A number of listed companies disclosed their business layout in Hainan after the State Council released a guidance to support comprehensively deepening the reform and opening-up in Hainan on April 14.
On April 16, the SSE Composite Index and SZSE Component Index declined respectively 1.53 percent and 0.61 percent, extending the loss trend of the previous two trading days.
Yet in contrast the Hainan sector stood out. Data from Wind Infor shows that from the opening of the day, share prices of 21 Hainan-based listed companies, including Luoniushan Co., Ltd. (000735.SZ) and Hainan Ruize New Building Material Co., Ltd. (002596.SZ), surged by the daily limit of 10 percent.
Plenty of listed companies invest in Hainan.
A number of listed companies disclosed their business layout in Hainan on April 16. Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd. (300313.SZ) said that as horse racing industry is booming, the demands for horse will increase. The company’s subsidiary is engaged in stallion, horse frozen semen and embryo business. Wonders Information Co., Ltd. (300168.SZ) said that the company has business related to intelligent government and healthcare.
Concept stocks surge to daily limit
On April 16, many Hainan-concept stocks, Hainan Shennong Gene Technology Co., Ltd. (300189.SZ), China Hainan Rubber Industry Group Co., Ltd. (601118.SH), Xinlong Holding (Group) Company Ltd. (000955.SZ), Hainan Ruize New Building Material Co., Ltd. (002596.SZ), Luoniushan and Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd. (300313.SZ), surged by the daily limit of 10 percent. The Hainan state-owned asset index, Hainan tourism island index, horse racing index and online lottery index lead the gain with 7.99 percent, 7.06 percent, 5.58 percent and 3.57 percent, respectively.
The State Council’s guidance proposes to lift the control of yacht tourism, orderly advance tourism resources development in Xisha Island and steadily open the Island tour; promote the integrated development of culture and tourism, and develop emerging cultural consumption, such as cartoon games, Internet culture and digital content, and promote the upgrading of traditional cultural consumption; support the establishment of a southern national sports training base and provincial sports center in Hainan, encourage the development of beach sports, water sports, horse racing and other projects, and support the creation of a national sports tourism demonstration area; explore the development of sports lottery and other kinds of lottery.
Many listed companies have laid out in these fields. On February 27, Hainan Jindi Real Estate Company, a wholly-owned subsidiary of embryo, registered Luoniushan International Equestrian Club Co., Ltd., with a registered capital of 50 million yuan. The club is mainly engaged in equestrian club leisure and entertainment services, equestrian technical consulting services.
Daxing Garden, a wholly-owned subsidiary of Ruize New Building Material, is one of the leading landscaping enterprises in Sanya City and one of the leading enterprises in the landscaping industry in Hainan Province. In June 2016, Daxing Garden became the construction unit of the East Bank Wetland Park project, with a contractual amount of 313 million yuan.
Response from listed companies
A number of listed companies made responses on their business layout in Hainan on April 16.
Wonders Information said that the company has business related to intelligent government and healthcare.
Tianshan Animal Husbandry Bio-engineering said that as horse racing industry is booming, the demands for horse will increase. The company’s subsidiary is engaged in stallion, horse frozen semen and embryo business. It may develop the imports and sales of stallion in the future based on market conditions.
Hefei Urban Construction Development Co., Ltd. (002208.SZ) said that its holiday tourism project has obtained a construction permit. The company will accelerate the progress of the project to enter the pre-sale stage. It may start new projects in Hainan Province.
Some companies said that relevant favorable policies don’t benefit company operations a lot. Sansteel Minguang Co., Ltd., Fujian (002110.SZ ) indicated that as the company is quite far away from Hainan province and the logistic cost to Hainan is very high, its products are seldom sold in the province. Building free trade port in Hainan has limited benefit on the company.
Gohigh Data Networks Technology Co., Ltd. (000851.SZ) said that the company has suspended its business about Internet lottery. Holding company Datang Wealth and Investment Management Co., Ltd. and Hainan Development Holdings Co., Ltd. have a joint venture in Hainan. The company will seek for new development opportunities with participants in Hainna.
Some firms warn risks. Beijing eGOVA Co., Ltd. (300075.SZ) remarked that the company has achieved sound results in operating management system for digital city. But it is a long-term process of development in Hainan market. There’s larger fluctuation in the market in the short term, which isn’t related to the operating performance directly.
