[Today's Guide]
○Shanghai-version supply-side reform scheme unveiled, state-owned assets reform to highlight
○China launches its first mobile telecom satellite, industrial development to accelerate
○Top-level design for intelligent transportation implemented, Alipay to launch VR Pay
○Truking Technology to invest in intelligent equipment manufacturing, ORG Packaging and Palm Eco-town Development to make deployment in sports industry
[SSN Focus]
○Shanghai-version supply-side reform scheme unveiled, state-owned assets reform to highlight
------
The Opinions of Shanghai Municipal Government about Advancing Supply-side Structural Reform in Shanghai was released on Aug. 5. It is proposed to deepen the state-owned assets reform to drive state-owned enterprises (SOEs) reform, push forward the structural adjustment and optimize the arrangement of state-owned assets, and to actively advance the mixed-ownership economic development through three measures which are "advancing open and market-oriented reorganization, improve the incentive and restrictive mechanisms for the SOEs, and optimize the development environment for non-public-owned economy". Xiao Lin, director of the Development and Research Center of Shanghai Municipal Government, believes that the reorganization of state-owned assets and the adjustment of industrial structure will be combined together in the future. With the aid of the capital market, qualified SOE groups will see overall listing or get the core business/assets listed."
Comment: Institutions hold that the SOEs reform in Shanghai now ranks top nationwide in terms of progress. Desired results are expected to be produced in the second half. The substantial shareholder of Shanghai Electric Group Company Limited (601727.SH) is now working on advancing overall listing, while the substantial shareholder of Inesa Intelligent Tech Inc. (600602.SH) proposes to make greater efforts in the securitization of core assets. SAIC Motor Corporation Limited (600104.SH), Shanghai International Port (Group) Co., Ltd. (600018.SH) and Shanghai Construction Group Co., Ltd. (600170.SH) all have carried out employee shareholding plans. In addition, marginal capital supply might bring significant positive impact to the constituents of the Shanghai SOEs ETF established by China Universal Asset Management Co., Ltd. which totals over 10 billion yuan after its establishment.
[SSN Selection]
○The China Securities Regulatory Commission (CSRC) on Aug. 5 approved the IPO applications of 13 enterprises with Wuxi Rural Commercial Bank included. The total fundraising will be no more than 5 billion yuan.
○The China Securities Regulatory Commission (CSRC) will make the administrative supervision measures over listed companies fully open to the public. The Management Methods over the Significant Assets Reorganizations of Listed Companies will be published at proper time after further improvement based on feedbacks.
○China's foreign exchange reserves dropped slightly by 4.1 billion U.S. dollars month on month at the end of July; the report on the implementation of monetary policies in Q2 issued by the central bank claimed that frequent interest rates cuts will deteriorate devaluation pressure.
○The Shanghai Stock Exchange has decided to adjust the management over the positions of the SSE 50ETF options contract from Aug. 8 so as to give play to the market role of options products.
○The Shenzhen Stock Exchange required China Vanke Co., Ltd. and Evergrande Group to explain the information disclosure problems seen in the afternoon of Aug. 4. Vanke claimed that it never made Evergrande's share purchase known to any media.
○The US non-farm payroll growth in July announced on Aug. 5 is stronger-than-expected. The S＆P 500 index and the Nasdaq index both hit new record highs.
TOP
[Industry Information]
○China launches its first mobile telecom satellite, industrial development to accelerate
------
As reported by the Xinhua News Agency, China on Aug. 6 successfully launched Tiantong-01 satellite which is China's first satellite for mobile telecommunication. The satellite will work for post-disaster emergency communication and make signal coverage in ocean, mountains and highland possible. It is expected that the number of end-users will exceed 3 million in next 10 years. Tiantong-01 satellite is the first satellite of China's home-made satellite mobile telecom system, and a key part of the country's space information infrastructure.
Comment: Latest research report by Guotai Jun'an Securities claims that compared with Beidou navigation system and remote-sensing satellite, China's mobile communication satellite has just started to develop. The launch of the first such satellite is a milestone of the satellite communication industry. The military field, which is not very sensitive to price, might be the first downstream field to use satellite communication. As to listed companies, Chengdu Fuliye Electronic Technology Co., Ltd. under Shenzhen SDG Information Co., Ltd. (000070.SZ) has mastered advanced technology in the military and satellite communication areas; Chengdu CORPRO Technology Co., Ltd. (300101.SZ) has made arrangement in satellite communication business.
