[Today's Guide]
>Central leading group for deepening overall reform supports development and opening up of border areas, investment in infrastructure to accelerated
>Wanjiang Logistics explores into energy industry, Jingfeng Phar. and others see shareholding increase
>CSRC approves reorganization of TONTEC Technology, etc., Jinhe Industrial to invest RMB100 mln to repurchase stocks
>MIIT promotes automobile intelligentization, industry size to up by RMB100 bln
[SSN Focus]
○Central leading group for deepening overall reform supports development and opening up of border areas, investment in infrastructure to accelerated
------
Chinese President Xi Jinping on Sept. 15 held the 16th meeting of the Central Leading Group for Deepening Overall Reform which approved the Opinions on Supporting Certain Policy Measures for the Development and Opening up of Key Border Areas. It requires deeply facilitating actions vitalizing border areas and enriching the people living there, strengthening infrastructure construction and exploring new mode of innovative cross-border economic cooperation. On the same day, good news concerning border areas are launched intensively: the establishment of the Central Yunnan Industry Cluster New Area is nodded by the State Council; the National Development and Reform Commission (NDRC) approves six road projects with three of them located in Inner Mongolia and two located in the Xinjiang Uygur Autonomous Region; the Ministry of Foreign Affairs announces that Chinese Vice Premier Zhang Gaoli will attend the 12th China-ASEAN EXPO to be inaugurated on Sept. 18 in Nanning, capital of the Guangxi Zhuang autonomous region.
Comment: The opening up of border areas brings huge opportunity to backward border areas, but weak infrastructure resulted in limited level of opening up. Multiple border provinces have targeted the establishment of international channels as local economic development strategy. Continuous policy support will quicken investment in infrastructure. According to uncomplete statistics, listed companies involved in transportation and building materials which are located in border provinces include Guangxi Wuzhou Communications Co., Ltd. (600368.SH), Xinjiang Beixin Road ＆ Bridge Group Co., Ltd. (002307.SZ) and Xinjiang Qingsong Building Materials and Chemicals (Group) Co., Ltd. (600425.SH).
[SSN Selection]
○Li Chao replaces Zhuang Xinyi after his retirement as vice-chairman of the China Securities Regulatory Commission (CSRC). Li made large achievements in the crackdown on "hot money" when he worked for the State Administration of Foreign Exchange.
○The National Development and Reform Commission (NDRC) indicates on the press conference held on Sept. 15 that China will establish cross-departments coordination mechanism to guarantee the progress of comprehensive innovative reform experiment.
○The year-on-year growth of total power consumption in Aug. recovered to 1.9 percent. The power consumption by the tertiary industry increases by 7.8 percent, suggesting that the economic structural adjustment gradually takes effect.
○Chongqing Daily reported on Sept.15 that the Chongqing State-owned Assets Supervision and Administration Commission (SASAC) is preparing the formulation of the Implementation Scheme on Deepening State-Owned Enterprises Reform in Chongqing.
○Cheng Boming, General Manager of Citic Securities Company Limited (600030.SH; 06030.HK), and etc. are under investigation by the public security organ in accordance with law due to suspicion of insider trading, divulging insider information, etc.
[Announcement Interpretation]
○Wanjiang Logistics explores into energy industry
------
Anhui Wanjiang Logistics (Group) Co., Ltd. (600575.SH) proposes to acquire 50.43 percent equities of Huaihu Coal Power Co., Ltd., 49 percent equities of Huaihu Electricity Co., Ltd. and 100 percent equities of Huainan Electricity Generation Co., Ltd. by issuing shares and paying cash. The three companies are all subsidiaries of Huainan Mining Industry (Group) Co., Ltd. Wanjiang Logistics will pay 75 percent of deal by issuing 761 million shares to Huainan Mining Industry through private placement at a price of 3.98 yuan per share and 25 percent of the deal in cash. After converting to equity proportion, the predicted value of underlying assets is 4,039 million yuan. Meanwhile, the company plans to raise 1.01 billion yuan supporting funds.
Comment: It has been one year since the company suspended trading last year. After the reorganization, the company will upgrade its main business from logistics business to diversified businesses combined with energy and logistics, thus forming a diversified business platform.
