[Today's Guide]
> Guidance on deepening SOEs reform to release, state-owned assets operation platforms expected
> MOFCOM supports online and offline integration, channel resources value to highlight
> Pharmaceutical e-business integration to see policy supports, phar. enterprise with online business see higher growth in business revenue
> Jiangsu Etern and Changjiang Securities bought through secondary market acquisition to 5 pct limit, Actual controller of Zhongli Science and Technology to increase shareholding
[SSN Focus]
○ Guidance on deepening SOEs reform to release, state-owned assets operation platforms expected
------
According to the weibo of Xinhua News Agency, relevant officials of the State-owned Assets Supervision and Administration Commission (SASAC) indicated on Sept. 7 that the Guidance on Deepening State-owned Enterprises Reform has passed the deliberation of the Party Central Committee and will be officially released to the public soon.
Comment: Various policies supporting the state-owned enterprises (SOEs) reform have been introduced recently. Four ministries and commissions jointly issued a notice last week to encourage the merger and reorganization and support the consolidation of SOEs. Local SOEs reform at the provincial and municipal levels also speed up. Institutes believe that the model of the state-owned capitals operation like the Temasek in Singapore may provide reference to promoting the SOEs reform in China. It will set a new structure of powers and responsibilities of the SASAC and SOEs and improve the revenue of the state-owned capitals through equity operation. The State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government (Shanghai SASAC), which started earlier, has established two state-owned capital flow platforms, namely Shanghai Guosheng (Group) Co., Ltd. and Shanghai International Group, which have conducted actual operation. With the promotion of the model across the country, the consolidation of similar assets of the state-owned capital and the assets securitization are highly expected. Central enterprises to firstly conduct pilot management system reform are expected to catch attention.
[SSN Selection]
○ Shanghai and Shenzhen stock exchanges began soliciting public opinion on an index circuit breaker system, proposing to suspend the trading for half an hour when the CSI300 Index rises or falls by 5 percent and suspend trading until the closing time when it rises or falls by 7 percent.
○ The Shanghai Stock Exchange reinforces the management on options position limit. The investors, with the total position limit of 50 options, are allowed to open positions with no more than 100 options.
○ The celebration of the 50th anniversary of the establishment of the Tibet Autonomous Region will be held on Sept. 8 morning. China National Radio and CCTV will broadcast live.
○ The General Office of the State Council issues a document to accelerate the development of finance leasing industry, proposing to make its market scale and competitiveness rank high in the world by 2020.
○ Shandong Province issued the plan on the implementation of the transformation and upgrading of the real estate industry, proposing to speed up the reorganization and consolidation to cultivate large-scale real estate enterprise groups.
○ China Merchants Energy Shipping Co., Ltd. (601872.SH) and Sinotrans Air Transportation Development Co., Ltd. (600270.SH) denied rumors about the consolidation of the group, indicating that they have not received related notices from higher authorities.
[Industry Information]
○ MOFCOM supports online and offline integration, channel resources value to highlight
------
The Ministry of Commerce (MOFCOM) discloses at the routine press conference on Sept. 7 that it is drafting relevant policy documents to support the online and offline integration and facilitate the innovation and development of the commerce and trade circulation industry. The government work report of this year proposes to ensure that new forms of Internet-based spending, which combine online-offline activities, come to thrive.
Comment: Institutes believe the online and offline integrated development will give display to their own advantages. It will reduce the cost and improve the efficiency, meet the demands of consumers and promote the consumption growth. With the supporting of relevant policies, industry leaders are actively developing relevant businesses and the value of channel resources will be improved. Yonghui Superstores Co., Ltd. (601933.SH) recently announced that it proposes to conduct equity cooperation with JD.com, Inc. (NASDAQ: JD). Suning Commerce Group Co., Ltd. (002024.SZ) and Alibaba Group Holding Limited (NYSE: BABA) plan to invest in each other's shares through private placement. Besides, traditional retailers, including Hunan Friendship ＆ Apollo Commercial Co., Ltd. (002277.SZ), are also actively developing the O2O strategies.
