[Today's Guide]
○First national security publicity week to see various spotlights, policy supports continue to increase
○13th Five-Year Plan on seawater utilization under preparation, superconductors industrialization to speed up
○ Beibu Gulf Port to exchange in assets from substantial shareholder, Zhou Xingang increases shareholding in Kangyue Technology
○Jianghuai Automobile joins Volkswagen in developing new energy vehicles, Xiuqiang Glasswork to develop education
[SSN Focus]
○ First national security publicity week to see various spotlights, policy supports continue to increase
------
The Office of the Central Leading Group of China said on Sept. 9 that the 2016 national cyber security publicity week jointly by six departments will be held from Sept. 19 to 25. This is the first time that the publicity week on cyber security is held across the country. About 100 well-known Internet companies and network security companies, including BAT, Qihoo and Kaspersky, will attend the event. During the publicity week, there will be the first cyber security technology summit forum as well as a TV quiz show on cyber security.
Comment: Since the Office of the Central Leading Group of China was established and cyber security was raised to national strategy, government has continuously increased supports for cyber security. The cyber security law was under review for the second time. The first national inspection on information security is underway. Institutions believe that
China's key information infrastructure is faced with grim security situations. After discovering deficiency, the correction, upgrading, replacement or restructuring are worth expecting. China'ss cyber security protection and IT enterprises will benefit from it. Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) that is engaged in electronic data forensics, Venustech Group Inc. (002439.SZ) which is engaged in network security protection and Toyou Feiji Electronics Co., Ltd. (300302.SZ) which is engaged in professional storage have been investigated by a number of institutions.
[SSN Selection]
○ The national working conference on the "Internet plus" modern agriculture closed on September. Wang Yang stressed the need to strengthen infrastructure construction to create a good environment.
○ China's central bank on Sept. 7 injected 275 billion yuan into the market via MLF. Its regulation by "taking back short-term capital and injecting long-term capital" shows that its intention to maintain reasonable ample liquidity in the banking system has not changed.
○ The Minister of Public Security on Sept. 6 inspected works on anti-fraud via telecommunications and Internet, and required making full use of big data, cloud computing and other technologies to reduce fraud cases..
○ The General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ) on Sept. 7 issued a travel warning that visitors should avoid mosquito bites during trips on the outbreak of Zika virus in Singapore.
○ Ningbo Marine Company Limited (600798.SH) will suspend trading as its actual controller Zhejiang Energy Group is planning significant events related to the company. Luoyang Glass Company Limited (600867.SH) will suspend trading as it is planning significant events.
TOP
[Industry Information]
○ 13th Five-Year Plan on seawater utilization under preparation, to give great support for seawater desalination
------
The Oceanic Administration (SOA) released the "2015 national report on seawater utilization on Sept. 7 in Beijing. Officials from the SOA said that the administration is working with the National Development and Reform Commission (NDRC) and other departments to prepare the 13th Five-Year Plan on seawater utilization. It will actively expand financial investment channels for seawater desalination, promote in improving the mechanism and policy on the inclusion of seawater and desalted water into water resources allocation system, and strive to achieve large-scale applications of seawater and serialize core technology, materials and equipment for independent seawater utilization by 2020.
Comment: With the rapid economic development of coastal areas, the transformation and upgrading of water-intensive industries in coastal areas and the development and protection of islands come up with higher demands for water resources. Companies with relevant technologies are expected to benefit from it. Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. (002540.SZ) developed seawater corrosion-resistant aluminum alloy tube together with an institute under the SOA. It is also a supplier of IDE, an international leader in desalination based in Israel. Beijing Shouhang Ihw Resources Saving Technology Co., Ltd. (002665.SZ) can produce equipment that can desalt seawater by multi-effect distillation at low temperature. The water treatment membrane products made by Vontron Technology Co., Ltd. under South Huiton Co., Ltd. (000920.SZ) can be used for seawater desalination.
