[Today's Guide]
>Cut of interest rates for lending and deposits to boost market confidence
>4G flow surges significantly, investment in network optimization to be intensified
>Aerospace manufacturing sees fast growth, industry to embrace rapid development
>Phoenix Publishing ＆ Media, Chasesun Phar. and others see shareholding increase
[SSN Focus]
○Cut of interest rates for lending and deposits to boost market confidence
------
The central bank determined to cut the interest rates for one-year lending and deposits by 0.25 percentage points and ease the restriction on the upper limit of the floating interest rate for time deposits of over one year from Aug. 26. From Sept. 6, it will lower the reserve requirement ratio (RRR) by 0.5 percentage points. The RRR for financial institutions in rural areas and for financial leasing companies and auto financing companies will be lowered by 0.5 and 0.3 percentage points, respectively. Institutes estimated that the overall and targeted RRR cut will release a total liquidity of approximately 700 billion yuan.
Comment: The cut of interest rate and RRR will reduce the financing costs of enterprises and support the work on agriculture, rural areas and farmers as well as small and micro enterprises. As the global capital market fluctuates violently, it fully shows the stance and resolve of the Chinese government in maintaining economic growth, prevents liquidity crisis and boosts market confidence. A low interest rate will advance the progress of the railway, water conservancy, underground pipe network and other projects to maintain investment growth. The Northbound Trading recorded a net buy of over 8 billion yuan for two consecutive days. Shanghai International Airport Co., Ltd. (600009.SH), Gree Electric Appliances, Inc. of Zhuhai (000651.SZ), Kweichow Moutai Co., Ltd. (600519.SH) and other blue-chip stocks favored by foreign capitals recovered first. It also shows that the long-term value after continuous decrease catches the attention from OTC capitals.
[SSN Selection]
○The sixth work conference on Tibet Autonomous Region of the central government was held on Aug. 24 to 25. Chinese President Xi Jinping emphasized ruling Tibet by law, richening people to boost Tibet and building Tibet in the long run.
○When meeting with the Vice Prime Minister of Kazakhstan, Chinese Premier Li Keqiang indicated that China is able to fulfill the major goal of economic development in 2015 and the exchange rate of RMB is unlikely to continue devaluation at present.
○China's electric energy production rose by nearly 4 percent year on year in early and mid-August. Institutions believed that it is mainly contributed by the stable recovery in infrastructure investment.
○China Financial Futures Exchange implements a series of measures on stock index futures to curb over-speculation, which include raising margin ratio and commission charge of intraday closing position.
○The proportion of trading accounts greatly surged from 30.22 percent last week to 36.27 percent and the number of accounts with positions also increased slightly.
○Caixin.com reports that Zhejiang Province has established Zhejiang Harbor Investment Group Co., Ltd.. The group will function as a platform to integrate the five major harbors of Zhejiang.
[Industry Information]
○4G flow surges significantly, investment in network optimization to be intensified
------
The data released by the Ministry of Industry and Information Technology of the PRC on Aug. 25 shows that the 4G users kept a high-speed growth trend in July with a net increase of over 25 million. The monthly average mobile internet access traffic per household reached 330.9M. The mobile phone traffic doubled for seven consecutive months. Due to the rapid growth of 4G mobile phone users and the constant declines in 4G package charges, the traffic consumption to the mobile internet has continued to obtain an explosive growth. The traffic access to the mobile internet reached 347 million G in July, setting a new high once again.
Comment: Currently, the top reshuffle of the three largest communications operators has already been completed. The market places higher expectation on further accelerating the internet speed and lowering the charges. Along with the rapid increase in 4G users, the average traffic per household is likely to continue the explosive growth. Insiders believe that it is inevitable for the operators to increase the efforts in optimizing the network coverage. Among the listed companies, Dingli Communications Corp., Ltd. (300050.SZ) and Sunwave Communications Co., Ltd. (002115.SZ) are providers of solutions to the optimization scheme on the mobile internet.
○Aerospace manufacturing sees fast growth, industry to embrace rapid development
------
The National Development and Reform Commission (NDRC) on Aug. 25 states on its web portal that active factors for economic development are gathering. The added-value of high-tech industries sees fast growth in July, growing by 9.6 percent year on year and up 0.4 percentage point compared with previous month. And, the added-value of aerospace vehicles and equipment manufacturing industry experiences a growth as high as 34.6 percent year on year, ranking the top among various industries.
