http://en.xfafinance.com us-en Xinhua Finance Agency desdev@vip.qq.com http://en.xfafinance.com/plus/view.php?aid=303260 Xinhua Finance Agency Early Bird Mon, 13 Feb 2017 13:30:36 +0800 http://en.xfafinance.com/plus/view.php?aid=303260 [Today's Guide]
○ Sectors with certain growth may see more investment from institutes
○ Investment themes of PPP diversify
○ Rare earth price continues to hike after Spring Festival driven by various favorable elements 
○ Stocks in individualized medicine and precision medicine lead the growth of Nasdaq 

[SSN View]
Sectors with certain growth may see more investment from institutes
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The A-share market maintained recovery after the Spring Festival holiday. Despite the calm performance, the surrounding market environment, the capitals in particular, is seeing slight changes, which may change the investment logic in the market. Investors are advised to pay attention to it. The author believes that with the rising of the risk-free yield rate in the market, the A-share market will highlight growth stocks and certainties in the future.

The cost in the capital market will remain high after the Spring Festival holiday, which is represented by the rising yield rate of monetary funds. Monetary funds witnessed an average accumulated yield of 0.3 percent last month, which is equivalent to an annual return of 3.6 percent and represents an increase of nearly 1 percentage point from the end of 2016. The rising risk-free yield rate in the market will have significant effects on the future performance of the A-share market.

On the other hand, the investment size of insurance funds, which played an essential role in the stock market in the second half of 2016, will decline in short term although it will maintain sustainable and stable growth in the long run. The fund raising of A-share companies also dropped. The moves of institutes will affect the preference for investment types. Sectors with high dividends and low valuation may not outperform the index for long.

In addition, domestic economy maintains booming internal demand and the internal demand might further increase. International demand for infrastructure and bulk commodity grows higher, but economic policy environment at home and abroad is still uncertain, especially that the actual impact brought by the gaming of various countries' policies on economic growth remains unclear. Based on aforementioned situations, sectors in the A-share market that mainly focus on internal demand and see sound growth might be favored by investors, while bulk commodity and gold are good investment targets for those with sound macroscopic view.

[Hotspot Investigation]
Investment themes of PPP diversify
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Statistics provided by the National Public-Private Partnership (PPP) Comprehensive Information Platform under the Ministry of Finance (MOF) show that as of end September 2016, 128 PPP demonstration projects of the MOF were under implementation, representing an implementation rate over 58 percent and involving an investment of nearly 350 billion yuan. The third batch of PPP demonstration projects of the MOF will double in number and grow by over 80 percent in the amount of investment when compared with that of the second batch of PPP projects. There will be two changes too. Firstly, the third batch of PPP demonstration projects of the MOF will focus on middle- and small-sized projects which require lower threshold and are more attractive to private capital. Secondly, large projects of the third batch of PPP demonstration projects of the MOF will be mainly seen in the communications area. Such projects require huge amount of investment and see mature application of PPP model.

As of the end of 2016, state-level and provincial government departments have released over 200 policies for PPP projects. One fifth of them mentioned encouraging private enterprises to participate in PPP projects. The introduction of private capital into PPP project can not only reduce financing cost and expand financing channels but also can bring investment opportunities for private capital. It will also help adjustment economic structure, which will be a direction expected to become clearer this year. Statistics show that as Zhejiang provides great efforts and local private sectors are developed, it wins the most PPP project biddings.

Currently, PPP projects have expanding from water utilities, communications and urban heating to the fields of environmental governance, land reclamation, energy management, intelligent cities, underground pipe, education, medical care, elderly care and other public services. PPP investment themes are diversifying. This will drive the PPP market develop various subsectors in a highly professional way.

[Institution Movement]
Private funds in South China: wait opportunities
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Although with expectations for a bullish run after the Spring Festival holidays, some private funds in South China surveyed strictly control positions and are waiting for investment opportunities. They believe that for both the macro economy and the stock market, the focus should be de-leverage, excluding bubbles and preventing risks. Especially, the process of deleverage may make risks dominant and risk premium increase. Investment opportunities mainly concentrate on proprietary car brands with certainty to grow, consumption upgrading and leading manufacturers with core technologies.

[Industry Observation]
Rare earth price continues to hike after Spring Festival driven by various favorable elements 
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Inner Mongolia Baogang Rare Earth International Trade Co., Ltd. raised listed price of praseodymium neodymium products for February on Feb. 10. Price of praseodymium-neodymium oxide was raised by 6 percent or 16,000 yuan per ton to 282,000 yuan per ton, and that of metal praseodymium neodymium hiked by 5.9 percent or 20,000 yuan per ton to 36,000 yuan per ton. 

Industrial insiders think that one of the reasons for the price hike is winning bidding of storing rare earth before the Spring Festival with quantity and price both higher than market expectation. Secondly, crackdown on illegal moves about rare earth has been promoted and supervision over environmental protection is tightened since January, which will rectify the industry effectively. Besides, demand from downstream industry recovers and volume of production and purchase of manufacturers grows after the Spring Festival, boosting product prices to move up. It is expected that the growing trend of rare earth price will continue in a short term driven by the above-said elements. 

[Overseas Information] 
Nasdaq hits new record high continuously, stocks in individualized medicine and precision medicine lead the growth 
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The US Nasdaq index mainly covering technological stocks recently hits new high continuously. It made new record high for four consecutive trading days just in last week. As of Feb. 10, it surged about 6.5 percent this year, while S＆P500 and Dow Jones rose by nearly 3.5 percent and 2.6 percent respectively at the same period. SSN finds that bio-technological stocks in individualized medicine, precision medicine and other fields lead the growth in component stocks of Nasdaq and many individual stocks jump by over 200 percent since the beginning of this year.

Especially, medical facility company named as EnteroMedics（ETRM）for obesity treatment and weight-reducing drug manufacturer Orexigen（OREX）had their annual growth of 292 percent and 194 percent in 2016 respectively. A cancer diagnosis company Biocept（BIOC）and tumor treatment provider Calithera（CALA）gained the growth rate of 204 percent and 172 percent respectively. In addition, lung disease bio-pharmaceuticals company Pulmatrix（PULM）achieved a growth of around 700 percent, biggest growth rate among constituent stocks of NASDAQ index. 

