[Today's Guide]
○Central bank eases restriction on online payment amount, benefiting payment industry
○Institutes inspect automotive aftermarket, technology giants increase investments
○Forthcoming New Year sparks film market, cinema companies to benefit
○Zhiguang Electric to add stakes in primary business through private placement, Suzhou TA＆A Ultra Clean Technology proposes high share conversion
[SSN Focus]
○Central bank eases restriction on online payment amount, benefiting payment industry
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The People's Bank of China, the central bank, on Dec. 28 issued the Management Method on Online Payment Business for Nonbanking Payment Institutions, which will take effect from July 1, 2016. The exposure draft released in August once proposed that accumulative daily payment of the third-party payment accounts shall not exceed 5,000 yuan for each client, but the final one defined the payment institutions into A, B and C categories, and daily payment amounts for clients in A and B can be raised to 10,000 yuan and 7,500 yuan, respectively. The clients will not be restricted by this rule, if they carry out the payments through bank gateway, quick payment of bank card or two-dimension code.
Comment: The central bank has eased restriction on payment amount based on separated supervision. Leading industrial companies will benefit from this. Last year, transaction scale of China's third-party internet-based payment surpassed 8 trillion yuan, up by 50 percent year on year. In terms of A-share companies, Shenzhen Tempus Global Business Service Holding Ltd. (300178.SZ) has the third-party payment brand TFTPay; Fujian Newland Computer Co., Ltd. (000997.SZ) cooperates with AliPay on two-dimension code equipment; Cardinfo Anypay held by Tatwah Smarttech Co., Ltd. (002512.SZ) signs cooperative agreement with Tenpay.
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[SSN Selection]
○Official micro-blog of the State Administration of Foreign Exchange indicated that the monitoring system for individual foreign exchange business to be issued soon will not get involved in policy adjustment for individual foreign exchange purchase, and is not related to fluctuation of domestic capital market.
○22 ministries and commissions, including National Development and Reform Commission and China Securities Regulatory Commission, jointly issued a memo to punish the related responsibility subjects of listed companies which break the laws and regulations.
○The National Financial Work Conference held on Dec. 28 proposes to improve deficit rate phase by phase, support and promote the reform of state-owned financial institutions in 2016.
○The exposure draft of Management Method on P2P Information Agencies clearly bans 12 behaviors, which is likely to promote great shuffle of P2P industry.
○A sales company under the China Petroleum ＆ Chemical Corp. (SNP.NYSE) organizes and builds the board of supervisors for its board of directors for the first time. Sinopec Group integrates its subsidiaries, PetroChina Kunlun Gas Co., Ltd. and Kunlun Energy Company Limited.
[Industry Information]
○Institutes inspect automotive aftermarket, technology giants increase investments
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SSN learnt that many institutes, including China International Capital Corporation Limited (CICC), Guangzhou New Value Investment Co., Ltd. and Founder Securities Co., Ltd. (601901.SH), have inspected the automotive aftermarket recently. In addition, many technology giants are speeding up in developing in the automotive aftermarket. Alibaba Auto and several second-hand vehicles enterprises are establishing unified services standard. Guangzhou Automobile Group Co., Ltd. (02238.HK; 601238.SH) and Uber have reached strategic partnership to develop vehicles maintenance and financial leasing as well as other businesses.
Comment: The number of vehicles in China is nearly 200 million. Institutes estimate that the average annual growth in the aftermarket will exceed 30 percent and it will reach over 1 trillion yuan in 2018. Meanwhile, with the progress of the anti-monopoly in the automobile industry, it will facilitate the orderly development of the aftermarket. In terms of listed companies, Shandong Longji Machinery Co., Ltd. (002363.SZ) develops an online and offline services platform by holding 37 percent equities of Shanghai Cheyi Information Technology Co., Ltd. Guangdong Delian Group Co., Ltd. (002666.SZ) proposes to establish 110 automobile after-sales 2S stores and expand into automobile electronics and big data industries.