○Jingfeng Phar. and others see shareholding increase
------
Hunan Jingfeng Pharmaceutical Co., Ltd. (000908.SZ) announces that Ye Xianghu, the controlling shareholder of the company, increases the shareholding in the company by 5.28 million shares, and China Great Wall Asset Management Corporation, its second biggest shareholder, increases the shareholding in the company by 8.94 million shares, with a total of 190 million yuan. Luxin Group, the controlling shareholder of Luxin Venture Capital Group Co., Ltd. (600783.SH) increases the shareholding in the company by 0.82 million shares at an average price of 18.20 per share on Sept. 15. Shanghai Lanhai＆ Life Insurance Medical Industry Co., Ltd., the substantial shareholder of China Shipping Haisheng Co., Ltd. (600896.SH), increases the shareholding in the company by 2.83 million shares on Sept. 15. Qin Liqian, the actual controller of Jinzhou New China Dragon Molybdenum Co., Ltd. (603399.SH) increases the shareholding in the company by 2.00 million shares at an average price of 7.68 yuan per share on Sept. 15. GuandongHighsun Enterprise Group Corporation, the controlling shareholder of Guangdong Highsun Group Co., Ltd. (000861.SZ) increases the shareholding in the company by 2.00 million shares at an average price of 5.4 yuan per share on Sept. 15.
○CSRC approves reorganization of TONTEC Technology, Jiuzhou Electric ＆Anke Biotech.
------
The China Securities Regulatory Commission (CSRC) unconditionally approved the acquisition and reorganization of TONTEC Technology Investment Group Co., Ltd. (600862.SH), Harbin Jiuzhou Electric Co., Ltd. (300040.SZ), AnhuiAnke Biotechnology (Group) Co., Ltd. (300009.SZ). After reorganization, TONTEC Technology will become an aviation and military company controlled by AVIC Hi-tech Development Co., Ltd.
○Jinhe Industrial to invest RMB100 mln to repurchase stocks
------
Anhui Jinhe Industrial Co., Ltd. (002597.SZ) plans to repurchase its shares at no more than 100 million yuan with the ceiling price of 13 yuan per share. If repurchasing at full amount, it is expected to repurchase 7.69 million shares at least, accounting for at least 1.35 percent of its total share capital. The company also announces on the same day that it will set up industrial merger and acquisition funds together with JZ Securities as a platform for its industrial merger and acquisition. The funds size is set to be 1 billion yuan temporarily.
○Humanwell Healthcare invests RMB500 mln to establish subsidiary in Wuhan
------
Humanwell Healthcare (group) Co., Ltd. (600079.SH) intends to invest 500 million yuan to establish a wholly-owned subsidiary Wuhan Humanwell Medical Group Co., Ltd. as a platform for the company's investment and management in healthcare service field. It will develop about 20 hospitals in next 3 to 5 years. The company also plans to contribute 150 million yuan to found Women and Children Healthcare Management Co., Ltd. in Xiaonan District jointly with Xiaogan prefecture city, Wuhan City, which will take charge of management and operation of the maternal and child care service center in Xiaonan District. In addition, its fully-owned subsidiary Hubei Humanwell Pharmaceutical Excipients Co., Ltd. is listed on the National Equities Exchange and Quotations (NEEQ), commonly known as the New Third Board, on Sept. 15.
[Industry Information]
○MIIT promotes automobile intelligentization, industry size to up by RMB100 bln
------
The Ministry of Industry and Information Technology (MIIT) and the People's Government of Zhejiang Province recently signed the Cooperation Framework Agreement on the Application of Intelligent Vehicle and Smart Communication based on Broadband Mobile Internet. HuaiJinpeng, vice-minister of the MIIT attended the meeting and addressed that the MIIT is aggressively promoting implementation of "Made in China 2025" and "Internet plus" action plan. One of the most important targets is to advance the in-depth integration of new-generation information technology and automobile industry.
Comment: The global automobile electronization ratio is speeding up. Institutions predict that the market size will reach 240 billion U.S. dollars by 2016. The ration in China is expected to increase from 10 percent-15 percent to the overseas average 30 percent, bringing the new market size with 100 billion yuan. Leading in vehicle brake industry in China, Zhejiang Asia-pacific Mechanical ＆ Electronic Co., Ltd. (002284.SZ) sets about developing intelligent drive for several times in 2015. Helbako, with investment from Ningbo Huaxiang Electronic Co., Ltd. (002048.SZ), manufactures automobile electronic products targeting clients such as BMW and Mercedes-Benz, etc.
