[Today’s Guide]
○ Insurance companies: avoid highly-leveraged individual stocks
○ STIC plan has highlights
○ Xiangshan Science Conference focuses on energy Internet
○ Xylooligosaccharide project of Longlive Bio-Technology to put into operation
[XFA View]
Calmly face “intermittent” bullish market
------
The A-share market saw more fluctuation after the May holiday. The different views of institutes also heat the worry in the stock market. However, considering the startling growth driven by various factors in April, the author believes that the current is normal and healthy. The trend for a medium to long-term bullish market has not been reversed and investors can calmly deal with the “intermittent” bullish market.
Firstly, the internal driver of this round of market conditions is the wealth reallocation of enterprises and citizens during the economic transformation, which is a long term for decades. It is the first phase currently and the performance of the stock market in the future is expected.
Secondly, the capital inflow, the introduction of polices and investors’ expectation on deepening reform all reached an unprecedented high in April. But the capital inflow and the unleashing of policies benefits need a long term and cannot be achieved overnight. The market adjustment at this time is normal and healthy.
Thirdly, the mainstream market hotspot will be emerging industries in the future, which is determined by the characteristics of the economic transformation of China. It is the orientation of policies to actively develop emerging industries and upgrade traditional industries to achieve the overall economic and industrial upgrading. The government will focus on the theme and introduce relevant policies and arrangements on “promoting innovation and transformation”. Investors are advised to focus on the core logic and seek favorable products in the “intermittent” bullish market. (Hong Wen)
[Institutions’ Movement]
Insurance companies: avoid highly-leveraged individual stocks
------
The assets management of Taikang Life and Huaxia Life Insurance Co., Ltd. interviewed by XFA indicated that major securities companies have cut the financing rates of certain individual stocks with high growth, which may have chain effects on the market. It is advised to avoid highly-leveraged individual stocks in short term.
[Hotspot Investigation]
STIC construction plan to take shape
------
As the No. 1 task of Shanghai in 2015, the preparation of the overall plan on the construction of the Shanghai Technology Innovation Center (STIC) will complete and is expected to take shape in May. It is reported that the plan has various highlights in the capitalization of intellectual property rights and financial supports to technology innovation.
◆ “Three steps” to establish STIC
Based on relevant schedules, the STIC will complete the foundation framework in 2020 and form the core function in 2030. It will fully complete in 2050.
◆ Establishment of trading system for capitalization of intellectual property rights
It proposes to establish the trading system for the capitalization of intellectual property rights, including organizing the intellectual property rights trading market, conducting the intellectual property rights trust transaction pilots and the intellectual property rights securitization pilots and prepare the establishment of the China International Intellectual Property Rights Exchange when appropriate.
◆ Innovate financial services and conduct investment-loan connectivity
It will establish a wholly-owned investment management company and form a community of common investment and loans interests to provide short-term bridging financing and loans to entrepreneurship investment and equities investment institutes and explore the establishment of private technological credit cooperatives. Meanwhile, it will apply the establishment of the technology and finance department by policy banks in Shanghai and make special systems and arrangements on loan accesses and credit approval.
[XFA Viewpoint]
Xiangshan Science Conference focuses on energy Internet, listed companies to layout first
------
Experts propose on the Xiangshan Science Conference (a science frontier forum sponsored by the Ministry of Science and Technology) convened recently that energy technology and information technology are deeply integrating with each other to form “energy Internet” and it might set off a new round of energy revolution. Meanwhile, energy Internet might see actual implementation of “Internet Plus” action plan in energy area. Institutions estimate that the market size of energy Internet might go beyond 5 trillion yuan.
Nanjing Xinlian Electronics Co., Ltd. (002546.SZ) receives multiple institutional investigations recently. Xinlian Electronics is a leading enterprise in electricity consumption information gathering system industry. Upon the implementation of new electricity reform and the decontrol of electricity allocation and sales, the company is able to provide integrated scheme, takes it as an opportunity to win customers and lays foundation for following value-added services.
Xiamen Kehua Hengsheng Co., Ltd. (002335.SZ) recently signed strategic cooperation framework agreement with the government of Zhangjiakou City, Hebei Province and Beijing Zhihuixing Technology Co., Ltd. It becomes the first listed company to resort to local governmental and enterprise resources to jointly build an intelligent resource management Cloud platform. Institutions consider that the layout of the company’s energy Internet strategy has almost been completed and it might take a leading role in the innovation of energy internet trading platform.
