[Today's Guide]
○ Publicly-offered and privately-offered funds optimistic about new economy
○ Internet securities business to further speed up
○ Huifeng Agrochemical’s mobile terminals for agricultural products e-commerce introduced
○ Following progress of MERS catches attention
[XFA View]
Publicly-offered and privately-offered funds optimistic about new economy
------
The sharp fluctuation of Shanghai securities composite index (SSCI) before 5,000 points triggers big shock in the market. The future trend of A-share market is doubted. But from the latest communication done by the author with multiple publicly-offered and privately-offered funds institutions, the fluctuation of stock indexes is more resulted from short-term technical correction and the impact of bad news. The economic, financial and fund foundations supporting the bullish market are not changed. The publicly-offered and privately-offered funds institutions, as the main force in this round of bullish market, hold abundant cash on hand. They are optimistic about the new economy area which leads the economic transformation. The Small and Medium Enterprise Board and the Chinext Board connecting with “Internet Plus” are still the investment focus of funds.
From the communication done by the author with main publicly-offered and privately-offered funds institutions like China Southern Asset Management Co., Ltd., Bosera Asset Management Co., Ltd., China International Fund Management Co., Ltd., AXA SPDB Investment Managers Co., Ltd., Beijing Starock Investment Management Co., Ltd., etc., the fluctuation of stock indexes does not hurt institutions’ confidence. They believe that the rapid surge of stock indexes since the beginning of the year demands adjustment internally. It’s normal that stock indexes fluctuate under the impact of short-term bad news. But since the macroeconomic trend is dim, the government is urged to input larger support. What’s more important, capital market undertakes multi state wills including economic transformation, state-owned enterprises reform, etc. “Reform does not necessarily bring along bullish market, but reform needs bullish market.”
On the other hand, the transfer process of residential asset allocation is still ongoing. The enthusiasm in investing in stock market is still high. Both publicly-offered funds and privately-offered funds own “abundant bullets”. The fundraising scale of new funds since this year exceeds 700 billion yuan. The number of newly-added fund accounts exceeded 1 million again in the past week. One product under E Fund Management Co., Ltd. raised 30 billion yuan in just one day. Privately-offered funds are hot too. The fundraising scale of single product widely sees a growth of 100 percent compared with the corresponding period in last year. Some securities channels even see crowded launch of privately-offered funds.
In fact, the core problem faced by institutional investors, especially by publicly-offered funds, is not to buy or not but what to buy. Surveys show that as the main pushing hand behind the new economy sector of this round of bullish market, the publicly-offered funds might still take the Small and Medium Enterprise Board and the Chinext Board as their main battlefield in certain future. Their logic is that the fundamental is seeing intertexture of “small cycle” and “general trend”; traditional sectors might see re-valuation but hard to sustain; as for the Small and Medium Enterprise Board and the Chinext Board, though their valuation is high in the short term and the supply of stocks is increasing, new economy represented by “Internet Plus” bears important tasks like national economy transformation and technology innovation. Their internal industrial life circle and development space determine that they will be the long-term hotspot in the bullish market. Market fluctuation provides institutions with perfect opportunity to select individual stocks and explore long-term leading growth stocks. (Sun Xu)
[Authoritative Voice]
“Internet Plus” of securities industry to see accelerated development
------
It is learnt that the 2015 Securities Companies Innovative Development Seminar is preliminarily determined to be held in the middle of July. The core topic of the seminar is Internet finance and Internet securities business, meaning that this seminar might become the opportunity for the securities industry’s “Internet Plus” to further speed up.
◆ Guidance on Internet securities business of securities companies might launched
The guidance under formulation will define policy support and management standardization to the Internet securities business of securities companies. And, main domestic Internet platforms are also formulating their “Internet Plus” action plans to connect with securities business, speeding up the “Internet Plus” of securities industry.
◆ Post record management of Internet securities
Institutions including securities companies will mainly rely on self-discipline management when developing Internet securities business and the business qualification approval is no longer required. At present, 55 securities companies of the whole industry have been approved to develop Internet securities business.
◆ Expand business scope of Internet securities
Besides the widely developed Internet securities brokerage and sales of financial products, the Internet securities business of securities companies is planned to be expanded to asset management, investment consulting, equity crowd-funding, mortgage financing, etc. As for supervision, it mainly focuses on setting principal regulations for various Internet securities business of securities companies and making clear the prohibited activities.