○ China makes breakthroughs in superconductors R＆D, industrialization to speed up
------
SSN learnt that the Institute of Electrical Engineering of the Chinese Academy of Sciences (IEECAS) has successfully developed the world's first iron-based superconducting line with 100m long. This achievement created a milestone in transforming iron-based superconducting materials from laboratory studies to industrialization process, marking that China is in the world's forefront in the research and development of iron-based superconducting materials. Currently, the U.S., Japan and Europe can only product iron-based superconducting line on meter scale.
Comment: Public information shows that the first prize of the State Natural Science Award in 2013 was awarded to the detection of the iron-based high critical temperature superconductors with over 40K and the study on certain of its physical properties". Tianjin Benefo Tejing Electric Co., Ltd. (600468.SH), Jiang Su Etern Co., Ltd. (600105.SH) and other companies engaged in the research and manufacturing of superconductors will catch more attention.
TOP
[Announcement Interpretation]
○ Beibu Gulf Port to exchange in assets from substantial shareholder
------
Beibu Gulf Port Co., Ltd. (000582.SZ) proposes to exchange the 100 percent equities of Qinzhou Shenggang, Beibu Gangxing and Fangcheng Shenggang held by its substantial shareholder with the 100 percent equities of Beihai Beigang and Fangcheng Gangbei held by it. The difference will be paid by issuing 115 million shares at 15.11 yuan per share through private placement by the company. It also plans to raise a supporting fund of 1.73 billion yuan by issuing shares at no less than 15.11 yuan per share through private placement.
The assets exchanged in are preliminarily valued at 2.01 billion yuan. The company recorded a net profit of 116 million yuan last year. The company will exchange out certain low-efficient assets and certain quay berths to focus on port businesses.
○ Zhou Xingang increases shareholding in Kangyue Technology
------
Kangyue Technology Co., Ltd. (300391.SZ) announced that Zhou Xingang and its parties acting in concert increased the shareholding in the company. The latter totally holds 5.08 percent of the total share capitals. Zhou Xingang has been active in the capital market in recent years. Zhou is also a shareholder of Kunshan Kinglai Hygienic Materials Co., Ltd. (300260.SZ), Wenzhou Hongfeng Electrical Alloy Co., Ltd. (300283.SZ), Beijing Hengtong Innovation Luxwood Technology Co., Ltd. (300374.SZ) and other individual stocks with small market value.
TOP
○ Jianghuai Automobile joins Volkswagen in developing new energy vehicles
------
Anhui Jianghuai Automobile Co., Ltd. (600418.SH) signed a memorandum of cooperation with the headquarters of Volkswagen in China. Each of the two parties will contribute 50 percent in establishing a joint venture. They will conduct cooperation in the research and development, production, sale and action plans of new energy vehicles and components.
○ Xiuqiang Glasswork to develop education
------
Jiangsu Xiuqiang Glasswork Co., Ltd. (300160.SZ) intends to acquire 100 percent equities of Peiji Education and the two parties have signed a framework agreement. Located in Beijing, Peiji Education mainly provides professional, individualized and diversified pre-school education and training for children aged 1.5 to 12 years old. It is preliminarily valued at 380 million yuan and the committed performance in the following three years is 30 million yuan, 33 million yuan and 36 million yuan, respectively.
○ Beijing Jiayu obtains big order
------
Beijing Jiayu Door, Window and Curtain Wall Joint-Stock Co., Ltd. (300117.SZ) signed the contract for the construction of a PV power station of Realforce Power. The total contracted price of the project in the current and the following year is 600 million yuan and 1.5 billion yuan, respectively, accounting for 100 percent of the operation revenue of the company last year.
○ The reorganization of China National Accord Medicines Corporation Ltd. (000028.SZ) and Shanghai Shyndec Pharmaceutical Co., Ltd. (600420.SH) has been reviewed and unconditionally approved by the Merger and Reorganization Examination Committee of the China Securities Regulatory Commission and will resume trading on Sept. 8. Shangying Global Co., Ltd. (600146.SH) terminated the significant assets reorganization and will resume trading on Sept. 8.
[Trading Alarms]
○ Wuxi Rural Commercial Bank conducts IPO
------
Wuxi Rural Commercial Bank Co., Ltd. (600908.SH) issues shares at 4.47 yuan per share with a P/E ratio of 10 times and an upper subscription of 55,000 shares for each account.