[Information Radar]
CFHI and Ansteel Group cooperate to promote implementation of "the Belt ＆ Road" initiative 
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Recently, China First Heavy Industries Group Co., Ltd. (CFHI) and Ansteel Group Co., Ltd. have signed strategic cooperation framework agreement. Liu Mingzhi, chairman of the former, indicated that it hopes to further deepen the cooperation of central state-owned enterprises jointly with the latter, and reinforce the cooperation in product purchase, R＆D, engineering project, international operation, capital, management communication and other aspects. Tang Fuping, chairman of the latter, also indicated that it hopes to further expand the cooperative fields and modes with the former, work together for promoting the win-win cooperation in upstream and downstream industrial chain, and contribute to implementation of "the Belt ＆ Road" initiative and smooth promotion of supply side structural reform. 

[Editor's Thought]
Keep eye on opportunities coming after rise in prices
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Though the A-share market closed lower on the first trading day of the Year of Rooster, the spring bullishness was still on show last week, listed companies in the infrastructure industry chain especially stood out. Last Wednesday, the Strategy column of the SSN published two articles, "Credit support on infrastructure construction highlights development of real economy", "insurance funds focus on household building materials sector" have hit the point. The increase of turnover and prices of the SSE Composite Index indicates that the market is expected to remain active in the near term. However, as there are over 3,000 listed companies in the A-share market, it is inevitable that there will be differentiations. To catch the right shares is never easy. At present, cyclical shares are favored by the market, investors are suggested to pay more attention to opportunities coming after rise in prices, as such kind of information are usually transparent.

Continuous rise in prices can often lead some shares to surge, and it is also a theme that has long been pursued in the A-share market. The bullishness of cement and paper making in this year, gold and coal last year, and breeding industry，lithium carbonate and rare earth earlier are all close related to price hike. As global economic downturn has lasted for years, product prices of many industries are at a low level. With periodic economic recovery, prices of more products are likely to increase. Therefore, it is expected that price hike will bring considerable opportunities this year. The SSN will exert its advantage of being close to listed companies and the market, to provide you with more price hike information and reasons behind it.
]]> http://en.xfafinance.com/plus/view.php?aid=302654 Xinhua Finance Agency Early Bird Fri, 10 Feb 2017 13:27:29 +0800 http://en.xfafinance.com/plus/view.php?aid=302654 [Today's Guide]
○ Drugs industry to see supply-side reform, innovative drugs to benefit
○ Policies support micro-grid construction, expected to bring millions of yuan's new demands
○ MLR to speed up satellite remote sensing application, expansion of industrial chain expected 
○ Fuxin Dare Automotive Parts to acquire overseas auto parts company at RMB1.937 bln, China Sports Industry reveals prospective transferees

[SSN Focus]
○ Drugs industry to see supply-side reform, innovative drugs to benefit
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The General Office of the State Council released the certain opinions on further reform the policies on the improvement of the production, distribution and use of drugs on Feb. 9. The document said the review and approval of drugs in clinical demand should be streamlined. It will encourage the research and development new drugs and support the merger and reorganizations of drug enterprises. In terms of distribution, it will speed up in the establishment of an urban-rural drugs distribution network and promote the "two invoices" system in the purchase and sale of drugs. It will give play to the advantages of the "Internet plus drugs distribution".

Comment: The document is a significant reform covering all processes in the drug industry. Institutes believe that innovative drugs will benefit from the priority in approval and the adjustment of the category of medicine covered by the medical insurance. The time for the introduction of innovative drugs will be shortened and more sales are expected. Institutes are rosy about Betta Pharmaceuticals Co., Ltd. (300558.SZ), which owns independent and innovative targeted anticancer drugs, and Porton Fine Chemicals Ltd. (300363.SZ), which is engaged in the outsourcing and processing of innovative drugs. The implementation of the "two invoices" system will improve the concentration of the industry and will bring expansion opportunities to such leaders as Jointown Pharmaceutical Group Co., Ltd. (600998.SH).

[SSN Selection]
○ The Ministry of Commerce claimed on Feb. 9 that it will adopt multiple measures to boost the development of e-commerce and deeply develop comprehensive demonstration of e-commerce in rural areas in 2017.
○ According to the National Energy Administration, the charging service for electro-mobiles in Beijing and Shanghai is now available within an average radius of 5 km, and Shenzhen and Guangzhou are also moving towards the goal.
○ Shanxi province held its state-owned capital reform meeting on Feb. 9, requiring 18 state-owned holding listed platforms in the province to advance asset securitization. It is also required that progress must be made every year from this year on.
○ The Transportation Bureau of Xinjiang Production and Construction Corps proposes to invest 300 billion yuan in building a modern highway network in the area during the 13th five-year plan period and it will strive to invest 40 billion yuan in 2017.
○ The northbound trading of Shanghai-Hong Kong Stock Connect saw a net inflow of 1.636 billion yuan on Feb. 9, totaling the net inflow in the five trading days after the Spring Festival to 8.81 billion yuan. 
TOP
[Industry Information]
○ Policies support micro-grid construction, expected to bring millions of yuan's new demands
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The National Energy Administration (NEA) said on Feb. 9 on its website that the draft of micro-grid management measures has been completed for soliciting consultations. The draft proposes to increase financial support for micro-grid construction via existing special construction funds for power grid construction and transformation and intelligent grid in towns and cities. It also encourages public-private partnership (PPP) and franchises the construction and operation of micro-grid projects.

Comment: Securities companies expect that during the 13th Five-Year Plan period, the micro-grid will bring millions of yuan's new demands. The key of micro-grid project lies in energy storage systems which require high cost for battery. Sungrow Power Supply Co., Ltd. (300274.SZ) announced that it has worked with Samsung to build energy storage system for the new energy micro-grid and green electricity flexible trading demonstration zone in Hefei High-Tech District. Shenzhen Clou Electronics Co., Ltd. (002121.SZ) has established partnership with Huawei in micro-grid and worked together with LG in energy storage battery.
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○ MLR to speed up satellite remote sensing application, expansion of industrial chain expected 
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Cao Weixing, deputy head of Ministry of Land and Resources (MLR), emphasized on Feb. 8 speeding up construction of satellite remote sensing application system for land and resources, optimizing and improving development planning of satellite remote sensing, and better serving and promoting technological innovation strategy of deep-land exploration and observation of deep space to land. Besides, major special projects and key R＆D plans should be mulled over satellite remote sensing application technology. 