[Industry Observation]
Following progress of MERS catches attention
------
According to the National Health and Family Planning Commission, China confirmed the first case of Middle East respiratory syndrome (MERS). Chinese Academy of Engineering academician Zhong Nanshan said MERS has a very high death rate of 40 percent and no special medicines and treatment can immediately cure it. It is introduced that MERS is caused by a novel coronavirus and can spread between people who are in close contact. According to the report of the World Health Organization (WHO) on May 25, 1,139 cases of MERS in 24 countries have been confirmed form September, 2012 to May 25, 2015 and 431 patients have died. All people who had close contact with MERS patients in Hong Kong have been quarantined.
Based on the confirmed case, the patient has fever symptoms and the temperature soared to 39.5C. It is considered as an infectious pneumonia and anti-virus infection treatment is advised. Among A-share companies, the Lianhua Qingwen Capsules of Shijiazhuang Yiling Pharmaceutical Co., Ltd. (002603.SZ), the Tanreqing injection of Shanghai Kaibao Pharmaceutical Co., Ltd. (300039.SZ) and the Reduning injection of Jiangsu Kanion Pharmaceutical Co., Ltd. (600557.SH) are effective in treating and preventing respiratory diseases.
[Information Radar]
Huifeng Agrochemical’s mobile terminals for agricultural products e-commerce introduced
------
Jiangsu Huifeng Agrochemical Co., Ltd. (002496.SZ) actively develops mobile terminals for agricultural products e-commerce. The 16899.com of the company developed mobile touch edition for agricultural products e-commerce and has been introduced in end-May. The 16899.com was introduced last November and has gradually improved a three-tier structure in e-commerce channel service models with ‘distribution stations at the county level plus service specialists at the town level plus purchasing agents at the village level’. The 16899.com has established more than 700 stations with more than 4,000 purchasing agents at the village level and over 100,000 registered members across China. It recorded a daily page view of nearly 10,000 times. By the end of April, nearly 20,000 people have been registered as the purchasing agents of the 16899.com across the country. The company plans to develop 20,000 service specialists at the town level and 300,000 purchasing agents at the village level to develop the construction of e-commerce network in rural areas.
In addition, the phase I of the storage and logistics project with 500,000 cubic meters of Huifeng Agrochemical started operation and materials have been purchased and stored. It is expected to achieve an annual operation revenue of 158 million yuan and an average after-tax profit of 65.60 million yuan after the completion of construction and reaching the designed capacity.
Yabao Phar. accelerates in developing mobile medical Internet app
------
Yabao Pharmaceutical Group Co., Ltd. (600351.SH) recently invested in the ‘little apple pediatrician mobilephone app’ with the mobile medical Internet app as its target. It is reported that the app will be introduced and put into operation soon.
The project will build a pediatrics doctor-patient platform like the Chunyu doctor. It can greatly improve the efficiency in the management of patients, the communication between doctors and patients and the education on patients and establish an online and offline business model covering doctors, patients and hospital resources. The app will boost the marketing of ‘Dinggui’, a knock-out product of the company, the expansion of children’s health industrial chain as well as the establishment of bid data on children’s health. The management of the company indicated that it will adopt the Internet, big data, cloud computing and other new technologies in marketing and innovation. Besides, the company is also expected to conduct denotative expansions in the future.
[Editor’s Thought]
Wind continues to blow
------
Everything is like the moon waxes and wanes, not to the exclusion of the stock market. The Strategy on Wednesday issued various contribution indicating risks and urged investors to be ‘properly reasonable’. It is difficult to estimate whether the market conditions after the plunge on May 28 will repeat those after May 30. But it is certain that the plunge on May 28 is not the doomsday or the end of this round of market conditions. The capitals remain easing and a moderately bullish market is generally expected by various parties. The sensitive market will forget the ‘soft attach’ given by Central Huijin and return to its own track.
Some joked that the Main Board determined a moderate market while the ChiNext Board and SME Board determines a bullish market and it is better to keep the small-cap stocks. Such jokes truly reflected the market conditions and even guide investors sometimes. The small-cap stocks neither plunged nor hiked during the slump will lead the surging. The ChiNext Board, declined less than the Main Board on May 28, surged by 3.20 percent on Friday. The Internet plus, computer equipment and software services are sectors in the wind. The preference of small-cap stocks over big-cap ones also showed out after the plunge.
