[Today's Guide]
○ Trump wins presidency, institutions say impact on A shares is limited
○ Double Eleven Shopping Festival stimulates consumption of home appliances, refrigerator and washing machine see strong demand from online
○ Domestic investment in IC booms, IC supply expected to explode
○ Evergrande increases shareholdings in China Vanke, Actual controller of China Real Estate Corp. plans to consolidate real estate asset
[SSN Focus]
○ Trump wins presidency, institutions say impact on A shares is limited
------
Preliminary results show the Republican candidate Donald Trump has won the US presidency with the required 270 electoral votes. Earlier when each states started to unveil the election results, the risk aversion sentiment in global financial market rose sharply. Nasdaq futures index declined by 5 percent and subsequently climbed again. Up to when distributing news dispatches, the decline of Nasdaq futures narrowed to nearly 1.9 percent.
Compared with the ups and downs of overseas markets in the day, the A-share market fluctuated for a short while during the trading session, and the SSE Composite Index still closed above 3,100 points. Various institutions surveyed indicated that the impact of election result on the A-share market is limited. Rosefinch Investment is in the view that A shares in the near term may be influenced by the decline of overseas and Hong Kong market, but fundamentally China's macro policy and capital inflow to the stock market are decisive factors. After this influence subsides, A shares will come back to the normal path. Dai Kang, chief strategy analyst of Huatai Securities says that A shares in the medium and long- term will be boosted along with the return of profit cycle. If the market tumbled in the near term, it signals good opportunity for increasing position. The strategy team of Industrial Securities led by Wang Delun holds that Trump's winning of the presidency is not necessarily bad thing for A shares, as China will likely to become the harbor for capitals.
○ Listed equity transfer of Tonghua Group expires
------
The SSN learnt from China Beijing Equity Exchange that the 34.09 percent listed equity transfer of Tonghua Group will expire on November 9. Anhui Liuguo Chemical Co., Ltd. (600470.SH) and Anhui Annada Titanium Industry Co., Ltd. (002136.SZ) announced last June that their controlling shareholder Tonghua Group was planning for mixed-ownership reform.
[SSN Selection]
○The Ministry of Industry and Information Technology (MIIT) recently issued Comprehensive Standardization Technology System of Lithium-ion Battery, which says that 23 national standards on battery material and battery recycling are in preparation.
○ Various ministries, including the National Tourism Administration, have jointly issued opinions recently to promote the development of self-driving and motor caravan tourism.
○ The price of urea has surged nearly 12 percent over the past month. The rate of operation of the industry is still low, which might result in the price to continue to increase.
○ Net inflow of the Southbound Trading under the Shanghai-Hong Kong Stock Connect increased sharply to 4.3 billion Hong Kong dollars on Nov. 9, setting record high in the past one and half months.
○ China's three futures exchanges decided to raise the trading margin and transaction fees of various products, and introduce trading quota system for rebar, natural rubber, coke and cocking coal.
TOP
[Industry Information]
○ Double Eleven Shopping Festival stimulates consumption of home appliances, refrigerator and washing machine see strong demand from online
------
As the Double Eleven Shopping Festival is approaching, the sales of home appliances, the most important consumer goods over the past few years, draw much attention from the market. Currently, the presales of two major mainstream platforms is optimistic. Data of JD.com shows that the demand for washing machine is extremely strong. 50 washing machine models have seen a quantity on schedule of more than 10,000 units, and 24 refrigerator models also have expected a quantity on schedule of 5,000 units. Tmall's data shows that of the major home appliances, various washing machine models have a quantity on schedule of more than 10,000 units. According to the estimation of authoritative third party, online retail sales of refrigerators is expected to increase by 52.7 percent year on year, and that of refrigerator is expected to raise by 51.7 percent year on year.
Comment: institutions are in the view that the Double Eleven Shopping Festival has obvious stimulation on the terminal marketing of home appliance enterprises. During the 2015 Double Eleven Shopping Festival, online sales of washing machine and refrigerator all exceeded 1 billion yuan. in listed companies, Midea Group Co., Ltd. (000333.SZ) is accelerating deployment in ecommerce business, and its overall ecommerce sales in the first half year has increased by 57 percent year on year. Wuxi Little Swan Company Limited (000418.SZ) is a leading player in the washing machine industry, and its ecommerce sales maintains rapid growth.