○ Pharmaceutical e-business integration to see policy supports, phar. enterprise with online business see higher growth in business revenue
------
Shen Danyang, a spokesperson of the Ministry of Commerce (MOFCOM) indicated on Sept. 7 that the cross-border integration and development of pharmaceutical e-business will play a key role in the transformation of the service model in the medicine retail industry in the future. The MOFCOM will study and prepare the preparation of relevant policies, mechanism and criteria for the development of the pharmaceutical e-business with relevant departments to promote the sharing of the pharmaceuticals, medical treatment and prescription information with drugs retailers and facilitate the cross-border integration and development of pharmaceutical e-business.
Comment: the cross-border integration of pharmaceutical e-business will reduce the circulation cost of drugs and improve the circulation effect. By the end of the first half, the operation revenue of pharmaceutical enterprises qualified to conduct Internet-based transactions saw an average increase of over 50 percent, which is far higher than that of traditional circulation and sale models. Among listed companies, Zhejiang Conba Pharmaceutical Co., Ltd. (600572.SH) completed the further acquisition of Zhejiang Zhencheng Pharmaceutical Online Co., Ltd. in June, which owns a pharmaceutical e-business platform under independent development and operation. The e-business flagship store of Sunflower Pharmaceutical Group Co., Ltd. (002737.SZ) have opened on Tmall.com and JD.com, Inc. (NASDAQ: JD) have opened.
[Announcement Interpretation]
○ Jiangsu Etern bought by Ding brothers
------
Shanghai Dongchang Advertisement Co., Ltd., the shareholder of Jiangsu Etern Co., Ltd. (600105.SH), increased the shareholding in the company by 11.43 million shares on Sept. 2, accounting for 2.42 percent of its share capital. Shanghai Dongchang Enterprise Group, Ding Jianzu and Ding Jianyong are persons acting in concert with Dongchang Advertisement (Ding Jianzu and Ding Jianyong directly or indirectly invested in Dongchang Enterprise Group and Dongchang Advertisement). After the shareholding increase, they altogether hold 6.96 percent equities of the company. The acquiring company indicated that it bought Jiangsu Etern's equities because it is optimistic about the company's prospects.
○ Changjiang Securities bought by Three Gorges Capital through secondary market acquisition to 5 pct limit
------
Changjiang Securities Company Limited (000783.SZ) announces that as of Sept. 2, Three Gorges Capital Holding Co., Ltd., a wholly-owned subsidiary of China Three Gorges Corporation, bought 237 million shares of the company, accounting for 5 percent of its total share capital. Three Gorges Capital bought 147 million shares of Changjiang Securities at a price between 7.8 and 9.48 yuan per share in August and bought another 90.07 million shares at a price between 8.88 and 10.25 yuan per share in September. Three Gorges Capital will continue to increase the shareholding in the company in the following year. Previously, Guohua Life Insurance Co., Ltd. substantially increased the shareholding in Changjiang Securities. The latest stock price of the company closed at 9.95 yuan.
○ Actual controller of Zhongli Science and Technology to increase shareholding with maximum 60 pct premium
------
Wang Baixing, the actual controller of Zhongli Science and Technology Group Co., Ltd. (002309.SZ), proposes to increase the shareholding in the company by no less than 10 million shares at a price no more than 23 yuan per share, representing a maximum premium of 65 percent over the company's latest stock price - 13.93 yuan per share - in the following six months. In addition, Tu Shanzhong, the actual controller of Pubang Landscape Architecture Co., Ltd. (002663.SZ), increased the shareholding in the company by 4.50 million shares from Sept. 2 to 7. Juhua Group Corporation, the controlling shareholder of Zhejiang Juhua Co., Ltd. (600160.SH) increased the shareholding in the company by 4.30 million shares on Sept. 7.
