[Today's Guide]
○ National Population Development Plan released, realization of proper fertility rate to advance
○ POBC to launch digital currency soon as application of blockchain makes progress
○ Policy supports renewable resource industry, electronics and automobile recycling see opportunities
○ Second largest shareholder of Vanfund Urban Investment＆ development to transfer shares at about 80 percent premium, Hengtong Logistic to raise fund by private placement
[SSN Focus]
○ National Population Development Plan released, realization of proper fertility rate to advance
------
The State Council recently released the National Population Development Plan (2016-2030), proposing to gradually raise total fertility rate to a proper level, guarantee effective supply of labor resources and gradually lift the urbanization rate of permanent resident population. Measures for advancing the realization of proper fertility rate are proposed from three aspects. Firstly, perfect the regulation mechanism for fertility policies, implement the universal two-child policy and follow up the effect of policies. Secondly, reasonably arrange public service resources like women and children's health and preschool education. Thirdly, improve family development support system and reduce family burden on childbirth and childrearing.
Comment: Effects have been produced since the universal two-child policy was implemented a year ago. The total number of newborn in 2016 recorded a year-on-year growth around 11.5 percent, and second child or more account for over 45 percent. Institutions expect that the total number of newborn will continue the rapid growth in 2017 and 2018. According to foreign experience, the prosperity of industries like garments, toys, education and medical service for infant and children will apparently improve.
[SSN Selection]
○ Data from the China Banking Regulatory Commission (CBRC) shows that the non-performing loan ratio of commercial banks recorded 1.74 percent in end 2016, 0.02 percentage points lower than that of previous quarter.
○ The National Development and Reform Commission (NDRC) expects that member enterprises of China Iron and Steel Association pocketed a profit around 35 billion yuan in 2016 and stopped loss when compared with the situation in previous year. The profit of coal enterprises above designated size climbed around 110 percent year on year.
○ The Medical Reform Office of the State Council said that it will soon release the opinions on further reforming and improving policies for the production, distribution and use of drugs to take full advantages of "Internet plus drug distribution".
○ The State Council on Jan. 25 announced approval for supporting Wuhan and Zhengzhou to build themselves as central cities.
○ China lowers its price of gasoline and diesel by 70 yuan a ton starting from 24:00 Jan. 25. Analysts believe that the US' exclusion in the output cut deal is likely to cause international oil prices to fluctuate in a zone.
TOP
[Industry Information]
○ POBC to launch digital currency soon as application of blockchain makes progress
------
The People's Bank of China (PBOC), the country's central bank has made a successful test its digital bill trading platform based on blockchain, according to caixin.com. The legal digital currency issued by the central bank has also started its trial operation on the platform. PBOC is going to set up a research and development center to further improve the platform. PBOC will officially launch its own digital currency research institute after the Spring Festival.
Comment: Esssence Securities believe that PBOC's increasingly stricter regulations are likely to lay a foundation for the soon introduction of digital currency. With the help of blockchain technology, the digital currency, being traceable, may restructure the financial system. This will bring huge business opportunities. Hundsun Technologies Inc. (600570.SH) establishes an alliance chain-based digital bill system with blockchain technology. Union Mobile Financial Technology Co., Ltd., a subsidy of Qingdao Haili Metal One Co., Ltd. (002537.SZ), has become a member of Financial Blockchain Shenzhen Consortium and Zhongguanchun Blockchain Industry Alliance.
TOP
○ Policy supports renewable resource industry, electronics and automobile recycling see opportunities
------
The Ministry of Industry and Information Technology (MIIT), the Ministry of Commerce (MOFCOMM) and the Ministry of Science and Technology (MOST) on Jan. 25 issued guiding opinions on accelerating the development of renewable resource industry, proposing to fundamentally built a renewable resource industry system with complete management system, advanced technical equipment, prominent industry contribution, high risk resistance competence and healthy and orderly development by 2020, and realize renewable resource recycling utilization amount of 350 million tons. The recycling utilization of waste electrical and electronic equipment is 690 million pieces, and recycling rate of scrap motor vehicles is 95 percent.
Comment: with the continuous increase of social consumption of raw materials such as steel and nonferrous metals and scrappage of electronic, plastic and rubber products, the quantity and variety of renewable resources increased significantly, which provides huge potential for the development of the industry. In listed companies, China Resource And Environment Co., Ltd. (600217.SH) is primarily engaged in the recycling and disassembles of waste electrical and electronic equipment; Miracle Automation Engineering Co., Ltd. (002009.SZ) has tapped into the automobile dismantling business through acquiring Hubei Lidi Machine Tool Co., Ltd.
TOP
[Announcement Interpretation]
○ Second largest shareholder of Vanfund Urban Investment＆ development to transfer shares at about 80 percent premium
------
Beijing Wanfangyuan Real Estate Development Co., Ltd., the largest shareholder of Vanfund Urban Investment＆ development Co., Ltd. (000638.SH) proposes to buy the entire 16 million shares (5.17 percent of the total share capital of the listed company) held by the second largest holder of the listed company Huarong Yushang Asset Management at 24.75 yuan per share, representing 78.96 percent premium compared with the company's latest price. The total valuation of the share transfer is 396 million yuan. Huarong Yushang Asset Manangement entered the listed company in Q2 as strategic investment. The purchasing price was 24.75 yuan per share. After the equity alteration, Beijing Wanfangyuan's shareholding in the listed company will increase from 37.96 percent to 42.86 percent.
