[Today's Guide]
> Central bank launches technological innovation instructions to promote autonomous & controllable mobile finance
> Two sessions to open in Tibet and Chongqing, traffic infrastructure construction to push economic growth
> Sichuan Shuangma Cement to acquire assets of Lafarge Ruian Cement
> Ten new stocks start subscription on Jan. 14
[XFA Focus]
○ Central bank launches technological innovation instructions to promote autonomous & controllable mobile finance
------
The People's Bank of China, the central bank, printed and distributed “Instructions on Promoting Healthy Development of the Technological Innovation of Mobile Finance”, proposing guarantee measures to push forward the healthy development of the technological innovation of mobile finance, guiding commercial banks and bank card clearing institutions to actively implement policies related to national network security and IT security with a preference to autonomous & controllable products and cryptographic algorithm.
Comment: With mobile payment hit 1,284 million orders in the 3rd quarter of 2014, a year-on-year increase of 158 percent, mobile finance has become a new force of China’s financial industry. As the foundation of guaranteeing the security of mobile finance, the application of autonomous & controllable products and cryptographic algorithm will effectively enhance the security level of China’s mobile finance. Among A-share companies, Shanghai Yitong IT Limited Company, recently merged by Business-intelligence Of Oriental Nations Corporation Ltd. (300166.SZ), has complete mobile and Internet finance platform solution as well as 60 financial institution clients including joint-stock banks and city commercial banks. Tsinghua Tongfang Co., Ltd. (600100.SH) recently obtained certificate of “National Key Enterprises of Safe and Reliable Computer Information System Integration” issued by the Ministry of Industry and Information Technology. Tongfang Guoxin Electronics Co., Ltd. (002049.SZ), a subsidiary controlled by Tsinghua Tongfang, has advantages in the new second-generation USB-Key products, chips used in payment terminal, and the non-connected read/write device chip of financial Point Of Sales.
[XFA Selection]
○ Xiao Gang, Chairman of the China Securities Regulatory Commission (CSRC), will attend the Asian Financial Forum to be held in Hong Kong next Monday (Jan. 19). Hot topics include the internationalization of the RMB, and new Silk Road, etc.
○ World Nuclear Spotlight 2015, jointly hosted by the World Nuclear Association and Chinese Nuclear Society, will be held in Beijing on Jan. 15.
○ The central finance is about to subsidize cities piloting underground utility tunnel with special funds varying from 500 million, 400 million and 300 million yuan per year.
○ State-owned assets reform accelerates in Zhuhai. Equities of Gree Real Estate Co., Ltd. (600185.SH) held by Gree Group will be transferred to Zhuhai Investment Holding Co., Ltd for free.
○ Import and export data of China in Dec. is slightly beyond expectation. The imports of copper, copper product, iron ore and crude oil hit high record.
[Industry Information]
○ Two sessions to open in Tibet and Chongqing, traffic infrastructure construction to push economic growth
------
The National People's Congress and the Chinese People’s Political Consultative Conference (two sessions) will be held in Tibet Autonomous Region and Chongqing Municipality from Jan. 16 to 18. By comprehensively analyzing the news policies since the beginning of the year, it can be known that both Tibet and Chongqing emphasize traffic-transportation-centered infrastructure construction. With the same GDP growth target with 2014 as 12 percent, Tibet will accelerate the construction of Nyingchi-Lhasa Railway and strive to surpass a total length of highways of 80 thousand kilometers. Chongqing also proposes to accelerate the construction of nine railway projects and surmount a total length of highways of 2.5 thousand kilometers.
Comment: In the first three quarters of 2014, the GDP growth speed of Tibet and Chongqing ranks as first and second nationally. Investment, as one the “three drivers”, namely consumption, investment and net export, plays a crucial role. Located in western regions with undeveloped traffic, it is rational for both Tibet and Chongqing to continue to drive rapid economic development through investment in 2015. Local infrastructure construction and construction materials companies like Tibet Tianlu Co., Ltd. (600326.SH), Chongqing Road & Bridge Co., Ltd. (600106.SH), Chongqing Iron & Steel Company Limited (601005.SH; 01053.HK), etc. see benefit.