○ By-health to buy shares of Find Bio-Tech to develop gene detection
------
By-health Co., Ltd. (300146.SZ) will buy the shares of Shanghai Find Bio-Tech Co., Ltd. with 87.60 million yuan. After the deal, By-health will hold over 19 percent equities of Find Bio-Tech. Meanwhile, GF Xinde Heath Fund, the limited partner of By-health, will hold 7 percent equities of Find Bio-Tech after the deal. Find Bio-Tech is committed to providing safe, accurate and fast gene detection services to the clinic and public.
○ Akcome Science and Technology to repurchase shares to implement employee shareholding plan
------
Jiangsu Akcome Science and Technology Co., Ltd. (002610.SZ) proposes to repurchase the shares of the company when it is appropriate before Nov. 1 for the implementation of an employee shareholding plan. The total repurchase amount shall be no more than 65.25 million yuan. It is expected to repurchase 7.25 million shares with the full amount at a repurchase price of no more than 9 yuan per share, accounting for 1 percent of the total share capital. The stock price of the company closed at 8.39 yuan on Sept. 7.
[Companies Hotspot]
○ China South Publishing ＆ Media to join Pearson Education to explore digital education
------
China South Publishing ＆ Media Group Co., Ltd. (601098.SH) will join hands with Pearson Education Ltd., the largest education publishing company in the world, to jointly explore the digital education market. Pearson Education, a leading education enterprise in the world, aims at providing teaching staff and students of all ages with quality education content, education information technology and all services related to education. It owns various well-known education brands including Longman and Wall Street English.
[Trading Trends]
○ Three institutes buy Shenzhen International Enterprise
------
The trading volume ranking list on Sept. 7 shows that three institutes buy Shenzhen International Enterprise Co., Ltd. (000056.SZ) with 82.05 million yuan, accounting for 53.4 percent of its intraday turnover. No institutional seat sold it out.
Comment: The major revenue source of the company is the rent of the Wongtee Paza. After more than one year of cultivation by the management team, the sales of the department store have increased month by month and the passenger volume is also increasing. Institutes believe that the company has introduced Beijing Tongchuangjiuding Investment Management Co., Ltd. as the listing platform of companies under Wongtee. Its transformation in the future is highly expected.
> Guidance on deepening SOEs reform to release, state-owned assets operation platforms expected
> MOFCOM supports online and offline integration, channel resources value to highlight
> Pharmaceutical e-business integration to see policy supports, phar. enterprise with online business see higher growth in business revenue
> Jiangsu Etern and Changjiang Securities bought through secondary market acquisition to 5 pct limit, Actual controller of Zhongli Science and Technology to increase shareholding
[SSN Focus]
○ Guidance on deepening SOEs reform to release, state-owned assets operation platforms expected
------
According to the weibo of Xinhua News Agency, relevant officials of the State-owned Assets Supervision and Administration Commission (SASAC) indicated on Sept. 7 that the Guidance on Deepening State-owned Enterprises Reform has passed the deliberation of the Party Central Committee and will be officially released to the public soon.
Comment: Various policies supporting the state-owned enterprises (SOEs) reform have been introduced recently. Four ministries and commissions jointly issued a notice last week to encourage the merger and reorganization and support the consolidation of SOEs. Local SOEs reform at the provincial and municipal levels also speed up. Institutes believe that the model of the state-owned capitals operation like the Temasek in Singapore may provide reference to promoting the SOEs reform in China. It will set a new structure of powers and responsibilities of the SASAC and SOEs and improve the revenue of the state-owned capitals through equity operation. The State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government (Shanghai SASAC), which started earlier, has established two state-owned capital flow platforms, namely Shanghai Guosheng (Group) Co., Ltd. and Shanghai International Group, which have conducted actual operation. With the promotion of the model across the country, the consolidation of similar assets of the state-owned capital and the assets securitization are highly expected. Central enterprises to firstly conduct pilot management system reform are expected to catch attention.
[SSN Selection]
○ Shanghai and Shenzhen stock exchanges began soliciting public opinion on an index circuit breaker system, proposing to suspend the trading for half an hour when the CSI300 Index rises or falls by 5 percent and suspend trading until the closing time when it rises or falls by 7 percent.