TOP
○ Domestic investment in IC booms, IC supply expected to explode
------
Shanghai Huali Microelectronics Corporation started the construction of the phase II of its 12-inch integrated circuit (IC) chip production line project in Shanghai on Nov. 9. The total investment of the project is 38.7 billion yuan. Huali Microelectronics is mainly engaged in the production of logic chips, supplying advanced chips for domestic design enterprises and producing key chips relevant to national information security chip. According to the plan, the project will form 10,000 production capacity by the end of 2018, achieve 14-nanometer production capacity in 2020 and achieve 40,000 production capacity in 2022.
Comment: As the domestic investment in IC is booming, SMIC announced the construction of its first 12-inch IC production line in South China. Currently, the self-sufficiency rate of integrated circuits is 27 percent in China. There is a big room for improvement. Internet of things, self-driving, artificial intelligence and other emerging markets have spawned a new demand. With the formation of IC industry bases formed across the country, domestic IC supply is expected to explode in the future. Beijing Sevenstar Electronics Co., Ltd. (002371.SZ) and Shanghai Sinyang Semiconductor Materials Co., Ltd. (300236.SZ) are respectively IC equipment manufacturer and IC material supplier.
TOP
[Announcement Interpretation]
○ Evergrande increases shareholdings in China Vanke to 8.285 pct.
------
Evergrande Group increased the shareholding in China Vanke Co., Ltd. (000002.SZ) by 162 million shares from Aug. 16 to Nov. 9. Evergrande now holds 8.285 percent of Vanke's total shares that have been issued for about 18.77 billion yuan.
○ Actual controller of China Real Estate Corp. plans to consolidate real estate asset
------
China Communications Construction Company Limited (CCCC), the actual controller of China Real Estate Corporation Limited (000736.SZ), is promoting reorganization of its real estate business. CCCC Real Estate Group Co., Ltd., the parent company of the listed company's controlling shareholder, will be a reform pilot to promote reorganization and consolidation of its real estate assets. As the overall reorganization plan is not finalized, China Real Estate Corporation is entrusted by CCCG Real Estate Group to operate and manage its wholly-owned subsidy CCCC Real Estate Company Limited, and will review the plan in the bondholder's meting of CCCC Real Estate Company Limited.
○ The consortium of Shenzhen Huakong Seg Co., Ltd. (000068.SZ) participated in the competitive negotiation and purchasing in the sponge city program in Yuxi City, Yunnan Province. The total investment of the project is estimated at 1.41 billion yuan. The company's operating revenue in 2015 was 171 million yuan.
○ Beijing Kegao Dabeinong Fodder Co., Ltd., the wholly-owned subsidy of Beijing Dabeinong Technology Group Co., Ltd. (002385.SZ), signed an investment framework agreement with Ulanchap Municipal Government, Inner Mongolia in the integrated industrial project of an annual production of 6 million hogs. The total investment is estimated at 12 billion yuan. The company's operating revenue in 2015 was 16.1 billion yuan.
○Jiang Weidong, the actual controller of Shanghai Precise Packaging Co., Ltd. (300442.SZ) increased shareholding by 1,072,500 shares via commodity trading on Nov. 8 at 43.20 yuan per share. Ping An Life Insurance, the party acting in concert with the actual shareholder of Shanghai Jahwa United Co., Ltd. (600315.SH), increased shareholding by 3,367,000 shares from Oct. 28 to Nov. 9.
[Financial Reports Express]
○ Huolinhe Opencut Coal Industry and Orient Landscape ＆ Environment revise up growth forecast
------
Huolinhe Opencut Coal Industry Corporation Limited Of Inner Mongolia (002128.SZ) revises up its net profit forecast from 617 million yuan to 733 million yuan in 2016. Beijing Orient Landscape ＆ Environment Co., Ltd. (002310.SZ) revises its growth forecast from 70-100 percent t 85-115 percent.
[Trading Alarms]
○ BOMESC Offshore Engineering and Kexin Communication Tech. to conduct IPO on Nov. 10
------
BOMESC Offshore Engineering Company Limited (732727) will offer shares at 20.81 yuan per share with an upper limit of 23,000 shares for each applicant. The company is mainly engaged in contracting of oil and gas engineering module. Shenzhen Kexin Communication Technologies Co., Ltd. (300565.SZ) will offer shares at 8.78 yuan per share with an upper limit of 15,000 shares for each applicant. The company is mainly engaged in broadband access network equipment.
