[Today's Guide]
> SSE 50 ETF options to launch Feb. 9, securities companies likely to see performance growth
> National Science and Technology Award leads wave of industrialization, information industry sees fruitful results
> Apple Watch to introduce soon, sapphire display market expected to open
> Baosight Software to invest in cloud computing through private placement
[XFA Focus]
○ SSE 50 ETF options to launch Feb. 9, securities companies likely to see performance growth
China Securities Regulatory Commission (CSRC) officially issued and implemented the “Management Methods for Pilot Stocks & Options Trading” and the “Guidance on Pilot Stocks & Options Trading by Securities & Futures Companies” on Jan. 9. It approved the pilot stocks and options trading by Shanghai Stock Exchange covering the SSE 50 ETF options, which will be officially launched on Feb. 9, 2015.
Comment: The introduction of options will improve the pricing efficiency in the spot market, help investors in risk management and assist institutes in more products innovation, which will boost the vitality of the spot market and attract more capitals into the constituent stocks of the SSE 50 Index. Besides, with the increasing maturity of the market, the liberation of the investor access and the introduction of new contracts, the options operation is expected to play a key role in the mid- and long-term performance growth of securities companies.
◆ Most securities companies’ 2014 performance to double
As of Jan. 11 night, 15 listed securities companies on the Shanghai and Shenzhen bourses have released their operation results in last Dec. Except the newly listed Guosen Securities Co., Ltd. (002736.SZ), the remaining 14 securities companies recorded a total business performance of 16.2 billion yuan in Dec., increasing 58 percent from Nov. Most securities companies recorded an increase of more than 100 percent in net profits in the whole 2014.
Comment: Research institutes believe that the capital market has been expanding in the reform of state-owned capitals and the transfer of residents’ wealth, which laid a foundation for the rapid development of securities companies. The streamlining by the regulatory authorities also offered new opportunities in institutional innovation. Such neutral innovation operations as the market marker’s business on the National Equities Exchange and Quotations (NEEQ), commonly known as the New Three Board and similar to OTCBB in the U.S. market, the assets securitization, stock- options have been introduced and are expected to account for higher proportion in securities companies’ operation revenues.
[XFA Selection]
○ Data of CSRC shows that only 56 enterprises are in normal process waiting for examination. The review of 539 enterprises is suspended due to the expiring of their financial reports.
○ The injection of insurance capitals into the margin trading and short selling of securities companies has not been called off. The actual size of the injection by end-2014 was merely 38.7 billion yuan.
○ The investment and operation of the nationwide railway system set a new record last year. The size of railway construction in 2015 will be maintained.
○ National Development and Reform Commission approved the pilot power distribution pricing reform in Inner Mongolia recently. Low-cost power enterprises and downstream industries with high power consumption will benefit if the pricing is liberalized.
○ Tianjin Municipality actively develops the rail-sea intermodal transport based on the “One Belt and One Road” strategy. It cooperates with various ports in Japan and South Korea and connects Mongolia, Russia and Central Asia.
○ A quick charging system will be opened along the Beijing-Shanghai Expressway. There will be a quick charging station for electric vehicles every 50km on average each way.
[Industry Information]
○ National Science and Technology Award leads wave of industrialization, information industry sees fruitful results
Chinese President Xi Jinping and Premier Li Keqiang as well as other leaders participated at the National Science and Technology Award Conference held on Jan. 9 and presented the awards to the winners. Liao Xiangke, one of the developers of the Tianhe-1 supercomputer, which won the special prize of the National Science and Technology Progress Award, gave a speech on behalf of all the awards winners at the ceremony. Besides, the High-end Fault-tolerant Computer of Inspur won the first prize of the National Science and Technology Progress Award. The “Transparent Computing” of Tsinghua University won the first prize of the State Natural Science Award.
> SSE 50 ETF options to launch Feb. 9, securities companies likely to see performance growth
> National Science and Technology Award leads wave of industrialization, information industry sees fruitful results
> Apple Watch to introduce soon, sapphire display market expected to open
> Baosight Software to invest in cloud computing through private placement
[XFA Focus]
○ SSE 50 ETF options to launch Feb. 9, securities companies likely to see performance growth
China Securities Regulatory Commission (CSRC) officially issued and implemented the “Management Methods for Pilot Stocks & Options Trading” and the “Guidance on Pilot Stocks & Options Trading by Securities & Futures Companies” on Jan. 9. It approved the pilot stocks and options trading by Shanghai Stock Exchange covering the SSE 50 ETF options, which will be officially launched on Feb. 9, 2015.
Comment: The introduction of options will improve the pricing efficiency in the spot market, help investors in risk management and assist institutes in more products innovation, which will boost the vitality of the spot market and attract more capitals into the constituent stocks of the SSE 50 Index. Besides, with the increasing maturity of the market, the liberation of the investor access and the introduction of new contracts, the options operation is expected to play a key role in the mid- and long-term performance growth of securities companies.
◆ Most securities companies’ 2014 performance to double
As of Jan. 11 night, 15 listed securities companies on the Shanghai and Shenzhen bourses have released their operation results in last Dec. Except the newly listed Guosen Securities Co., Ltd. (002736.SZ), the remaining 14 securities companies recorded a total business performance of 16.2 billion yuan in Dec., increasing 58 percent from Nov. Most securities companies recorded an increase of more than 100 percent in net profits in the whole 2014.
Comment: Research institutes believe that the capital market has been expanding in the reform of state-owned capitals and the transfer of residents’ wealth, which laid a foundation for the rapid development of securities companies. The streamlining by the regulatory authorities also offered new opportunities in institutional innovation. Such neutral innovation operations as the market marker’s business on the National Equities Exchange and Quotations (NEEQ), commonly known as the New Three Board and similar to OTCBB in the U.S. market, the assets securitization, stock- options have been introduced and are expected to account for higher proportion in securities companies’ operation revenues.
[XFA Selection]
○ Data of CSRC shows that only 56 enterprises are in normal process waiting for examination. The review of 539 enterprises is suspended due to the expiring of their financial reports.
○ The injection of insurance capitals into the margin trading and short selling of securities companies has not been called off. The actual size of the injection by end-2014 was merely 38.7 billion yuan.
○ The investment and operation of the nationwide railway system set a new record last year. The size of railway construction in 2015 will be maintained.
○ National Development and Reform Commission approved the pilot power distribution pricing reform in Inner Mongolia recently. Low-cost power enterprises and downstream industries with high power consumption will benefit if the pricing is liberalized.
○ Tianjin Municipality actively develops the rail-sea intermodal transport based on the “One Belt and One Road” strategy. It cooperates with various ports in Japan and South Korea and connects Mongolia, Russia and Central Asia.
○ A quick charging system will be opened along the Beijing-Shanghai Expressway. There will be a quick charging station for electric vehicles every 50km on average each way.
[Industry Information]
○ National Science and Technology Award leads wave of industrialization, information industry sees fruitful results
Chinese President Xi Jinping and Premier Li Keqiang as well as other leaders participated at the National Science and Technology Award Conference held on Jan. 9 and presented the awards to the winners. Liao Xiangke, one of the developers of the Tianhe-1 supercomputer, which won the special prize of the National Science and Technology Progress Award, gave a speech on behalf of all the awards winners at the ceremony. Besides, the High-end Fault-tolerant Computer of Inspur won the first prize of the National Science and Technology Progress Award. The “Transparent Computing” of Tsinghua University won the first prize of the State Natural Science Award.
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