Comment: Institutions believe that under the promotion of equipment upgrading and steady growth of military budget, aerospace manufacturing industry is embracing rapid development. Relevant enterprises gain more orders and this has been verified by the performance of some listed companies. Chengdu CORPRO Technology Co., Ltd. (300101.SZ), principally engaged in Beidou components and terminal systems, sees its net profit in the first half year growing by 265.43 percent year on year; with increasing income gained from aero-engine and derivative products, Avic Aviation Engine Corporation Plc. (600893.SH) expects its net profit in the first half year to grow by 59.82 percent.
[Announcement Interpretation]
○Phoenix Publishing ＆ Media, Chasesun Phar. and others see shareholding increase
------
By the time the news is released, nearly 40 companies in Shanghai and Shenzhen Stock Exchanges announce their shareholding increase. Companies whose shares are heavily bought include: Phoenix Group Co., Ltd., the substantial shareholder of Jiangsu Phoenix Publishing ＆ Media Corporation Limited (601928.SH), increases the shareholding in the latter by over 13.00 million shares with 166 million yuan from July 16 to Aug. 25; Tianjin Datong Investment Group Co. Ltd., the controlling shareholder of Tianjin Chasesun Pharmaceutical Co., Ltd. (300026.SZ), increases the shareholding in Chasesun Phar. by 5.83 million shares at an average price of 16.31 yuan per share. As of Aug. 25, Datong Investment Group sees a total of 197 million yuan used for shareholding increase. The actual controller of Sunvim Group Co., Ltd. (002083.SZ) and others increased the shareholding in the company by 9.30 million shares, accounting for 1.02 percent of the company's total share capital.
The controlling shareholder, certain directors and senior management of Shenzhen Selen Science ＆ Technology Co., Ltd. (002341.SZ) increase the shareholding in the company by 6.90 million shares in total with about 86.94 million yuan at an average price of 12.6 yuan per share. Xinjiang Tianye (Group) Co., Ltd, the substantial shareholder of Shandong Tyan Home Co., Ltd. (600807.SH) increases the shareholding in the company by 7.38 million shares with about 88.00 million yuan, accounting for 1.05 percent of the company's total share capital. In addition, the directors, supervisors and senior management of Fujian Newland Computer Co., Ltd. (000997.SZ) subscribe its asset management plan with 3 million yuan. Newland Science ＆ Technology Group Co., Ltd. and China Minsheng Banking Corp., Ltd. (600016.SH) will increase the shareholding in Newland Computer after financing 70 million yuan and 100 million yuan, respectively.
○Yangjie Electronic Technology to acquire three companies to speed up in international planning
------
Yangzhou Yangjie Electronic Technology Co., Ltd. (300373.Z) proposes to acquire 100 percent equities of American Micro Commercial Components Corporation (MCC), Microsemi Taiwan Co. Ltd. and Microsemi Shenzhen Co., Ltd. with 13.62 million U.S. dollars together with its wholly-owned subsidiary Yangjie Electronic Technology (Hong Kong) Company Limited. MCC, Microsemi Taiwan and Microsemi Shenzhen are professional companies engaged in the sales of semiconductor and their customers mainly cover well-known international enterprises in semiconductor industry in the North America, Southeast Asia, Hong Kong, Taiwan and etc.
○Heilan Home and Yongxing Special Stainless Steel complete staff shareholding plan
------
The Phase I staff shareholding plan of Heilan Home Co., Ltd. (600398.SH) has purchased 29.27 million shares of the company at an average price of 15.20 yuan per share and the lock-up period will last for 1 year. The company's latest stock price records 12.5 yuan per share.
The staff shareholding plan of Yongxing Special Stainless Steel Co., Ltd. (002756.SZ) purchases 2,358,000 shares of the company on Aug. 25 at an average price of 43.25 yuan per share, amounting to over 100 million yuan, and the lock-up period will last for 1 year. The company's latest stock price records 34.83 yuan per share.
[Financial Reports Express]
○Hongli Opto-Electronic proposes high share conversion
------
Guangzhou Hongli Opto-Electronic Co., Ltd. (300219.SZ) reports a year-on-year net profit increase of 81 percent in its semiyearly report and proposes a 15-for-10 conversion of capital surplus into shares.
