[Today's Guide]
○ General Office of State Council issued notice to promote income growth of farmers, rural finance to have wide development space
○ First wave of managers selected for pension fund, offical operation to statr at beginning of 2017 at soonest
○"13th Five-Year" Development Planning for E-commerce to launch, rural e-commerce to step in fast track
○ Shareholder of TianMuShan Pharmaceutical Enterprise proposes to transfer 16.24 pct equities, Neusoft Holdings purchases shares of Neusoft Corporation through secondary market acquisition to 5 pct limit
[SSN Focus]
○ General Office of State Council issued notice to promote income growth of farmers, rural finance to have wide development space
------
General Office of the State Council recently issued Several Opinions on Improving supporting Policies to Promote Farmers' Income, and proposed to a goal of doubling the farmers' income by 2020 when compared to that in 2010. In terms of detailed measures, it will enlarge input for agricultural infrastructure, reinforce facilities, such as irrigation ＆ water conservancy, agricultural technology, grain storage ＆ logistics and etc., improve policies to support new agricultural operators, make land transfer service system sound, enhance rural financial service, innovate village ＆ township bank establishment mode, and positively guide internet finance and industrial funds to develop rural financial services.
Comment: China's agriculture has great quanity but poor basis, with seasonal features of agricultural production, which provides huge market space for rural financial services. In latest years, documents supporting rural mortgage loans with land operational and housing rights have successively released, which may gradually solve the problem that financial support cannot match scaled operation of rural areas due to shorting of mortgage guarantee. In terms of A-share companies, Luoniushan Co., Ltd. (000735.SZ) invests in Haikou Rural Commercial Bank and many rural credit cooperative unions; Anhui Xinli Finance Co., Ltd. (600318.SH) is transforming to comprehensive financial enterprise featured in rural financial services; 16899.com under Jiangsu Huifeng Agrochemical Co., Ltd. (002496.SZ) has signed cooperative agreement with Bank Of China Limited (601988.SH) regarding to comprehensive service station for rural finance.
○ First wave of managers selected for pension fund, offical operation to statr at beginning of 2017 at soonest
------
National Council for Social Security Fund on Dec. 6 announced the first wave of basic pension fund investment manager list, and 21 institutions from fund, insurance, securities and other industries have gained manager qualification.
Comment: These managers have already been rich in social security or annuity management experience, and the following communication work is expected not to last for too long. Basic pension fund can step in official operation phase at the beginning of next year at the soonest. The scale for the first wave of basic pension fund may be in a range of 20 to 30 billion yuan, insiders predicted.
[SSN Selection]
○ China Insurance Regulatory Commission will sent investigation teams to Qian Hai Life Insurance Co., Ltd. and Evergrande Life Assurance Co., Ltd. on Dec. 7 at the soonest, to check up their governance standardization, financial authenticity, and whether insurance products and capital utilization meet the regulations.
○ The central bank on Dec. 6 carried out the MLF operation of 339 billion yuan, and after hedging the MLF of 11.5 billion yuan going to expire on Dec. 7, it realized net capital input in advance.
○ Eight authorities including Ministry of Industry and Information Technology will conduct specialized actions to hit rule-breaking and illegal behaviors related to rare earth nationwide from this month, beneficial to stop the depressed trend of rare earth price.
○ Ministry of Industry and Information Technology will officially release and interpret "13th Five-Year" Development Planning for Intelligent Manufacturing on Dec. 7, with clear development concept and goal to this respect.
○ Last week, bank-securities transfer realized net inflow of 58.5 billion yuan, and proportion of the number of investors holding the position continued to reduce.
[Industry Information]
○ "13th Five-Year" Development Planning for E-commerce to launch, rural e-commerce to step in fast track
------
"13th Five-Year" Development Planning for E-commerce have already been formulated, and will be jointly launched by authorities including Ministry of Commerce, SSN learnt. Especially, speeding up rural e-commerce, encouraging community-based e-commerce, promoting cross-border e-commercial development and etc. have been listed as key points during the "13th Five-Year Plan" period.
Comment: Rural e-commerce is still at early stage now, but along with increasingly rising income for rural people and intensifying policy supports, this industry has huge development potential. Investors should focus on rural e-commercial opportunities based on three main lines, such as magnates mainly engaged in traditional agricultural products but transforming to internet industry, listed companies strategically cooperated with three biggest e-commerce companies, and e-commerce website service providers, according to research report of securities companies.
