[Today's Guide]
○Meeting of CPC central leading team for "comprehensively deepening reform" emphasizes green ecology
○ High growth of geoinformation industry to continue, multiple demands open new market space
○ China begins to formulate low--speed electric vehicle standard, industry to see standardized development
○ Minsheng Holdings to sell defective asset, Anhui Water Resources to buy shares of China Nuclear New Energy Investment
[SSN Focus]
○ Meeting of CPC central leading team for "comprehensively deepening reform" emphasizes green ecology
------
The meeting of CPC central leading team for "comprehensively deepening reform" held on Nov. 1 passed the establishing reform plan of agricultural subsidy system in the orientation of green ecology and certain opinions on define and strictly maintain ecologic protection, which proposes to strengthen the subsidy policy for major ecological systems such as farm land, grass land, forestry and wet land, explore supporting policy for heavy metal polluted arable land, agricultural non-point source pollution control and high efficiency agricultural water conservation; advocate ecological protection across the nation based on the thought of protecting mountain, water, forest, farm land and lake systems.
Comment: along with the economic development, China is gradually changing the extensive agricultural development model, and promote sustainable agriculture through establishing eco-compensation system. Subsidy policy, infrastructure development and the standardization of industry standards are important policy measures that contribute to the release of demand for agricultural environment protection. In A share companies, Yonker Environmental Protection Co., Ltd. (300187.SZ) and Beijing GeoEnviron Engineering ＆ Technology, Inc. (603588.SH) have been included in the positive list of enterprises for national soil and underground water remediation. Yonker Environmental Protection's revealed in the latest announcement that it has signed a 130 million yuan flue gas desulfurization contract.
[SSN Selection]
○ Premier Li Keqiang made important instructions to the 2016 World Life Science Conference held on Nov. 11, underscoring that the world should actively cope with common challenges human beings face in the survival and development with scientific breakthrough and innovation.
○ The iron and steel industry PMI in October increased by 1.2 percentage points to 50.7 percent in October. Vice chairman of the China Iron and Steel Association recently indicated that China's iron and steel production is still at a very high level.
○ The average slaughter price of China's bacon hogs has rebounded by 5 percent since the middle of October. But this trend may be halted as hog farmers started to supply the breeding stock.
○ China Aerospace Science and Technology Corporation on Nov. 1 announced that the construction of China's first Beidou global "centimeter-level" positioning system, which is named as "Kuilong System has started.
○ Last week, the margin for securities trading has seen net inflow of 17.3 billion yuan. The total net inflow in the three trading weeks in November amounted to 74.5 billion yuan.
TOP
[Industry Information]
○ High growth of geoinformation industry to continue, multiple demands open new market space
------
The 2016 International Conference on Geoinformation was held on Nov. 1 in Changsha. The conference has issued the 2016 China geoinformation industry report, and demonstrate a series of achievements, including new technologies, new products and new equipment. This year, China's geographic information industry is expected to realize total production value of 436 billion yuan, up 20.1 percent year on year, and the total value of qualified surveying and mapping enterprises has exceeded hundreds of billion yuan, up 25.1 percent year on year, according to the head of the National Administration of Surveying, Mapping and Geoinformation of China.
Comment: geoinformation as the entry of basic data and traffic has broad prospect in various industries such as intelligent driving and real estate registration. Institutions estimated that geoinformation industry will keep over 20 percent compound annual growth rate, and reach total production value of more than 800 billion yuan by 2020. Beijing Supermap Software Co., Ltd. (300036.SZ) is a leading software enterprise engaged in geoinformation system platform, and benefiting from the improved demand for the informatization of real estate registration, the company has attend this meeting and given keynote speech. Hi-target Navigation Technology Co., Ltd. (300177.SZ) has whole-industry advantages in data collection, supply and application. The company has provided three-dimensional street view for Baidu.
TOP
○ China begins to formulate low--speed electric vehicle standard, industry to see standardized development
------
SSN learnt that the Standardization Administration of China has issued the notice on the third batch plan on revising national standard. It plans to formulate and revise a total of 191 standards, including the technical standard for four-wheel low-speed electric vehicle. The project cycle of the technical specifications for the four-wheel low-speed electric vehicle is 24 months. The plan will be managed by the Ministry of Industry and Information Technology and drafted by the China Automotive Technology and Research Center and Shanghai Motor Vehicle Testing Center.