Comment: Annual growth rate of global satellite and its application industries has been over 10 percent since 21st century. According to the medium- and long-term planning of infrastructure of civil space, there systems including satellite remote sensing, satellite communication and broadcasting, and satellite navigation and positioning will be established during the 13th Five-year Plan period. Driven by economic transformation and information economy, space infrastructure will enjoys huge potential demand and all links of satellite industry will see opportunity for expansion. 
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[Announcement Interpretation] 
○ Fuxin Dare Automotive Parts to acquire overseas auto parts company at RMB1.937 bln 
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Fuxin Dare Automotive Parts Co., Ltd. (300473.SZ) plans to acquire equity and major debt rights of Fuxin Jiachuang Enterprise Management Co., Ltd. at 1.937 billion yuan.  This deal allows the company to indirectly finish acquiring Carcoustics International GmbH, which is engaged in R＆D, manufacturing and selling of acoustic-controlled and heat-insulated products. 95 percent of its products are used in world-class automakers including Mercedes-Benz, BMW, Audi, Ford, Volkswagen, Renault and Nissan and suppliers of some famous manufacturers of household and industrial products, like BOSCH. 

○ China Sports Industry to transfer controlling rights, four prospective transferees exposed
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China Sports Industry Group Co., Ltd. (600158.SZ) revealed in a reply to the enquiry of the Shanghai Stock Exchange that the General Administration of Sport of China Fund Center, the controlling shareholder of the company, will transfer all the 186 million shares held by it, and there are four prospective transferees: Xinliyi Co., Ltd. controlled by Liu Yiqian, Tianjin Leti Anhong Sports Culture Development Co., Ltd. under LeTV Sport, Shenzhen Pengxing Shipping Co., Ltd. under Shenzhen State-owned Assets Supervision and Administration Commission and Beijing Xiangming Sport Culture Co., ltd. 

○ Palm Eco-Town Development Co., Ltd. (002431.SZ) signed an agreement with respect to PPP project of phase II of the comprehensive treatment of Shali River in Luohe City. The contract sum is 2.06 billion yuan, accounting for 46.8 percent of the operational revenue of the company in 2015.

○ Controlling shareholder of Taihai Manoir Nuclear Equipment Co., Ltd. (002366.SZ) on Feb. 8 continued to increase holding 400,000 shares of the company.

[Financial Reports Express]
○ Controlling shareholder of Shanghai Fortune Techgroup Co., Ltd. (300493.SZ) proposes 15-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for each ten shares. Pan Shixin, a shareholder of the company, proposes to reduce shareholding of the company within six months.

[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 10
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Fujian Anjoy Food Co., Ltd. (732345.SZ) will offer for subscription at 11.12 yuan per share. The upper limit for each applicant is 21,000 shares. The company is primarily engaged in quick-frozen food. Hangzhou Nbond Nonwoven Co., Ltd (732238.SZ) will offer for subscription at 13.31 yuan per share. The upper limit for each applicant is 12,000 yuan. The company is primarily engaged in spunlace nonwoven fabrics.
TOP
]]> http://en.xfafinance.com/plus/view.php?aid=302343 Xinhua Finance Agency Early Bird Thu, 09 Feb 2017 13:41:21 +0800 http://en.xfafinance.com/plus/view.php?aid=302343 [Today's Guide]
○ China to deepen reform on construction industry, leaders to benefit
○ Largest RQFII fund sees consecutive subscription, funds flow back to RMB-denominated assets
○ Building material industry to push forward supply side reform, glass ＆ cements sector expected to cut productivity
○ SLAC Precision Equipment and Zhongli Group to launch employee shareholding plans, Mayinglong Phar. Group to raise price of its principal product

[SSN Focus]
○ China to deepen reform on construction industry, leaders to benefit
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China will deepen the reform in the construction industry to promote the upgrading and development of the industry, according to the document of the State Council executive meeting held on Feb. 8. It proposed to establish a unified and open construction market, break regional barriers and cancel unreasonable access restrictions on construction enterprises in all regions and industries. It required catching up internationally advanced criteria, improving the design and construction level of construction, promote intelligent and prefabricated construction and improve the arrangement on projects construction. It will speed up in the contract of projects, improve the administration of the construction of projects invested by the government and establish professional consultancy and construction enterprises. 

Comment: Driven by the promotion of the PPP model and policies on maintaining stable economic growth, the investment in infrastructure is likely to maintain at a relatively high level this year. The cancellation of regional barriers will facilitate leading enterprises in gaining higher market share. Shanghai Construction Group Co., Ltd. (600170.SH) has proposed the employee shareholding plan with sufficient orders. Arcplus Group PLC (600629.SH) has consolidated many construction design institutes, which caught much attention from institutes. In addition, as more policies on supporting prefabricated construction released, institutes estimate that it will maintain an annual average growth of 20 percent in the following decade and the market will reach 2.8 trillion yuan by 2025. They are rosy about Hangxiao Steel Structure Co., Ltd. (600477.SH), Anhui Honglu Steel Construction (Group) Co., Ltd. (002541.SZ) and other steel structure companies
TOP
○ Largest RQFII fund sees consecutive subscription, funds flow back to RMB-denominated assets
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SSN learns from people close with the management of CSOPFTSE China A50 ETF that the fund is subscribed for the fourth consecutive trading day since Feb. 3 and sees a net inflow of nearly 400 million yuan. CSOPFTSE China A50 ETF is the largest RQFII A-share ETF in Hong Kong and it once suffered net redemption for seven consecutive months since July 2016 and saw a net outflow of over 7 billion yuan. RQFII fund managers indicated that since the mainland China maintains steady economic growth, signs show that overseas fund have started to flow back to RMB-denominated assets like A shares.

