[Today's Guide]
>Top-level design of Beijing-Tianjin-Hebei regional integration nodded, breakthrough first made in traffic area, etc.
>Buffett favors automobile dealer, Russia’s first high-speed rail project participated by Chinese fund
> Tianbao Heavy Industry to acquire American environmental protection company, Gifore Agricultural Machinery to acquire Jilin Kangda Agricultural Machinery
> Thunisoft to acquire Whir Net, Sunline Tech to acquire FIROAD
[XFA Focus]
○ Top-level design of Beijing-Tianjin-Hebei regional integration nodded, breakthrough first made in traffic area, etc.
------
The Guidelines for The Coordinated Development of Beijing-Tianjin-Hebei Region was nodded on the meeting convened on April 30 by the Political Bureau of the Central Committee. The meeting required exploring an optimized development mode for areas with dense population and economy to form new growth point; making breakthroughs first in key areas including traffic integration, ecological environmental protection, industrial upgrading and transfer, etc.
Comment: The promotion of traffic integration develops the most rapidly amid the key areas: Beijing-Tianjin-Hebei Interurban Railway Investment Co., Ltd. has completed business registration; the new capital airport and a string of highway projects are also under construction, directly driving local infrastructure investment. The integration of Beijing-Tianjin-Hebei region will see an input of 42 trillion yuan in next six years, according to previous measurement by the Ministry of Finance. Leading enterprises of building materials in Beijing-Tianjin-Hebei region including Hebei Iron and Steel Co., Ltd. (000709.SZ), BBMG Corporation (601992.SH; 02009.HK), etc. will benefit from it. Juli Sling Co., Ltd. (002342.SZ) recently claimed on interactive platform that its products are widely applied in traffic projects.
◆ The meeting of the Political Bureau paid high attention to the pressure of economic downtrend and proposed that a prudent monetary policy should sort out the transmission channel between monetary policy and real economy. Relevant experts claim that it means that the next goal of monetary policy is to lower real interest rate; interest-rate cut and re-loan policy might become important tools again. The meeting also highlighted the critical role of investment and indicated that fund circle problem of major infrastructure projects etc. will be worked out. Analysis believes that it confirms that the key of maintaining stable growth lies in maintaining stable investment; major infrastructure projects are important drivers of stable investment.
[XFA Selection]
○China Securities Regulatory Commission (CSRC) indicates that new stocks will be issued on the precondition of stabilizing market expectation.
○The number of second-hand houses traded in Beijing during April sets a 25-month new high; The Economic Observer reports that it is highly possible for benchmark interest rate for loan to down 0.5 percent.
○Gaolan port area of Zhuhai Port plans to apply for national comprehensive bonded zone to act as the main carrier to connect with the “One Belt and One Road” strategy.
○Reuters claims that the State Administration of Industry and Commerce has developed investigation over the commercial bribe of the medical department of Siemens. China is urging hospitals to use more domestic equipment.
○As reported by China Business Newspaper, schemes on the transference of national stocks into social security fund might be launched within the year.
○The CCTV News broadcasted on May 2 focused on DJI-Innovations Technology Co., Ltd., a global leading enterprise in unmanned aerial vehicle (UAV), and claimed that it is defining the new connotation of “Made in China”.
[Industry Information]
○Buffett favors automobile dealer, trillions yuan of post-market of automobiles opened
------
On the Berkshire Hathaway Inc. Shareholder Meeting convened on May 2, Warren Buffett indicated that more automobile dealers will be acquired in the future. Berkshire Hathaway Inc. acquired Van Tuyl, the fifth largest automobile dealer in the U.S., last year. Buffett also indicated that the pretty low interest rate makes American shares look very cheap. He is optimistic about American stock market and A-share market.
Comment: The annual Berkshire Hathaway Inc. Shareholder Meeting attracts tremendous attention. Buffett concept shares also have great impact on A-share market. Institutions consider that the double-digit growth of domestic automobile market sales is the past, but the number of over billions of cars will boost the post-market of automobiles and the market size might reach trillions of yuan. Among A-share companies, Guangdong Delian Group Co., Ltd. (002666.SZ) is constructing 2S chain stores in large scale. It disclosed in March when investigated that agreement will be signed with 20,000 automobile maintenance stores within the year; Toowell Co., Ltd., a subsidiary of Zhejiang Jingu Co., Ltd. (002488.SZ), focuses on post-market of automobiles and sees more than 600 franchise units.