>Cut of interest rates for lending and deposits to boost market confidence
>4G flow surges significantly, investment in network optimization to be intensified
>Aerospace manufacturing sees fast growth, industry to embrace rapid development
>Phoenix Publishing ＆ Media, Chasesun Phar. and others see shareholding increase
[SSN Focus]
○Cut of interest rates for lending and deposits to boost market confidence
------
The central bank determined to cut the interest rates for one-year lending and deposits by 0.25 percentage points and ease the restriction on the upper limit of the floating interest rate for time deposits of over one year from Aug. 26. From Sept. 6, it will lower the reserve requirement ratio (RRR) by 0.5 percentage points. The RRR for financial institutions in rural areas and for financial leasing companies and auto financing companies will be lowered by 0.5 and 0.3 percentage points, respectively. Institutes estimated that the overall and targeted RRR cut will release a total liquidity of approximately 700 billion yuan.
Comment: The cut of interest rate and RRR will reduce the financing costs of enterprises and support the work on agriculture, rural areas and farmers as well as small and micro enterprises. As the global capital market fluctuates violently, it fully shows the stance and resolve of the Chinese government in maintaining economic growth, prevents liquidity crisis and boosts market confidence. A low interest rate will advance the progress of the railway, water conservancy, underground pipe network and other projects to maintain investment growth. The Northbound Trading recorded a net buy of over 8 billion yuan for two consecutive days. Shanghai International Airport Co., Ltd. (600009.SH), Gree Electric Appliances, Inc. of Zhuhai (000651.SZ), Kweichow Moutai Co., Ltd. (600519.SH) and other blue-chip stocks favored by foreign capitals recovered first. It also shows that the long-term value after continuous decrease catches the attention from OTC capitals.
[SSN Selection]
○The sixth work conference on Tibet Autonomous Region of the central government was held on Aug. 24 to 25. Chinese President Xi Jinping emphasized ruling Tibet by law, richening people to boost Tibet and building Tibet in the long run.
○When meeting with the Vice Prime Minister of Kazakhstan, Chinese Premier Li Keqiang indicated that China is able to fulfill the major goal of economic development in 2015 and the exchange rate of RMB is unlikely to continue devaluation at present.
○China's electric energy production rose by nearly 4 percent year on year in early and mid-August. Institutions believed that it is mainly contributed by the stable recovery in infrastructure investment.
○China Financial Futures Exchange implements a series of measures on stock index futures to curb over-speculation, which include raising margin ratio and commission charge of intraday closing position.
○The proportion of trading accounts greatly surged from 30.22 percent last week to 36.27 percent and the number of accounts with positions also increased slightly.
○Caixin.com reports that Zhejiang Province has established Zhejiang Harbor Investment Group Co., Ltd.. The group will function as a platform to integrate the five major harbors of Zhejiang.
[Industry Information]
○4G flow surges significantly, investment in network optimization to be intensified
------
The data released by the Ministry of Industry and Information Technology of the PRC on Aug. 25 shows that the 4G users kept a high-speed growth trend in July with a net increase of over 25 million. The monthly average mobile internet access traffic per household reached 330.9M. The mobile phone traffic doubled for seven consecutive months. Due to the rapid growth of 4G mobile phone users and the constant declines in 4G package charges, the traffic consumption to the mobile internet has continued to obtain an explosive growth. The traffic access to the mobile internet reached 347 million G in July, setting a new high once again.
Comment: Currently, the top reshuffle of the three largest communications operators has already been completed. The market places higher expectation on further accelerating the internet speed and lowering the charges. Along with the rapid increase in 4G users, the average traffic per household is likely to continue the explosive growth. Insiders believe that it is inevitable for the operators to increase the efforts in optimizing the network coverage. Among the listed companies, Dingli Communications Corp., Ltd. (300050.SZ) and Sunwave Communications Co., Ltd. (002115.SZ) are providers of solutions to the optimization scheme on the mobile internet.
○Aerospace manufacturing sees fast growth, industry to embrace rapid development
------
The National Development and Reform Commission (NDRC) on Aug. 25 states on its web portal that active factors for economic development are gathering. The added-value of high-tech industries sees fast growth in July, growing by 9.6 percent year on year and up 0.4 percentage point compared with previous month. And, the added-value of aerospace vehicles and equipment manufacturing industry experiences a growth as high as 34.6 percent year on year, ranking the top among various industries.