[SSN Selection]
○ China Securities Regulatory Commission (CSRC) on Feb. 8 replied the proposal of the Chinese People's Political Consultative Conference (CPPCC) that it will strengthen the examination over the merger and acquisition (M＆A) of enterprises and intensify the supervision over performance compensation.
○ The net profit of 24 listed securities companies in January 2017 recorded 3.163 billion yuan. The merger and acquisition (M＆A) and reorganization business, driven by state-owned enterprises reform and etc., catches institutions' attention.
○ The Ministry of Agriculture on Feb. 8 held a special forum to accelerate the construction of modern milk industry. Five actions including guaranteeing quality pasture and developing healthy breeding will be carried out.
○ Data from www.100ppi.com shows that Zhejiang Satellite Petrochemical Co., Ltd. (002648.SZ) raised the quoted price of acrylic acid by around 2 percent on Feb. 8, representing that the price of acrylic acid has hiked around 70 percent since the fourth quarter of 2016.
○ China's first National Engineering Laboratory for Big Data Circulation and Transaction Technology, to be jointly constructed by Inspur Group and Shanghai Data Exchange Corporation, is nodded by the National Development and Reform Commission (NDRC).
 TOP
[Industry Information]
○ Building material industry to push forward supply side reform, glass ＆ cements sector expected to cut productivity
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China's building material industry should seek progress while maintaining stability to push forward the supply-side structural reform, make market play a decisive role in resource allocation and give a better play to government, so as to resolve excess production capacity in the building material industry and other traditional industries and solve acute structural imbalance, said Xu Lejiang, vice minister of the Ministry of Industry and Information Technology (MIIT) during an inspection to China Building Material Federation, according to the MIIT's website.

Comment: Guosen Securities noted earlier in its research report that the supply side reform in the iron ＆ steel and coal industries has achieved affects. This year polices are expected to extend to other industries with production capacity. The supply side reform is expected to be carried out in the glass industry. Glass enterprises, such as Zhuzhou Kibing Group Co., Ltd. (601636.SH) and CSG Holding Co., Ltd. (000012.SZ), are first choices for the reform. Cement enterprises, including state-owned company Tangshan Jidong Cement Co., Ltd. (000401.SZ), are among first choices for the reform.

○ MIIT adds number code for IoTs, IoTs industry grows faster
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SSN learnt that China is improving its regulatory service system for the Internet of Things (IoTs). The Ministry of Industry and Information Technology (MIIT) is preparing a new numbering plan for telecommunication network, which also includes numbers for the IoTs. According to the new plan, the MIIT makes codes "142XX～143XX" for IoTs number. Code 144XX is for China Mobile Limited (CHL.NYSE; 00941.HK), 141XX for China Telecom Corporation Limited (CHA.NYSE; 00728.HK) and 140XX for China United Network Communications Limited (600050.SH).

Comment: Under the guidance of the MIIT, the three major telecom operators have made plans for IoTs for 2017. For example, China Mobile plans to attract 25 million users for its OneNET platform this year. As for information technology application, the company will provide a package of solutions based on information technology for government, finance and education. It is expected that driven by the MIIT and the three telecom operators, IoTs will become popular soon.
TOP
[Announcement Interpretation]
○ SLAC Precision Equipment to repurchase stocks to launch employee shareholding plan 
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Suzhou SLAC Precision Equipment Co., Ltd. plans to repurchase the company's stocks worth no more than 75 million yuan at a price of 50 yuan per share at most, which will be taken in employee shareholding plan in the future. Besides, the company intends to raise 25 million yuan at most from employees and amplify it to 75 million yuan through asset management plan of subscription to repurchase the stocks. The latest stock price of the company is 43.38 yuan per share. 

Besides, Jiangsu Zhongli Group Co., Ltd. (002309.SZ) plans to launch employee shareholding plan phase-1 to raise 100 million yuan at most. Zhonghai Trust Co., Ltd. will establish special capital trust plan and set up priority and general funds at a proportion of 1:1 with a total amount of no more than 200 million yuan. 

○ Mayinglong Phar. Group to raise price of its principal product 
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Mayinglong Pharmaceutical Group Co., Ltd. (600993.SH) decided to raise supply price of its principal product Mayinglong hemorrhoids ointment (with weight of 10g) by 18 percent from the date that the announcement is released. After the price hike, the company predicts that this product will see improvement in sales revenues and gross margin this year. It is learnt that sales revenues and gross margin of this product registered 177 million yuan and 135 million yuan during January and September of 2016. 

○ Jiaao Enprotech develops biodiesel product for export to Europe
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Zhejiang Jiaao Enprotech Stock Co., Ltd. (603822.SH) announced that it has successfully developed renewable biomass fuel products conform to the requirements of the EU market, and signed a trial order contract with volume 1,300 tons for the export to Europe. This technology can effectively prevent inappropriate reutilization of swill-cooked dirty oil, as well as provide clean and environmental friendly renewable biomass fuel products to the society, driving the company to make a step forward in this area.

○ Huayu Gardening, subsidiary of Shandong Lipeng Co., Ltd. (002374.SZ), has won the bid for an ecological restoration comprehensive treatment project. The bid price is 1,584 million yuan, accounting for 117 percent of the company's operating revenue in 2015. Wuxi Xuelang Environmental Technology Co., Ltd. (300382.SZ) has won the bid of a flue gas purification system equipment procurement project with a sum of 220 million yuan, which accounts for 38 percent of the company's operating revenue in 2015.

○ Actual controller of Jiangsu Zongyi Co., Ltd. (600770.SH) from Feb. 3 to 8 in total increased holding 6.02 million shares of the company. Controlling shareholder of Yantai Shuangta Food Co., Ltd. (002481.SZ) increased holding 1 percent shares of the company. Lingzi Investment, shareholder of Shanghai New Huang Pu Real Estate Co., Ltd. (600638.SH), from Jan. 16 to Feb. 8 increased holding 20 million shares of the company. Actual controller of Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ) on Feb. 8 increased holding 590,000 shares of the company.

[Financial Reports Express]
○ Zhejiang Fuchunjiang Environmental Thermoelectric Co., Ltd. (002479.SZ) forecast 80 percent to 100 percent performance growth in Q1, primarily due to the price hike of heat supply as a result of growing demand. 

