[Today's Guide]
○ Venture capital industry to embrace golden age
○ Shareholders increase shareholding at high stock prices
○ New drivers to promote growth of Kanion Phar.
○ Intelligent transportation construction to speed up
[XFA View]
Venture capital industry to embrace golden age
------
China’s venture capital industry is faced with multiple opportunities including multi-level capital market reform, popular innovation, “Internet Plus”, etc. since this year. It starts to embrace the real golden age.
First of all, the registration-based stock issuancesystem reform provides venture capital enterprises with smooth exit channel. At present, the National People's Congress is deliberating the revision of the Securities Law. Therefore, the registration-based stock issuancesystem reform, taking the Securities Law as legal basis, is expected to be implemented in end-2015 at the soonest. It provides venture capital projects with reliable expectation to exit through IPO. At the meantime, the Strategic Emerging Board, under the preparation of Shanghai Stock Exchange, is also planned to be launched after the implementation of registration-based stock issuance system. It is learnt that the standard for the IPO onEmerging Board is relatively low. Enterprises with revenue or market value reaching certain scale and principal businesses being in accordance with the policy guidance of seven national strategic emerging industries, or the action plans including “Made in China 2025”, “Internet Plus”, etc. can all apply for being listed on this board. This move will greatly lift the exit efficiency of venture capital.
Secondly, polies on merger and acquisition (M&A) and reorganization are largely untied. Supervision authorities encourage venture capital to actively participate in industrial M&A and reorganization. It not only opens new way for the exit of venture capital besides IPO but also improves investment accuracy and shortens exit cycle. Moreover, overseas M&A is warming up. The overseas expansion of A-share listed companies can’t do without the help of professional PE institutions. It will greatly expand the business space of venture capital enterprises.
Thirdly, the “popular entrepreneurship and innovation” advocated by the senior management is largely improving domestic innovation and entrepreneurship environment. It is learnt that the financial and taxation departments are studying and improving taxation policies encouraging the development of venture capital funds. It is planned that on the basis of previous privilege, more deduction on income tax will be given to venture capital enterprises investing in micro companies in start-up period. Under such big environment, new innovation and entrepreneurship projects with higher growth possibility are emerging. The modification of “Internet Plus” on traditional industries fosters emerging new commercial modes. All these will benefit the business expansion of venture capital funds.
Fourthly,securities regulatory authorities are actively studying on a series of policy measures including promoting the listing of venture capital companies on the National Equities Exchange and Quotations (NEEQ), commonly known as the New Three Board and similar to OTCBB in the U.S. market. Venture capital institutions including JD Capital Co., Ltd. and China Science & Merchants Investment Management Group (CSC) successfully financed billions of yuan after being listed on NEEQ. It not only provides companies with abundant capital to launch M&A and reorganization andrace to occupy quality projects but also effectively improves the valuation of the institutions. (Xiao Quan)
Link: notable listed companies involved in venture capital
------
Among A-share listed companies, those involved in venture capital experience obvious improvement in profit. Along with the implementation of registration-based stock issuance system, there might be opportunity for re-valuation.
ZijiangGroup, the common substantial shareholder of Shanghai Zijiang Enterprise Group Co.,Ltd. (600210.SH) and Shanghai Welltech Automation Co., Ltd. (002058.SZ), owns national-level ZizhuHi-Tech DevelopmentZone. Shanghai Zijiang Venture Capital Co., Ltd., a subsidiary of Zijiang Enterprise, owns 15 percent equities of AVIC Civil Aviation Electronics Co., Ltd. and has expanded to aircraft business.
Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH) was involved in the equity investment of 10 enterprises at end-2014 with 522 million yuan. The Ronglian Emerging Industries Fund of 380 million yuan founded by the companyhas completed the second round of investment, totaling an investment proportion of 60 percent.