○ Hengtong Logistic to raise RMB450 mln by private placement, actual controller to cover half of subscriptions
------
Hengtong Logistic Co., Ltd. (603223.SH) proposes to issue no more than 14.91 million shares at 30.18 yuan per share to raise no more than 450 million yuan, and 315 million yuan will be invested in LNG logistic project, with the rest for information-oriented upgrading project and cash supplement. The actual controller Liu Zhendong will subscribe the shares with 210 million yuan, accounting for nearly a half of the total fundraising.
○ Actual controller of Europol Intelligent Network Co., Ltd. (002711.SZ) increased 10.21 million shareholdings in the company; actual controller of Shenzhen Heungkong Holding Co., Ltd. (600162.SH) increased the shareholdings in the company on Dec. 28, 2016 for the first time, who had totally increased 28.15 million shares up to Jan. 25, 2017.
[Financial Reports Express]
○ Tianye and others announce growth forecast in annual report
------
Xinjiang Tianye Co., Ltd. (600075.SH) announces a growth forecast of 1,000 to 2,000 percent in its annual report, mainly due to combined financial statement with Tianwei Chemical Engineering Co., Ltd.; a growth forecast of 35 to 70 percent for Beijing Huaye Capital Holdings CO., Ltd. (600240.SH), mainly due to real estate sales growth; a growth forecast of 40 percent for China Shenhua Energy Company Limited (601088.SH), mainly due to reduced cost and increased coal price; a growth forecast of 27 to 47 percent for Tahoe Group Co., Ltd. (000732.SZ), mainly due to revenue growth of real estate sales; a growth forecast of 358 to 461 percent in the first quarter for Nanjing Red Sun Co., Ltd. (000525.SZ), mainly due to booming production and sales of main products.
[Trading Alarms]
○ IPOs of Gospell Digital Technology and Winner Information Technology on Jan. 26
------
Gospell Digital Technology Co., Ltd. (002848.SZ) mainly engaged in software and hardware products of digital TV will issue new shares at 6.31 yuan per share with upper subscription limit of 16,500 shares; an offering price of 8.12 yuan per share and upper subscription limit of 10,000 shares for Winner Information Technology Co., Inc. (300609.SZ) mainly due to offline commercial data collection sensors.
○ National Population Development Plan released, realization of proper fertility rate to advance
○ POBC to launch digital currency soon as application of blockchain makes progress
○ Policy supports renewable resource industry, electronics and automobile recycling see opportunities
○ Second largest shareholder of Vanfund Urban Investment＆ development to transfer shares at about 80 percent premium, Hengtong Logistic to raise fund by private placement
[SSN Focus]
○ National Population Development Plan released, realization of proper fertility rate to advance
------
The State Council recently released the National Population Development Plan (2016-2030), proposing to gradually raise total fertility rate to a proper level, guarantee effective supply of labor resources and gradually lift the urbanization rate of permanent resident population. Measures for advancing the realization of proper fertility rate are proposed from three aspects. Firstly, perfect the regulation mechanism for fertility policies, implement the universal two-child policy and follow up the effect of policies. Secondly, reasonably arrange public service resources like women and children's health and preschool education. Thirdly, improve family development support system and reduce family burden on childbirth and childrearing.
Comment: Effects have been produced since the universal two-child policy was implemented a year ago. The total number of newborn in 2016 recorded a year-on-year growth around 11.5 percent, and second child or more account for over 45 percent. Institutions expect that the total number of newborn will continue the rapid growth in 2017 and 2018. According to foreign experience, the prosperity of industries like garments, toys, education and medical service for infant and children will apparently improve.
[SSN Selection]
○ Data from the China Banking Regulatory Commission (CBRC) shows that the non-performing loan ratio of commercial banks recorded 1.74 percent in end 2016, 0.02 percentage points lower than that of previous quarter.
○ The National Development and Reform Commission (NDRC) expects that member enterprises of China Iron and Steel Association pocketed a profit around 35 billion yuan in 2016 and stopped loss when compared with the situation in previous year. The profit of coal enterprises above designated size climbed around 110 percent year on year.
○ The Medical Reform Office of the State Council said that it will soon release the opinions on further reforming and improving policies for the production, distribution and use of drugs to take full advantages of "Internet plus drug distribution".
○ The State Council on Jan. 25 announced approval for supporting Wuhan and Zhengzhou to build themselves as central cities.
○ China lowers its price of gasoline and diesel by 70 yuan a ton starting from 24:00 Jan. 25. Analysts believe that the US' exclusion in the output cut deal is likely to cause international oil prices to fluctuate in a zone.