Comment: Institutions believe that under the promotion of equipment upgrading and steady growth of military budget, aerospace manufacturing industry is embracing rapid development. Relevant enterprises gain more orders and this has been verified by the performance of some listed companies. Chengdu CORPRO Technology Co., Ltd. (300101.SZ), principally engaged in Beidou components and terminal systems, sees its net profit in the first half year growing by 265.43 percent year on year; with increasing income gained from aero-engine and derivative products, Avic Aviation Engine Corporation Plc. (600893.SH) expects its net profit in the first half year to grow by 59.82 percent.
[Announcement Interpretation]
○Phoenix Publishing ＆ Media, Chasesun Phar. and others see shareholding increase
------
By the time the news is released, nearly 40 companies in Shanghai and Shenzhen Stock Exchanges announce their shareholding increase. Companies whose shares are heavily bought include: Phoenix Group Co., Ltd., the substantial shareholder of Jiangsu Phoenix Publishing ＆ Media Corporation Limited (601928.SH), increases the shareholding in the latter by over 13.00 million shares with 166 million yuan from July 16 to Aug. 25; Tianjin Datong Investment Group Co. Ltd., the controlling shareholder of Tianjin Chasesun Pharmaceutical Co., Ltd. (300026.SZ), increases the shareholding in Chasesun Phar. by 5.83 million shares at an average price of 16.31 yuan per share. As of Aug. 25, Datong Investment Group sees a total of 197 million yuan used for shareholding increase. The actual controller of Sunvim Group Co., Ltd. (002083.SZ) and others increased the shareholding in the company by 9.30 million shares, accounting for 1.02 percent of the company's total share capital.
The controlling shareholder, certain directors and senior management of Shenzhen Selen Science ＆ Technology Co., Ltd. (002341.SZ) increase the shareholding in the company by 6.90 million shares in total with about 86.94 million yuan at an average price of 12.6 yuan per share. Xinjiang Tianye (Group) Co., Ltd, the substantial shareholder of Shandong Tyan Home Co., Ltd. (600807.SH) increases the shareholding in the company by 7.38 million shares with about 88.00 million yuan, accounting for 1.05 percent of the company's total share capital. In addition, the directors, supervisors and senior management of Fujian Newland Computer Co., Ltd. (000997.SZ) subscribe its asset management plan with 3 million yuan. Newland Science ＆ Technology Group Co., Ltd. and China Minsheng Banking Corp., Ltd. (600016.SH) will increase the shareholding in Newland Computer after financing 70 million yuan and 100 million yuan, respectively.
○Yangjie Electronic Technology to acquire three companies to speed up in international planning
------
Yangzhou Yangjie Electronic Technology Co., Ltd. (300373.Z) proposes to acquire 100 percent equities of American Micro Commercial Components Corporation (MCC), Microsemi Taiwan Co. Ltd. and Microsemi Shenzhen Co., Ltd. with 13.62 million U.S. dollars together with its wholly-owned subsidiary Yangjie Electronic Technology (Hong Kong) Company Limited. MCC, Microsemi Taiwan and Microsemi Shenzhen are professional companies engaged in the sales of semiconductor and their customers mainly cover well-known international enterprises in semiconductor industry in the North America, Southeast Asia, Hong Kong, Taiwan and etc.
○Heilan Home and Yongxing Special Stainless Steel complete staff shareholding plan
------
The Phase I staff shareholding plan of Heilan Home Co., Ltd. (600398.SH) has purchased 29.27 million shares of the company at an average price of 15.20 yuan per share and the lock-up period will last for 1 year. The company's latest stock price records 12.5 yuan per share.
The staff shareholding plan of Yongxing Special Stainless Steel Co., Ltd. (002756.SZ) purchases 2,358,000 shares of the company on Aug. 25 at an average price of 43.25 yuan per share, amounting to over 100 million yuan, and the lock-up period will last for 1 year. The company's latest stock price records 34.83 yuan per share.
[Financial Reports Express]
○Hongli Opto-Electronic proposes high share conversion
------
Guangzhou Hongli Opto-Electronic Co., Ltd. (300219.SZ) reports a year-on-year net profit increase of 81 percent in its semiyearly report and proposes a 15-for-10 conversion of capital surplus into shares.
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