[Today's Guide]
○Top design issued for rural reform, various agricultural property rights to clarify
○Work conference for southern Xinjiang to launch special supporting policies, infrastructure construction enterprises under Corps to benefit
○SGCC launches bidding of charging facilities, industry to see rapid development
○Fulin Transportation to purchase Automobile Long-distance Transportation, Rastar Group to control Espanyol
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[XFA Focus]
○Top design issued for rural reform, various agricultural property rights to clarify
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The General Office of the Communist Party of China and the State Council issued Comprehensive Implementation Scheme on Deepening Rural Reform on Nov. 2, proposing general requirement and task objects for China's current rural economic and social development reform, and overall design for reforms in key fields. It requires to focus on the reforms in five key fields, including collective property right system in rural areas, speed up the promotion on registration of use right confirmation for housing and collective construction lands, enhance the right confirmation of rural collective assets to each household based on classifications, improve collective forest right system, and guide the farmers to contract the operating right of land by turns through various patterns.
Comments: It is inevitable to clarify the property rights with the path of market-oriented economy. Actual shareholders of Jiangsu Huaxicun Co., Ltd. (000936.SZ), Zhejiang Hangmin Co., Ltd. (600987.SH) and etc. are their village committees, which can establish modern property right system with clear ownerships and defined rights ＆ obligations to further incent developing vigor of these villages. Collective construction land and contracting land are beneficial to take advantage of land resources to realize the scale operation, which will expand market space of agricultural machinery enterprises, such as First Tractor Company Limited (601038.SH), Xingguang Agricultural Machinery Co., Ltd. (603789.SH) and etc.
[SSN Selection]
○First made-in-China large plane C919 rolled off assembly lines. Chinese President Xi Jinping made important instruction and stressed that we should further improve China's equipment manufacturing capability.
○It is learnt by SSN that the National Development and Reform Commission is working on several price reforms, including water supply price and sewage treatment fees.
○Caixin China Manufacturing Purchasing Managers' Index (PMI) rose by 1.1 percentage points to 48.3 percent in October, which has been promoted by previous supporting policies for stable growth.
○Five ministers and commissions jointly issued documents and made arrangement for rural food safety administration to encourage highly-efficient, low-toxic and less-persistent pesticides, and promote the formula fertilization through soil testing.
○Mongolia President will pay a state visit to China from Nov. 9 to 11.
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[Industry Information]
○Work conference for southern Xinjiang to launch special supporting policies, infrastructure construction enterprises under Corps to benefit
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To implement the spirit of the Second Central Meeting on the Work of Xinjiang, especially to accelerate the development of the southern Xinjiang, as well as to further give play to Xinjiang Production and Construction Corps (the Corps) in maintaining stability, the work conference for the southern Xinjiang will be convened on Nov.3-4. A string of special supporting policies will be launched by then.
Comment: The Second Central Meeting on the Work of Xinjiang points out that the southern Xinjiang is an important part of Xinjiang region. As to its development, top design on the state-level will be mapped out and special policies will be carried out. Meanwhile, the meeting also points out that the role of the Corps can only be strengthened but can't be weakened. To accelerate the development of southern Xinjiang, infrastructure must be constructed first. Listed companies involved in infrastructure construction under the Corps, including Xinjiang Qingsong Building Materials and Chemicals（Group）Co., Ltd. (600425.SH) and Xinjiang Beixin Road ＆ Bridge Group Co., Ltd. (002307.SZ), might benefit.
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○SGCC launches bidding of 5th batch of charging facilities, industry to see rapid development
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The e-commerce platform under the State Grid Corporation of China (SGCC) recently unveiled the bidding result of the fifth batch of charging facilities, involving 30 packages of charging facilities and a total bidding amount of around 1.5 billion yuan.