◆The Long March carrier rocket, which launched the Tiangong-2 spacelab and Shenzhou-11 manned spacecraft, has arrived at the Jiuquan Satellite Launch Center, marking that China's new round of manned spaceflight now starts to get prepared for the launching.
TOP
○Top-level design for intelligent transportation implemented, boosting development of various areas
------
The National Development and Reform Commission and the Ministry of Transport on Aug. 5 printed and distributed the Implementation Scheme for Advancing "Internet plus" Convenient Transport and Promoting the Development of Intelligent Transport. It is proposed that by 2018, the public should be basically able to timely acquire traffic dynamic information through mobile Internet terminals; the one-cards in key city clusters should be interconnected and key operating vehicles/ships should be jointly controlled; the integration of online and offline enterprises should speed up, and the national key logistics channels should be straightened out first; the traffic infrastructure, carrying tools, operating information and etc. should be basically Internet-enabled to make system operation more safe and high-efficiency.
Comment: The implementation of the top-level design creates new policy conditions for listed companies engaged in areas like intelligent transport, intelligent logistics and Beidou navigation system. As to listed companies, Beijing E-Hualu Info Technology Co., Ltd. (300212.SZ) takes the lead in formulating information interface specification for the construction of urban intelligent transport system in China; Zhejiang Transfar Co., Ltd. (002010.SZ) has developed an intelligent logistics ecosphere; Beijing BDStar Navigation Co., Ltd. (002151.SZ) is principally engaged in the application system and hardware/software products related to navigation and positioning. Unicore Communications, Inc., a subsidiary under the company, is engaged in the development of chips for Beidou navigation system.
○Alipay to launch VR Pay to perfect virtual shopping experience
------
As reported on www.yicai.com, it is learnt from Ant Financial that Alipay will launch VR Pay at end September at the soonest. After placing orders in stores available for VR Pay, a 3D Alipay cashier desk will be seen in the VR screen. Users can log in their Alipay accounts and enter passwords to complete the deal through gestures, nods and etc. according to the operating features of the VR hardware equipment worn by users.
Comment: Besides shopping, there are also consumption like virtual presents and recharging in VR live video, VR games and other online application scenarios, which also have demands for VR Pay. Among the present VR consumption experience scenarios, users have to finish the transaction by paying via telephone after placing orders. The introduction of VR Pay will improve consumers' experience in virtual shopping.
TOP
[Announcement Interpretation]
○Truking Technology to raise RMB678 mln through private placement to invest in intelligent equipment manufacturing
------
Truking Technology Limited (300358.SZ) plans to raise 678 million yuan by issuing 40 million shares through private placement to invest in project producing 100 industrial robots annually and project producing 50 sets of intelligent warehouse logistics systems annually. The two projects are able to achieve annual average profit 169 million yuan after reaching designed capacity. Truking Intelligent Robot (Changsha) Co., Ltd. (Truking Technology holds 67.74 percent stake in the company), which will undertake the above two projects, previously gained 60 million yuan of investment capital from China Development Bank Fund Co., Ltd.
○ORG Packaging and Palm Eco-town Development to make deployment in European football clubs
------
ORG Packaging Co., Ltd. (002701.SZ) plans to purchase 59.95 percent equity of AJA Football S.A.O.S. at 7 million Euros. With over 100 years history, the club now belongs to French Division 2, but it owns fixed assets of home filed and is specialized in football training. Its net assets registered about 72.43 million yuan at the end of last year. ORG Packaging indicated that the acquisition helps the company command developed club management and experience in teenager training system operation, paving way for the company's sports development strategy.
As a limited partner, Palm Eco-town Development Co., Ltd. (002431.SZ) announced that it will contribut 300 million yuan (accounting for 49.9 percent of total subscription amount), and Shanghai Yuntai Investment Management Center (Limited Partnership) will make investment in Yunyi Guokai Sports Development Co., Ltd. (the total investment amount records 1.68 million yuan, 300 million yuan of which is contributed by Shang Yuntai Investment Management). The establishment of Yunyi Guokai Sports Development is to purchase West Bromwich Albion Holdings Limited, the controlling company of West Bromwich Albion Football Club. This will help Palm Eco-town Development develop its "ecological town plus" strategy.