○Shareholder of TianMuShan Pharmaceutical Enterprise proposes to transfer equities, shareholder of Neusoft Corporation purchases shares through secondary market acquisition to 5 pct limit
○Cobalt prices rise due to improved supply-demand structure, ternary lithium battery boosts industrial development
------
Driven by an increase in raw material costs and expansion of downstream demands, cobalt prices have surged 6-9 percent in recent week, totaling the price hike since the second half to 20-40 percent.
Comment: Power battery, as a major application field of cobalt, recently has seen a series of policy supports. The restriction of the application of ternary battery in bus will be lifted in 2017. Considering that the power consumption of a bus is much higher than a passenger vehicle, demands for cobalt will grow rapidly. In addition, electric logistics vehicles are also included into the promotion directory for the first time, bringing new demands for ternary materials and cobalt products. At present, most of China's cobalt concentrates are imported. Listed companies like Zhejiang Huayou Cobalt Co., Ltd. (603799.SH) and China Molybdenum Co., Ltd. (603993.SH) are involved in cobalt product business.
[Announcement Interpretation]
○Shareholder of TianMuShan Pharmaceutical Enterprise proposes to transfer 16.24 pct equities
------
Shenzhen Great Walle Asset Management Co., Ltd., shareholder of Hangzhou TianMuShan Pharmaceutical Enterprise Co., Ltd. (600671.SH), proposes to publicly transfer 16.24 percent equities of TianMuShan Pharmaceutical Enterprise on Beibu Gulf Equity Exchange during Dec. 7-15, 2016. The equity transfer will not result in changes of controlling shareholder and actual controller of the company. At present, TianMuShan Pharmaceutical Enterprise has terminated the planning of major asset reorganization.
○Neusoft Holdings purchases shares of Neusoft Corporation through secondary market acquisition to 5 pct limit and proposes further shareholding increase
------
Dalian Neusoft Holdings Co., Ltd., the third largest shareholder of Neusoft Corporation (600718.SH), recently increased shareholding in the company by 659,900 shares, accounting for 0.0531 percent of the company's total share capital. Neusoft Holdings proposes to further purchase 5-10 percent of the shares of the company in next 6 months at the price range of 17 yuan-19 yuan per share. Current stock price of Neusoft Corporation is 18.5 yuan per share. Since other main shareholders tend to cut shareholding in the company, Neusoft Holdings increases its shareholding to maintain stable corporate governance structure.
Neusoft Corporation recently announced that its largest shareholder sold 8.095 million shares of the company through block trade on Dec. 2. The shareholder has cut its shareholding to 12.6248 percent of the company's total share capital since Nov. 19, 2014 and planned further shareholding decrease in next 12 months.
○Fosun Group, controlling shareholder of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (600196.SH), purchased 3 million A shares and 324,500 H shares of the company, respectively, on Dec. 5-6.
○From Dec. 6, the prices of various types of titanium dioxides produced by Henan Billions Chemicals Co., Ltd. (002601.SZ) will be raised by 1,000 yuan per ton at home and 150 US dollar per ton at abroad.
○Shanghai Phichem Material Co., Ltd. (300398.SZ) proposes to acquire 100 percent equities of Jiangsu Hecheng Display Technology Co., Ltd. with 1.064 billion yuan at an appreciation rate of 374.26 percent. The transaction will be done by issuing 10.7136 million shares at 56.75 yuan per share and paying 456 million yuan in cash. Meanwhile, the company proposes to raise a supporting fund of 470 million yuan at 65.75 yuan per share. Hecheng Display Technology, focusing on the manufacturing and sales of LCD materials, produces TN-type, STN-type and TFT-type mixed liquid crystals. Hecheng Display Technology promises a net profit of no less than 65 million yuan, 80 million yuan, 950 million yuan and 110 million yuan, respectively, during 2016 and 2019.
[Trading Alarms]
○Lily and Rongda Photosensitive ＆ Technology to issue new shares on Dec. 7
------
Lily Group Co., Ltd. (603823.SH), primarily engaged in organic pigments, will issue new shares at 10.6 yuan per share with an up-limit of 22,000 shares per account; Shenzhen Rongda Photosensitive ＆ Technology Co., Ltd. (300576.SZ), primarily engaged in sensitive printing ink, will issue new shares at 8.24 yuan per share with an up-limit of 20,000 shares per account.