○ The Shanghai Stock Exchange reinforces the management on options position limit. The investors, with the total position limit of 50 options, are allowed to open positions with no more than 100 options.
○ The celebration of the 50th anniversary of the establishment of the Tibet Autonomous Region will be held on Sept. 8 morning. China National Radio and CCTV will broadcast live.
○ The General Office of the State Council issues a document to accelerate the development of finance leasing industry, proposing to make its market scale and competitiveness rank high in the world by 2020.
○ Shandong Province issued the plan on the implementation of the transformation and upgrading of the real estate industry, proposing to speed up the reorganization and consolidation to cultivate large-scale real estate enterprise groups.
○ China Merchants Energy Shipping Co., Ltd. (601872.SH) and Sinotrans Air Transportation Development Co., Ltd. (600270.SH) denied rumors about the consolidation of the group, indicating that they have not received related notices from higher authorities.
[Industry Information]
○ MOFCOM supports online and offline integration, channel resources value to highlight
------
The Ministry of Commerce (MOFCOM) discloses at the routine press conference on Sept. 7 that it is drafting relevant policy documents to support the online and offline integration and facilitate the innovation and development of the commerce and trade circulation industry. The government work report of this year proposes to ensure that new forms of Internet-based spending, which combine online-offline activities, come to thrive.
Comment: Institutes believe the online and offline integrated development will give display to their own advantages. It will reduce the cost and improve the efficiency, meet the demands of consumers and promote the consumption growth. With the supporting of relevant policies, industry leaders are actively developing relevant businesses and the value of channel resources will be improved. Yonghui Superstores Co., Ltd. (601933.SH) recently announced that it proposes to conduct equity cooperation with JD.com, Inc. (NASDAQ: JD). Suning Commerce Group Co., Ltd. (002024.SZ) and Alibaba Group Holding Limited (NYSE: BABA) plan to invest in each other's shares through private placement. Besides, traditional retailers, including Hunan Friendship ＆ Apollo Commercial Co., Ltd. (002277.SZ), are also actively developing the O2O strategies.
○ Pharmaceutical e-business integration to see policy supports, phar. enterprise with online business see higher growth in business revenue
------
Shen Danyang, a spokesperson of the Ministry of Commerce (MOFCOM) indicated on Sept. 7 that the cross-border integration and development of pharmaceutical e-business will play a key role in the transformation of the service model in the medicine retail industry in the future. The MOFCOM will study and prepare the preparation of relevant policies, mechanism and criteria for the development of the pharmaceutical e-business with relevant departments to promote the sharing of the pharmaceuticals, medical treatment and prescription information with drugs retailers and facilitate the cross-border integration and development of pharmaceutical e-business.
Comment: the cross-border integration of pharmaceutical e-business will reduce the circulation cost of drugs and improve the circulation effect. By the end of the first half, the operation revenue of pharmaceutical enterprises qualified to conduct Internet-based transactions saw an average increase of over 50 percent, which is far higher than that of traditional circulation and sale models. Among listed companies, Zhejiang Conba Pharmaceutical Co., Ltd. (600572.SH) completed the further acquisition of Zhejiang Zhencheng Pharmaceutical Online Co., Ltd. in June, which owns a pharmaceutical e-business platform under independent development and operation. The e-business flagship store of Sunflower Pharmaceutical Group Co., Ltd. (002737.SZ) have opened on Tmall.com and JD.com, Inc. (NASDAQ: JD) have opened.
[Announcement Interpretation]
○ Jiangsu Etern bought by Ding brothers
------
Shanghai Dongchang Advertisement Co., Ltd., the shareholder of Jiangsu Etern Co., Ltd. (600105.SH), increased the shareholding in the company by 11.43 million shares on Sept. 2, accounting for 2.42 percent of its share capital. Shanghai Dongchang Enterprise Group, Ding Jianzu and Ding Jianyong are persons acting in concert with Dongchang Advertisement (Ding Jianzu and Ding Jianyong directly or indirectly invested in Dongchang Enterprise Group and Dongchang Advertisement). After the shareholding increase, they altogether hold 6.96 percent equities of the company. The acquiring company indicated that it bought Jiangsu Etern's equities because it is optimistic about the company's prospects.