○Design of Russia’s first high-speed rail project participated by Chinese fund, overseas railway infrastructure to see broad market
------
As reported by media, the designer of Moscow-Kazan high-speed rail project, Russia’s first one of its kind, is unveiled through open tendering. The joint venture constituted by Chinese and Russian enterprises wins the bidding and China Railway Eryuan Engineering Group Co., Ltd. under China Railway Group Limited (601390.SH; 00390.HK) is the Chinese partner of the Chinese-Russian joint venture.
Comment: This move means that Russia’s high-speed rail market is open to Chinese funds. Russia’s high-speed rail market sees broad prospects for development. Russia is planning to construct 20,000 kilometers of new railways, 5,000 high-speed railway included, according to Russia’s railway traffic development strategy before 2030. Moreover, multiple countries in Asia and Africa, etc. are planning to build high-speed rail. China Railway Construction Corporation Limited (601186.SH; 01186.HK) recently won the bidding of a 3.5 billion US dollar contract of interurban city railway in Nigeria.
○Tesla launches new energy storage batteries, energy Internet to accelerate industrial development
------
Tesla launched new energy storage batteries on April 30. The household energy storage battery, a chargeable lithium-ion battery, is named as Powerwall. It can store excessive power generated from solar and provide electricity guarantee during power cut.
Comment: China is now formulating the thirteenth five-year plan for energy storage industry. As energy Internet develops, energy storage technology will provide significant support to the massive application of renewable energy. Under the circumstances that new energy sees accelerated grid connection and multiple power-consumption equipment including electro-car emerges, energy storage market will see a development space of hundreds of billions of yuan. As for listed companies, Xiamen Kehua Hengsheng Co., Ltd. (002335.SZ), principally engaged in UPS power supply, has exported its energy storage device for the power supply of electro-car to the U.S.; Sungrow Power Supply Co., Ltd. (300274.SZ) has cooperated with Samsung SDI in building lithium-ion energy storage battery project and actively make planning in photovoltaic power station market.
[Announcement Interpretation]
○Tianbao Heavy Industry to acquire American environmental protection company through private placement
------
Chengdu Tianbao Heavy Industry Co., Ltd. (300362.SZ) plans to raise 1 billion yuan by issuing shares at 26.58 yuan per share through private placement from Deng Qinhua, actual controller of the company, etc., among which, 470 million yuan will be used to acquire 80 percent equities of American Centrisys Corporation and 100 percent equities of American Centrealestate, Inc. and the rest will be used to pay off debts and supplement working capital. The acquisition will be done in two steps: the company sets an investment fund together with Dongzheng Rongcheng Capital Management Co., Ltd. to take over the equities of the subject company; the company completes transference from the investment fund.
Centrisys Corporation is a world famous environmental protection separation equipment manufacturing and environment treatment project service provider with business covering the manufacturing, sales and maintenance of sewage and sludge treatment device as well as the dredging of rivers and lakes. The net profit of the company in 2014 records 19.81 million yuan. Its net profit in 2015 to 2017 is estimated to be no less than 6.51 million US dollars, 7.05 million US dollars and 7.50 million US dollars, respectively.
○Gifore Agricultural Machinery to acquire Jilin Kangda Agricultural Machinery to complete industrial chain
------
Gifore Agricultural Machinery Chain Co., Ltd. (300022.SZ) plans to acquire 85 percent equities of Jilin Kangda Agricultural Machinery Co., Ltd. and 41 percent equities of Ningxia Gifore Tongde Agricultural Machinery Motors Trading Co. Ltd. with 188 million yuan by issuing shares and in cash. According to the scheme, the offering price of the private placement is no less than 7.88 yuan and 22.84 million shares is planned to be issued. The net profit of Jilin Kangda Agricultural Machinery in 2015-2017 is predicted to be no less than 24.88 million yuan, 25.11 million yuan and 25.13 million yuan.
Gifore Agricultural Machinery is principally engaged in the circulation of agricultural machinery, while Jilin Kangda Agricultural Machinery is principally engaged in professional manufacturing and sales of agricultural machinery and mainly produces no-tillage planter for corn and deep tillage land preparation machine. It forms an upstream and downstream relationship with Gifore Agricultural Machinery.