○China Security ＆ Fire to resume trading
------
China Security ＆ Fire Co., Ltd. (600654.SH) plans to acquire 100 percent equity of Beijing Qichuang Zhuoyue Technology Co., Ltd., Zhejiang Huahe Wanrun Information Technology Co., Ltd. and Jiangsu China Sciences Intelligent Engineering Co., Ltd. respectively at a total consideration of 1.708 billion yuan. The company does what is required by Shanghai Stock Exchange and will resume trading from August 8.
○Hunan Valin Steel gains investment assets worth over RMB10 bln in finance and power generation fields
------
Hunan Valin Steel Co., Ltd. (000932.SZ) plans to sell all its assets and liabilities except 100 percent equity of Xiangtan Energy Conservation Co., Ltd. to Hunan Valin Steel Group Co., Ltd. at a total price of 6.258 billion yuan, and buy 100 percent equity of Hunan Valin Energy-saving Power Generation Co., Ltd. under Hunan Valin Steel Group and 33.34 percent equity of Fortunes Securities at a total price of 5.131 billion yuan. The balance will be paid by Hunan Valin Steel Group in cash. Meanwhile, Hunan Valin Steel plans to acquire 100 percent equity of Hunan Caixin Investment Holding Co., Ltd. (which holds equities of Fortunes Securities, Hunan Trust Co., Ltd. and Jixiang Life Insurance Co., Ltd.) and the remaining 3.77 percent equity of Fortunes Securities at 8.587 billion yuan through private placement. It will also raise supporting funds of 8.5 billion yuan from Hunan Valin Steel Group. It issues shares at an average price of 3.63 yuan per share in the above private placement.
After the above deals are done, Hunan Valin Steel will directly or indirectly hold 100 percent equity of Fortune Securities, 96 percent equity of Hunan Trust, 29.19 percent equity of Jixiang Life Insurance, 100 percent equity of Xiangtan Energy Conservation and 100 percent equity of Hunan Valin Energy-saving Power Generation. Hence, Hunan Valin Steel will become a listed company with principal business engaged in finance and power generation. Fortune Securities and Hunan Trust owns excellent profitability with net profits recording 95 million yuan and 91 million yuan respectively in the first four months this year, and that of Hunan Valin Energy-saving Power Generation posting 47 million yuan at the same period. The iron ＆ steel business of Hunan Valin Steel, which the company is going to strip off, suffered severe losses.
○China Evergrande Group (03333.HK) buys shares of Langfang Development Co., Ltd. (600149.SH) through secondary market acquisition to the 5 percent limit for three times and becomes its biggest shareholder with 15 percent shareholding.
[Trading Alarms]
○GigaDevice to launch IPO on Aug. 8
------
GigaDevice is going to launch IPO at a price of 23.26 yuan per share with an upper subscription limit of 10,000 shares for each account. The PE ratio is 16 times. The company is principally engaged in flash memory chip.
[Weekly Review]
○Similar N-shaped trend in different markets
------
China Vanke Co., Ltd. is undoubtedly attracting the most attention from the A-share market since last December. Firstly, Baoneng bought Vanke A shares successively in a large amount, boosting the price of Vanke A shares; then the stock price suffered drastic drop after trading resumption as the market worried Baoneng would lose its positions in Vanke; but China Evergrande Group (03333.HK) joined in the battle last week, making the stock price of Vanke surge again to get close to the highest level.
At the same time, coal steel is the catchiest product in futures market. First of all, a slew of policies on supply-side structural reform are introduced. This gives rise to market speculation on de-capacity concept, driving steel price to increase significantly. And then the market concerns that small and medium-sized steel plants will resume production, breaking the speculation immediately. Recently, as achievements are gradually made in de-capacity, steel price climbs again and price of coke hits new high last Friday within this year.
Why is there a similar N-shaped trend in the candlestick charts of different varieties and different markets? Investors should be calm to find out the root cause of the price hike rather than forwarding funny message on the rise and drop suddenly and sharply. Rise in Vanke A shares reflects the expectation of "asset scarcity" on valuation of blue chips; hike in steel price is related to policy on de-capacity. They are both associated with each other for a long time, but it is hard to verify it in a short term. Therefore, they are easy to be attacked by unfavorable information after growing rapidly; and then they will return to be increasing again once the unfavorable information is gone.
Catering to the two main themes of asset scarcity and de-capacity, SSN recently pays close attention to Vanke and coal steel, and also repeatedly reports blue chips including household appliance and liquor and some cyclical industries such as rare earth and titanium dioxide, hoping to provide reference for your investment.