Fortune Venture Capital Co., Ltd., a fully-owned subsidiary ofHunan TV &Broadcast Intermediary Co., Ltd. (000917.SZ), completed its investment in 36 projects and the second-round capital increase in 6 projects with 1.3 billion yuan in 2014.At present, 30 of the enterprises invested by Fortune Venture Capital have been successfully listed and 7 of them have been approved to issue IPO.
The paid-up capital of the stock projects of Zhejiang Silicon Paradise Asset Management Group Co., Ltd., 27.9 percent equities of which is held by Qianjiang Water Resources Development Co., Ltd. (600283.SH), reached 8 billion yuan, indicating a leading position in the industry. Silicon Paradise Group is expected to be listed on theNational Equities Exchange and Quotations (NEEQ) in 2015 and there lies large room for the re-valuation of its equity value.
Shenzhen Capital Group Co., Ltd., 13.93 percent equities of which is held by Shanghai Dazhong Public Utilities(Group) Co., Ltd. (600635.SH), is a local leading venture capital enterprise. Its value is estimated to be around 80 ~100 billion yuan once it enters capital market.
[Data Reference]
Abundant capital supply out of A-share market
------
Sufficient liquidity within bank system and abundant OTC capital are the fundamental guarantee to the surge of A-share market.
Though new stocks saw intensive issuance, the inter-bank capital remained calm in the past week. Data from China Securities Depository and Clearing Corporation Limited (CSDC) and Shanghai Interbank Offered Rate (SHIBOR) shows that the capital interest ratesaw overall declination on May 22. The 7-day repo rate declined to 1.974 percent, meaning a drop of 1.6 Basic Point, and the SHIBOR 1-month rate dropped 6.8 BP to 2.389 percent. It is noteworthy that the overnight SHIBOR even claimed 1.0320 on May 20, setting the lowest record in nearly five years and an absolute historical low record.
It means that the continuous Reserve Requirement Ratio (RRR) cut and interest-rate cut recently have resulted in easing capital supply. According to latest statistics from central bank, the average monthly weighted inter-bank offered rate in April recorded 2.49 percent, declining by 120 BP compared with last month; the average monthly weighted pledge-style repo rate in April recorded 2.73 percent, declining by 124 points compared with last month.Based on this, the reverse repo of the central bank sees continuous suspension for 10 terms.
Shareholders increase shareholding at high stock prices
------
Statistics from XFA shows that industrial capital saw continuous shareholding reduction since March. 855 companies saw a total shareholding reduction of 227.2 billion yuan. Anhui Conch Cement Company Limited (600585.SH; 00914.HK), once regarded as the indicator of shareholding increase in industrial capital by the market, recently also reduced shareholding in Xinjiang Qingsong Building Materials And Chemicals（Group）Co., Ltd. (600425.SH) by 5 percent and it indicated that it is open to continue the reduction in next 12 months.
It is noteworthy that amid the tide of shareholding reduction, there are 162 listed companies seeing net increase of shareholding with a total amount of 11.6 billion yuan. CSG Holding Co., Ltd. (000012.SZ) was bought by Foresea Life Insurance Co.,Ltd. through secondary market acquisition to the 5 percent limit for the second time just 10 days after it reached the limit for the first time, totaling a shareholding proportion of 10.04 percent. The average purchase price does not increase much compared with the company’s latest stock price. Penghua Asset Management (Shenzhen) Co., Ltd. totally bought 5 percent equities of Fiyta Holdings Ltd. (000026.SZ)on April 29 and 30. The former indicates that it is optimistic about the long-term development of Fiyta Holdings. The actual controller of Shenzhen Agricultural Products Co., Ltd. (000061.SZ) increased shareholding by 33.94 million shares, accounting for 2 percent of its total share capital and indicated that the purpose of this move is to furtherstabilize the city’s state-owned controlling stake.
[Institutions’ Movement]
Insurance companies to reduce proportion of ChiNext Board stocks
------
As the ChiNext Board Index hit new high recently and the regulatory authorities mention the risks of theme stocks and high-price stocks, the senior management of PICC Property and Casualty Company Limited (02328.HK) and other insurance companies indicated that they proposes to reduce the proportion of individual stocks on the ChiNext Board and even fully exit from some individual stocks for the consideration of the characteristics of insurance capitals and the risk control and prevention. However, as a matter of fact, the proportion of insurance capitals in stocks on the ChiNext Board is not high.