[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 9
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Chongqing Construction Engineering Group Corporation Limited (730939.SZ) will offer for subscription at 3.12 yuan per share. The upper limit for each applicant is 54,000 shares. The company is primarily involved in building construction engineering. Zhejiang Meili High Technology Co., Ltd. (300611.SZ) will offer for subscription at 11.97 yuan per share. The upper limit for each applicant is 8,500 shares. The company is primarily engaged in automobile springs.
TOP
]]> http://en.xfafinance.com/plus/view.php?aid=302007 Xinhua Finance Agency Early Bird Wed, 08 Feb 2017 13:28:49 +0800 http://en.xfafinance.com/plus/view.php?aid=302007 [Today's Guide]
○ State Council General Office to support vaccines development and enhance supervision on distribution
○ Paraquat prices rise rapidly, pesticide industry booms
○ Huilong Huaze Investment bought shares of TianMuShan Pharmaceutical Enterprise by 5 pct. limit and will continue to buy more shares
○ Xinchao Energy applied to resume review over asset restructuring, Winsan (Shanghai) Medical Science And Technology sees shareholding increase again

[SSN Focus]
○ State Council General Office to support vaccines development and enhance supervision on distribution
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The General Office of the State Council issued a guideline to boost development and management of vaccines. The guideline called for support in vaccine research and development and efforts to improve vaccine quality. Vaccine manufacturers should be encouraged to upgrade their management of vaccine quality and production, according to the document. The guideline also called for enhanced supervision of purchases and distribution of vaccines and the establishment of the cold-chain distribution management system to strengthen the administration on the cold-chain storage and distribution process.

Comment: Zhongtai Securities believes that under the centralized bidding on provincial platforms, vaccine manufacturers can effectively hedge price reduction in bidding and the loss of channels through the development or introduction of new vaccines. The HPV vaccine and pneumococcus vaccine enjoy huge potential in China. Chongqing Zhifei Biological Products Co., Ltd. (300122.SZ) and Walvax Biotechnology Co., Ltd. (300142.SZ) are developing such vaccines. The vaccine frozen storage equipment produced by Aucma Company Limited (600336.SH) may benefit from the establishment of the cold-chain distribution management system.

○ Laws and regulations involving salt reform to implement soon
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SSN learnt from the authorities that salt laws and regulations, including the Measures on Monopoly of Table Salt and the Regulations for the Management of Salt Industry, are soliciting public opinions and might be officially launched in the first half of 2017. It is learnt that departments like the National Development and Reform Commission (NDRC) encourage all provincial-level salt enterprises to grow better and stronger, and encourage various places to establish joint-stock companies in the salt industry, advance the listing of relevant enterprises, and build cross-province industrial leaders that integrate production and sales. In addition, China National Salt Industry Corporation also proposes to "rely on capital market and strive to advance integration".

[SSN Selection]
○ The central government recently issued the Certain Opinions on Defining and Strictly Sticking to the Red Lines of Ecological Protection, requiring to fully complete the definition of red lines across the country by end 2020.
○ The Ministry of Agriculture recently released the 13th five-year plan for the development of agricultural science and technology, setting clear goals for fields like modern seed industry, agricultural mechanization and agricultural informatization.
○ As of Jan. 31, China's foreign exchange reserves stood at 2,998.2 billion US dollars, indicating that its month-on-month drop has narrowed for consecutive months.
○ Vanke announces its sales for January at 48.1 billion yuan, up by 88 percent and 106 percent respectively on a yearly and monthly basis.
○ The substantial shareholder of Henan Tongli Cement Co., Ltd. (000885.SZ) plans to decrease shareholding by no more than 20 million shares, or 4.21 percent of the total share capital, within no later than 6 months after 15 trading days.
TOP
[Industry Information]
○ Paraquat prices rise rapidly, pesticide industry booms
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Data from www.baiinfo.com shows that China's paraquat price index on Feb. 7 surged to 18,000 yuan a tonne from 15,000 yuan a tonne, and recorded a cumulative growth of nearly 70 percent since the fourth quarter last year. Other pesticides, including imidacloprid and glufosinate-ammonium, also remained strong.

Comment: Driven by stricter environmental regulations, lack of new productivity and lower inventories, the pesticide industry is warming up. Nanjing Red Sun Co., Ltd. (000525.SZ) saw its share prices soar after announcing its first-quarter profits close to that obtained throughout last year. Zhejiang Xinan Chemical Industrial Group Co., Ltd. (600596.SH) and Nantong Jiangshan Agrochemical ＆ Chemicals Co., Ltd. (600389.SH) also said that an increase in product prices push higher their earnings.

◆ Meanwhile, prices of carbon black, refrigerant R22, cobaltous oxide and ivory board also surged significantly by 14 percent, 12 percent, 10 percent and 3 percent respectively. 
TOP
[Announcement Interpretation]
○ Huilong Huaze Investment bought shares of TianMuShan Pharmaceutical Enterprise by 5 pct. limit and will continue to buy more shares 
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As Qingdao Huilong Huaze Investment Co., Ltd., an investment company under the Bureau of Finance of Laoshan District in Qingdao city, Shandong province, was rosy about future development prospect of Hangzhou TianMuShan Pharmaceutical Enterprise Co., Ltd. (600671.SH), it bought 6,089,000 stocks of the listed company during Jan. 24 and Feb. 7, accounting for 5 percent of the company's total share capital. Huilong Huaze Investment said that it intends to continue to buy 5 percent equity of the company at least in next 12 months if stock price of TianMuShan Pharmaceutical Enterprise isn't higher than 32 yuan per share. At present, the stock price is 27.98 yuan per share. 
TOP
○ Shandong Xinchao Energy Corporation Limited (600777.SH) has finished auditing and evaluating assets of the targeted company it plans to acquire, and it applies to China Securities Regulatory Commission to resume review over major asset restructuring. 

○ Sichuan Lanrun Asset Management Co., Ltd., shareholder of Winsan (Shanghai) Medical Science And Technology Co., Ltd. (600767.SH), continued to purchase 1.7 million stocks of the company on Feb. 7. Controlling shareholder of Taihai Manoir Nuclear Equipment Co., Ltd. (002366.SZ) increased its shareholding by 956,700 shares during Jan. 23 and Feb. 7. 