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○Forthcoming New Year sparks film market, cinema companies to benefit
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Latest announcement by Huayi Brothers Media Corporation (300027.SZ) shows that as of 24:00 on Dec. 27, the total box-office of Mojin-The Lost Legend, which is partly invested in by the company, exceeded 1,208 million yuan, edging itself into the top 6 homegrown films in terms of box-office. Besides, thanks to its good reputation, Mr. Six also shows good performance in terms of box-office. According to data by 21:00 on Dec. 28 on piaofang.maoyan.com, Mr. Six records a single-day box-office of 46,213,000 yuan, ranking the top.
Comment: As the New Year comes, the box-office of aforesaid two films might embrace explosive growth for the second time. In addition, movies including Yip Man 3 and Detective Chinatown will be shown on New Year's Eve. It must be mentioned that the producer of Detective Chinatown was also the producer of Lost in Thailand and The Pancake Man which gained high box-office earlier. Star Wars: The Force Awakens will be on in the mainland China on Jan. 9, 2016. It is foreseeable that the booming film market might be maintained till even after the Spring Festival. Companies including Wanda Cinema Line Co., Ltd. (002739.SZ) and Song Liao Automotive Co., Ltd. (600715.SH) might benefit.
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[Announcement Interpretation]
○Zhiguang Electric to raise RMB1.8 bln through private placement to expand to intelligent power-consumption cloud
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Guangzhou Zhiguang Electric Co., Ltd. (002169.SZ) proposes to raise 1.8 billion yuan by issuing 87.12 million shares through private placement at no less than 20.66 yuan per share. The raised fund will be used to invest in the offline power-consumption service for the power demand side, intelligent power-consumption cloud platform and the research lab for integrated energy system technology, supplement working capital and pay off loans.
○Splendor Science ＆ Technology to launch employee shareholding plan with high leverage
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Employees of Henan Splendor Science ＆ Technology Co., Ltd. (002296.SZ) plans to raise no more than 50 million yuan to set up an employee shareholding plan. The capitals will be used to purchase the high-risk and high-yield funds of the designated assets management plan founded by Shenzhen Hongta Assets Management Co., Ltd. The funds are set in 250 million shares at most with 80 percent preferred shares and 20 percent aggressive shares to buy company's stocks.
○Shareholder of Yunnan Tourism to increase shareholding
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Yunnan Shibo Advertisement Co., Ltd., shareholder of Yunnan Tourism Co., Ltd. (002059.SZ), plans to increase shareholding in the company within next three months at an amount of 50 million to 70 million yuan. The company previously made an announcement that it would raise 1.37 billion yuan at a price of no less than 10.63 yuan per share through private placement and Shibo Advertisement subscribed the shares in cash 130 million yuan.
[Financial Reports Express]
○2 companies propose high share conversion and dividend in 2015 report
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Suzhou TA＆A Ultra Clean Technology Co., Ltd. (300390.SZ) proposes a 15-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares in its 2015 report. Puyang Huicheng Electronic Material Co., Ltd. (300481.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for every 10 shares in its 2015 report.
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[News Tracking]
○Better Life joins hands with Wanda to initiate all-round strategic cooperation
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A signing ceremony for strategic cooperation between Better Life Group and Wanda Group will be held in Changsha, Hunan province today (Dec. 28). Wanda Plazas and Wanda Cinema Line Co., Ltd. (002739.SZ) under Wanda Group will develop in-depth cooperation with the supermarkets and commercial projects under Better Life Commercial Chain Share Co., Ltd. (002251.SZ). The cooperation between the two commercial giants will further propel the development of domestic real commerce. SSN previously released related reports.
[Trading Trends]
○Soling Industrial bought through 4 institutional seats
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The trading volume ranking list on Dec. 28 shows that Shenzhen Soling Industrial Co., Ltd. (002766.SZ) was bought through four institutional seats with a total of 60,306,000 yuan, accounting for 11.6 percent of its intraday turnover, and it was sold through another two institutional seats with a total of 15,458,000 yuan.
Comment: Car networking sector saw significant surge on Dec. 28. The company is a leading manufacturer of vehicle navigation products in China. It recently announced that it would participate in Yongkang Zotye Automobile Co., Ltd. to expand the market share of intelligent vehicle information system in new energy vehicle field. Institutions believe that the company, as the only subject of vehicle terminal in the A-share market, can speed up the development of high-end products through the opportunity of car networking.
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