[Listed Companies]
Internet plus new products to promote growth of Kanion Phar.
------
XFA visited Jiangsu Kanion Pharmaceutical Co.,Ltd. (600557.SH) recently and learnt that the company is conducting the Internet-based expansion and the promotion of new drugs, which are expected to be new drivers to growth.
In terms of the Internet-based expansion, Kanion Phar. appointed relevant talents in the industry to develop e-business. Jiangsu Kanion Group Co., Ltd., the substantial shareholder of the company, has established a pharmaceutical commercial company and has been granted a license for Internet-based businesses. The company is likely to benefit from the advantage in exploring relevant businesses. The company indicated in the annual report that it will actively explore the application of Internet-based means and promote the development of pharmaceutical e-business to gradually establish a marketing model of vertical e-business.
As for the marketing of new drugs, the ginkgolide injection, a fist new product of Kanion Phar. is expected to conduct mass sale with a target of 200 million yuan this year with the completion of the sale channels establishment. The product recognized a profit of 20 million yuan last year. It has been covered by the medical insurance in Shanxi Province and Sichuan Province and is likely to conduct bidding for mass sale.
In addition, Kanion Phar. actively develops big health industry and expands from traditional Chinese medicines into chemical drugs, biological medicine and big data industry. The market estimates that the company will accelerate in developing through mergers and acquisitions as well as other means. The group will establish a company to conduct the research of new drugs and develop monoclonal antibody-based, genetic, nerve growth factors and other key drugs.
[Industry Observation]
Intelligent transportation construction to speed up
------
XFA learnt that based on the requirement of the Ministry of Transport, local road and transportation authorities have been accelerating in the construction of the connectivity of the road and transportation management systems. The Ministry of Transport issued a circular in late-April and required to speed up in the construction of the road and transportation management information system across the country and achieve the sharing and exchange of the road and transportation basis data this year. Statistics show that the input in the application of information technologies in developed countries accounts for 8 percent to 10 percent of the total input in transportation facilities while the proportion in China is only 3 percent and is expected to 6 percent in the future. Based on incomplete statistics, the intelligent transportation industry recorded a profit of about 36 billion yuan in 2014. Insiders believe that the industry will keep a growth of over 20 percent in the following five years and the market size will reach an annual average of 100 billion in 2019. Relevant companies are expected to see excellent development opportunities.
Among A-share companies, China Shipping Network Technology Co.,Ltd. (002401.SZ) is a leading provider of intelligent transportation. It is principally engaged in the research and sale of ETC products and the intelligent transportation system integration. Beijing E-Hualu Info Technology Co.,Ltd. (300212.SZ) initiates a top-down construction model of intelligent cities and is a leader in the PPP model in the intelligent transportation industry.
[Information Radar]
Dr.Peng’s project to implement in late June
------
The ‘household intelligent wireless sensor network’, a project of Dr.Peng Telecom & Media Group Co., Ltd. (600804.SH) invested by issuing shares through private placement, is expected to implement in late June. In addition, the company’s virtual operator’s business is under the joint debugging with operators and is likely to open in the first half. It will facilitate the company in the marketing of all its businesses and advance shoulder by shoulder with three major operators, namely China Mobile Limited (CHL.NYSE; 00941.HK), China United Network Communications Limited (600050.SH) andChina Telecom Corporation Limited (CHA.NYSE; 00728.HK).
Recently, the reduction of charges on broadband has caught much attention. Great Wall Broadband Network Service Co., Ltd., a subsidiary ofDr. Peng, has introduced specific measures to improve the speed and reduce the charges of broadband in various places. Relevant responsible people of the company disclosed that the coverage of 50M to 100M clients has reached 40 percent and will be over 50 percent in the end of the year.
