[Today's Guide]
>Indonesia to adopt China's scheme, "going out" of high-speed railway constantly promoted
>State Council executive meeting plans sponge city construction to attract investment of 1 trillion yuan
>CNPC convenes meeting on deepening reform, oil and gas reform to speed up
>East Money Information, etc. nodded to acquire assets, Sino Geophysical plans private placement
[SSN Focus]
○Indonesia to adopt China's scheme, "going out" of high-speed railway constantly promoted
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Japanese media reported that Indonesian government representatives visited Japan on Sep. 29 and indicated that its first express railway project will not adopt Japan's scheme but welcome China's scheme. Spokesman of the Ministry of Foreign Affairs responded on the same day that China has rich experience in the construction and operation of the high-speed railway as well as greater advantages in cooperation modes, financing conditions, technological transfer and construction period. China supports substantial Chinese enterprises to cooperate with Indonesia in high-speed railway.
Comment: Higher cost performance of China's high-speed railway is increasingly accepted by international clients after China obtained the high-speed railway project in California, USA. Along with diversified investment and financing patterns, local governments increase their enthusiasm in high-speed railway and domestic railway construction is also constantly accelerated. Institutional analysts believe that the "going out" of high-speed railway has already been put in the first place of the "One Belt and One Road" strategy by senior governmental management, which will be greatly promoted, with industrial chain seeing in a new stage of stable growth. In terms of companies listed in the A-share market, Taiyuan Heavy Industry Co., Ltd. (600169.SH) grasps axle technology of motor train unit; Nanjing Kangni Mechanical ＆ Electrical Co., Ltd. (603111.SH) enters into post-market of railway through acquisition; China High Speed Railway Technology Co., Ltd. (000008.SZ) recently finished a 20-for-10 conversion with ex-right.
[TOP]
◆The National Development and Reform Commission gave an official and written reply on Beijing-Tianjin-Shenzhen urban railway transit project on Sep. 29, with a total investment of over 460 billion yuan.
[SSN Selection]
○The China Securities Regulatory Commission discloses the details about 11 types of illegal cases including insider trading and makes administrative punishments on eight illicit reducing of shareholding.
○The technology roadmap of the first key industry in the Made in China 2025 was released on Sept. 29, setting the development orientation and targets of ten key industries.
○The Standardization Administration releases the new national standard on energy efficiency for seven products, including the household refrigerator. It is expected to eliminate over 20 percent high energy-consuming products in the market.
○The position ratio of A-share investors as at last weekend reached 53.29 percent, representing a decrease in four consecutive weeks.
○The economic climate index in Eurozone hit a new high in more than four years in September. The three major European stock indexes significantly recovered after opening lower.
[Industry Information]
○State Council executive meeting plans sponge city construction to attract investment of 1 trillion yuan
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Chinese Premier Li Keqiang chaired the executive meeting of the State Council on Sept. 29, planning to accelerate the construction of sponge cities with smooth rain collection and drainage as well as reasonable use to effectively promote the new type of urbanization. The meeting determines to comprehensively facilitate the construction of sponge cities in new urban areas, various parks or development areas and highlight relevant requirements in the planning, construction, completion and other processes of infrastructure. It will encourage financial institutes in making innovations in credit businesses and support the construction of sponge cities to use the rain and promote the harmonious development between human and nature.
Comment: The sponge city is a comprehensive urban construction project, covering parks, greens as well as the drainage and water-logging prevention system. It requires stronger urban planning and design ability. Garden engineering, water conservancy construction and municipal design and consultancy companies will benefit. Institutes estimate that the construction of sponge cities will bring an investment demand of trillions of yuan. Among listed companies, Shenzhen Huakong SEG Co., Ltd. (000068.SZ) based on the capital strength of Tsinghua Holdings Co., Ltd. and the technical advantages in living environment, proposes to build models for the construction of sponge cities. JSTI Group (300284.SZ) has an outstanding ability in municipal design.