TOP
○ Trump wins presidency, institutions say impact on A shares is limited
○ Double Eleven Shopping Festival stimulates consumption of home appliances, refrigerator and washing machine see strong demand from online
○ Domestic investment in IC booms, IC supply expected to explode
○ Evergrande increases shareholdings in China Vanke, Actual controller of China Real Estate Corp. plans to consolidate real estate asset
[SSN Focus]
○ Trump wins presidency, institutions say impact on A shares is limited
------
Preliminary results show the Republican candidate Donald Trump has won the US presidency with the required 270 electoral votes. Earlier when each states started to unveil the election results, the risk aversion sentiment in global financial market rose sharply. Nasdaq futures index declined by 5 percent and subsequently climbed again. Up to when distributing news dispatches, the decline of Nasdaq futures narrowed to nearly 1.9 percent.
Compared with the ups and downs of overseas markets in the day, the A-share market fluctuated for a short while during the trading session, and the SSE Composite Index still closed above 3,100 points. Various institutions surveyed indicated that the impact of election result on the A-share market is limited. Rosefinch Investment is in the view that A shares in the near term may be influenced by the decline of overseas and Hong Kong market, but fundamentally China's macro policy and capital inflow to the stock market are decisive factors. After this influence subsides, A shares will come back to the normal path. Dai Kang, chief strategy analyst of Huatai Securities says that A shares in the medium and long- term will be boosted along with the return of profit cycle. If the market tumbled in the near term, it signals good opportunity for increasing position. The strategy team of Industrial Securities led by Wang Delun holds that Trump's winning of the presidency is not necessarily bad thing for A shares, as China will likely to become the harbor for capitals.
○ Listed equity transfer of Tonghua Group expires
------
The SSN learnt from China Beijing Equity Exchange that the 34.09 percent listed equity transfer of Tonghua Group will expire on November 9. Anhui Liuguo Chemical Co., Ltd. (600470.SH) and Anhui Annada Titanium Industry Co., Ltd. (002136.SZ) announced last June that their controlling shareholder Tonghua Group was planning for mixed-ownership reform.
[SSN Selection]
○The Ministry of Industry and Information Technology (MIIT) recently issued Comprehensive Standardization Technology System of Lithium-ion Battery, which says that 23 national standards on battery material and battery recycling are in preparation.
○ Various ministries, including the National Tourism Administration, have jointly issued opinions recently to promote the development of self-driving and motor caravan tourism.
○ The price of urea has surged nearly 12 percent over the past month. The rate of operation of the industry is still low, which might result in the price to continue to increase.
○ Net inflow of the Southbound Trading under the Shanghai-Hong Kong Stock Connect increased sharply to 4.3 billion Hong Kong dollars on Nov. 9, setting record high in the past one and half months.
○ China's three futures exchanges decided to raise the trading margin and transaction fees of various products, and introduce trading quota system for rebar, natural rubber, coke and cocking coal.
TOP
[Industry Information]
○ Double Eleven Shopping Festival stimulates consumption of home appliances, refrigerator and washing machine see strong demand from online
------
As the Double Eleven Shopping Festival is approaching, the sales of home appliances, the most important consumer goods over the past few years, draw much attention from the market. Currently, the presales of two major mainstream platforms is optimistic. Data of JD.com shows that the demand for washing machine is extremely strong. 50 washing machine models have seen a quantity on schedule of more than 10,000 units, and 24 refrigerator models also have expected a quantity on schedule of 5,000 units. Tmall's data shows that of the major home appliances, various washing machine models have a quantity on schedule of more than 10,000 units. According to the estimation of authoritative third party, online retail sales of refrigerators is expected to increase by 52.7 percent year on year, and that of refrigerator is expected to raise by 51.7 percent year on year.
Comment: institutions are in the view that the Double Eleven Shopping Festival has obvious stimulation on the terminal marketing of home appliance enterprises. During the 2015 Double Eleven Shopping Festival, online sales of washing machine and refrigerator all exceeded 1 billion yuan. in listed companies, Midea Group Co., Ltd. (000333.SZ) is accelerating deployment in ecommerce business, and its overall ecommerce sales in the first half year has increased by 57 percent year on year. Wuxi Little Swan Company Limited (000418.SZ) is a leading player in the washing machine industry, and its ecommerce sales maintains rapid growth.