[Editor’s Thought]
More beautiful flowers out of ChiNext Board
------
XFA proposed that to make an investment is to invest in national destiny. With the surging of the ChiNext Board, the Internet plus, Chinese intelligent manufacturing and other relevant sectors representing the national destiny saw huge increase. However, it is impossible for the ChiNext Board to surge all the time. The fall of stocks on the bullish ChiNext Board on Friday is a warning. Besides, the China Securities Regulatory Commission (CSRC) indicated after the trading hours on Friday that it will deal with the third cases in the ‘special law enforcement by the CSRC in 2015’, which investigated 12 cases and targeted at six market manipulations. It may affect the performance of theme stocks in short term.
However, there are beautiful flowers out of the ChiNext Board. Looking back the XFA information, we have found investment opportunities for potential investorsflowers out of the ChiNext Board. The Industry Observation on May 17 pointed out that the elimination of live pig capacity beat the expectation and the pig price may recover. Ningbo Tech-bank Co.,Ltd. (002124.SZ) and Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) hiked for five trading days last week. The Authoritative Voice on May 20 focused on the establishment of the Shanghai Global Technology Innovation Center, indicating that overall plan will be submitted to the Municipal Party Committee of Shanghai for deliberation. Shanghai Shibei Hi-tech Co., Ltd. (600604.SH) and Shanghai Zijiang Enterprise Group Co.,Ltd. (600210.SH) surged significantly after that. The News to Confirm on the same day reported that Suning Universal Co.,Ltd. (000718.SZ) will make substantial progress in transformation and it surged by the daily limit of 10 percent for two days.
Admittedly, the effect of the investigation by the CSRC should not be magnified. It should be deemed as safeguarding the market principle of openness, fairness and justice. It will not affect the bullish law of growth stocks but will facilitate the market in selecting excellent companies. After a period of fluctuation and adjustment, growth companies, either on the Main Board or the SME Board, will be bullish. Let us quote from the ‘Continent’, ‘Only kids share the Main Board and the SME Board while adults focus on growth.’
○ Venture capital industry to embrace golden age
○ Shareholders increase shareholding at high stock prices
○ New drivers to promote growth of Kanion Phar.
○ Intelligent transportation construction to speed up
[XFA View]
Venture capital industry to embrace golden age
------
China’s venture capital industry is faced with multiple opportunities including multi-level capital market reform, popular innovation, “Internet Plus”, etc. since this year. It starts to embrace the real golden age.
First of all, the registration-based stock issuancesystem reform provides venture capital enterprises with smooth exit channel. At present, the National People's Congress is deliberating the revision of the Securities Law. Therefore, the registration-based stock issuancesystem reform, taking the Securities Law as legal basis, is expected to be implemented in end-2015 at the soonest. It provides venture capital projects with reliable expectation to exit through IPO. At the meantime, the Strategic Emerging Board, under the preparation of Shanghai Stock Exchange, is also planned to be launched after the implementation of registration-based stock issuance system. It is learnt that the standard for the IPO onEmerging Board is relatively low. Enterprises with revenue or market value reaching certain scale and principal businesses being in accordance with the policy guidance of seven national strategic emerging industries, or the action plans including “Made in China 2025”, “Internet Plus”, etc. can all apply for being listed on this board. This move will greatly lift the exit efficiency of venture capital.
Secondly, polies on merger and acquisition (M&A) and reorganization are largely untied. Supervision authorities encourage venture capital to actively participate in industrial M&A and reorganization. It not only opens new way for the exit of venture capital besides IPO but also improves investment accuracy and shortens exit cycle. Moreover, overseas M&A is warming up. The overseas expansion of A-share listed companies can’t do without the help of professional PE institutions. It will greatly expand the business space of venture capital enterprises.