○ Publicly-offered and privately-offered funds optimistic about new economy
○ Internet securities business to further speed up
○ Huifeng Agrochemical’s mobile terminals for agricultural products e-commerce introduced
○ Following progress of MERS catches attention
[XFA View]
Publicly-offered and privately-offered funds optimistic about new economy
------
The sharp fluctuation of Shanghai securities composite index (SSCI) before 5,000 points triggers big shock in the market. The future trend of A-share market is doubted. But from the latest communication done by the author with multiple publicly-offered and privately-offered funds institutions, the fluctuation of stock indexes is more resulted from short-term technical correction and the impact of bad news. The economic, financial and fund foundations supporting the bullish market are not changed. The publicly-offered and privately-offered funds institutions, as the main force in this round of bullish market, hold abundant cash on hand. They are optimistic about the new economy area which leads the economic transformation. The Small and Medium Enterprise Board and the Chinext Board connecting with “Internet Plus” are still the investment focus of funds.
From the communication done by the author with main publicly-offered and privately-offered funds institutions like China Southern Asset Management Co., Ltd., Bosera Asset Management Co., Ltd., China International Fund Management Co., Ltd., AXA SPDB Investment Managers Co., Ltd., Beijing Starock Investment Management Co., Ltd., etc., the fluctuation of stock indexes does not hurt institutions’ confidence. They believe that the rapid surge of stock indexes since the beginning of the year demands adjustment internally. It’s normal that stock indexes fluctuate under the impact of short-term bad news. But since the macroeconomic trend is dim, the government is urged to input larger support. What’s more important, capital market undertakes multi state wills including economic transformation, state-owned enterprises reform, etc. “Reform does not necessarily bring along bullish market, but reform needs bullish market.”
On the other hand, the transfer process of residential asset allocation is still ongoing. The enthusiasm in investing in stock market is still high. Both publicly-offered funds and privately-offered funds own “abundant bullets”. The fundraising scale of new funds since this year exceeds 700 billion yuan. The number of newly-added fund accounts exceeded 1 million again in the past week. One product under E Fund Management Co., Ltd. raised 30 billion yuan in just one day. Privately-offered funds are hot too. The fundraising scale of single product widely sees a growth of 100 percent compared with the corresponding period in last year. Some securities channels even see crowded launch of privately-offered funds.
In fact, the core problem faced by institutional investors, especially by publicly-offered funds, is not to buy or not but what to buy. Surveys show that as the main pushing hand behind the new economy sector of this round of bullish market, the publicly-offered funds might still take the Small and Medium Enterprise Board and the Chinext Board as their main battlefield in certain future. Their logic is that the fundamental is seeing intertexture of “small cycle” and “general trend”; traditional sectors might see re-valuation but hard to sustain; as for the Small and Medium Enterprise Board and the Chinext Board, though their valuation is high in the short term and the supply of stocks is increasing, new economy represented by “Internet Plus” bears important tasks like national economy transformation and technology innovation. Their internal industrial life circle and development space determine that they will be the long-term hotspot in the bullish market. Market fluctuation provides institutions with perfect opportunity to select individual stocks and explore long-term leading growth stocks. (Sun Xu)
[Authoritative Voice]
“Internet Plus” of securities industry to see accelerated development
------
It is learnt that the 2015 Securities Companies Innovative Development Seminar is preliminarily determined to be held in the middle of July. The core topic of the seminar is Internet finance and Internet securities business, meaning that this seminar might become the opportunity for the securities industry’s “Internet Plus” to further speed up.
◆ Guidance on Internet securities business of securities companies might launched
The guidance under formulation will define policy support and management standardization to the Internet securities business of securities companies. And, main domestic Internet platforms are also formulating their “Internet Plus” action plans to connect with securities business, speeding up the “Internet Plus” of securities industry.
◆ Post record management of Internet securities
Institutions including securities companies will mainly rely on self-discipline management when developing Internet securities business and the business qualification approval is no longer required. At present, 55 securities companies of the whole industry have been approved to develop Internet securities business.
◆ Expand business scope of Internet securities
Besides the widely developed Internet securities brokerage and sales of financial products, the Internet securities business of securities companies is planned to be expanded to asset management, investment consulting, equity crowd-funding, mortgage financing, etc. As for supervision, it mainly focuses on setting principal regulations for various Internet securities business of securities companies and making clear the prohibited activities.