>Central leading group for deepening overall reform supports development and opening up of border areas, investment in infrastructure to accelerated
>Wanjiang Logistics explores into energy industry, Jingfeng Phar. and others see shareholding increase
>CSRC approves reorganization of TONTEC Technology, etc., Jinhe Industrial to invest RMB100 mln to repurchase stocks
>MIIT promotes automobile intelligentization, industry size to up by RMB100 bln
[SSN Focus]
○Central leading group for deepening overall reform supports development and opening up of border areas, investment in infrastructure to accelerated
------
Chinese President Xi Jinping on Sept. 15 held the 16th meeting of the Central Leading Group for Deepening Overall Reform which approved the Opinions on Supporting Certain Policy Measures for the Development and Opening up of Key Border Areas. It requires deeply facilitating actions vitalizing border areas and enriching the people living there, strengthening infrastructure construction and exploring new mode of innovative cross-border economic cooperation. On the same day, good news concerning border areas are launched intensively: the establishment of the Central Yunnan Industry Cluster New Area is nodded by the State Council; the National Development and Reform Commission (NDRC) approves six road projects with three of them located in Inner Mongolia and two located in the Xinjiang Uygur Autonomous Region; the Ministry of Foreign Affairs announces that Chinese Vice Premier Zhang Gaoli will attend the 12th China-ASEAN EXPO to be inaugurated on Sept. 18 in Nanning, capital of the Guangxi Zhuang autonomous region.
Comment: The opening up of border areas brings huge opportunity to backward border areas, but weak infrastructure resulted in limited level of opening up. Multiple border provinces have targeted the establishment of international channels as local economic development strategy. Continuous policy support will quicken investment in infrastructure. According to uncomplete statistics, listed companies involved in transportation and building materials which are located in border provinces include Guangxi Wuzhou Communications Co., Ltd. (600368.SH), Xinjiang Beixin Road ＆ Bridge Group Co., Ltd. (002307.SZ) and Xinjiang Qingsong Building Materials and Chemicals (Group) Co., Ltd. (600425.SH).
[SSN Selection]
○Li Chao replaces Zhuang Xinyi after his retirement as vice-chairman of the China Securities Regulatory Commission (CSRC). Li made large achievements in the crackdown on "hot money" when he worked for the State Administration of Foreign Exchange.
○The National Development and Reform Commission (NDRC) indicates on the press conference held on Sept. 15 that China will establish cross-departments coordination mechanism to guarantee the progress of comprehensive innovative reform experiment.
○The year-on-year growth of total power consumption in Aug. recovered to 1.9 percent. The power consumption by the tertiary industry increases by 7.8 percent, suggesting that the economic structural adjustment gradually takes effect.
○Chongqing Daily reported on Sept.15 that the Chongqing State-owned Assets Supervision and Administration Commission (SASAC) is preparing the formulation of the Implementation Scheme on Deepening State-Owned Enterprises Reform in Chongqing.
○Cheng Boming, General Manager of Citic Securities Company Limited (600030.SH; 06030.HK), and etc. are under investigation by the public security organ in accordance with law due to suspicion of insider trading, divulging insider information, etc.
[Announcement Interpretation]
○Wanjiang Logistics explores into energy industry
------
Anhui Wanjiang Logistics (Group) Co., Ltd. (600575.SH) proposes to acquire 50.43 percent equities of Huaihu Coal Power Co., Ltd., 49 percent equities of Huaihu Electricity Co., Ltd. and 100 percent equities of Huainan Electricity Generation Co., Ltd. by issuing shares and paying cash. The three companies are all subsidiaries of Huainan Mining Industry (Group) Co., Ltd. Wanjiang Logistics will pay 75 percent of deal by issuing 761 million shares to Huainan Mining Industry through private placement at a price of 3.98 yuan per share and 25 percent of the deal in cash. After converting to equity proportion, the predicted value of underlying assets is 4,039 million yuan. Meanwhile, the company plans to raise 1.01 billion yuan supporting funds.
Comment: It has been one year since the company suspended trading last year. After the reorganization, the company will upgrade its main business from logistics business to diversified businesses combined with energy and logistics, thus forming a diversified business platform.