> Central bank launches technological innovation instructions to promote autonomous & controllable mobile finance
> Two sessions to open in Tibet and Chongqing, traffic infrastructure construction to push economic growth
> Sichuan Shuangma Cement to acquire assets of Lafarge Ruian Cement
> Ten new stocks start subscription on Jan. 14
[XFA Focus]
○ Central bank launches technological innovation instructions to promote autonomous & controllable mobile finance
------
The People's Bank of China, the central bank, printed and distributed “Instructions on Promoting Healthy Development of the Technological Innovation of Mobile Finance”, proposing guarantee measures to push forward the healthy development of the technological innovation of mobile finance, guiding commercial banks and bank card clearing institutions to actively implement policies related to national network security and IT security with a preference to autonomous & controllable products and cryptographic algorithm.
Comment: With mobile payment hit 1,284 million orders in the 3rd quarter of 2014, a year-on-year increase of 158 percent, mobile finance has become a new force of China’s financial industry. As the foundation of guaranteeing the security of mobile finance, the application of autonomous & controllable products and cryptographic algorithm will effectively enhance the security level of China’s mobile finance. Among A-share companies, Shanghai Yitong IT Limited Company, recently merged by Business-intelligence Of Oriental Nations Corporation Ltd. (300166.SZ), has complete mobile and Internet finance platform solution as well as 60 financial institution clients including joint-stock banks and city commercial banks. Tsinghua Tongfang Co., Ltd. (600100.SH) recently obtained certificate of “National Key Enterprises of Safe and Reliable Computer Information System Integration” issued by the Ministry of Industry and Information Technology. Tongfang Guoxin Electronics Co., Ltd. (002049.SZ), a subsidiary controlled by Tsinghua Tongfang, has advantages in the new second-generation USB-Key products, chips used in payment terminal, and the non-connected read/write device chip of financial Point Of Sales.
[XFA Selection]
○ Xiao Gang, Chairman of the China Securities Regulatory Commission (CSRC), will attend the Asian Financial Forum to be held in Hong Kong next Monday (Jan. 19). Hot topics include the internationalization of the RMB, and new Silk Road, etc.
○ World Nuclear Spotlight 2015, jointly hosted by the World Nuclear Association and Chinese Nuclear Society, will be held in Beijing on Jan. 15.
○ The central finance is about to subsidize cities piloting underground utility tunnel with special funds varying from 500 million, 400 million and 300 million yuan per year.
○ State-owned assets reform accelerates in Zhuhai. Equities of Gree Real Estate Co., Ltd. (600185.SH) held by Gree Group will be transferred to Zhuhai Investment Holding Co., Ltd for free.
○ Import and export data of China in Dec. is slightly beyond expectation. The imports of copper, copper product, iron ore and crude oil hit high record.
[Industry Information]
○ Two sessions to open in Tibet and Chongqing, traffic infrastructure construction to push economic growth
------
The National People's Congress and the Chinese People’s Political Consultative Conference (two sessions) will be held in Tibet Autonomous Region and Chongqing Municipality from Jan. 16 to 18. By comprehensively analyzing the news policies since the beginning of the year, it can be known that both Tibet and Chongqing emphasize traffic-transportation-centered infrastructure construction. With the same GDP growth target with 2014 as 12 percent, Tibet will accelerate the construction of Nyingchi-Lhasa Railway and strive to surpass a total length of highways of 80 thousand kilometers. Chongqing also proposes to accelerate the construction of nine railway projects and surmount a total length of highways of 2.5 thousand kilometers.
Comment: In the first three quarters of 2014, the GDP growth speed of Tibet and Chongqing ranks as first and second nationally. Investment, as one the “three drivers”, namely consumption, investment and net export, plays a crucial role. Located in western regions with undeveloped traffic, it is rational for both Tibet and Chongqing to continue to drive rapid economic development through investment in 2015. Local infrastructure construction and construction materials companies like Tibet Tianlu Co., Ltd. (600326.SH), Chongqing Road & Bridge Co., Ltd. (600106.SH), Chongqing Iron & Steel Company Limited (601005.SH; 01053.HK), etc. see benefit.
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