[Today’s Guide]
○Shanghai Global Technology Innovation Center highlights capital strength in construction
○ Internet-based securities to see more innovation in securities industry
○ Suning Universal to make substantial progress in transformation
○ Pay attention to companies to introduce employee shareholding plans
[Authoritative Voice]
Shanghai Global Technology Innovation Center highlights capital strength in construction
------
As the No. 1 task of Shanghai in 2015, the overall plan on the construction of the Global Technology Innovation Center has been prepared and will be submitted to the Municipal Party Committee of Shanghai for deliberation. It is reported that the plan highlights the capital strength and promotes the firm integration of technology and finance.
Firstly, it will expand the scale of funds led by the angel investment of the government and increase the input in the early stage of innovations results. It will allow the participation of funds in the equities from the angel investment and allow it to be transferred to other shareholders of the angel investment with the original value.
Secondly, it will allow state-owned venture capital enterprises to adopt the valuation in equities transaction and register after the transaction. It will allow to access the performance of the professional managers of state-owned venture capital enterprises based on the actual results and grant the corresponding salaries.
Thirdly, it will establish policy guarantee institutes or funds to support the technology-based small and medium enterprises and raise the proportion of the coverage by the policy guarantee. It will encourage relevant financial institutes to establish platforms for the equity-based crowd-funding and explore the trial of financing services for the equity-based crowd-funding.
Fourthly, it will promote the listing of technology innovation enterprises with certain scales but have not made profits through the ‘emerging board” of the Shanghai Stock Exchange under preparation. It will strive to set a special board for technology innovation in the Shanghai Equity Exchange to support the listing of small and medium technology innovation enterprises.
[XFA View]
Internet-based securities to see more innovation in securities industry
------
It is reported that the annual innovation and development conference of securities companies is preliminarily scheduled to convene in end-June or early-July with the Internet-based finance and securities business as the core theme. Regulatory authorities and the senior management of securities companies participated at the conference will focus on the theme and exchange experiences and discuss and make plans on the integration of online and offline business and innovation in the future. It means that the Internet-based securities will see more innovation in the future.
As a matter of fact, the securities industry has conducted relevant exploration before the emerging of the ‘Internet plus’ concept. The Internet-based securities business generally carried out is divided into two categories. One is the securities business with a majority of agency business through the PC terminals or mobile terminals. The other is the sale of financial products and the consumption payment through the separate online financial accounts opened by investors. Since the Securities Association of China approved the trial of the first four Internet-based securities business in 2014, qualified securities companies have accounted for nearly 50 percent so far.
It has become a trend that securities companies join Internet-based platforms in conducting Internet-based finance and securities business since the beginning of the year. The focus of the cooperation is the marketing of agency-dominated business and the attraction of clients. Such cooperation mode has not improved the profit model of securities companies, but it has affected the previous commission rates in the securities business to certain extent. However, major securities companies have been actively developing the business. Some even established special departments for the emerging business.
Although regulatory authorities have not released special supporting policies on the Internet-based finance and securities businesses conducted by securities companies, based on industry practices, the Internet-based finance and securities businesses have been a battlefield in the securities industry. The dominant vision in the ‘Internet plus securities companies’ in the industry is that after the agency-dominated securities businesses accessed into the Internet, securities companies will improve the clients’ experiences and increase clients’ loyalty through information, study, finance and online services. They will further expand the scope of the securities business into the assets management, self-operation and investment banks as well as other businesses based on the Internet in order to provide one-stop financial products and services to clients. Finally, securities companies will establish a financial ecology connecting the investment and finance to meet different financial demands of clients (such as trading, P2P and equity-based crowd-funding) through the Internet-based platform.