○ Changjiang Securities bought by Three Gorges Capital through secondary market acquisition to 5 pct limit
------
Changjiang Securities Company Limited (000783.SZ) announces that as of Sept. 2, Three Gorges Capital Holding Co., Ltd., a wholly-owned subsidiary of China Three Gorges Corporation, bought 237 million shares of the company, accounting for 5 percent of its total share capital. Three Gorges Capital bought 147 million shares of Changjiang Securities at a price between 7.8 and 9.48 yuan per share in August and bought another 90.07 million shares at a price between 8.88 and 10.25 yuan per share in September. Three Gorges Capital will continue to increase the shareholding in the company in the following year. Previously, Guohua Life Insurance Co., Ltd. substantially increased the shareholding in Changjiang Securities. The latest stock price of the company closed at 9.95 yuan.
○ Actual controller of Zhongli Science and Technology to increase shareholding with maximum 60 pct premium
------
Wang Baixing, the actual controller of Zhongli Science and Technology Group Co., Ltd. (002309.SZ), proposes to increase the shareholding in the company by no less than 10 million shares at a price no more than 23 yuan per share, representing a maximum premium of 65 percent over the company's latest stock price - 13.93 yuan per share - in the following six months. In addition, Tu Shanzhong, the actual controller of Pubang Landscape Architecture Co., Ltd. (002663.SZ), increased the shareholding in the company by 4.50 million shares from Sept. 2 to 7. Juhua Group Corporation, the controlling shareholder of Zhejiang Juhua Co., Ltd. (600160.SH) increased the shareholding in the company by 4.30 million shares on Sept. 7.
○ By-health to buy shares of Find Bio-Tech to develop gene detection
------
By-health Co., Ltd. (300146.SZ) will buy the shares of Shanghai Find Bio-Tech Co., Ltd. with 87.60 million yuan. After the deal, By-health will hold over 19 percent equities of Find Bio-Tech. Meanwhile, GF Xinde Heath Fund, the limited partner of By-health, will hold 7 percent equities of Find Bio-Tech after the deal. Find Bio-Tech is committed to providing safe, accurate and fast gene detection services to the clinic and public.
○ Akcome Science and Technology to repurchase shares to implement employee shareholding plan
------
Jiangsu Akcome Science and Technology Co., Ltd. (002610.SZ) proposes to repurchase the shares of the company when it is appropriate before Nov. 1 for the implementation of an employee shareholding plan. The total repurchase amount shall be no more than 65.25 million yuan. It is expected to repurchase 7.25 million shares with the full amount at a repurchase price of no more than 9 yuan per share, accounting for 1 percent of the total share capital. The stock price of the company closed at 8.39 yuan on Sept. 7.
[Companies Hotspot]
○ China South Publishing ＆ Media to join Pearson Education to explore digital education
------
China South Publishing ＆ Media Group Co., Ltd. (601098.SH) will join hands with Pearson Education Ltd., the largest education publishing company in the world, to jointly explore the digital education market. Pearson Education, a leading education enterprise in the world, aims at providing teaching staff and students of all ages with quality education content, education information technology and all services related to education. It owns various well-known education brands including Longman and Wall Street English.
[Trading Trends]
○ Three institutes buy Shenzhen International Enterprise
------
The trading volume ranking list on Sept. 7 shows that three institutes buy Shenzhen International Enterprise Co., Ltd. (000056.SZ) with 82.05 million yuan, accounting for 53.4 percent of its intraday turnover. No institutional seat sold it out.
Comment: The major revenue source of the company is the rent of the Wongtee Paza. After more than one year of cultivation by the management team, the sales of the department store have increased month by month and the passenger volume is also increasing. Institutes believe that the company has introduced Beijing Tongchuangjiuding Investment Management Co., Ltd. as the listing platform of companies under Wongtee. Its transformation in the future is highly expected.
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