Comment: As the low-speed electric vehicle is highly cost-effective, it has ushered in rapid growth in third and fourth-tier cities, suburbs and rural areas in recent years. However, the industry is still faced with problems, such as authorized production, product low safety performance and poor quality. The formulation of standard will lead the industry to a standardized development. Institutions point out that a conservative estimate shows that the low-speed electric vehicle market capacity will exceed 10 million, while the low-speed electric vehicle ownership was only about 700,000 across the country in 2015. There is a huge potential for growth. Among listed companies, Lifan Industry (Group) Co., Ltd. (601777.SH) and Ningbo Shuanglin Auto Parts Co., Ltd (300100.SZ) have made investment in low-speed electric vehicle.
TOP
[Announcement Interpretation]
○ Minsheng Holdings to sell defective asset for RMB350 mln.
------
Minsheng Holdings Co., Ltd. (000416.SZ) proposes to sell its 100 percent stake in its wholly owned subsidiary Minsheng Wealth Management Co., Ltd. to China Oceanwide for 350 million yuan so as to centralize resources to develop technological innovation business. Minsheng Wealth reported a net loss of 17.28 million yuan from January to August, 2016.
○ Anhui Water Resources to buy shares of China Nuclear New Energy Investment for RMB300 mln.
------
Anhui Water Resources Development Co., Ltd. (600502.SH) proposes to participate in fund-raising program of China Nuclear New Energy Investment Co., Ltd. with 300 million yuan, and will gain as much as 20 percent of the latter's registered capital. China Nuclear New Energy Investment promises to go listing no later than December 2019. If it fails to go listing, the controlling shareholder can buy back the shares. China Nuclear New Energy Investment will raise a total of 600 million yuan this time. It garnered a net profit of 23.09 million yuan for the first three quarters of the year.
○ Controlling shareholder of Metro Land Corp increases shareholding again
------
The controlling shareholder of Metro Land Corporation Ltd. (600683.SH) increased shareholding in the company by over 6.5 million shares on Nov. 1, and plans to increase holding no less than 1 percent and no more than 2 percent shares in the company in the next 12 months. As of June 1, 2016, the controlling shareholder has increased a holding of 2 percent shares in the company. In addition, Kingnet Network Co., Ltd. (002517.SZ) increased shareholding in the company by over 540,000 shares on Oct. 31.
○ Zhejiang Huatie Construction Safety Science And Technology Co., Ltd. (603300.SH) proposes to raise 1.8 billion yuan by issuing 164 million yuan through private placement to investment in the upgrading and expansion of construction safety support equipment leasing service.
○Suixi Shuanglin Plasma Hemapheresis Co., Ltd. Under Zhenxing Biopharmaceutical ＆ Chemical Inc. (000403.SZ) obtained license for plasma hemapheresis.
[Trading Trends]
○ Tanac Automation bought by three institutions
------
The trading volume ranking list on Nov. 1 shows that Tanac Automation Co., Ltd. (300461.SZ) was bought through three institutional seats with a total of 113 million yuan, accounting for 18.6 percent of its intraday turnover.
Comment: The company announced that it will acquire 55 percent equities in Shenzhen Ocean Xiangrui Machinery Co., Ltd. and resume trading. The target company is mainly engaged in the design, development, production and sales of high-precision CNC machine tool. Tanac Automation said that the acquisition will further improve the company's product line in intelligent equipment and further enhance the company's capacity to meet needs of downstream customers and provide customers with complete industrial automation solutions.
[Trading Alarms]
○ Bank of Shanghai and Shenyu Communication to conduct IPO on Nov. 2
------
Bank of Shanghai Co., Ltd. (780229) will offer shares at 17.77 yuan per share with an upper limit of 180,000 shares for each applicant. The company's PE ratio is 8.26 times. Shenyu Communication Co., Ltd. (300563.SZ) will offer shares at 8.84 yuan per share with an upper limit of 20,000 shares for each applicant. The company's PE ratio is 22.99 times. The company is mainly engaged in radio frequency coaxial cable.