○ Wuxi Lead Intelligent Equipment to acquire Titans Technology with RMB1.35 bln
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Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) proposes to buy the entire equities of Zhuhai Titans Technology Co., Ltd. at the consideration of 1.35 billion yuan, which will be satisfied by cash payment of 600 million yuan and fundraising about 750 million yuan from issuance of 21.85 million shares at 33.98 yuan per shares through private placement. The company at the same time proposes to raise supporting fund of no more than 621 million yuan. Products of Titans Technology include dynamic soft package battery equipment and system, dynamic shell battery equipment and system and cylindrical battery equipment and system, which could form synergy effect with the existing business of the listed company. Original shareholder of the subject company committed that net profits of the company from 2017 to 2019 will be no less than 105 million yuan, 125 million yuan and 145 million yuan.

○ Anjie Technology proposes to buy entire equities of Weibo Precision Technology with RMB3.4 bln
------
Suzhou Co., Ltd. (002635.SZ) proposes to buy the entire equities of Huizhou Weibo Precision Technology Co., Ltd. at the consideration of 3.4 billion yuan, which will be satisfied by share issuance and cash payment, to expand consumer electronics metal precision parts business. In particular, the company proposes to issue shares at 30.22 yuan per share to purchase assets, and raise supporting fund of 1.52 billion yuan by issuing shares at 30.63 yuan per share through private placement. The counterparty committed that net profits of Weibo Precision from 2047 to 2019 will be no less than 330 million yuan, 420 million yuan and 530 million yuan.

[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 8
------
Fujian Haixia Environmental Protection Group Co., Ltd. (732817.SZ) will offer for subscription at 4.04 yuan per share. The upper limit for each applicant is 33,000 shares. The company is primarily engaged in sewage treatment. Suzhou Anjie Technology Co., Ltd. (300613.SZ) will offer for subscription at 55.64 yuan per share. The upper limit for each applicant is 11,000 shares. The company is primarily engaged in video monitoring chip.
TOP
]]> http://en.xfafinance.com/plus/view.php?aid=301669 Xinhua Finance Agency Early Bird Tue, 07 Feb 2017 13:26:49 +0800 http://en.xfafinance.com/plus/view.php?aid=301669 [Today's Guide]
○ Jiangsu to promote SOEs asset securitization and overall listing
○ Policy benefit further releases, sales of heavy truck to maintain growth
○ Chinese smart phone brands rise, brings opportunities to industrial chain
○ Improve Medical Instruments to raise RMB600 mln through private placement to develop principal business, Mizuda Printing ＆ Dyeing Group sees shareholding increase by individual shareholder
TOP
[SSN Focus]
○ Jiangsu to promote SOEs asset securitization and overall listing 
------
Jiangsu Province will advance the upgrading of the investment with provincial state-owned capitals and operation companies to speed up in the asset securitization of state-owned enterprises (SOEs), indicated Shi Taifeng, governor of Jiangsu, in the government work report on Feb. 6. It will conduct pilot on selecting managers and professional agents through market-based methods for provincial enterprises and make innovation in the regulatory system on state-owned assets.

Comment: The asset securitization of provincial enterprises in Jiangsu is less than 20 percent and enjoys huge potential. It is learnt that Jiangsu will take advantage of resources of listed companies to promote the overall listing of competitive enterprises. In terms of the mixed ownership reform, it will select 10 enterprises to conduct pilot employee shareholding. It will also attract social capitals to establish investment funds with mixed ownership to participate in SOEs reform.

[SSN Selection]
○ The 32th meeting of the Central Leading Group for Deepening Overall Reform was held on Feb. 6, which deliberated and passed the opinions on promoting the opening of public information resources and the reform plan on facilitating the issuing of certificates of permanent residence to foreigners.
○ The central bank suspended liquidity injection into the market through reverse repurchase agreements (repo) as the liquidity in the banking system maintained at a high level after the Spring Festival. 
○ Data shows that multiple domestic n-butyl alcohol producers raised their quoted price by 200 yuan per ton on Feb. 6, while urea producers raised their product price by 10-50 yuan per ton.
○ The northbound trading of Shanghai-Hong Kong Stock Connect saw a net inflow of 2.1 billion yuan on Feb. 6, the highest single-day record since August 2016.
○ Financial stocks like China Minsheng Banking Corp., Ltd., (600016.SH), China Merchants Bank Co., Ltd. (600036.SH) and China Pacific Insurance (Group) Co., Ltd. (601601.SH) saw block trading worth hundreds of millions of yuan on Feb. 6, and the sellers and buyers did the transaction in the same business department of UBS Securities.
○ The contracted sales amount of China Evergrande Group hit around 37.2 billion yuan in January, representing a year-on-year growth of 75.2 percent and a month-on-month growth of 51.7 percent, respectively.
TOP
[Industry Information]
○ Policy benefit further releases, sales of heavy truck to maintain growth
------
As reported by www.cvworld.cn, around 82,000 vehicles were sold in domestic heavy truck market in January, representing a month-on-month growth of 9 percent. The figure, hitting the highest record in January of recent six years, also represents a large growth of 122 percent from the 36,800 vehicles sold in the same period of last year. Driven by the state's new policies on overloading transportation and the coal market's demand for replenishment, highway transportation capacity is severely lacked of and the sales of new heavy trucks rapidly climbs from October 2016 to now. The heavy truck market continued high year-on-year growth in January and maintained the great momentum seen in the fourth quarter of 2016.

Comment: Securities companies said in their research reports that policies on curbing overload and over speed will bring more benefits this year. Given the low replacement rate of heavy trucks, its inventories now stand at the lowest level in 7 years. The sales of heavy trucks are expected to grow 10 to 20 percent this year. Among listed companies, CNHTC Jinan Truck Co., Ltd. (000951.SZ) forecast a growth of 40-60 percent last year due to an increase in demands for heavy trucks. Weifu High-Technology Group Co., Ltd. (000581.SZ) is a leading supplier of diesel engine's burning system. Its performance used to be highly related to the performance of the heavy truck industry and the upgrading of emission standards.
TOP
○ Chinese smart phone brands rise, brings opportunities to industrial chain
------
IDC's quarterly report shows that OPPO, Huawei and Vivo ranked top three in Chinese mobile phone market by shipment in 2016. Specifically, OPPO's shipment increased as high as 122 percent, marking its first time becoming top one. In addition, in the global market, Samsung and Apple saw their market shares shrinking, while Chinese brands Huawei, OPPO and vivo are expanding.