[News to Confirm]
Rumors: Suning Universal makes substantial progress in transformation
------
News to confirm: generally true. With the declining of the original real estate business, Suning Universal Co., Ltd. (000718.SZ) has been actively seeking transformation. This year is crucial in its strategic transformation. Based on its advantages and resources in the former property business, the company set the transformation target in big recreation and sports, big health and big finance. The company acquired Suning Cultural Industry Co., Ltd. last year and made breakthroughs in cultural transformation. It expanded the production and issuing of movie and television plays as well as cartoon games, showing its early development. To coordinate with the acceleration in the transformation of the company, Suning Universal announced in April that it planned to establish the ‘Suning Capital Co., Ltd.’ in Hong Kong. The business scope of the new company includes equity investment and capital operation, cultural media and medical treatment and health.
[XFA Viewpoint]
Pay attention to companies to introduce employee shareholding plans
------
Based on past cases, listed companies to introduce employee shareholding plans will lead a new trend of market conditions. The submission of employee shareholding plans to the general meeting for deliberation is a key stage in the progress, which will boost the stock price to certain extent. For example, Xiamen Hexing Packaging Printing Co., Ltd. (002228.SZ), which convened the general meeting on May 20, has surged significantly for days. Based on the statistics of XFA, such companies as Huafu Top Dyed Melange Yarn Co., Ltd. (002042.SZ), Beingmate Baby & Child Food Co., Ltd. (002570.SZ) and Hytera Communications Corporation Limited (002583.SZ) have introduced employee shareholding plans and will convene general meetings to deliberate the plans.
Huafu Top Dyed Melange Yarn announced on May 9 that it established the employee shareholding plan named ‘Huafu Welth No. 1’, which will raise no more than 200 million yuan to purchase the stocks of the company in the secondary market or through block trades in the proportion of 6:3:1 among the priority, middle and inferiority shares. The company will hold the general meeting on May 25 to deliberate the matter. As a leading color-spun yarn enterprise, Huafu Top Dyed Melange Yarn will directly benefit from the recovery of the industrial chain. With the promotion of the employee shareholding plan, the performance of the company is expected to be further improved.
Beingmate Baby & Child Food Co., Ltd. (002570.SZ) announced on May 12 that it established the employee shareholding plan named ‘Huatai Beingmate No. 1, which will raise no more than 100 million yuan to purchase the stocks of the company in the secondary market in the proportion of 1.5:1 among the priority and progressive shares. The company will hold the general meeting on May 29 to deliberate the matter. With the improvement of channels and cost reduction this year as well as the synergistic effect on the cooperation with Fonterra Co-operative Group, the performance growth of Beingmate is expected to speed up.
Hytera Communications Corporation Limited (002583.SZ) announced the establishment of the employee shareholding plan named ‘Zhaoshang Zhiyua Hytera No. 1’ on May 13, which will raise no more than 300 million yuan to purchase the stocks of the company in the secondary market in the proportion of 1:2:1 among the priority A, middle B and inferiority C shares. The company will hold the general meeting on May 29 to deliberate the matter. Hytera is a leading enterprise in communication through special network and is equivalent to Huawei Technologies Co., Ltd. in the market position and research strength. The introduction of the employee shareholding plan will further promote the business expansion of the company.
[Industry Observation]
Big Data Expo to convene next week
------
The Guiyang International Big Data Expo 2015 will be held in Guiyang City from May 26 to 29. Ma Yun and other tycoons in the Internet industry will participate. The session will focus on the ‘financial innovation driven by the big data’ and other themes. With the development of the mobile Internet and the emerging of cloud computing, the cost and technical threshold of the bid data treatment has been reduced greatly and it is applied in more and more areas. In the expansion and merger of listed companies, the big data has become a key industry and has been recognized by the market.
In terms of A-share companies, Business-intelligence of Oriental Nations Corporation Ltd. (300166.SZ) will develop the big data business in telecommunication, Internet-based finance, intelligent cities, industry 4.0 and other industries. The company announced recently that it has acquired an overseas company Cotopaxi and will develop the big data business in the industrial intelligence industry. Beijing TRS Information Technology Co., Ltd. (300229.SZ), principally engaged in big data technology, has taken various measures in developing the cyber safety and mobile Internet industry.