Comment: According to the guideline on the development of charging infrastructure for electric vehicles, 12,000 charging stations and 4.8 million charging piles will be established by 2020, which can provide charging services to 5 million electric vehicles. The size of the charging piles (stations) market is expected to reach 132 billion yuan. In terms of listed companies, Hangzhou Zhongheng Electric Co., Ltd. (002364.SZ) has won an order with 90 million yuan for charging equipment, which is far above the market expectation. Xj Electric Co., Ltd. (000400.SZ) has obtained a market order of 179 million yuan. Its market share ranks high in the industry.
○Modernization of domestic trade circulation greatly supported, e-commerce to become important driver
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The national video and telephone conference on promoting modernization of domestic trade circulation is convened on Nov.2 in Beijing. Chinese Premier Li Keqiang remarks that accelerating the modernization of domestic trade circulation will be of great significance to the connection of production and consumption, the enhancement of effective domestic demand as well as the improvement of people's livelihood. Vice-Premier Wang Yang proposes to build China into a circulation power and create new development mode of cross-border e-commerce.
Comment: The State Council distributed the opinions on building a legalized operation environment for the promotion of domestic trade circulation modernization in August, proposing five measures including promoting the innovation of new circulation means like e-commerce. Analysts point out that the integration with Internet will greatly improve the effectiveness and efficiency of China's domestic trade circulation. As to listed companies, Sinotrans Air Transportation Development Co., Ltd. (600270.SH) plans to jointly build a cross-border e-commerce platform with Yiwu City, Zhejiang Province. The overseas shopping website operated by the company has gone live in end-2014; Zhejiang China Commodities City Group Co., Ltd. (600415.SH) operates a new-generation e-commerce platform.
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[Announcement Interpretation]
○Fulin Transportation to purchase Automobile Long-distance Transportation with RMB962 mln
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Sichuan Fulin Transportation Group Co., Ltd. (002357.SZ) plans to acquire 99.97 percent equity of Chengdu Automobile Long-distance Transportation (Group) Company from its controlling shareholder Sichuan Fulin Industrial Group Company at 962 million yuan of cash so as to achieve giants' alliance in road transport in Sichuan Province. This move is promised by the controlling shareholder to tackle horizontal competition. Net profit Fulin Transportation reached more than 70 million yuan in the first half of the year.
○Rastar Group to control Espanyol
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Rastar Group (300043.SZ) intends to acquire and increase its shareholding to 50.1 percent in RCD Espanyol at 64.35 million euros and undertakes guarantee for 41 million euros financing on it. Espanyol is one of the Spanish football league teams, ranking in the middle of the latest ranking list.
○Livzon Phar. Group to raise over RMB1.4 bln through private placement to expand medical business
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Livzon Pharmaceutical Group Inc. (000513.SZ) plans to raise 1,458 million yuan by issuing 38 million shares through private placement for investing in products of Aipu Lazuo series, microsphere products and antibody drugs and supplementing working capitals. After the fundraising projects are finished, the company's newly-added net profits are expected to reach 581 million yuan per year.
○Acquisitions of Hiconics Drive Technology and Shentong Valve approved
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Hiconics Drive Technology Co., Ltd. (300048.SZ) purchasing all equity of Beijing Huatai Runda Energy Conservation Technology Co., Ltd. and Jiangsu Shentong Valve Co., Ltd. (002438.SZ) purchasing 100 percent equity of Wuxi Flange Forging Co., Ltd. were approved by China Securities Regulatory Commission on no condition.
○Sinocera Functional Material to buy shares of Upcera
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Shandong Sinocera Functional Material Co., Ltd. (300285.SZ) plans to increase investment in Shenzhen Upcera, allowing it to acquire 25 percent equity in the company. Upcera devotes itself to dental ceramic for medical treatment and optical communication devices. It is one of the ceramic manufacturers with zirconia technology with the biggest output and sales and the first leading enterprise to promote digital oral cavity and 3D-printing false tooth in China, as well as the major client of nanoscale compound zirconia products of Sinocera Functional Material. Its net profits stood at 55.85 million yuan in 2014.
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