○ General Office of State Council issued notice to promote income growth of farmers, rural finance to have wide development space
○ First wave of managers selected for pension fund, offical operation to statr at beginning of 2017 at soonest
○"13th Five-Year" Development Planning for E-commerce to launch, rural e-commerce to step in fast track
○ Shareholder of TianMuShan Pharmaceutical Enterprise proposes to transfer 16.24 pct equities, Neusoft Holdings purchases shares of Neusoft Corporation through secondary market acquisition to 5 pct limit
[SSN Focus]
○ General Office of State Council issued notice to promote income growth of farmers, rural finance to have wide development space
------
General Office of the State Council recently issued Several Opinions on Improving supporting Policies to Promote Farmers' Income, and proposed to a goal of doubling the farmers' income by 2020 when compared to that in 2010. In terms of detailed measures, it will enlarge input for agricultural infrastructure, reinforce facilities, such as irrigation ＆ water conservancy, agricultural technology, grain storage ＆ logistics and etc., improve policies to support new agricultural operators, make land transfer service system sound, enhance rural financial service, innovate village ＆ township bank establishment mode, and positively guide internet finance and industrial funds to develop rural financial services.
Comment: China's agriculture has great quanity but poor basis, with seasonal features of agricultural production, which provides huge market space for rural financial services. In latest years, documents supporting rural mortgage loans with land operational and housing rights have successively released, which may gradually solve the problem that financial support cannot match scaled operation of rural areas due to shorting of mortgage guarantee. In terms of A-share companies, Luoniushan Co., Ltd. (000735.SZ) invests in Haikou Rural Commercial Bank and many rural credit cooperative unions; Anhui Xinli Finance Co., Ltd. (600318.SH) is transforming to comprehensive financial enterprise featured in rural financial services; 16899.com under Jiangsu Huifeng Agrochemical Co., Ltd. (002496.SZ) has signed cooperative agreement with Bank Of China Limited (601988.SH) regarding to comprehensive service station for rural finance.
○ First wave of managers selected for pension fund, offical operation to statr at beginning of 2017 at soonest
------
National Council for Social Security Fund on Dec. 6 announced the first wave of basic pension fund investment manager list, and 21 institutions from fund, insurance, securities and other industries have gained manager qualification.
Comment: These managers have already been rich in social security or annuity management experience, and the following communication work is expected not to last for too long. Basic pension fund can step in official operation phase at the beginning of next year at the soonest. The scale for the first wave of basic pension fund may be in a range of 20 to 30 billion yuan, insiders predicted.
[SSN Selection]
○ China Insurance Regulatory Commission will sent investigation teams to Qian Hai Life Insurance Co., Ltd. and Evergrande Life Assurance Co., Ltd. on Dec. 7 at the soonest, to check up their governance standardization, financial authenticity, and whether insurance products and capital utilization meet the regulations.
○ The central bank on Dec. 6 carried out the MLF operation of 339 billion yuan, and after hedging the MLF of 11.5 billion yuan going to expire on Dec. 7, it realized net capital input in advance.
○ Eight authorities including Ministry of Industry and Information Technology will conduct specialized actions to hit rule-breaking and illegal behaviors related to rare earth nationwide from this month, beneficial to stop the depressed trend of rare earth price.
○ Ministry of Industry and Information Technology will officially release and interpret "13th Five-Year" Development Planning for Intelligent Manufacturing on Dec. 7, with clear development concept and goal to this respect.
○ Last week, bank-securities transfer realized net inflow of 58.5 billion yuan, and proportion of the number of investors holding the position continued to reduce.
[Industry Information]
○ "13th Five-Year" Development Planning for E-commerce to launch, rural e-commerce to step in fast track
------
"13th Five-Year" Development Planning for E-commerce have already been formulated, and will be jointly launched by authorities including Ministry of Commerce, SSN learnt. Especially, speeding up rural e-commerce, encouraging community-based e-commerce, promoting cross-border e-commercial development and etc. have been listed as key points during the "13th Five-Year Plan" period.
Comment: Rural e-commerce is still at early stage now, but along with increasingly rising income for rural people and intensifying policy supports, this industry has huge development potential. Investors should focus on rural e-commercial opportunities based on three main lines, such as magnates mainly engaged in traditional agricultural products but transforming to internet industry, listed companies strategically cooperated with three biggest e-commerce companies, and e-commerce website service providers, according to research report of securities companies.