[TOP]
○CNPC convenes meeting on deepening reform, oil and gas reform to speed up
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The China National Petroleum Corporation (CNPC) held the sixth meeting on deepening reform on Sept. 28, which deliberated and approved four special plans, including the independent operation right, of the four enterprises under it in principle. It is also learnt that the CNPC recently convened a report meeting on the Thirteenth Five-Year plan. The meeting listened to the reports on the "Thirteenth Five-Year" development plan for domestic exploration and production business, and proposed to further develop the western China as well as strive to steadily increase oil and gas equivalent.
Comment: Xinjiang, as the key area piloting reform of CNPC, might highlight its thirteenth five-year plan. Enterprises involved in local oil and gas industrial chain will benefit. As to listed companies, Xinjiang Zhundong Petroleum Technology Co., Ltd. (002207.SZ), a local enterprise, is principally engaged in oilfield monitoring and management business; Xinjiang Dushanzi Tianli High ＆ New Tech Co., Ltd. (600339.SH), the actual controller of which is the State-owned Assets Supervision and Administration Commission of Xinjiang, is principally engaged in petrochemical business.
[TOP]
[Announcement Interpretation]
○East Money Information, etc. nodded to acquire assets
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The application of East Money Information Co., Ltd. (300059.SZ) on acquiring 100 percent equities of Xizang Tongxin Securities Co., Ltd. through private placement and the application of Jiangsu Zhongtian Technology Co., Ltd. (600522.SH) on acquiring 100 percent equities of Zhongtian Alloy Technology Co., Ltd., Zhongtian Broadband Technology Co., Ltd. and Jiangdong Fittings Equipment Co., Ltd. through private placement are unconditionally approved by the China Securities Regulatory Commission (CSRC), while the application of Shenzhen Jinxinnong Feed Co., Ltd. (002548.SZ) on acquiring 80 percent equities of Shenzhen VSOFO Communications Technology Co., Ltd. through private placement and the application of Nantong Jinghua Pharmaceutical Co., Ltd. (002349.SZ) on acquiring 100 percent equities of Rudong Dongli Enterprise Management Company Limited are conditionally passed by the CSRC.
[TOP]
○Sino Geophysical invests in oil and gas exploration through private placement with controlling shareholder and employee shareholding plan subscribing over 80 pct
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Sino Geophysical Co., Ltd. (300191.SZ) proposes to raise 250 million yuan by issuing 20.80 million shares at 12.03 yuan per share through private placement to invest in the oil and gas exploration in the Bohai Sea. Zhou Jinming, controlling shareholder of the company, will subscribe 16 million shares and the company's Phase I employee shareholding plan will subscribe 1 million shares. The duration of the plan lasts for 48 months, while the lock-up period of the stocks will last for 36 months.
○Lepu Medical Technology invests RMB350 mln in establishing Lepu Finance to explore integration of finance and medical service
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Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ) plans to invest 350 million yuan in establishing a fully-owned subsidiary Lepu (Shenzhen) Finance Holding Co., Ltd. in Qianhai Free Trade Zone, Shenzhen City. Lepu Finance Holding will act as the company's financial platform focusing on the finance of cardiovascular treatment industrial chain, explore business in areas including financial leasing, commercial factoring, investment fund, financing guarantee, insurance broker and Internet-based finance, and fully deepen the integration between the medical and medicine industry and the finance industry.
○Hongtao Decoration and GoerTek gain shareholding increase
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Liu Nianxin, actual controller of Shenzhen Hongtao Decoration Co., Ltd. (002325.SZ), further increases shareholding in the company by 200,000 shares at an average price of 11.25 yuan per share on Sept. 29. Jiang Bin, actual controller of GoerTek Inc. (002241.SZ), increased shareholding in the company by 2.52 million shares at an average price of 22.12 yuan per share on Sept. 28. According to the plan of shareholding increase, the cost is no less than 314 million yuan.
[Publication Suspension]
○SSN Early Bird will be suspended during the National Day holiday according to the trading suspension arrangement of Shanghai and Shenzhen stock exchanges and publication will be resumed on Oct. 7. Wish investors a happy holiday!
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