[Information Radar]
Xylooligosaccharide project of Longlive Bio-Technology to put into operation as scheduled
------
The xylooligosaccharide project with an annual output of 6000 tons and the Functional Sugar Comprehensive Technology Research & Development Center of Shandong Longlive Bio-Technology Co., Ltd. (002604.SZ) see sound progress and might be put into operation as scheduled at end June. Currently, the saccharose in American infant milk powder formula has been replaced by xylooligosaccharides. Market demand might be further expanded in the future. Moreover, the company recently obtained approval from China Food and Drug Administration to use excipients for clinical trial of drugs. The company will enter medicine area therefrom. It has reached cooperation with multiple renowned medicine enterprises.
It is noteworthy that Longlive Bio-Technology applied to issue no more than 700 million yuan short-term financing bill with registration in Feb. this year. The raised funds will mainly be used to expand the company’s industrial chain and meet the demand on capital for industrial expansion, etc. According to market estimation, the company might complete its business in new material, new energy, etc. through extensional acquisition, etc. in the second half of this year.
Old-age care service center of Double Arrow Rubber opened
------
It is learnt that the widely concerned Tongxiang Heji Old-age Care Service Center of Zhejiang Double Arrow Rubber Co., Ltd. (002381.SZ) (the company holds 77.5 percent shares of the center) has been opened at the beginning of May. This old-age care service center is a complex project multi-tasked in old-age care, physical examination, recovery, etc. It develops in-depth cooperation with multiple old-age care service centers and also cooperates with hospitals and Internet enterprises. Institutions estimate that Double Arrow Rubber will take this complex project as an example to integrate various resources within the industry and rapidly copy this mode for expansion.
[Overseas Information]
Image processing techniques emerge, robot vision industry sees new market
------
MVTec, a robot vision software supplier, recently developed a new technology which enables user to detect and track object’s 3D motion. It opens new market for robot vision technology. In fact, robot vision has been commercially applied in the past several years and the application scope is further expanded to security, monitoring, automotive, medical science, etc. According to the report released by renowned market research company Tractica this week, the robot vision industry might expand with an average compound annual growth rate of 42 percent from 2014 to 2019.
○ Insurance companies: avoid highly-leveraged individual stocks
○ STIC plan has highlights
○ Xiangshan Science Conference focuses on energy Internet
○ Xylooligosaccharide project of Longlive Bio-Technology to put into operation
[XFA View]
Calmly face “intermittent” bullish market
------
The A-share market saw more fluctuation after the May holiday. The different views of institutes also heat the worry in the stock market. However, considering the startling growth driven by various factors in April, the author believes that the current is normal and healthy. The trend for a medium to long-term bullish market has not been reversed and investors can calmly deal with the “intermittent” bullish market.
Firstly, the internal driver of this round of market conditions is the wealth reallocation of enterprises and citizens during the economic transformation, which is a long term for decades. It is the first phase currently and the performance of the stock market in the future is expected.
Secondly, the capital inflow, the introduction of polices and investors’ expectation on deepening reform all reached an unprecedented high in April. But the capital inflow and the unleashing of policies benefits need a long term and cannot be achieved overnight. The market adjustment at this time is normal and healthy.
Thirdly, the mainstream market hotspot will be emerging industries in the future, which is determined by the characteristics of the economic transformation of China. It is the orientation of policies to actively develop emerging industries and upgrade traditional industries to achieve the overall economic and industrial upgrading. The government will focus on the theme and introduce relevant policies and arrangements on “promoting innovation and transformation”. Investors are advised to focus on the core logic and seek favorable products in the “intermittent” bullish market. (Hong Wen)
[Institutions’ Movement]
Insurance companies: avoid highly-leveraged individual stocks
------
The assets management of Taikang Life and Huaxia Life Insurance Co., Ltd. interviewed by XFA indicated that major securities companies have cut the financing rates of certain individual stocks with high growth, which may have chain effects on the market. It is advised to avoid highly-leveraged individual stocks in short term.
[Hotspot Investigation]
STIC construction plan to take shape
------
As the No. 1 task of Shanghai in 2015, the preparation of the overall plan on the construction of the Shanghai Technology Innovation Center (STIC) will complete and is expected to take shape in May. It is reported that the plan has various highlights in the capitalization of intellectual property rights and financial supports to technology innovation.