TOP
○First national security publicity week to see various spotlights, policy supports continue to increase
○13th Five-Year Plan on seawater utilization under preparation, superconductors industrialization to speed up
○ Beibu Gulf Port to exchange in assets from substantial shareholder, Zhou Xingang increases shareholding in Kangyue Technology
○Jianghuai Automobile joins Volkswagen in developing new energy vehicles, Xiuqiang Glasswork to develop education
[SSN Focus]
○ First national security publicity week to see various spotlights, policy supports continue to increase
------
The Office of the Central Leading Group of China said on Sept. 9 that the 2016 national cyber security publicity week jointly by six departments will be held from Sept. 19 to 25. This is the first time that the publicity week on cyber security is held across the country. About 100 well-known Internet companies and network security companies, including BAT, Qihoo and Kaspersky, will attend the event. During the publicity week, there will be the first cyber security technology summit forum as well as a TV quiz show on cyber security.
Comment: Since the Office of the Central Leading Group of China was established and cyber security was raised to national strategy, government has continuously increased supports for cyber security. The cyber security law was under review for the second time. The first national inspection on information security is underway. Institutions believe that
China's key information infrastructure is faced with grim security situations. After discovering deficiency, the correction, upgrading, replacement or restructuring are worth expecting. China'ss cyber security protection and IT enterprises will benefit from it. Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) that is engaged in electronic data forensics, Venustech Group Inc. (002439.SZ) which is engaged in network security protection and Toyou Feiji Electronics Co., Ltd. (300302.SZ) which is engaged in professional storage have been investigated by a number of institutions.
[SSN Selection]
○ The national working conference on the "Internet plus" modern agriculture closed on September. Wang Yang stressed the need to strengthen infrastructure construction to create a good environment.
○ China's central bank on Sept. 7 injected 275 billion yuan into the market via MLF. Its regulation by "taking back short-term capital and injecting long-term capital" shows that its intention to maintain reasonable ample liquidity in the banking system has not changed.
○ The Minister of Public Security on Sept. 6 inspected works on anti-fraud via telecommunications and Internet, and required making full use of big data, cloud computing and other technologies to reduce fraud cases..
○ The General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ) on Sept. 7 issued a travel warning that visitors should avoid mosquito bites during trips on the outbreak of Zika virus in Singapore.
○ Ningbo Marine Company Limited (600798.SH) will suspend trading as its actual controller Zhejiang Energy Group is planning significant events related to the company. Luoyang Glass Company Limited (600867.SH) will suspend trading as it is planning significant events.
TOP
[Industry Information]
○ 13th Five-Year Plan on seawater utilization under preparation, to give great support for seawater desalination
------
The Oceanic Administration (SOA) released the "2015 national report on seawater utilization on Sept. 7 in Beijing. Officials from the SOA said that the administration is working with the National Development and Reform Commission (NDRC) and other departments to prepare the 13th Five-Year Plan on seawater utilization. It will actively expand financial investment channels for seawater desalination, promote in improving the mechanism and policy on the inclusion of seawater and desalted water into water resources allocation system, and strive to achieve large-scale applications of seawater and serialize core technology, materials and equipment for independent seawater utilization by 2020.
Comment: With the rapid economic development of coastal areas, the transformation and upgrading of water-intensive industries in coastal areas and the development and protection of islands come up with higher demands for water resources. Companies with relevant technologies are expected to benefit from it. Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. (002540.SZ) developed seawater corrosion-resistant aluminum alloy tube together with an institute under the SOA. It is also a supplier of IDE, an international leader in desalination based in Israel. Beijing Shouhang Ihw Resources Saving Technology Co., Ltd. (002665.SZ) can produce equipment that can desalt seawater by multi-effect distillation at low temperature. The water treatment membrane products made by Vontron Technology Co., Ltd. under South Huiton Co., Ltd. (000920.SZ) can be used for seawater desalination.
○ China makes breakthroughs in superconductors R＆D, industrialization to speed up
------
SSN learnt that the Institute of Electrical Engineering of the Chinese Academy of Sciences (IEECAS) has successfully developed the world's first iron-based superconducting line with 100m long. This achievement created a milestone in transforming iron-based superconducting materials from laboratory studies to industrialization process, marking that China is in the world's forefront in the research and development of iron-based superconducting materials. Currently, the U.S., Japan and Europe can only product iron-based superconducting line on meter scale.