Thirdly, the “popular entrepreneurship and innovation” advocated by the senior management is largely improving domestic innovation and entrepreneurship environment. It is learnt that the financial and taxation departments are studying and improving taxation policies encouraging the development of venture capital funds. It is planned that on the basis of previous privilege, more deduction on income tax will be given to venture capital enterprises investing in micro companies in start-up period. Under such big environment, new innovation and entrepreneurship projects with higher growth possibility are emerging. The modification of “Internet Plus” on traditional industries fosters emerging new commercial modes. All these will benefit the business expansion of venture capital funds.
Fourthly,securities regulatory authorities are actively studying on a series of policy measures including promoting the listing of venture capital companies on the National Equities Exchange and Quotations (NEEQ), commonly known as the New Three Board and similar to OTCBB in the U.S. market. Venture capital institutions including JD Capital Co., Ltd. and China Science & Merchants Investment Management Group (CSC) successfully financed billions of yuan after being listed on NEEQ. It not only provides companies with abundant capital to launch M&A and reorganization andrace to occupy quality projects but also effectively improves the valuation of the institutions. (Xiao Quan)
Link: notable listed companies involved in venture capital
------
Among A-share listed companies, those involved in venture capital experience obvious improvement in profit. Along with the implementation of registration-based stock issuance system, there might be opportunity for re-valuation.
ZijiangGroup, the common substantial shareholder of Shanghai Zijiang Enterprise Group Co.,Ltd. (600210.SH) and Shanghai Welltech Automation Co., Ltd. (002058.SZ), owns national-level ZizhuHi-Tech DevelopmentZone. Shanghai Zijiang Venture Capital Co., Ltd., a subsidiary of Zijiang Enterprise, owns 15 percent equities of AVIC Civil Aviation Electronics Co., Ltd. and has expanded to aircraft business.
Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH) was involved in the equity investment of 10 enterprises at end-2014 with 522 million yuan. The Ronglian Emerging Industries Fund of 380 million yuan founded by the companyhas completed the second round of investment, totaling an investment proportion of 60 percent.
Fortune Venture Capital Co., Ltd., a fully-owned subsidiary ofHunan TV &Broadcast Intermediary Co., Ltd. (000917.SZ), completed its investment in 36 projects and the second-round capital increase in 6 projects with 1.3 billion yuan in 2014.At present, 30 of the enterprises invested by Fortune Venture Capital have been successfully listed and 7 of them have been approved to issue IPO.
The paid-up capital of the stock projects of Zhejiang Silicon Paradise Asset Management Group Co., Ltd., 27.9 percent equities of which is held by Qianjiang Water Resources Development Co., Ltd. (600283.SH), reached 8 billion yuan, indicating a leading position in the industry. Silicon Paradise Group is expected to be listed on theNational Equities Exchange and Quotations (NEEQ) in 2015 and there lies large room for the re-valuation of its equity value.
Shenzhen Capital Group Co., Ltd., 13.93 percent equities of which is held by Shanghai Dazhong Public Utilities(Group) Co., Ltd. (600635.SH), is a local leading venture capital enterprise. Its value is estimated to be around 80 ~100 billion yuan once it enters capital market.
[Data Reference]
Abundant capital supply out of A-share market
------
Sufficient liquidity within bank system and abundant OTC capital are the fundamental guarantee to the surge of A-share market.
Though new stocks saw intensive issuance, the inter-bank capital remained calm in the past week. Data from China Securities Depository and Clearing Corporation Limited (CSDC) and Shanghai Interbank Offered Rate (SHIBOR) shows that the capital interest ratesaw overall declination on May 22. The 7-day repo rate declined to 1.974 percent, meaning a drop of 1.6 Basic Point, and the SHIBOR 1-month rate dropped 6.8 BP to 2.389 percent. It is noteworthy that the overnight SHIBOR even claimed 1.0320 on May 20, setting the lowest record in nearly five years and an absolute historical low record.
It means that the continuous Reserve Requirement Ratio (RRR) cut and interest-rate cut recently have resulted in easing capital supply. According to latest statistics from central bank, the average monthly weighted inter-bank offered rate in April recorded 2.49 percent, declining by 120 BP compared with last month; the average monthly weighted pledge-style repo rate in April recorded 2.73 percent, declining by 124 points compared with last month.Based on this, the reverse repo of the central bank sees continuous suspension for 10 terms.