○Shanghai Global Technology Innovation Center highlights capital strength in construction
○ Internet-based securities to see more innovation in securities industry
○ Suning Universal to make substantial progress in transformation
○ Pay attention to companies to introduce employee shareholding plans
[Authoritative Voice]
Shanghai Global Technology Innovation Center highlights capital strength in construction
------
As the No. 1 task of Shanghai in 2015, the overall plan on the construction of the Global Technology Innovation Center has been prepared and will be submitted to the Municipal Party Committee of Shanghai for deliberation. It is reported that the plan highlights the capital strength and promotes the firm integration of technology and finance.
Firstly, it will expand the scale of funds led by the angel investment of the government and increase the input in the early stage of innovations results. It will allow the participation of funds in the equities from the angel investment and allow it to be transferred to other shareholders of the angel investment with the original value.
Secondly, it will allow state-owned venture capital enterprises to adopt the valuation in equities transaction and register after the transaction. It will allow to access the performance of the professional managers of state-owned venture capital enterprises based on the actual results and grant the corresponding salaries.
Thirdly, it will establish policy guarantee institutes or funds to support the technology-based small and medium enterprises and raise the proportion of the coverage by the policy guarantee. It will encourage relevant financial institutes to establish platforms for the equity-based crowd-funding and explore the trial of financing services for the equity-based crowd-funding.
Fourthly, it will promote the listing of technology innovation enterprises with certain scales but have not made profits through the ‘emerging board” of the Shanghai Stock Exchange under preparation. It will strive to set a special board for technology innovation in the Shanghai Equity Exchange to support the listing of small and medium technology innovation enterprises.
[XFA View]
Internet-based securities to see more innovation in securities industry
------
It is reported that the annual innovation and development conference of securities companies is preliminarily scheduled to convene in end-June or early-July with the Internet-based finance and securities business as the core theme. Regulatory authorities and the senior management of securities companies participated at the conference will focus on the theme and exchange experiences and discuss and make plans on the integration of online and offline business and innovation in the future. It means that the Internet-based securities will see more innovation in the future.
As a matter of fact, the securities industry has conducted relevant exploration before the emerging of the ‘Internet plus’ concept. The Internet-based securities business generally carried out is divided into two categories. One is the securities business with a majority of agency business through the PC terminals or mobile terminals. The other is the sale of financial products and the consumption payment through the separate online financial accounts opened by investors. Since the Securities Association of China approved the trial of the first four Internet-based securities business in 2014, qualified securities companies have accounted for nearly 50 percent so far.
It has become a trend that securities companies join Internet-based platforms in conducting Internet-based finance and securities business since the beginning of the year. The focus of the cooperation is the marketing of agency-dominated business and the attraction of clients. Such cooperation mode has not improved the profit model of securities companies, but it has affected the previous commission rates in the securities business to certain extent. However, major securities companies have been actively developing the business. Some even established special departments for the emerging business.
Although regulatory authorities have not released special supporting policies on the Internet-based finance and securities businesses conducted by securities companies, based on industry practices, the Internet-based finance and securities businesses have been a battlefield in the securities industry. The dominant vision in the ‘Internet plus securities companies’ in the industry is that after the agency-dominated securities businesses accessed into the Internet, securities companies will improve the clients’ experiences and increase clients’ loyalty through information, study, finance and online services. They will further expand the scope of the securities business into the assets management, self-operation and investment banks as well as other businesses based on the Internet in order to provide one-stop financial products and services to clients. Finally, securities companies will establish a financial ecology connecting the investment and finance to meet different financial demands of clients (such as trading, P2P and equity-based crowd-funding) through the Internet-based platform.