Comment: Public information shows that the first prize of the State Natural Science Award in 2013 was awarded to the detection of the iron-based high critical temperature superconductors with over 40K and the study on certain of its physical properties". Tianjin Benefo Tejing Electric Co., Ltd. (600468.SH), Jiang Su Etern Co., Ltd. (600105.SH) and other companies engaged in the research and manufacturing of superconductors will catch more attention.
TOP
[Announcement Interpretation]
○ Beibu Gulf Port to exchange in assets from substantial shareholder
------
Beibu Gulf Port Co., Ltd. (000582.SZ) proposes to exchange the 100 percent equities of Qinzhou Shenggang, Beibu Gangxing and Fangcheng Shenggang held by its substantial shareholder with the 100 percent equities of Beihai Beigang and Fangcheng Gangbei held by it. The difference will be paid by issuing 115 million shares at 15.11 yuan per share through private placement by the company. It also plans to raise a supporting fund of 1.73 billion yuan by issuing shares at no less than 15.11 yuan per share through private placement.
The assets exchanged in are preliminarily valued at 2.01 billion yuan. The company recorded a net profit of 116 million yuan last year. The company will exchange out certain low-efficient assets and certain quay berths to focus on port businesses.
○ Zhou Xingang increases shareholding in Kangyue Technology
------
Kangyue Technology Co., Ltd. (300391.SZ) announced that Zhou Xingang and its parties acting in concert increased the shareholding in the company. The latter totally holds 5.08 percent of the total share capitals. Zhou Xingang has been active in the capital market in recent years. Zhou is also a shareholder of Kunshan Kinglai Hygienic Materials Co., Ltd. (300260.SZ), Wenzhou Hongfeng Electrical Alloy Co., Ltd. (300283.SZ), Beijing Hengtong Innovation Luxwood Technology Co., Ltd. (300374.SZ) and other individual stocks with small market value.
TOP
○ Jianghuai Automobile joins Volkswagen in developing new energy vehicles
------
Anhui Jianghuai Automobile Co., Ltd. (600418.SH) signed a memorandum of cooperation with the headquarters of Volkswagen in China. Each of the two parties will contribute 50 percent in establishing a joint venture. They will conduct cooperation in the research and development, production, sale and action plans of new energy vehicles and components.
○ Xiuqiang Glasswork to develop education
------
Jiangsu Xiuqiang Glasswork Co., Ltd. (300160.SZ) intends to acquire 100 percent equities of Peiji Education and the two parties have signed a framework agreement. Located in Beijing, Peiji Education mainly provides professional, individualized and diversified pre-school education and training for children aged 1.5 to 12 years old. It is preliminarily valued at 380 million yuan and the committed performance in the following three years is 30 million yuan, 33 million yuan and 36 million yuan, respectively.
○ Beijing Jiayu obtains big order
------
Beijing Jiayu Door, Window and Curtain Wall Joint-Stock Co., Ltd. (300117.SZ) signed the contract for the construction of a PV power station of Realforce Power. The total contracted price of the project in the current and the following year is 600 million yuan and 1.5 billion yuan, respectively, accounting for 100 percent of the operation revenue of the company last year.
○ The reorganization of China National Accord Medicines Corporation Ltd. (000028.SZ) and Shanghai Shyndec Pharmaceutical Co., Ltd. (600420.SH) has been reviewed and unconditionally approved by the Merger and Reorganization Examination Committee of the China Securities Regulatory Commission and will resume trading on Sept. 8. Shangying Global Co., Ltd. (600146.SH) terminated the significant assets reorganization and will resume trading on Sept. 8.
[Trading Alarms]
○ Wuxi Rural Commercial Bank conducts IPO
------
Wuxi Rural Commercial Bank Co., Ltd. (600908.SH) issues shares at 4.47 yuan per share with a P/E ratio of 10 times and an upper subscription of 55,000 shares for each account.
TOP
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