[Industry Observation]
Following progress of MERS catches attention
------
According to the National Health and Family Planning Commission, China confirmed the first case of Middle East respiratory syndrome (MERS). Chinese Academy of Engineering academician Zhong Nanshan said MERS has a very high death rate of 40 percent and no special medicines and treatment can immediately cure it. It is introduced that MERS is caused by a novel coronavirus and can spread between people who are in close contact. According to the report of the World Health Organization (WHO) on May 25, 1,139 cases of MERS in 24 countries have been confirmed form September, 2012 to May 25, 2015 and 431 patients have died. All people who had close contact with MERS patients in Hong Kong have been quarantined.
Based on the confirmed case, the patient has fever symptoms and the temperature soared to 39.5C. It is considered as an infectious pneumonia and anti-virus infection treatment is advised. Among A-share companies, the Lianhua Qingwen Capsules of Shijiazhuang Yiling Pharmaceutical Co., Ltd. (002603.SZ), the Tanreqing injection of Shanghai Kaibao Pharmaceutical Co., Ltd. (300039.SZ) and the Reduning injection of Jiangsu Kanion Pharmaceutical Co., Ltd. (600557.SH) are effective in treating and preventing respiratory diseases.
[Information Radar]
Huifeng Agrochemical’s mobile terminals for agricultural products e-commerce introduced
------
Jiangsu Huifeng Agrochemical Co., Ltd. (002496.SZ) actively develops mobile terminals for agricultural products e-commerce. The 16899.com of the company developed mobile touch edition for agricultural products e-commerce and has been introduced in end-May. The 16899.com was introduced last November and has gradually improved a three-tier structure in e-commerce channel service models with ‘distribution stations at the county level plus service specialists at the town level plus purchasing agents at the village level’. The 16899.com has established more than 700 stations with more than 4,000 purchasing agents at the village level and over 100,000 registered members across China. It recorded a daily page view of nearly 10,000 times. By the end of April, nearly 20,000 people have been registered as the purchasing agents of the 16899.com across the country. The company plans to develop 20,000 service specialists at the town level and 300,000 purchasing agents at the village level to develop the construction of e-commerce network in rural areas.
In addition, the phase I of the storage and logistics project with 500,000 cubic meters of Huifeng Agrochemical started operation and materials have been purchased and stored. It is expected to achieve an annual operation revenue of 158 million yuan and an average after-tax profit of 65.60 million yuan after the completion of construction and reaching the designed capacity.
Yabao Phar. accelerates in developing mobile medical Internet app
------
Yabao Pharmaceutical Group Co., Ltd. (600351.SH) recently invested in the ‘little apple pediatrician mobilephone app’ with the mobile medical Internet app as its target. It is reported that the app will be introduced and put into operation soon.
The project will build a pediatrics doctor-patient platform like the Chunyu doctor. It can greatly improve the efficiency in the management of patients, the communication between doctors and patients and the education on patients and establish an online and offline business model covering doctors, patients and hospital resources. The app will boost the marketing of ‘Dinggui’, a knock-out product of the company, the expansion of children’s health industrial chain as well as the establishment of bid data on children’s health. The management of the company indicated that it will adopt the Internet, big data, cloud computing and other new technologies in marketing and innovation. Besides, the company is also expected to conduct denotative expansions in the future.
[Editor’s Thought]
Wind continues to blow
------
Everything is like the moon waxes and wanes, not to the exclusion of the stock market. The Strategy on Wednesday issued various contribution indicating risks and urged investors to be ‘properly reasonable’. It is difficult to estimate whether the market conditions after the plunge on May 28 will repeat those after May 30. But it is certain that the plunge on May 28 is not the doomsday or the end of this round of market conditions. The capitals remain easing and a moderately bullish market is generally expected by various parties. The sensitive market will forget the ‘soft attach’ given by Central Huijin and return to its own track.
Some joked that the Main Board determined a moderate market while the ChiNext Board and SME Board determines a bullish market and it is better to keep the small-cap stocks. Such jokes truly reflected the market conditions and even guide investors sometimes. The small-cap stocks neither plunged nor hiked during the slump will lead the surging. The ChiNext Board, declined less than the Main Board on May 28, surged by 3.20 percent on Friday. The Internet plus, computer equipment and software services are sectors in the wind. The preference of small-cap stocks over big-cap ones also showed out after the plunge.
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