TOP
[Industry Information]
○ POBC to launch digital currency soon as application of blockchain makes progress
------
The People's Bank of China (PBOC), the country's central bank has made a successful test its digital bill trading platform based on blockchain, according to caixin.com. The legal digital currency issued by the central bank has also started its trial operation on the platform. PBOC is going to set up a research and development center to further improve the platform. PBOC will officially launch its own digital currency research institute after the Spring Festival.
Comment: Esssence Securities believe that PBOC's increasingly stricter regulations are likely to lay a foundation for the soon introduction of digital currency. With the help of blockchain technology, the digital currency, being traceable, may restructure the financial system. This will bring huge business opportunities. Hundsun Technologies Inc. (600570.SH) establishes an alliance chain-based digital bill system with blockchain technology. Union Mobile Financial Technology Co., Ltd., a subsidy of Qingdao Haili Metal One Co., Ltd. (002537.SZ), has become a member of Financial Blockchain Shenzhen Consortium and Zhongguanchun Blockchain Industry Alliance.
TOP
○ Policy supports renewable resource industry, electronics and automobile recycling see opportunities
------
The Ministry of Industry and Information Technology (MIIT), the Ministry of Commerce (MOFCOMM) and the Ministry of Science and Technology (MOST) on Jan. 25 issued guiding opinions on accelerating the development of renewable resource industry, proposing to fundamentally built a renewable resource industry system with complete management system, advanced technical equipment, prominent industry contribution, high risk resistance competence and healthy and orderly development by 2020, and realize renewable resource recycling utilization amount of 350 million tons. The recycling utilization of waste electrical and electronic equipment is 690 million pieces, and recycling rate of scrap motor vehicles is 95 percent.
Comment: with the continuous increase of social consumption of raw materials such as steel and nonferrous metals and scrappage of electronic, plastic and rubber products, the quantity and variety of renewable resources increased significantly, which provides huge potential for the development of the industry. In listed companies, China Resource And Environment Co., Ltd. (600217.SH) is primarily engaged in the recycling and disassembles of waste electrical and electronic equipment; Miracle Automation Engineering Co., Ltd. (002009.SZ) has tapped into the automobile dismantling business through acquiring Hubei Lidi Machine Tool Co., Ltd.
TOP
[Announcement Interpretation]
○ Second largest shareholder of Vanfund Urban Investment＆ development to transfer shares at about 80 percent premium
------
Beijing Wanfangyuan Real Estate Development Co., Ltd., the largest shareholder of Vanfund Urban Investment＆ development Co., Ltd. (000638.SH) proposes to buy the entire 16 million shares (5.17 percent of the total share capital of the listed company) held by the second largest holder of the listed company Huarong Yushang Asset Management at 24.75 yuan per share, representing 78.96 percent premium compared with the company's latest price. The total valuation of the share transfer is 396 million yuan. Huarong Yushang Asset Manangement entered the listed company in Q2 as strategic investment. The purchasing price was 24.75 yuan per share. After the equity alteration, Beijing Wanfangyuan's shareholding in the listed company will increase from 37.96 percent to 42.86 percent.
○ Hengtong Logistic to raise RMB450 mln by private placement, actual controller to cover half of subscriptions
------
Hengtong Logistic Co., Ltd. (603223.SH) proposes to issue no more than 14.91 million shares at 30.18 yuan per share to raise no more than 450 million yuan, and 315 million yuan will be invested in LNG logistic project, with the rest for information-oriented upgrading project and cash supplement. The actual controller Liu Zhendong will subscribe the shares with 210 million yuan, accounting for nearly a half of the total fundraising.
○ Actual controller of Europol Intelligent Network Co., Ltd. (002711.SZ) increased 10.21 million shareholdings in the company; actual controller of Shenzhen Heungkong Holding Co., Ltd. (600162.SH) increased the shareholdings in the company on Dec. 28, 2016 for the first time, who had totally increased 28.15 million shares up to Jan. 25, 2017.
[Financial Reports Express]
○ Tianye and others announce growth forecast in annual report
------
Xinjiang Tianye Co., Ltd. (600075.SH) announces a growth forecast of 1,000 to 2,000 percent in its annual report, mainly due to combined financial statement with Tianwei Chemical Engineering Co., Ltd.; a growth forecast of 35 to 70 percent for Beijing Huaye Capital Holdings CO., Ltd. (600240.SH), mainly due to real estate sales growth; a growth forecast of 40 percent for China Shenhua Energy Company Limited (601088.SH), mainly due to reduced cost and increased coal price; a growth forecast of 27 to 47 percent for Tahoe Group Co., Ltd. (000732.SZ), mainly due to revenue growth of real estate sales; a growth forecast of 358 to 461 percent in the first quarter for Nanjing Red Sun Co., Ltd. (000525.SZ), mainly due to booming production and sales of main products.
[Trading Alarms]
○ IPOs of Gospell Digital Technology and Winner Information Technology on Jan. 26
------
Gospell Digital Technology Co., Ltd. (002848.SZ) mainly engaged in software and hardware products of digital TV will issue new shares at 6.31 yuan per share with upper subscription limit of 16,500 shares; an offering price of 8.12 yuan per share and upper subscription limit of 10,000 shares for Winner Information Technology Co., Inc. (300609.SZ) mainly due to offline commercial data collection sensors.
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