Comment: Securities companies think that Chinese mobile phone manufacturing isn't merely imitation and cheap copy any longer, but it boasts core innovation advantage through solid research and development. The strong rising of domestic mainstream mobile brands will bring opportunities to relevant industrial chain. Shenzhen O-film Tech Co., Ltd. (002456.SZ) ranks NO.1 in terms of shipment of touch display, fingerprint module and camera module in China and it has seen shareholding increase by its actual controller and senior managers. Sunwoda Electronic Co., Ltd. (300207.SZ) is a major cellphone battery supplier of some mobile phone makers such as OPPO, Huawei and Vivo. 
TOP
[Announcement Interpretation]
○ Improve Medical Instruments to raise RMB600 mln through private placement to develop principal business 
------
Guangzhou Improve Medical Instruments Co., Ltd. (300030.SZ) plans to raise no more than 600 million yuan by issuing 60 million shares at most through private placement. The fundraising will be invested in some projects of medical care products such as automated production of collection tube for liquid biopsy specimen, automated production of thrombelastogram detecting system and construction of disposable venous indwelling needle and integral moving project of hospital of traditional Chinese medicine in Yizhang County. 

○ Mizuda Printing ＆ Dyeing Group sees shareholding increase by individual shareholder 
------
Zhou Lingsong, the fourth biggest shareholder of Zhejiang Mizuda Printing ＆ Dyeing Group Co., Ltd. (002034.SZ), bought 2,258,600 shares of the company at a price of 40.18-49.30 yuan per share during Jan. 13 and Feb. 6, making the shares he holds account for 5 percent of the company's total share capital. The latest stock price is 49.59 yuan per share. Zhou said that the reason for increasing shareholding was that he was rosy about the company's future development prospect as well as its business transformation.

○ Brother Enterprises to expand main business with fundraising of RMB1.66 bln from private placement, two actual controllers participate in subscription
------
Brother Enterprises Holding Co., Ltd. (002562.SZ) proposes to raise no less than 1.66 billion yuan through private placement at no less than 11.2 yuan per share. The fundraising will be primarily used for hydroquinone and hydroquinone derivatives construction projects with annual capacities of 20,000 tons and 31,100 tons and diodone project with annual capacity of 1,000 tons. Qian Zhida and Qian Zhiming, two actual controllers of the company, will respectively subscribe no less than 10 percent of the shares to be issued through private placement.

○ Lanrun Asset, shareholder of Winsan (shanghai) Medical Science And Technology Co., Ltd. (600767.SH) has from Feb. 3 to 6 in total increased holding 1,630,000 shares of the company. Shenzhen Liantronics Co., Ltd. (300269.SZ) proposes to repurchase shares with a total of no more than 240 million yuan in the next twelve months at no more than 25 yuan per share.

○ Zhejiang Jingsheng Mechanical ＆ Electrical Co., Ltd. (300316.SZ) signed an agreement of purchase and sale of crystal growth system. The contract sum is 339 million yuan, accounting for 57 percent of the company's operating revenue in 2015.

[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 7
------
Poten Environment Group Co., ltd. (732603.SZ) will offer for subscription at 6.74 yuan per share. The upper limit for each applicant is 12,000 shares. The company is primarily engaged in water environment solutions. Zhejiang Viewshine Intelligent Meter Stock Co., Ltd. (002849.SZ) will offer for subscription at 12.08 yuan per share. The upper limit for each applicant is 8,000 shares. The company is primarily engaged in gas meter.
TOP
]]> http://en.xfafinance.com/plus/view.php?aid=301383 Xinhua Finance Agency Early Bird Mon, 06 Feb 2017 13:32:36 +0800 http://en.xfafinance.com/plus/view.php?aid=301383 [Today's Guide]
○ No. 1 central document highlights supply-side structural reform in agriculture, structural improvement enjoys huge potential
○ Research on optical communication system achieves breakthroughs, industry to continue great prosperity
○ Planning on development and utilization of geothermal energy issued and expected to bring investment worth billions yuan 
○Yuan Qihong buys Donlinks International Investment to 5 percent threshold through secondary market acquisition, shareholders of Wuchangyu and Zongyi increase shareholding  
 
[SSN Focus]
○ No. 1 central document highlights supply-side structural reform in agriculture, structural improvement enjoys huge potential
------
The Guidelines of the CPC Central Committee and State Council on Deepening Supply-side Structural Reform of Agriculture and Accelerating the Cultivation of New Growth Drivers for Agriculture and Rural Areas was released on Feb. 5. This is the 14th year in a row that the "No. 1 central document" has been devoted to agriculture, farmers and rural areas. The document calls for improving structures in the industry, promoting "green" production, extending the sector's industrial and value chain, boosting innovation, consolidating shared rural development and enhancing rural reforms. SSN has reported that with the convening of conferences supporting the supply-side structural reform in agriculture, it will enjoy priority in 2017. 
 
Comment: Compared with the representations in the "No. 1 central documents" of previous years, the supply-side structural reform in agriculture shows that the agricultural development will not only rely on new policies. It will see systematic reforms on the whole. Institutes believe that the structural improvement will focus on the cut of corn zones without advantages, raising the proportion of appropriate scale operation, the integrated development of the first, secondary and tertiary industries in rural areas, the innovation in agricultural innovation and the promotion of water-saving technologies. Institutes are bullish about modern seeding, land transfer, agricultural machinery, farmland and water conservancy as well as other investment themes.