○Thunisoft to acquire Whir Net and to fully control Thunisoft Jinxin
------
Beijing Thunisoft Co., Ltd. (300271.SZ) plans to acquire 100 percent equities of Beijing Whir Net Technology Co., Ltd. with 320 million yuan. Whir Net is an advanced supplier of coordination office software and relevant solutions in the industry. It promises a net profit of 23.00 million yuan, 29.90 million yuan and 38.87 million yuan, respectively, from 2015 to 2017.
Beijing Thunisoft also plans to acquire the rest 49 percent equities of Thunisoft Jinxin (Beijing) Software Co., Ltd. through private placement and in cash to achieve fully control. The transaction price is 184 million yuan and the offering price of the private placement is 28.15 yuan per share (after ex-right). Thunisoft Jinxin (Beijing) Software aims at providing all levels of government and enterprises with three-dimensional urban food security guarantee solution and coordinates government and enterprises to build an integrated supervision platform of “intelligent food security”. Its net profit from 2015 to 2017 is estimated to be no less than 30.00 million yuan, 36.00 million yuan and 43.20 million yuan.
○Sunline Tech to acquire financial IT service provider FIROAD
------
Shenzhen Sunline Tech Co., Ltd. (300348.SZ) plans to acquire 100 percent equities of FIROAD (Beijing) Information Technology Co., Ltd. with 116 million yuan by issuing 0.7 million shares at 71.93 yuan per share and in cash. The estimated appreciation rate is 585 percent. Meanwhile, the company plans to raise a supporting fund of 116 million yuan at 98.24 yuan per share to pay in cash, invest in the project of the subject company and to supplement operation funds.
FIROAD, principally engaged in providing IT system solutions and services for financial institutions, enjoys competitive edge in the finance and management accounting system area of financial institutions including banks. The counterparty promises that the total audited net profit of FIROAD will be no less than 24.00 million yuan from 2015 to 2016.
[Data Speaks]
“Barbarians”increase shareholding in multiple companies in Q1 again
------
As the disclosure of 2014 annual report and the Q1 report of this year ends, the latest shareholder change of listed companies is unveiled. XFA sorts out that well-known “barbarians” are still increasing shareholding in listed companies frequently. Data says that Huaxia Life Insurance Co., Ltd. increase its shareholding in Shenzhen Coship Electronics Co., Ltd. (002052.SZ) by 35.30 million shares, indicating that its shareholding proportion increases to 10 percent. The shareholding proportion of Yuan Ming, the actual controller of Coship Electronics, records 18 percent. Huaxia Life Insurance previously claimed that it is open that it might increase its shareholding in listed companies in next 12 months. Moreover, Funde Sino Life Co., Ltd. increases its shareholding in Shenzhen Agricultural Products Co., Ltd. (000061.SZ) by nearly 42.00 million shares in the first quarter of this year, totaling a shareholding proportion of 29.97 percent, approaching the shareholding proportion of 29.98 percent held by its largest shareholder Shenzhen State-owned Assets Supervision and Administration Commission (SASAC) and the parties acting in concert.
[Weekly Review]
○ Gold hides behind data, policies come into play
------
The Shanghai Composite Index rose before drop last week. Hotspots and themes in the market change frequently. XFA explores lots of investment opportunity on the basis of market data statistics and our thorough analysis over policies also attracts market attentions.
Data is the most persuasive. The Data Speaks and Trading Trends come from real market data and they have always been the cradle of strong shares. The “Well-Known Individual Investors Invest in Stocks to Reorganize and Merge” published on April 29 achieves sound response and performance. The shares of Shanghai Yimin Commercial Group Co., Ltd. (600824.SH), Foshan Electrical and Lighting Co., Ltd. (000541.SZ) and Soyea Technology Co., Ltd. (000909.SZ) all see a surge of more than 4 percent. The “Two institutes buy Glory Medical” published on that same day also received good response.
The power of policies has always been strong in China’s capital market, and its role is even stronger this year. The policy information from the Political Bureau, deepening reform group and the State Council are highly concerned by the market. As reported in the “State Council Executive Meeting Requires Promoting Oil Products Improvement” published by XFA on April 28, Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) surged to the daily 10 percent limit on that day and saw a large jump at the opening bell the next day. The “MIIT Prepares Instructions on New Materials Development, Graphene to Enjoy Priority” published on April 28 is also paid attention to. China Baoan Group Co., Ltd. (000009.SZ) surged largely for two consecutive trading days.
During market fluctuation, the power of data and policy will be magnified and may bring you unexpected return.