TOP
○Shanghai-version supply-side reform scheme unveiled, state-owned assets reform to highlight
○China launches its first mobile telecom satellite, industrial development to accelerate
○Top-level design for intelligent transportation implemented, Alipay to launch VR Pay
○Truking Technology to invest in intelligent equipment manufacturing, ORG Packaging and Palm Eco-town Development to make deployment in sports industry
[SSN Focus]
○Shanghai-version supply-side reform scheme unveiled, state-owned assets reform to highlight
------
The Opinions of Shanghai Municipal Government about Advancing Supply-side Structural Reform in Shanghai was released on Aug. 5. It is proposed to deepen the state-owned assets reform to drive state-owned enterprises (SOEs) reform, push forward the structural adjustment and optimize the arrangement of state-owned assets, and to actively advance the mixed-ownership economic development through three measures which are "advancing open and market-oriented reorganization, improve the incentive and restrictive mechanisms for the SOEs, and optimize the development environment for non-public-owned economy". Xiao Lin, director of the Development and Research Center of Shanghai Municipal Government, believes that the reorganization of state-owned assets and the adjustment of industrial structure will be combined together in the future. With the aid of the capital market, qualified SOE groups will see overall listing or get the core business/assets listed."
Comment: Institutions hold that the SOEs reform in Shanghai now ranks top nationwide in terms of progress. Desired results are expected to be produced in the second half. The substantial shareholder of Shanghai Electric Group Company Limited (601727.SH) is now working on advancing overall listing, while the substantial shareholder of Inesa Intelligent Tech Inc. (600602.SH) proposes to make greater efforts in the securitization of core assets. SAIC Motor Corporation Limited (600104.SH), Shanghai International Port (Group) Co., Ltd. (600018.SH) and Shanghai Construction Group Co., Ltd. (600170.SH) all have carried out employee shareholding plans. In addition, marginal capital supply might bring significant positive impact to the constituents of the Shanghai SOEs ETF established by China Universal Asset Management Co., Ltd. which totals over 10 billion yuan after its establishment.
[SSN Selection]
○The China Securities Regulatory Commission (CSRC) on Aug. 5 approved the IPO applications of 13 enterprises with Wuxi Rural Commercial Bank included. The total fundraising will be no more than 5 billion yuan.
○The China Securities Regulatory Commission (CSRC) will make the administrative supervision measures over listed companies fully open to the public. The Management Methods over the Significant Assets Reorganizations of Listed Companies will be published at proper time after further improvement based on feedbacks.
○China's foreign exchange reserves dropped slightly by 4.1 billion U.S. dollars month on month at the end of July; the report on the implementation of monetary policies in Q2 issued by the central bank claimed that frequent interest rates cuts will deteriorate devaluation pressure.
○The Shanghai Stock Exchange has decided to adjust the management over the positions of the SSE 50ETF options contract from Aug. 8 so as to give play to the market role of options products.
○The Shenzhen Stock Exchange required China Vanke Co., Ltd. and Evergrande Group to explain the information disclosure problems seen in the afternoon of Aug. 4. Vanke claimed that it never made Evergrande's share purchase known to any media.
○The US non-farm payroll growth in July announced on Aug. 5 is stronger-than-expected. The S＆P 500 index and the Nasdaq index both hit new record highs.
TOP
[Industry Information]
○China launches its first mobile telecom satellite, industrial development to accelerate
------
As reported by the Xinhua News Agency, China on Aug. 6 successfully launched Tiantong-01 satellite which is China's first satellite for mobile telecommunication. The satellite will work for post-disaster emergency communication and make signal coverage in ocean, mountains and highland possible. It is expected that the number of end-users will exceed 3 million in next 10 years. Tiantong-01 satellite is the first satellite of China's home-made satellite mobile telecom system, and a key part of the country's space information infrastructure.
Comment: Latest research report by Guotai Jun'an Securities claims that compared with Beidou navigation system and remote-sensing satellite, China's mobile communication satellite has just started to develop. The launch of the first such satellite is a milestone of the satellite communication industry. The military field, which is not very sensitive to price, might be the first downstream field to use satellite communication. As to listed companies, Chengdu Fuliye Electronic Technology Co., Ltd. under Shenzhen SDG Information Co., Ltd. (000070.SZ) has mastered advanced technology in the military and satellite communication areas; Chengdu CORPRO Technology Co., Ltd. (300101.SZ) has made arrangement in satellite communication business.