TOP
○ Domestic investment in IC booms, IC supply expected to explode
------
Shanghai Huali Microelectronics Corporation started the construction of the phase II of its 12-inch integrated circuit (IC) chip production line project in Shanghai on Nov. 9. The total investment of the project is 38.7 billion yuan. Huali Microelectronics is mainly engaged in the production of logic chips, supplying advanced chips for domestic design enterprises and producing key chips relevant to national information security chip. According to the plan, the project will form 10,000 production capacity by the end of 2018, achieve 14-nanometer production capacity in 2020 and achieve 40,000 production capacity in 2022.
Comment: As the domestic investment in IC is booming, SMIC announced the construction of its first 12-inch IC production line in South China. Currently, the self-sufficiency rate of integrated circuits is 27 percent in China. There is a big room for improvement. Internet of things, self-driving, artificial intelligence and other emerging markets have spawned a new demand. With the formation of IC industry bases formed across the country, domestic IC supply is expected to explode in the future. Beijing Sevenstar Electronics Co., Ltd. (002371.SZ) and Shanghai Sinyang Semiconductor Materials Co., Ltd. (300236.SZ) are respectively IC equipment manufacturer and IC material supplier.
TOP
[Announcement Interpretation]
○ Evergrande increases shareholdings in China Vanke to 8.285 pct.
------
Evergrande Group increased the shareholding in China Vanke Co., Ltd. (000002.SZ) by 162 million shares from Aug. 16 to Nov. 9. Evergrande now holds 8.285 percent of Vanke's total shares that have been issued for about 18.77 billion yuan.
○ Actual controller of China Real Estate Corp. plans to consolidate real estate asset
------
China Communications Construction Company Limited (CCCC), the actual controller of China Real Estate Corporation Limited (000736.SZ), is promoting reorganization of its real estate business. CCCC Real Estate Group Co., Ltd., the parent company of the listed company's controlling shareholder, will be a reform pilot to promote reorganization and consolidation of its real estate assets. As the overall reorganization plan is not finalized, China Real Estate Corporation is entrusted by CCCG Real Estate Group to operate and manage its wholly-owned subsidy CCCC Real Estate Company Limited, and will review the plan in the bondholder's meting of CCCC Real Estate Company Limited.
○ The consortium of Shenzhen Huakong Seg Co., Ltd. (000068.SZ) participated in the competitive negotiation and purchasing in the sponge city program in Yuxi City, Yunnan Province. The total investment of the project is estimated at 1.41 billion yuan. The company's operating revenue in 2015 was 171 million yuan.
○ Beijing Kegao Dabeinong Fodder Co., Ltd., the wholly-owned subsidy of Beijing Dabeinong Technology Group Co., Ltd. (002385.SZ), signed an investment framework agreement with Ulanchap Municipal Government, Inner Mongolia in the integrated industrial project of an annual production of 6 million hogs. The total investment is estimated at 12 billion yuan. The company's operating revenue in 2015 was 16.1 billion yuan.
○Jiang Weidong, the actual controller of Shanghai Precise Packaging Co., Ltd. (300442.SZ) increased shareholding by 1,072,500 shares via commodity trading on Nov. 8 at 43.20 yuan per share. Ping An Life Insurance, the party acting in concert with the actual shareholder of Shanghai Jahwa United Co., Ltd. (600315.SH), increased shareholding by 3,367,000 shares from Oct. 28 to Nov. 9.
[Financial Reports Express]
○ Huolinhe Opencut Coal Industry and Orient Landscape ＆ Environment revise up growth forecast
------
Huolinhe Opencut Coal Industry Corporation Limited Of Inner Mongolia (002128.SZ) revises up its net profit forecast from 617 million yuan to 733 million yuan in 2016. Beijing Orient Landscape ＆ Environment Co., Ltd. (002310.SZ) revises its growth forecast from 70-100 percent t 85-115 percent.
[Trading Alarms]
○ BOMESC Offshore Engineering and Kexin Communication Tech. to conduct IPO on Nov. 10
------
BOMESC Offshore Engineering Company Limited (732727) will offer shares at 20.81 yuan per share with an upper limit of 23,000 shares for each applicant. The company is mainly engaged in contracting of oil and gas engineering module. Shenzhen Kexin Communication Technologies Co., Ltd. (300565.SZ) will offer shares at 8.78 yuan per share with an upper limit of 15,000 shares for each applicant. The company is mainly engaged in broadband access network equipment.
TOP
Latest comments