[Today's Guide]
○ Central bank mulls issuing digital currencies, block chain technologies to enjoy priority
○ New breakthroughs made in technical R＆D on graphene, industrialization to speed up
○ Blue Silver Industry Automatic Equipment to buy cleaning assets, Yuyue Medical Equipment ＆ Supply to acquire medical sterilizing company
○ Largest shareholder confirms increasing shareholding in Pearl River Holdings, restructuring of three companies approved
[SSN Focus]
○ Central bank mulls issuing digital currencies, block chain technologies to enjoy priority
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The plan on the issuance of legal digital currencies by the central bank has completed the first two rounds of revisions, indicated Yao Qian, director dean of the division of technology of the central bank and leader of the preparation group of the institute of digital currencies, in an exclusive interview with SSN. It is expected to pilot in the bills market and other close applications, but there is no specific timetable currently. In addition, the central will strengthen the study and utilization of new innovation technologies, including the block chain technologies, to improve the financial services and fully forecast, timely respond to and effectively resolve possible risks in technical applications.
Comment: Institutes believe that the digital currencies issued by the central bank will form a big data system in the end and improve the convenience and transparency in economic and trading activities. There are no true digital currencies in the world and the Bitcoin with block chain technologies as the basis is most close to digital currencies. A subsidiary of Qingdao Haili Metal One Co., Ltd. (002537.SZ) has become a member of the FBSC and Zhongguancun Block Chain Industrial Alliance. Feitian Technologies Co., Ltd. (300386.SZ) has security and encryption technologies, which is likely to develop together with block chain technologies. Hundsun Technologies Inc. (600570.SH) established a digital bills system based on the alliance chain through block chain technologies.
[SSN Selection]
○ Shenzhen Stock Exchange announced that it will conduct test on the network on Nov. 19, which will simulate the operation of the Shenzhen-Hong Kong Stock Connect on the first day of opening (the initiation of trading businesses).
○ Shenzhen and Wuhan released new policies on the regulation of the property market on Nov. 15. Insiders believe that this round of property regulation is typically featured by strict implementation.
○ The proportion of accounts conducting trading increased from 13.93 to 15.11 percent last week. Securities margins witnessed net inflows for three consecutive weeks.
○ Chinese economic fundamentals do not support significant devaluation of the exchange rate for long term and the current devaluation has more benefits, indicated Yu Yongding in an interview with SSN.
○ More than ten enterprises, including Heilan Group, and Le Holdings signed the phase-I investment agreement with 300 million U.S. dollars to support its innovation models on Nov. 15.
TOP
[Industry Information]
○ New breakthroughs made in technical R＆D on graphene, industrialization to speed up
------
The Northwest University has made various breakthroughs in graphene study and industrialization recently, which makes it possible to reduce the size and expand the capacity of batteries. The team has completed the experiment on the industrialization of negative materials for improved graphene lithium batteries for bulk production of 500kg graphene. The performance of the product meets the national standards for high-performance negative materials for improved graphene lithium batteries. Meanwhile, they also made various negative materials for improved graphene lithium batteries with over 1,000mAh/g, which is synchronous with international studies.
TOP
[Announcement Interpretation]
○ Blue Silver Industry Automatic Equipment to buy German industrial cleaning assets with approximately 100 mln euros
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Shenyang Blue Silver Industry Automatic Equipment Co., Ltd. (300293.SZ) proposes to acquire 85 percent equities and non-equities assets of industrial cleaning system and surface treatment business under Germany's Durr in cash. The valuation of the transaction is 98,387,500 euros. The subject assets operate with the brand of "Ecoclean", providing customized cleaning and surface treatment solutions and services for major global car manufacturers and their suppliers. The operating revenue of the subject assets for 2014, 2015 and the first half of 2016 were 192 million euros, 203 euros and 85.53 million euros respectively, and the EBIT were 11.06 million euros, 12.65 million euros and 4 million euros respectively.