◆The Long March carrier rocket, which launched the Tiangong-2 spacelab and Shenzhou-11 manned spacecraft, has arrived at the Jiuquan Satellite Launch Center, marking that China's new round of manned spaceflight now starts to get prepared for the launching.
TOP
○Top-level design for intelligent transportation implemented, boosting development of various areas
------
The National Development and Reform Commission and the Ministry of Transport on Aug. 5 printed and distributed the Implementation Scheme for Advancing "Internet plus" Convenient Transport and Promoting the Development of Intelligent Transport. It is proposed that by 2018, the public should be basically able to timely acquire traffic dynamic information through mobile Internet terminals; the one-cards in key city clusters should be interconnected and key operating vehicles/ships should be jointly controlled; the integration of online and offline enterprises should speed up, and the national key logistics channels should be straightened out first; the traffic infrastructure, carrying tools, operating information and etc. should be basically Internet-enabled to make system operation more safe and high-efficiency.
Comment: The implementation of the top-level design creates new policy conditions for listed companies engaged in areas like intelligent transport, intelligent logistics and Beidou navigation system. As to listed companies, Beijing E-Hualu Info Technology Co., Ltd. (300212.SZ) takes the lead in formulating information interface specification for the construction of urban intelligent transport system in China; Zhejiang Transfar Co., Ltd. (002010.SZ) has developed an intelligent logistics ecosphere; Beijing BDStar Navigation Co., Ltd. (002151.SZ) is principally engaged in the application system and hardware/software products related to navigation and positioning. Unicore Communications, Inc., a subsidiary under the company, is engaged in the development of chips for Beidou navigation system.
○Alipay to launch VR Pay to perfect virtual shopping experience
------
As reported on www.yicai.com, it is learnt from Ant Financial that Alipay will launch VR Pay at end September at the soonest. After placing orders in stores available for VR Pay, a 3D Alipay cashier desk will be seen in the VR screen. Users can log in their Alipay accounts and enter passwords to complete the deal through gestures, nods and etc. according to the operating features of the VR hardware equipment worn by users.
Comment: Besides shopping, there are also consumption like virtual presents and recharging in VR live video, VR games and other online application scenarios, which also have demands for VR Pay. Among the present VR consumption experience scenarios, users have to finish the transaction by paying via telephone after placing orders. The introduction of VR Pay will improve consumers' experience in virtual shopping.
TOP
[Announcement Interpretation]
○Truking Technology to raise RMB678 mln through private placement to invest in intelligent equipment manufacturing
------
Truking Technology Limited (300358.SZ) plans to raise 678 million yuan by issuing 40 million shares through private placement to invest in project producing 100 industrial robots annually and project producing 50 sets of intelligent warehouse logistics systems annually. The two projects are able to achieve annual average profit 169 million yuan after reaching designed capacity. Truking Intelligent Robot (Changsha) Co., Ltd. (Truking Technology holds 67.74 percent stake in the company), which will undertake the above two projects, previously gained 60 million yuan of investment capital from China Development Bank Fund Co., Ltd.
○ORG Packaging and Palm Eco-town Development to make deployment in European football clubs
------
ORG Packaging Co., Ltd. (002701.SZ) plans to purchase 59.95 percent equity of AJA Football S.A.O.S. at 7 million Euros. With over 100 years history, the club now belongs to French Division 2, but it owns fixed assets of home filed and is specialized in football training. Its net assets registered about 72.43 million yuan at the end of last year. ORG Packaging indicated that the acquisition helps the company command developed club management and experience in teenager training system operation, paving way for the company's sports development strategy.
As a limited partner, Palm Eco-town Development Co., Ltd. (002431.SZ) announced that it will contribut 300 million yuan (accounting for 49.9 percent of total subscription amount), and Shanghai Yuntai Investment Management Center (Limited Partnership) will make investment in Yunyi Guokai Sports Development Co., Ltd. (the total investment amount records 1.68 million yuan, 300 million yuan of which is contributed by Shang Yuntai Investment Management). The establishment of Yunyi Guokai Sports Development is to purchase West Bromwich Albion Holdings Limited, the controlling company of West Bromwich Albion Football Club. This will help Palm Eco-town Development develop its "ecological town plus" strategy.