>Top-level design of Beijing-Tianjin-Hebei regional integration nodded, breakthrough first made in traffic area, etc.
>Buffett favors automobile dealer, Russia’s first high-speed rail project participated by Chinese fund
> Tianbao Heavy Industry to acquire American environmental protection company, Gifore Agricultural Machinery to acquire Jilin Kangda Agricultural Machinery
> Thunisoft to acquire Whir Net, Sunline Tech to acquire FIROAD
[XFA Focus]
○ Top-level design of Beijing-Tianjin-Hebei regional integration nodded, breakthrough first made in traffic area, etc.
------
The Guidelines for The Coordinated Development of Beijing-Tianjin-Hebei Region was nodded on the meeting convened on April 30 by the Political Bureau of the Central Committee. The meeting required exploring an optimized development mode for areas with dense population and economy to form new growth point; making breakthroughs first in key areas including traffic integration, ecological environmental protection, industrial upgrading and transfer, etc.
Comment: The promotion of traffic integration develops the most rapidly amid the key areas: Beijing-Tianjin-Hebei Interurban Railway Investment Co., Ltd. has completed business registration; the new capital airport and a string of highway projects are also under construction, directly driving local infrastructure investment. The integration of Beijing-Tianjin-Hebei region will see an input of 42 trillion yuan in next six years, according to previous measurement by the Ministry of Finance. Leading enterprises of building materials in Beijing-Tianjin-Hebei region including Hebei Iron and Steel Co., Ltd. (000709.SZ), BBMG Corporation (601992.SH; 02009.HK), etc. will benefit from it. Juli Sling Co., Ltd. (002342.SZ) recently claimed on interactive platform that its products are widely applied in traffic projects.
◆ The meeting of the Political Bureau paid high attention to the pressure of economic downtrend and proposed that a prudent monetary policy should sort out the transmission channel between monetary policy and real economy. Relevant experts claim that it means that the next goal of monetary policy is to lower real interest rate; interest-rate cut and re-loan policy might become important tools again. The meeting also highlighted the critical role of investment and indicated that fund circle problem of major infrastructure projects etc. will be worked out. Analysis believes that it confirms that the key of maintaining stable growth lies in maintaining stable investment; major infrastructure projects are important drivers of stable investment.
[XFA Selection]
○China Securities Regulatory Commission (CSRC) indicates that new stocks will be issued on the precondition of stabilizing market expectation.
○The number of second-hand houses traded in Beijing during April sets a 25-month new high; The Economic Observer reports that it is highly possible for benchmark interest rate for loan to down 0.5 percent.
○Gaolan port area of Zhuhai Port plans to apply for national comprehensive bonded zone to act as the main carrier to connect with the “One Belt and One Road” strategy.
○Reuters claims that the State Administration of Industry and Commerce has developed investigation over the commercial bribe of the medical department of Siemens. China is urging hospitals to use more domestic equipment.
○As reported by China Business Newspaper, schemes on the transference of national stocks into social security fund might be launched within the year.
○The CCTV News broadcasted on May 2 focused on DJI-Innovations Technology Co., Ltd., a global leading enterprise in unmanned aerial vehicle (UAV), and claimed that it is defining the new connotation of “Made in China”.
[Industry Information]
○Buffett favors automobile dealer, trillions yuan of post-market of automobiles opened
------
On the Berkshire Hathaway Inc. Shareholder Meeting convened on May 2, Warren Buffett indicated that more automobile dealers will be acquired in the future. Berkshire Hathaway Inc. acquired Van Tuyl, the fifth largest automobile dealer in the U.S., last year. Buffett also indicated that the pretty low interest rate makes American shares look very cheap. He is optimistic about American stock market and A-share market.
Comment: The annual Berkshire Hathaway Inc. Shareholder Meeting attracts tremendous attention. Buffett concept shares also have great impact on A-share market. Institutions consider that the double-digit growth of domestic automobile market sales is the past, but the number of over billions of cars will boost the post-market of automobiles and the market size might reach trillions of yuan. Among A-share companies, Guangdong Delian Group Co., Ltd. (002666.SZ) is constructing 2S chain stores in large scale. It disclosed in March when investigated that agreement will be signed with 20,000 automobile maintenance stores within the year; Toowell Co., Ltd., a subsidiary of Zhejiang Jingu Co., Ltd. (002488.SZ), focuses on post-market of automobiles and sees more than 600 franchise units.