○ Yuyue Medical Equipment ＆ Supply to acquire medical sterilizing company with RMB863 mln
------
Jiangsu Yuyue Medical Equipment ＆ Supply Co., Ltd. (002233.SZ) proposes to acquire 61.62 percent equities of China Better Life Medical. China Better Life Medical is engaged in the research and sales of medial sterilizing, industrial cleaning and sterilizing and personal care products. The valuation of its entire equities is 1,399 million yuan, and the value-added ratio is 422.32 percent. The counterparty committed that China Better Life Medical's net profits for 2017, 2018 and 2019 will be 92 million yuan, 112 million yuan and 142 million yuan respectively.
TOP
○Restructuring of Pearl River Holdings approved, largest shareholder confirms increasing shareholding
------
Restructuring of Hainan Pearl River Holdings Co., Ltd. (000505.SZ) was approved by Beijing State-owned Assets Supervision and Administration Commission. The largest shareholder Beijing Grain Group proposes to increase shareholding of the company with valuation of no less than 130 million yuan and no more than 220 million yuan from Nov. 7, 2016 to May 7, 2017. This acquisition will not trigger tender offer obligation.
○ Restructuring of three companies approved
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Restructuring of Keda Group Co., Ltd. (600986.SH) was approved by the China Securities Regulatory Commission (CSRC) unconditionally. Restructuring of Guanfu Holdings Co., Ltd. (002102.SZ) and Shenzhen Seg Co., Ltd. (000058.SZ) were approved by the CSRC conditionally.
○Orient International Enterprise, Ltd. (600278.SH) and Huangshan Tourism Development Co., Ltd. (600054.SH) announced that they hold 245 million shares and 100 million shares of Hua'an Securities respectively. The IPO of the latter was approved.
[Trading Alarm]
○ Wujiang Rural Commercial Bank and Tianneng Electric Power Engineering Machinery to conduct IPO on Nov. 16
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Wujiang Rural Commercial Bank (732323.SZ) will offer for subscription at 6.83 yuan per share and the upper limit for each applicant is 33,000 shares. The bank is primarily engaged in commercial bank business. Qingdao Tianneng Electric Power Engineering Machinery Co., Ltd. (300569.SZ) will offer for subscription at 41.57 yuan per share and the upper limit for each applicant is 8,000 shares. The company is primarily involved in fan tower.
TOP
○ Central bank mulls issuing digital currencies, block chain technologies to enjoy priority
○ New breakthroughs made in technical R＆D on graphene, industrialization to speed up
○ Blue Silver Industry Automatic Equipment to buy cleaning assets, Yuyue Medical Equipment ＆ Supply to acquire medical sterilizing company
○ Largest shareholder confirms increasing shareholding in Pearl River Holdings, restructuring of three companies approved
[SSN Focus]
○ Central bank mulls issuing digital currencies, block chain technologies to enjoy priority
------
The plan on the issuance of legal digital currencies by the central bank has completed the first two rounds of revisions, indicated Yao Qian, director dean of the division of technology of the central bank and leader of the preparation group of the institute of digital currencies, in an exclusive interview with SSN. It is expected to pilot in the bills market and other close applications, but there is no specific timetable currently. In addition, the central will strengthen the study and utilization of new innovation technologies, including the block chain technologies, to improve the financial services and fully forecast, timely respond to and effectively resolve possible risks in technical applications.
Comment: Institutes believe that the digital currencies issued by the central bank will form a big data system in the end and improve the convenience and transparency in economic and trading activities. There are no true digital currencies in the world and the Bitcoin with block chain technologies as the basis is most close to digital currencies. A subsidiary of Qingdao Haili Metal One Co., Ltd. (002537.SZ) has become a member of the FBSC and Zhongguancun Block Chain Industrial Alliance. Feitian Technologies Co., Ltd. (300386.SZ) has security and encryption technologies, which is likely to develop together with block chain technologies. Hundsun Technologies Inc. (600570.SH) established a digital bills system based on the alliance chain through block chain technologies.
[SSN Selection]
○ Shenzhen Stock Exchange announced that it will conduct test on the network on Nov. 19, which will simulate the operation of the Shenzhen-Hong Kong Stock Connect on the first day of opening (the initiation of trading businesses).
○ Shenzhen and Wuhan released new policies on the regulation of the property market on Nov. 15. Insiders believe that this round of property regulation is typically featured by strict implementation.