◆ “Three steps” to establish STIC
Based on relevant schedules, the STIC will complete the foundation framework in 2020 and form the core function in 2030. It will fully complete in 2050.
◆ Establishment of trading system for capitalization of intellectual property rights
It proposes to establish the trading system for the capitalization of intellectual property rights, including organizing the intellectual property rights trading market, conducting the intellectual property rights trust transaction pilots and the intellectual property rights securitization pilots and prepare the establishment of the China International Intellectual Property Rights Exchange when appropriate.
◆ Innovate financial services and conduct investment-loan connectivity
It will establish a wholly-owned investment management company and form a community of common investment and loans interests to provide short-term bridging financing and loans to entrepreneurship investment and equities investment institutes and explore the establishment of private technological credit cooperatives. Meanwhile, it will apply the establishment of the technology and finance department by policy banks in Shanghai and make special systems and arrangements on loan accesses and credit approval.
[XFA Viewpoint]
Xiangshan Science Conference focuses on energy Internet, listed companies to layout first
------
Experts propose on the Xiangshan Science Conference (a science frontier forum sponsored by the Ministry of Science and Technology) convened recently that energy technology and information technology are deeply integrating with each other to form “energy Internet” and it might set off a new round of energy revolution. Meanwhile, energy Internet might see actual implementation of “Internet Plus” action plan in energy area. Institutions estimate that the market size of energy Internet might go beyond 5 trillion yuan.
Nanjing Xinlian Electronics Co., Ltd. (002546.SZ) receives multiple institutional investigations recently. Xinlian Electronics is a leading enterprise in electricity consumption information gathering system industry. Upon the implementation of new electricity reform and the decontrol of electricity allocation and sales, the company is able to provide integrated scheme, takes it as an opportunity to win customers and lays foundation for following value-added services.
Xiamen Kehua Hengsheng Co., Ltd. (002335.SZ) recently signed strategic cooperation framework agreement with the government of Zhangjiakou City, Hebei Province and Beijing Zhihuixing Technology Co., Ltd. It becomes the first listed company to resort to local governmental and enterprise resources to jointly build an intelligent resource management Cloud platform. Institutions consider that the layout of the company’s energy Internet strategy has almost been completed and it might take a leading role in the innovation of energy internet trading platform.
[Information Radar]
Xylooligosaccharide project of Longlive Bio-Technology to put into operation as scheduled
------
The xylooligosaccharide project with an annual output of 6000 tons and the Functional Sugar Comprehensive Technology Research & Development Center of Shandong Longlive Bio-Technology Co., Ltd. (002604.SZ) see sound progress and might be put into operation as scheduled at end June. Currently, the saccharose in American infant milk powder formula has been replaced by xylooligosaccharides. Market demand might be further expanded in the future. Moreover, the company recently obtained approval from China Food and Drug Administration to use excipients for clinical trial of drugs. The company will enter medicine area therefrom. It has reached cooperation with multiple renowned medicine enterprises.
It is noteworthy that Longlive Bio-Technology applied to issue no more than 700 million yuan short-term financing bill with registration in Feb. this year. The raised funds will mainly be used to expand the company’s industrial chain and meet the demand on capital for industrial expansion, etc. According to market estimation, the company might complete its business in new material, new energy, etc. through extensional acquisition, etc. in the second half of this year.
Old-age care service center of Double Arrow Rubber opened
------
It is learnt that the widely concerned Tongxiang Heji Old-age Care Service Center of Zhejiang Double Arrow Rubber Co., Ltd. (002381.SZ) (the company holds 77.5 percent shares of the center) has been opened at the beginning of May. This old-age care service center is a complex project multi-tasked in old-age care, physical examination, recovery, etc. It develops in-depth cooperation with multiple old-age care service centers and also cooperates with hospitals and Internet enterprises. Institutions estimate that Double Arrow Rubber will take this complex project as an example to integrate various resources within the industry and rapidly copy this mode for expansion.
[Overseas Information]
Image processing techniques emerge, robot vision industry sees new market
------
MVTec, a robot vision software supplier, recently developed a new technology which enables user to detect and track object’s 3D motion. It opens new market for robot vision technology. In fact, robot vision has been commercially applied in the past several years and the application scope is further expanded to security, monitoring, automotive, medical science, etc. According to the report released by renowned market research company Tractica this week, the robot vision industry might expand with an average compound annual growth rate of 42 percent from 2014 to 2019.
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