○Jingfeng Phar. and others see shareholding increase
------
Hunan Jingfeng Pharmaceutical Co., Ltd. (000908.SZ) announces that Ye Xianghu, the controlling shareholder of the company, increases the shareholding in the company by 5.28 million shares, and China Great Wall Asset Management Corporation, its second biggest shareholder, increases the shareholding in the company by 8.94 million shares, with a total of 190 million yuan. Luxin Group, the controlling shareholder of Luxin Venture Capital Group Co., Ltd. (600783.SH) increases the shareholding in the company by 0.82 million shares at an average price of 18.20 per share on Sept. 15. Shanghai Lanhai＆ Life Insurance Medical Industry Co., Ltd., the substantial shareholder of China Shipping Haisheng Co., Ltd. (600896.SH), increases the shareholding in the company by 2.83 million shares on Sept. 15. Qin Liqian, the actual controller of Jinzhou New China Dragon Molybdenum Co., Ltd. (603399.SH) increases the shareholding in the company by 2.00 million shares at an average price of 7.68 yuan per share on Sept. 15. GuandongHighsun Enterprise Group Corporation, the controlling shareholder of Guangdong Highsun Group Co., Ltd. (000861.SZ) increases the shareholding in the company by 2.00 million shares at an average price of 5.4 yuan per share on Sept. 15.
○CSRC approves reorganization of TONTEC Technology, Jiuzhou Electric ＆Anke Biotech.
------
The China Securities Regulatory Commission (CSRC) unconditionally approved the acquisition and reorganization of TONTEC Technology Investment Group Co., Ltd. (600862.SH), Harbin Jiuzhou Electric Co., Ltd. (300040.SZ), AnhuiAnke Biotechnology (Group) Co., Ltd. (300009.SZ). After reorganization, TONTEC Technology will become an aviation and military company controlled by AVIC Hi-tech Development Co., Ltd.
○Jinhe Industrial to invest RMB100 mln to repurchase stocks
------
Anhui Jinhe Industrial Co., Ltd. (002597.SZ) plans to repurchase its shares at no more than 100 million yuan with the ceiling price of 13 yuan per share. If repurchasing at full amount, it is expected to repurchase 7.69 million shares at least, accounting for at least 1.35 percent of its total share capital. The company also announces on the same day that it will set up industrial merger and acquisition funds together with JZ Securities as a platform for its industrial merger and acquisition. The funds size is set to be 1 billion yuan temporarily.
○Humanwell Healthcare invests RMB500 mln to establish subsidiary in Wuhan
------
Humanwell Healthcare (group) Co., Ltd. (600079.SH) intends to invest 500 million yuan to establish a wholly-owned subsidiary Wuhan Humanwell Medical Group Co., Ltd. as a platform for the company's investment and management in healthcare service field. It will develop about 20 hospitals in next 3 to 5 years. The company also plans to contribute 150 million yuan to found Women and Children Healthcare Management Co., Ltd. in Xiaonan District jointly with Xiaogan prefecture city, Wuhan City, which will take charge of management and operation of the maternal and child care service center in Xiaonan District. In addition, its fully-owned subsidiary Hubei Humanwell Pharmaceutical Excipients Co., Ltd. is listed on the National Equities Exchange and Quotations (NEEQ), commonly known as the New Third Board, on Sept. 15.
[Industry Information]
○MIIT promotes automobile intelligentization, industry size to up by RMB100 bln
------
The Ministry of Industry and Information Technology (MIIT) and the People's Government of Zhejiang Province recently signed the Cooperation Framework Agreement on the Application of Intelligent Vehicle and Smart Communication based on Broadband Mobile Internet. HuaiJinpeng, vice-minister of the MIIT attended the meeting and addressed that the MIIT is aggressively promoting implementation of "Made in China 2025" and "Internet plus" action plan. One of the most important targets is to advance the in-depth integration of new-generation information technology and automobile industry.
Comment: The global automobile electronization ratio is speeding up. Institutions predict that the market size will reach 240 billion U.S. dollars by 2016. The ration in China is expected to increase from 10 percent-15 percent to the overseas average 30 percent, bringing the new market size with 100 billion yuan. Leading in vehicle brake industry in China, Zhejiang Asia-pacific Mechanical ＆ Electronic Co., Ltd. (002284.SZ) sets about developing intelligent drive for several times in 2015. Helbako, with investment from Ningbo Huaxiang Electronic Co., Ltd. (002048.SZ), manufactures automobile electronic products targeting clients such as BMW and Mercedes-Benz, etc.
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