○ The proportion of accounts conducting trading increased from 13.93 to 15.11 percent last week. Securities margins witnessed net inflows for three consecutive weeks.
○ Chinese economic fundamentals do not support significant devaluation of the exchange rate for long term and the current devaluation has more benefits, indicated Yu Yongding in an interview with SSN.
○ More than ten enterprises, including Heilan Group, and Le Holdings signed the phase-I investment agreement with 300 million U.S. dollars to support its innovation models on Nov. 15.
TOP
[Industry Information]
○ New breakthroughs made in technical R＆D on graphene, industrialization to speed up
------
The Northwest University has made various breakthroughs in graphene study and industrialization recently, which makes it possible to reduce the size and expand the capacity of batteries. The team has completed the experiment on the industrialization of negative materials for improved graphene lithium batteries for bulk production of 500kg graphene. The performance of the product meets the national standards for high-performance negative materials for improved graphene lithium batteries. Meanwhile, they also made various negative materials for improved graphene lithium batteries with over 1,000mAh/g, which is synchronous with international studies.
TOP
[Announcement Interpretation]
○ Blue Silver Industry Automatic Equipment to buy German industrial cleaning assets with approximately 100 mln euros
------
Shenyang Blue Silver Industry Automatic Equipment Co., Ltd. (300293.SZ) proposes to acquire 85 percent equities and non-equities assets of industrial cleaning system and surface treatment business under Germany's Durr in cash. The valuation of the transaction is 98,387,500 euros. The subject assets operate with the brand of "Ecoclean", providing customized cleaning and surface treatment solutions and services for major global car manufacturers and their suppliers. The operating revenue of the subject assets for 2014, 2015 and the first half of 2016 were 192 million euros, 203 euros and 85.53 million euros respectively, and the EBIT were 11.06 million euros, 12.65 million euros and 4 million euros respectively.
○ Yuyue Medical Equipment ＆ Supply to acquire medical sterilizing company with RMB863 mln
------
Jiangsu Yuyue Medical Equipment ＆ Supply Co., Ltd. (002233.SZ) proposes to acquire 61.62 percent equities of China Better Life Medical. China Better Life Medical is engaged in the research and sales of medial sterilizing, industrial cleaning and sterilizing and personal care products. The valuation of its entire equities is 1,399 million yuan, and the value-added ratio is 422.32 percent. The counterparty committed that China Better Life Medical's net profits for 2017, 2018 and 2019 will be 92 million yuan, 112 million yuan and 142 million yuan respectively.
TOP
○Restructuring of Pearl River Holdings approved, largest shareholder confirms increasing shareholding
------
Restructuring of Hainan Pearl River Holdings Co., Ltd. (000505.SZ) was approved by Beijing State-owned Assets Supervision and Administration Commission. The largest shareholder Beijing Grain Group proposes to increase shareholding of the company with valuation of no less than 130 million yuan and no more than 220 million yuan from Nov. 7, 2016 to May 7, 2017. This acquisition will not trigger tender offer obligation.
○ Restructuring of three companies approved
------
Restructuring of Keda Group Co., Ltd. (600986.SH) was approved by the China Securities Regulatory Commission (CSRC) unconditionally. Restructuring of Guanfu Holdings Co., Ltd. (002102.SZ) and Shenzhen Seg Co., Ltd. (000058.SZ) were approved by the CSRC conditionally.
○Orient International Enterprise, Ltd. (600278.SH) and Huangshan Tourism Development Co., Ltd. (600054.SH) announced that they hold 245 million shares and 100 million shares of Hua'an Securities respectively. The IPO of the latter was approved.
[Trading Alarm]
○ Wujiang Rural Commercial Bank and Tianneng Electric Power Engineering Machinery to conduct IPO on Nov. 16
------
Wujiang Rural Commercial Bank (732323.SZ) will offer for subscription at 6.83 yuan per share and the upper limit for each applicant is 33,000 shares. The bank is primarily engaged in commercial bank business. Qingdao Tianneng Electric Power Engineering Machinery Co., Ltd. (300569.SZ) will offer for subscription at 41.57 yuan per share and the upper limit for each applicant is 8,000 shares. The company is primarily involved in fan tower.
TOP
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