○Shareholder of TianMuShan Pharmaceutical Enterprise proposes to transfer equities, shareholder of Neusoft Corporation purchases shares through secondary market acquisition to 5 pct limit
○Cobalt prices rise due to improved supply-demand structure, ternary lithium battery boosts industrial development
------
Driven by an increase in raw material costs and expansion of downstream demands, cobalt prices have surged 6-9 percent in recent week, totaling the price hike since the second half to 20-40 percent.
Comment: Power battery, as a major application field of cobalt, recently has seen a series of policy supports. The restriction of the application of ternary battery in bus will be lifted in 2017. Considering that the power consumption of a bus is much higher than a passenger vehicle, demands for cobalt will grow rapidly. In addition, electric logistics vehicles are also included into the promotion directory for the first time, bringing new demands for ternary materials and cobalt products. At present, most of China's cobalt concentrates are imported. Listed companies like Zhejiang Huayou Cobalt Co., Ltd. (603799.SH) and China Molybdenum Co., Ltd. (603993.SH) are involved in cobalt product business.
[Announcement Interpretation]
○Shareholder of TianMuShan Pharmaceutical Enterprise proposes to transfer 16.24 pct equities
------
Shenzhen Great Walle Asset Management Co., Ltd., shareholder of Hangzhou TianMuShan Pharmaceutical Enterprise Co., Ltd. (600671.SH), proposes to publicly transfer 16.24 percent equities of TianMuShan Pharmaceutical Enterprise on Beibu Gulf Equity Exchange during Dec. 7-15, 2016. The equity transfer will not result in changes of controlling shareholder and actual controller of the company. At present, TianMuShan Pharmaceutical Enterprise has terminated the planning of major asset reorganization.
○Neusoft Holdings purchases shares of Neusoft Corporation through secondary market acquisition to 5 pct limit and proposes further shareholding increase
------
Dalian Neusoft Holdings Co., Ltd., the third largest shareholder of Neusoft Corporation (600718.SH), recently increased shareholding in the company by 659,900 shares, accounting for 0.0531 percent of the company's total share capital. Neusoft Holdings proposes to further purchase 5-10 percent of the shares of the company in next 6 months at the price range of 17 yuan-19 yuan per share. Current stock price of Neusoft Corporation is 18.5 yuan per share. Since other main shareholders tend to cut shareholding in the company, Neusoft Holdings increases its shareholding to maintain stable corporate governance structure.
Neusoft Corporation recently announced that its largest shareholder sold 8.095 million shares of the company through block trade on Dec. 2. The shareholder has cut its shareholding to 12.6248 percent of the company's total share capital since Nov. 19, 2014 and planned further shareholding decrease in next 12 months.
○Fosun Group, controlling shareholder of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (600196.SH), purchased 3 million A shares and 324,500 H shares of the company, respectively, on Dec. 5-6.
○From Dec. 6, the prices of various types of titanium dioxides produced by Henan Billions Chemicals Co., Ltd. (002601.SZ) will be raised by 1,000 yuan per ton at home and 150 US dollar per ton at abroad.
○Shanghai Phichem Material Co., Ltd. (300398.SZ) proposes to acquire 100 percent equities of Jiangsu Hecheng Display Technology Co., Ltd. with 1.064 billion yuan at an appreciation rate of 374.26 percent. The transaction will be done by issuing 10.7136 million shares at 56.75 yuan per share and paying 456 million yuan in cash. Meanwhile, the company proposes to raise a supporting fund of 470 million yuan at 65.75 yuan per share. Hecheng Display Technology, focusing on the manufacturing and sales of LCD materials, produces TN-type, STN-type and TFT-type mixed liquid crystals. Hecheng Display Technology promises a net profit of no less than 65 million yuan, 80 million yuan, 950 million yuan and 110 million yuan, respectively, during 2016 and 2019.
[Trading Alarms]
○Lily and Rongda Photosensitive ＆ Technology to issue new shares on Dec. 7
------
Lily Group Co., Ltd. (603823.SH), primarily engaged in organic pigments, will issue new shares at 10.6 yuan per share with an up-limit of 22,000 shares per account; Shenzhen Rongda Photosensitive ＆ Technology Co., Ltd. (300576.SZ), primarily engaged in sensitive printing ink, will issue new shares at 8.24 yuan per share with an up-limit of 20,000 shares per account.
Latest comments