[News to Confirm]
Rumors: Suning Universal makes substantial progress in transformation
------
News to confirm: generally true. With the declining of the original real estate business, Suning Universal Co., Ltd. (000718.SZ) has been actively seeking transformation. This year is crucial in its strategic transformation. Based on its advantages and resources in the former property business, the company set the transformation target in big recreation and sports, big health and big finance. The company acquired Suning Cultural Industry Co., Ltd. last year and made breakthroughs in cultural transformation. It expanded the production and issuing of movie and television plays as well as cartoon games, showing its early development. To coordinate with the acceleration in the transformation of the company, Suning Universal announced in April that it planned to establish the ‘Suning Capital Co., Ltd.’ in Hong Kong. The business scope of the new company includes equity investment and capital operation, cultural media and medical treatment and health.
[XFA Viewpoint]
Pay attention to companies to introduce employee shareholding plans
------
Based on past cases, listed companies to introduce employee shareholding plans will lead a new trend of market conditions. The submission of employee shareholding plans to the general meeting for deliberation is a key stage in the progress, which will boost the stock price to certain extent. For example, Xiamen Hexing Packaging Printing Co., Ltd. (002228.SZ), which convened the general meeting on May 20, has surged significantly for days. Based on the statistics of XFA, such companies as Huafu Top Dyed Melange Yarn Co., Ltd. (002042.SZ), Beingmate Baby & Child Food Co., Ltd. (002570.SZ) and Hytera Communications Corporation Limited (002583.SZ) have introduced employee shareholding plans and will convene general meetings to deliberate the plans.
Huafu Top Dyed Melange Yarn announced on May 9 that it established the employee shareholding plan named ‘Huafu Welth No. 1’, which will raise no more than 200 million yuan to purchase the stocks of the company in the secondary market or through block trades in the proportion of 6:3:1 among the priority, middle and inferiority shares. The company will hold the general meeting on May 25 to deliberate the matter. As a leading color-spun yarn enterprise, Huafu Top Dyed Melange Yarn will directly benefit from the recovery of the industrial chain. With the promotion of the employee shareholding plan, the performance of the company is expected to be further improved.
Beingmate Baby & Child Food Co., Ltd. (002570.SZ) announced on May 12 that it established the employee shareholding plan named ‘Huatai Beingmate No. 1, which will raise no more than 100 million yuan to purchase the stocks of the company in the secondary market in the proportion of 1.5:1 among the priority and progressive shares. The company will hold the general meeting on May 29 to deliberate the matter. With the improvement of channels and cost reduction this year as well as the synergistic effect on the cooperation with Fonterra Co-operative Group, the performance growth of Beingmate is expected to speed up.
Hytera Communications Corporation Limited (002583.SZ) announced the establishment of the employee shareholding plan named ‘Zhaoshang Zhiyua Hytera No. 1’ on May 13, which will raise no more than 300 million yuan to purchase the stocks of the company in the secondary market in the proportion of 1:2:1 among the priority A, middle B and inferiority C shares. The company will hold the general meeting on May 29 to deliberate the matter. Hytera is a leading enterprise in communication through special network and is equivalent to Huawei Technologies Co., Ltd. in the market position and research strength. The introduction of the employee shareholding plan will further promote the business expansion of the company.
[Industry Observation]
Big Data Expo to convene next week
------
The Guiyang International Big Data Expo 2015 will be held in Guiyang City from May 26 to 29. Ma Yun and other tycoons in the Internet industry will participate. The session will focus on the ‘financial innovation driven by the big data’ and other themes. With the development of the mobile Internet and the emerging of cloud computing, the cost and technical threshold of the bid data treatment has been reduced greatly and it is applied in more and more areas. In the expansion and merger of listed companies, the big data has become a key industry and has been recognized by the market.
In terms of A-share companies, Business-intelligence of Oriental Nations Corporation Ltd. (300166.SZ) will develop the big data business in telecommunication, Internet-based finance, intelligent cities, industry 4.0 and other industries. The company announced recently that it has acquired an overseas company Cotopaxi and will develop the big data business in the industrial intelligence industry. Beijing TRS Information Technology Co., Ltd. (300229.SZ), principally engaged in big data technology, has taken various measures in developing the cyber safety and mobile Internet industry.
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