TOP
○Meeting of CPC central leading team for "comprehensively deepening reform" emphasizes green ecology
○ High growth of geoinformation industry to continue, multiple demands open new market space
○ China begins to formulate low--speed electric vehicle standard, industry to see standardized development
○ Minsheng Holdings to sell defective asset, Anhui Water Resources to buy shares of China Nuclear New Energy Investment
[SSN Focus]
○ Meeting of CPC central leading team for "comprehensively deepening reform" emphasizes green ecology
------
The meeting of CPC central leading team for "comprehensively deepening reform" held on Nov. 1 passed the establishing reform plan of agricultural subsidy system in the orientation of green ecology and certain opinions on define and strictly maintain ecologic protection, which proposes to strengthen the subsidy policy for major ecological systems such as farm land, grass land, forestry and wet land, explore supporting policy for heavy metal polluted arable land, agricultural non-point source pollution control and high efficiency agricultural water conservation; advocate ecological protection across the nation based on the thought of protecting mountain, water, forest, farm land and lake systems.
Comment: along with the economic development, China is gradually changing the extensive agricultural development model, and promote sustainable agriculture through establishing eco-compensation system. Subsidy policy, infrastructure development and the standardization of industry standards are important policy measures that contribute to the release of demand for agricultural environment protection. In A share companies, Yonker Environmental Protection Co., Ltd. (300187.SZ) and Beijing GeoEnviron Engineering ＆ Technology, Inc. (603588.SH) have been included in the positive list of enterprises for national soil and underground water remediation. Yonker Environmental Protection's revealed in the latest announcement that it has signed a 130 million yuan flue gas desulfurization contract.
[SSN Selection]
○ Premier Li Keqiang made important instructions to the 2016 World Life Science Conference held on Nov. 11, underscoring that the world should actively cope with common challenges human beings face in the survival and development with scientific breakthrough and innovation.
○ The iron and steel industry PMI in October increased by 1.2 percentage points to 50.7 percent in October. Vice chairman of the China Iron and Steel Association recently indicated that China's iron and steel production is still at a very high level.
○ The average slaughter price of China's bacon hogs has rebounded by 5 percent since the middle of October. But this trend may be halted as hog farmers started to supply the breeding stock.
○ China Aerospace Science and Technology Corporation on Nov. 1 announced that the construction of China's first Beidou global "centimeter-level" positioning system, which is named as "Kuilong System has started.
○ Last week, the margin for securities trading has seen net inflow of 17.3 billion yuan. The total net inflow in the three trading weeks in November amounted to 74.5 billion yuan.
TOP
[Industry Information]
○ High growth of geoinformation industry to continue, multiple demands open new market space
------
The 2016 International Conference on Geoinformation was held on Nov. 1 in Changsha. The conference has issued the 2016 China geoinformation industry report, and demonstrate a series of achievements, including new technologies, new products and new equipment. This year, China's geographic information industry is expected to realize total production value of 436 billion yuan, up 20.1 percent year on year, and the total value of qualified surveying and mapping enterprises has exceeded hundreds of billion yuan, up 25.1 percent year on year, according to the head of the National Administration of Surveying, Mapping and Geoinformation of China.
Comment: geoinformation as the entry of basic data and traffic has broad prospect in various industries such as intelligent driving and real estate registration. Institutions estimated that geoinformation industry will keep over 20 percent compound annual growth rate, and reach total production value of more than 800 billion yuan by 2020. Beijing Supermap Software Co., Ltd. (300036.SZ) is a leading software enterprise engaged in geoinformation system platform, and benefiting from the improved demand for the informatization of real estate registration, the company has attend this meeting and given keynote speech. Hi-target Navigation Technology Co., Ltd. (300177.SZ) has whole-industry advantages in data collection, supply and application. The company has provided three-dimensional street view for Baidu.
TOP
○ China begins to formulate low--speed electric vehicle standard, industry to see standardized development
------
SSN learnt that the Standardization Administration of China has issued the notice on the third batch plan on revising national standard. It plans to formulate and revise a total of 191 standards, including the technical standard for four-wheel low-speed electric vehicle. The project cycle of the technical specifications for the four-wheel low-speed electric vehicle is 24 months. The plan will be managed by the Ministry of Industry and Information Technology and drafted by the China Automotive Technology and Research Center and Shanghai Motor Vehicle Testing Center.
