report. It expects its net profit to surge 220 to 250 percent year on year in the first three quarters. Kunming Longjin Pharmaceutical Co., Ltd. (002750.SZ) proposes a 20-for-10 conversion of capital surplus into shares according to its interim report. It expects its net profit to increase 0 to 20 percent year on year in the first three quarters.
[Trading Trends]
○Two institutes buy Anyuan Coal Industry
------
The trading volume ranking list on Aug. 17 shows that two institutional seats bought Anyuan Coal Industry Group Co., Ltd. (600397.SH) with a total of 202 million yuan, accounting for 40 percent of its intraday turnover. No institutional seat sold it.
Comment: The coal sector saw strong performance on the whole on Aug. 17. Institutes believe that Anyuan Coal Industry is actively expanding into new energy business and plans to become a big energy consolidation platform in Jiangxi Province. It is highly expected to conduct SOEs consolidation and reform.
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