Shareholders increase shareholding at high stock prices
------
Statistics from XFA shows that industrial capital saw continuous shareholding reduction since March. 855 companies saw a total shareholding reduction of 227.2 billion yuan. Anhui Conch Cement Company Limited (600585.SH; 00914.HK), once regarded as the indicator of shareholding increase in industrial capital by the market, recently also reduced shareholding in Xinjiang Qingsong Building Materials And Chemicals（Group）Co., Ltd. (600425.SH) by 5 percent and it indicated that it is open to continue the reduction in next 12 months.
It is noteworthy that amid the tide of shareholding reduction, there are 162 listed companies seeing net increase of shareholding with a total amount of 11.6 billion yuan. CSG Holding Co., Ltd. (000012.SZ) was bought by Foresea Life Insurance Co.,Ltd. through secondary market acquisition to the 5 percent limit for the second time just 10 days after it reached the limit for the first time, totaling a shareholding proportion of 10.04 percent. The average purchase price does not increase much compared with the company’s latest stock price. Penghua Asset Management (Shenzhen) Co., Ltd. totally bought 5 percent equities of Fiyta Holdings Ltd. (000026.SZ)on April 29 and 30. The former indicates that it is optimistic about the long-term development of Fiyta Holdings. The actual controller of Shenzhen Agricultural Products Co., Ltd. (000061.SZ) increased shareholding by 33.94 million shares, accounting for 2 percent of its total share capital and indicated that the purpose of this move is to furtherstabilize the city’s state-owned controlling stake.
[Institutions’ Movement]
Insurance companies to reduce proportion of ChiNext Board stocks
------
As the ChiNext Board Index hit new high recently and the regulatory authorities mention the risks of theme stocks and high-price stocks, the senior management of PICC Property and Casualty Company Limited (02328.HK) and other insurance companies indicated that they proposes to reduce the proportion of individual stocks on the ChiNext Board and even fully exit from some individual stocks for the consideration of the characteristics of insurance capitals and the risk control and prevention. However, as a matter of fact, the proportion of insurance capitals in stocks on the ChiNext Board is not high.
[Listed Companies]
Internet plus new products to promote growth of Kanion Phar.
------
XFA visited Jiangsu Kanion Pharmaceutical Co.,Ltd. (600557.SH) recently and learnt that the company is conducting the Internet-based expansion and the promotion of new drugs, which are expected to be new drivers to growth.
In terms of the Internet-based expansion, Kanion Phar. appointed relevant talents in the industry to develop e-business. Jiangsu Kanion Group Co., Ltd., the substantial shareholder of the company, has established a pharmaceutical commercial company and has been granted a license for Internet-based businesses. The company is likely to benefit from the advantage in exploring relevant businesses. The company indicated in the annual report that it will actively explore the application of Internet-based means and promote the development of pharmaceutical e-business to gradually establish a marketing model of vertical e-business.
As for the marketing of new drugs, the ginkgolide injection, a fist new product of Kanion Phar. is expected to conduct mass sale with a target of 200 million yuan this year with the completion of the sale channels establishment. The product recognized a profit of 20 million yuan last year. It has been covered by the medical insurance in Shanxi Province and Sichuan Province and is likely to conduct bidding for mass sale.
In addition, Kanion Phar. actively develops big health industry and expands from traditional Chinese medicines into chemical drugs, biological medicine and big data industry. The market estimates that the company will accelerate in developing through mergers and acquisitions as well as other means. The group will establish a company to conduct the research of new drugs and develop monoclonal antibody-based, genetic, nerve growth factors and other key drugs.