○Design of Russia’s first high-speed rail project participated by Chinese fund, overseas railway infrastructure to see broad market
------
As reported by media, the designer of Moscow-Kazan high-speed rail project, Russia’s first one of its kind, is unveiled through open tendering. The joint venture constituted by Chinese and Russian enterprises wins the bidding and China Railway Eryuan Engineering Group Co., Ltd. under China Railway Group Limited (601390.SH; 00390.HK) is the Chinese partner of the Chinese-Russian joint venture.
Comment: This move means that Russia’s high-speed rail market is open to Chinese funds. Russia’s high-speed rail market sees broad prospects for development. Russia is planning to construct 20,000 kilometers of new railways, 5,000 high-speed railway included, according to Russia’s railway traffic development strategy before 2030. Moreover, multiple countries in Asia and Africa, etc. are planning to build high-speed rail. China Railway Construction Corporation Limited (601186.SH; 01186.HK) recently won the bidding of a 3.5 billion US dollar contract of interurban city railway in Nigeria.
○Tesla launches new energy storage batteries, energy Internet to accelerate industrial development
------
Tesla launched new energy storage batteries on April 30. The household energy storage battery, a chargeable lithium-ion battery, is named as Powerwall. It can store excessive power generated from solar and provide electricity guarantee during power cut.
Comment: China is now formulating the thirteenth five-year plan for energy storage industry. As energy Internet develops, energy storage technology will provide significant support to the massive application of renewable energy. Under the circumstances that new energy sees accelerated grid connection and multiple power-consumption equipment including electro-car emerges, energy storage market will see a development space of hundreds of billions of yuan. As for listed companies, Xiamen Kehua Hengsheng Co., Ltd. (002335.SZ), principally engaged in UPS power supply, has exported its energy storage device for the power supply of electro-car to the U.S.; Sungrow Power Supply Co., Ltd. (300274.SZ) has cooperated with Samsung SDI in building lithium-ion energy storage battery project and actively make planning in photovoltaic power station market.
[Announcement Interpretation]
○Tianbao Heavy Industry to acquire American environmental protection company through private placement
------
Chengdu Tianbao Heavy Industry Co., Ltd. (300362.SZ) plans to raise 1 billion yuan by issuing shares at 26.58 yuan per share through private placement from Deng Qinhua, actual controller of the company, etc., among which, 470 million yuan will be used to acquire 80 percent equities of American Centrisys Corporation and 100 percent equities of American Centrealestate, Inc. and the rest will be used to pay off debts and supplement working capital. The acquisition will be done in two steps: the company sets an investment fund together with Dongzheng Rongcheng Capital Management Co., Ltd. to take over the equities of the subject company; the company completes transference from the investment fund.
Centrisys Corporation is a world famous environmental protection separation equipment manufacturing and environment treatment project service provider with business covering the manufacturing, sales and maintenance of sewage and sludge treatment device as well as the dredging of rivers and lakes. The net profit of the company in 2014 records 19.81 million yuan. Its net profit in 2015 to 2017 is estimated to be no less than 6.51 million US dollars, 7.05 million US dollars and 7.50 million US dollars, respectively.
○Gifore Agricultural Machinery to acquire Jilin Kangda Agricultural Machinery to complete industrial chain
------
Gifore Agricultural Machinery Chain Co., Ltd. (300022.SZ) plans to acquire 85 percent equities of Jilin Kangda Agricultural Machinery Co., Ltd. and 41 percent equities of Ningxia Gifore Tongde Agricultural Machinery Motors Trading Co. Ltd. with 188 million yuan by issuing shares and in cash. According to the scheme, the offering price of the private placement is no less than 7.88 yuan and 22.84 million shares is planned to be issued. The net profit of Jilin Kangda Agricultural Machinery in 2015-2017 is predicted to be no less than 24.88 million yuan, 25.11 million yuan and 25.13 million yuan.
Gifore Agricultural Machinery is principally engaged in the circulation of agricultural machinery, while Jilin Kangda Agricultural Machinery is principally engaged in professional manufacturing and sales of agricultural machinery and mainly produces no-tillage planter for corn and deep tillage land preparation machine. It forms an upstream and downstream relationship with Gifore Agricultural Machinery.