Translated by Coral Zhong
On April 16, the SSE Composite Index and SZSE Component Index declined respectively 1.53 percent and 0.61 percent, extending the loss trend of the previous two trading days.
Yet in contrast the Hainan sector stood out. Data from Wind Infor shows that from the opening of the day, share prices of 21 Hainan-based listed companies, including Luoniushan Co., Ltd. (000735.SZ) and Hainan Ruize New Building Material Co., Ltd. (002596.SZ), surged by the daily limit of 10 percent.
Plenty of listed companies invest in Hainan.
A number of listed companies disclosed their business layout in Hainan on April 16. Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd. (300313.SZ) said that as horse racing industry is booming, the demands for horse will increase. The company’s subsidiary is engaged in stallion, horse frozen semen and embryo business. Wonders Information Co., Ltd. (300168.SZ) said that the company has business related to intelligent government and healthcare.
Concept stocks surge to daily limit
On April 16, many Hainan-concept stocks, Hainan Shennong Gene Technology Co., Ltd. (300189.SZ), China Hainan Rubber Industry Group Co., Ltd. (601118.SH), Xinlong Holding (Group) Company Ltd. (000955.SZ), Hainan Ruize New Building Material Co., Ltd. (002596.SZ), Luoniushan and Xinjiang Tianshan Animal Husbandry Bio-engineering Co., Ltd. (300313.SZ), surged by the daily limit of 10 percent. The Hainan state-owned asset index, Hainan tourism island index, horse racing index and online lottery index lead the gain with 7.99 percent, 7.06 percent, 5.58 percent and 3.57 percent, respectively.
The State Council’s guidance proposes to lift the control of yacht tourism, orderly advance tourism resources development in Xisha Island and steadily open the Island tour; promote the integrated development of culture and tourism, and develop emerging cultural consumption, such as cartoon games, Internet culture and digital content, and promote the upgrading of traditional cultural consumption; support the establishment of a southern national sports training base and provincial sports center in Hainan, encourage the development of beach sports, water sports, horse racing and other projects, and support the creation of a national sports tourism demonstration area; explore the development of sports lottery and other kinds of lottery.
Many listed companies have laid out in these fields. On February 27, Hainan Jindi Real Estate Company, a wholly-owned subsidiary of embryo, registered Luoniushan International Equestrian Club Co., Ltd., with a registered capital of 50 million yuan. The club is mainly engaged in equestrian club leisure and entertainment services, equestrian technical consulting services.
Daxing Garden, a wholly-owned subsidiary of Ruize New Building Material, is one of the leading landscaping enterprises in Sanya City and one of the leading enterprises in the landscaping industry in Hainan Province. In June 2016, Daxing Garden became the construction unit of the East Bank Wetland Park project, with a contractual amount of 313 million yuan.
Response from listed companies
A number of listed companies made responses on their business layout in Hainan on April 16.
Wonders Information said that the company has business related to intelligent government and healthcare.
Tianshan Animal Husbandry Bio-engineering said that as horse racing industry is booming, the demands for horse will increase. The company’s subsidiary is engaged in stallion, horse frozen semen and embryo business. It may develop the imports and sales of stallion in the future based on market conditions.
Hefei Urban Construction Development Co., Ltd. (002208.SZ) said that its holiday tourism project has obtained a construction permit. The company will accelerate the progress of the project to enter the pre-sale stage. It may start new projects in Hainan Province.
Some companies said that relevant favorable policies don’t benefit company operations a lot. Sansteel Minguang Co., Ltd., Fujian (002110.SZ ) indicated that as the company is quite far away from Hainan province and the logistic cost to Hainan is very high, its products are seldom sold in the province. Building free trade port in Hainan has limited benefit on the company.
Gohigh Data Networks Technology Co., Ltd. (000851.SZ) said that the company has suspended its business about Internet lottery. Holding company Datang Wealth and Investment Management Co., Ltd. and Hainan Development Holdings Co., Ltd. have a joint venture in Hainan. The company will seek for new development opportunities with participants in Hainna.
Some firms warn risks. Beijing eGOVA Co., Ltd. (300075.SZ) remarked that the company has achieved sound results in operating management system for digital city. But it is a long-term process of development in Hainan market. There’s larger fluctuation in the market in the short term, which isn’t related to the operating performance directly.
Translated by Coral Zhong
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