Comment: As the low-speed electric vehicle is highly cost-effective, it has ushered in rapid growth in third and fourth-tier cities, suburbs and rural areas in recent years. However, the industry is still faced with problems, such as authorized production, product low safety performance and poor quality. The formulation of standard will lead the industry to a standardized development. Institutions point out that a conservative estimate shows that the low-speed electric vehicle market capacity will exceed 10 million, while the low-speed electric vehicle ownership was only about 700,000 across the country in 2015. There is a huge potential for growth. Among listed companies, Lifan Industry (Group) Co., Ltd. (601777.SH) and Ningbo Shuanglin Auto Parts Co., Ltd (300100.SZ) have made investment in low-speed electric vehicle.
TOP
[Announcement Interpretation]
○ Minsheng Holdings to sell defective asset for RMB350 mln.
------
Minsheng Holdings Co., Ltd. (000416.SZ) proposes to sell its 100 percent stake in its wholly owned subsidiary Minsheng Wealth Management Co., Ltd. to China Oceanwide for 350 million yuan so as to centralize resources to develop technological innovation business. Minsheng Wealth reported a net loss of 17.28 million yuan from January to August, 2016.
○ Anhui Water Resources to buy shares of China Nuclear New Energy Investment for RMB300 mln.
------
Anhui Water Resources Development Co., Ltd. (600502.SH) proposes to participate in fund-raising program of China Nuclear New Energy Investment Co., Ltd. with 300 million yuan, and will gain as much as 20 percent of the latter's registered capital. China Nuclear New Energy Investment promises to go listing no later than December 2019. If it fails to go listing, the controlling shareholder can buy back the shares. China Nuclear New Energy Investment will raise a total of 600 million yuan this time. It garnered a net profit of 23.09 million yuan for the first three quarters of the year.
○ Controlling shareholder of Metro Land Corp increases shareholding again
------
The controlling shareholder of Metro Land Corporation Ltd. (600683.SH) increased shareholding in the company by over 6.5 million shares on Nov. 1, and plans to increase holding no less than 1 percent and no more than 2 percent shares in the company in the next 12 months. As of June 1, 2016, the controlling shareholder has increased a holding of 2 percent shares in the company. In addition, Kingnet Network Co., Ltd. (002517.SZ) increased shareholding in the company by over 540,000 shares on Oct. 31.
○ Zhejiang Huatie Construction Safety Science And Technology Co., Ltd. (603300.SH) proposes to raise 1.8 billion yuan by issuing 164 million yuan through private placement to investment in the upgrading and expansion of construction safety support equipment leasing service.
○Suixi Shuanglin Plasma Hemapheresis Co., Ltd. Under Zhenxing Biopharmaceutical ＆ Chemical Inc. (000403.SZ) obtained license for plasma hemapheresis.
[Trading Trends]
○ Tanac Automation bought by three institutions
------
The trading volume ranking list on Nov. 1 shows that Tanac Automation Co., Ltd. (300461.SZ) was bought through three institutional seats with a total of 113 million yuan, accounting for 18.6 percent of its intraday turnover.
Comment: The company announced that it will acquire 55 percent equities in Shenzhen Ocean Xiangrui Machinery Co., Ltd. and resume trading. The target company is mainly engaged in the design, development, production and sales of high-precision CNC machine tool. Tanac Automation said that the acquisition will further improve the company's product line in intelligent equipment and further enhance the company's capacity to meet needs of downstream customers and provide customers with complete industrial automation solutions.
[Trading Alarms]
○ Bank of Shanghai and Shenyu Communication to conduct IPO on Nov. 2
------
Bank of Shanghai Co., Ltd. (780229) will offer shares at 17.77 yuan per share with an upper limit of 180,000 shares for each applicant. The company's PE ratio is 8.26 times. Shenyu Communication Co., Ltd. (300563.SZ) will offer shares at 8.84 yuan per share with an upper limit of 20,000 shares for each applicant. The company's PE ratio is 22.99 times. The company is mainly engaged in radio frequency coaxial cable.
TOP
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