○China Security ＆ Fire to resume trading
------
China Security ＆ Fire Co., Ltd. (600654.SH) plans to acquire 100 percent equity of Beijing Qichuang Zhuoyue Technology Co., Ltd., Zhejiang Huahe Wanrun Information Technology Co., Ltd. and Jiangsu China Sciences Intelligent Engineering Co., Ltd. respectively at a total consideration of 1.708 billion yuan. The company does what is required by Shanghai Stock Exchange and will resume trading from August 8.
○Hunan Valin Steel gains investment assets worth over RMB10 bln in finance and power generation fields
------
Hunan Valin Steel Co., Ltd. (000932.SZ) plans to sell all its assets and liabilities except 100 percent equity of Xiangtan Energy Conservation Co., Ltd. to Hunan Valin Steel Group Co., Ltd. at a total price of 6.258 billion yuan, and buy 100 percent equity of Hunan Valin Energy-saving Power Generation Co., Ltd. under Hunan Valin Steel Group and 33.34 percent equity of Fortunes Securities at a total price of 5.131 billion yuan. The balance will be paid by Hunan Valin Steel Group in cash. Meanwhile, Hunan Valin Steel plans to acquire 100 percent equity of Hunan Caixin Investment Holding Co., Ltd. (which holds equities of Fortunes Securities, Hunan Trust Co., Ltd. and Jixiang Life Insurance Co., Ltd.) and the remaining 3.77 percent equity of Fortunes Securities at 8.587 billion yuan through private placement. It will also raise supporting funds of 8.5 billion yuan from Hunan Valin Steel Group. It issues shares at an average price of 3.63 yuan per share in the above private placement.
After the above deals are done, Hunan Valin Steel will directly or indirectly hold 100 percent equity of Fortune Securities, 96 percent equity of Hunan Trust, 29.19 percent equity of Jixiang Life Insurance, 100 percent equity of Xiangtan Energy Conservation and 100 percent equity of Hunan Valin Energy-saving Power Generation. Hence, Hunan Valin Steel will become a listed company with principal business engaged in finance and power generation. Fortune Securities and Hunan Trust owns excellent profitability with net profits recording 95 million yuan and 91 million yuan respectively in the first four months this year, and that of Hunan Valin Energy-saving Power Generation posting 47 million yuan at the same period. The iron ＆ steel business of Hunan Valin Steel, which the company is going to strip off, suffered severe losses.
○China Evergrande Group (03333.HK) buys shares of Langfang Development Co., Ltd. (600149.SH) through secondary market acquisition to the 5 percent limit for three times and becomes its biggest shareholder with 15 percent shareholding.
[Trading Alarms]
○GigaDevice to launch IPO on Aug. 8
------
GigaDevice is going to launch IPO at a price of 23.26 yuan per share with an upper subscription limit of 10,000 shares for each account. The PE ratio is 16 times. The company is principally engaged in flash memory chip.
[Weekly Review]
○Similar N-shaped trend in different markets
------
China Vanke Co., Ltd. is undoubtedly attracting the most attention from the A-share market since last December. Firstly, Baoneng bought Vanke A shares successively in a large amount, boosting the price of Vanke A shares; then the stock price suffered drastic drop after trading resumption as the market worried Baoneng would lose its positions in Vanke; but China Evergrande Group (03333.HK) joined in the battle last week, making the stock price of Vanke surge again to get close to the highest level.
At the same time, coal steel is the catchiest product in futures market. First of all, a slew of policies on supply-side structural reform are introduced. This gives rise to market speculation on de-capacity concept, driving steel price to increase significantly. And then the market concerns that small and medium-sized steel plants will resume production, breaking the speculation immediately. Recently, as achievements are gradually made in de-capacity, steel price climbs again and price of coke hits new high last Friday within this year.
Why is there a similar N-shaped trend in the candlestick charts of different varieties and different markets? Investors should be calm to find out the root cause of the price hike rather than forwarding funny message on the rise and drop suddenly and sharply. Rise in Vanke A shares reflects the expectation of "asset scarcity" on valuation of blue chips; hike in steel price is related to policy on de-capacity. They are both associated with each other for a long time, but it is hard to verify it in a short term. Therefore, they are easy to be attacked by unfavorable information after growing rapidly; and then they will return to be increasing again once the unfavorable information is gone.
Catering to the two main themes of asset scarcity and de-capacity, SSN recently pays close attention to Vanke and coal steel, and also repeatedly reports blue chips including household appliance and liquor and some cyclical industries such as rare earth and titanium dioxide, hoping to provide reference for your investment.
TOP
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