[Industry Observation]
Intelligent transportation construction to speed up
------
XFA learnt that based on the requirement of the Ministry of Transport, local road and transportation authorities have been accelerating in the construction of the connectivity of the road and transportation management systems. The Ministry of Transport issued a circular in late-April and required to speed up in the construction of the road and transportation management information system across the country and achieve the sharing and exchange of the road and transportation basis data this year. Statistics show that the input in the application of information technologies in developed countries accounts for 8 percent to 10 percent of the total input in transportation facilities while the proportion in China is only 3 percent and is expected to 6 percent in the future. Based on incomplete statistics, the intelligent transportation industry recorded a profit of about 36 billion yuan in 2014. Insiders believe that the industry will keep a growth of over 20 percent in the following five years and the market size will reach an annual average of 100 billion in 2019. Relevant companies are expected to see excellent development opportunities.
Among A-share companies, China Shipping Network Technology Co.,Ltd. (002401.SZ) is a leading provider of intelligent transportation. It is principally engaged in the research and sale of ETC products and the intelligent transportation system integration. Beijing E-Hualu Info Technology Co.,Ltd. (300212.SZ) initiates a top-down construction model of intelligent cities and is a leader in the PPP model in the intelligent transportation industry.
[Information Radar]
Dr.Peng’s project to implement in late June
------
The ‘household intelligent wireless sensor network’, a project of Dr.Peng Telecom & Media Group Co., Ltd. (600804.SH) invested by issuing shares through private placement, is expected to implement in late June. In addition, the company’s virtual operator’s business is under the joint debugging with operators and is likely to open in the first half. It will facilitate the company in the marketing of all its businesses and advance shoulder by shoulder with three major operators, namely China Mobile Limited (CHL.NYSE; 00941.HK), China United Network Communications Limited (600050.SH) andChina Telecom Corporation Limited (CHA.NYSE; 00728.HK).
Recently, the reduction of charges on broadband has caught much attention. Great Wall Broadband Network Service Co., Ltd., a subsidiary ofDr. Peng, has introduced specific measures to improve the speed and reduce the charges of broadband in various places. Relevant responsible people of the company disclosed that the coverage of 50M to 100M clients has reached 40 percent and will be over 50 percent in the end of the year.
[Editor’s Thought]
More beautiful flowers out of ChiNext Board
------
XFA proposed that to make an investment is to invest in national destiny. With the surging of the ChiNext Board, the Internet plus, Chinese intelligent manufacturing and other relevant sectors representing the national destiny saw huge increase. However, it is impossible for the ChiNext Board to surge all the time. The fall of stocks on the bullish ChiNext Board on Friday is a warning. Besides, the China Securities Regulatory Commission (CSRC) indicated after the trading hours on Friday that it will deal with the third cases in the ‘special law enforcement by the CSRC in 2015’, which investigated 12 cases and targeted at six market manipulations. It may affect the performance of theme stocks in short term.
However, there are beautiful flowers out of the ChiNext Board. Looking back the XFA information, we have found investment opportunities for potential investorsflowers out of the ChiNext Board. The Industry Observation on May 17 pointed out that the elimination of live pig capacity beat the expectation and the pig price may recover. Ningbo Tech-bank Co.,Ltd. (002124.SZ) and Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) hiked for five trading days last week. The Authoritative Voice on May 20 focused on the establishment of the Shanghai Global Technology Innovation Center, indicating that overall plan will be submitted to the Municipal Party Committee of Shanghai for deliberation. Shanghai Shibei Hi-tech Co., Ltd. (600604.SH) and Shanghai Zijiang Enterprise Group Co.,Ltd. (600210.SH) surged significantly after that. The News to Confirm on the same day reported that Suning Universal Co.,Ltd. (000718.SZ) will make substantial progress in transformation and it surged by the daily limit of 10 percent for two days.
Admittedly, the effect of the investigation by the CSRC should not be magnified. It should be deemed as safeguarding the market principle of openness, fairness and justice. It will not affect the bullish law of growth stocks but will facilitate the market in selecting excellent companies. After a period of fluctuation and adjustment, growth companies, either on the Main Board or the SME Board, will be bullish. Let us quote from the ‘Continent’, ‘Only kids share the Main Board and the SME Board while adults focus on growth.’
Latest comments