○Thunisoft to acquire Whir Net and to fully control Thunisoft Jinxin
------
Beijing Thunisoft Co., Ltd. (300271.SZ) plans to acquire 100 percent equities of Beijing Whir Net Technology Co., Ltd. with 320 million yuan. Whir Net is an advanced supplier of coordination office software and relevant solutions in the industry. It promises a net profit of 23.00 million yuan, 29.90 million yuan and 38.87 million yuan, respectively, from 2015 to 2017.
Beijing Thunisoft also plans to acquire the rest 49 percent equities of Thunisoft Jinxin (Beijing) Software Co., Ltd. through private placement and in cash to achieve fully control. The transaction price is 184 million yuan and the offering price of the private placement is 28.15 yuan per share (after ex-right). Thunisoft Jinxin (Beijing) Software aims at providing all levels of government and enterprises with three-dimensional urban food security guarantee solution and coordinates government and enterprises to build an integrated supervision platform of “intelligent food security”. Its net profit from 2015 to 2017 is estimated to be no less than 30.00 million yuan, 36.00 million yuan and 43.20 million yuan.
○Sunline Tech to acquire financial IT service provider FIROAD
------
Shenzhen Sunline Tech Co., Ltd. (300348.SZ) plans to acquire 100 percent equities of FIROAD (Beijing) Information Technology Co., Ltd. with 116 million yuan by issuing 0.7 million shares at 71.93 yuan per share and in cash. The estimated appreciation rate is 585 percent. Meanwhile, the company plans to raise a supporting fund of 116 million yuan at 98.24 yuan per share to pay in cash, invest in the project of the subject company and to supplement operation funds.
FIROAD, principally engaged in providing IT system solutions and services for financial institutions, enjoys competitive edge in the finance and management accounting system area of financial institutions including banks. The counterparty promises that the total audited net profit of FIROAD will be no less than 24.00 million yuan from 2015 to 2016.
[Data Speaks]
“Barbarians”increase shareholding in multiple companies in Q1 again
------
As the disclosure of 2014 annual report and the Q1 report of this year ends, the latest shareholder change of listed companies is unveiled. XFA sorts out that well-known “barbarians” are still increasing shareholding in listed companies frequently. Data says that Huaxia Life Insurance Co., Ltd. increase its shareholding in Shenzhen Coship Electronics Co., Ltd. (002052.SZ) by 35.30 million shares, indicating that its shareholding proportion increases to 10 percent. The shareholding proportion of Yuan Ming, the actual controller of Coship Electronics, records 18 percent. Huaxia Life Insurance previously claimed that it is open that it might increase its shareholding in listed companies in next 12 months. Moreover, Funde Sino Life Co., Ltd. increases its shareholding in Shenzhen Agricultural Products Co., Ltd. (000061.SZ) by nearly 42.00 million shares in the first quarter of this year, totaling a shareholding proportion of 29.97 percent, approaching the shareholding proportion of 29.98 percent held by its largest shareholder Shenzhen State-owned Assets Supervision and Administration Commission (SASAC) and the parties acting in concert.
[Weekly Review]
○ Gold hides behind data, policies come into play
------
The Shanghai Composite Index rose before drop last week. Hotspots and themes in the market change frequently. XFA explores lots of investment opportunity on the basis of market data statistics and our thorough analysis over policies also attracts market attentions.
Data is the most persuasive. The Data Speaks and Trading Trends come from real market data and they have always been the cradle of strong shares. The “Well-Known Individual Investors Invest in Stocks to Reorganize and Merge” published on April 29 achieves sound response and performance. The shares of Shanghai Yimin Commercial Group Co., Ltd. (600824.SH), Foshan Electrical and Lighting Co., Ltd. (000541.SZ) and Soyea Technology Co., Ltd. (000909.SZ) all see a surge of more than 4 percent. The “Two institutes buy Glory Medical” published on that same day also received good response.
The power of policies has always been strong in China’s capital market, and its role is even stronger this year. The policy information from the Political Bureau, deepening reform group and the State Council are highly concerned by the market. As reported in the “State Council Executive Meeting Requires Promoting Oil Products Improvement” published by XFA on April 28, Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) surged to the daily 10 percent limit on that day and saw a large jump at the opening bell the next day. The “MIIT Prepares Instructions on New Materials Development, Graphene to Enjoy Priority” published on April 28 is also paid attention to. China Baoan Group Co., Ltd. (000009.SZ) surged largely for two consecutive trading days.
During market fluctuation, the power of data and policy will be magnified and may bring you unexpected return.
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