[SSN Selection]
○The executive meeting of the State Council held on Feb. 3 approved the 13th five-year plans for national food and drug safety, requiring improving detecting and testing systems.
○China's central bank raised the interest rates of reverse repos and standing lending facility (SLF) on Feb. 3. Institutions hold cautious expectation on capital supply in February.
○The State Council recently released the 15-year guideline for national land planning. It is proposed to construct 1.2 billion mu high-standard farmland.
○Data from www.baiinfo.com shows that domestic price of Styrene totally surged around 1,250 yuan per ton on Feb. 3 and 4, representing a price hike around 12 percent.
○Shaanxi province recently issued a circular proposing to select around 10 state-owned holding mixed-ownership enterprises to pilot employee stock ownership plan.
○Hainan province recently issued a circular to encourage the development of the cruise tourism industry. For every voyage, a maximum reward of 400,000 yuan can be granted.
TOP
[Industry Information]
○Research on optical communication system achieves breakthroughs, industry to continue great prosperity
------
FiberHome Technologies Group announced on Feb. 4 that it first realized 560Tb/s optical transmission system experiment with ultra-large capacity wavelength division multiplexing and space division multiplexing in China, enabling 13.5 billion people to communicate by telephone on the same fiber optic. It marks that China steps on a new stage in the research field of "ultra-large capacity, ultra-long distance and ultra-high speed" optical communication system. The experiment adopts fiber optic with self-owned intellectual property as transmission media.
 
Comment: With the rapid development of mobile Internet, cloud computing, big data and application of Internet of Things, surge in flow brings huge challenge to information communication network. Institutions believe that driven by construction and upgrading of fixed network broadband and demand of data center, optical communication market will keep high prosperity in 2017. Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) is a company under FiberHome Technologies Group. Profit of Hengtong Optic-electric Co., Ltd. (600487.SH) in 2016 is expected to move up by 1.2-1.7 times due to growth in optical communication business. 
TOP
○Planning for development and utilization of geothermal energy issued and expected to bring investment worth billions yuan 
------
National Development and Reform Communication (NDRC), National Energy Administration and Ministry of Land and Sources recently issued the 13th Five Year Planning for Development and Utilization of Geothermal Energy, proposing that the area of newly-added heating supply (refrigeration) with geothermal energy will increase 1.1 billion square meters to 1.6 billion square meters and the installed generating capacity through geothermal energy will be added by 500MW to reach about 530MW by 2020. 

Comment: According to the planning, it is roughly estimated that heating supply (refrigeration) of shallow geothermal energy can bring investment worth about 140 billion yuan, heating supply of hydrothermal geothermal energy is able to attract investment worth about 80 billion yuan and geothermal power generation can pull investment worth about 40 billion yuan, which total about 260 billion yuan. In addition, development and utilization of geothermal energy can also boost development of a series of key technologies such as prospection and valuation of geothermal resources, well drilling, heat pump and heat transfer and equipment manufacturing industry. 
 TOP
[Announcement Interpretation]
○ Goocoo Robot Industry buys Donlinks International Investment to 5 percent threshold through secondary market acquisition with RMB500 mln
------
Donlinks International Investment Co., Ltd. (000893.SZ) disclosed that Goocoo Robot Industry Share Holding Co. Ltd. from Jan. 20 to Jan. 26 in aggregate increased holding 37,845,200 shares of the company, accounting for 5 percent of the company's total share capital. The average trading price was about 13.2 yuan per share, and the total turnover was about 500 million yuan. Goocoo Robot Industry indicates that it is optimistic about future development prospect of the company, and will continue to increase or decrease shareholding of the company in the next twelve month according to actual conditions. 

Goocoo Robot Industry is controlled by Yuan Qihong, former actual controller of TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH). Goocoo Robot Industry currently holds 25 percent shareholding of Anhui Sierte Fertilizer Industry Co., Ltd. (002538.SZ), and has signed subscription agreement with Anhui Ankai Automobile Co., Ltd., proposing to subscribe 51,546,400 shares (6.64 percent share capital) of Ankai Automobile issued in the private placement.

○ Shareholder increases holding of Wuchangyu
------
Changjin Equity Investment Partnership, shareholder of Hubei Wuchangyu Co., Ltd. (600275.SH) from Sept. 29, 2016 to Jan. 26, 2017 increased holding 2.5 percent shareholding of the company. So far, Changjin Equity Investment and its parties acting in concert in total hold 90.94 million shares of the company, accounting for 17.87 percent of the total share capital of the company.

Actual controller of Jiangsu Zongyi Co., Ltd. (600770.SZ) on Feb. 3 increased holding 3.8 million shares of the company, and proposes to increase no more than 2 percent shareholding of the company in the next six months. Controlling shareholder of Henan Senyuan Electric Co., Ltd. (002358.SZ) on Feb. 3 increased holding 4.88 million shares of the company. General manager of Guizhou Yibai Pharmaceutical Co., Ltd. (600594.SH) on Jan. 26 increased holding 1 million shares of the company. 
Controlling shareholder of JiangSu Jin Tong Ling Fluid Machinery Technology Co., Ltd. (300091.SZ) on Jan. 26 increased holding 440,000 shares of the company.

○ Palm Eco-Town Development Co., Ltd. (002431.SZ) signed an agreement with the municipal government of Laiyang City with respect to the comprehensive reclamation PPP project of Wulonghe River. The contract sum is 2 billion yuan, which is more than 45 percent the company's revenue in 2015.

[Financial Reports Express]
○ Controlling shareholder of Nantong Jinghua Pharmaceutical Co., Ltd. (002349.SZ) proposes 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for each 10 shares in the annual report. 
TOP

]]> http://en.xfafinance.com/plus/view.php?aid=298982 Xinhua Finance Agency Early Bird Thu, 26 Jan 2017 12:24:56 +0800 http://en.xfafinance.com/plus/view.php?aid=298982 [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. ]]> http://en.xfafinance.com/plus/view.php?aid=298680 Xinhua Finance Agency Early Bird Wed, 25 Jan 2017 16:05:36 +0800 http://en.xfafinance.com/plus/view.php?aid=298680 [Today's Guide]
○ CIRC strengthens regulation on insurance funds, investment in stocks not to reduce
○ MIIT promotes domestication of aviation aluminum, strives to achieve major progress in 2017
○ Suzhou TFC Optical Communication to launch private placement, GEM to expand recycling of power battery through private placement
○ Dowstone Technology to extend new energy industrial chain, Sunac China Holdings increases shareholdings in Jinke Property Group
 
[SSN Focus]
○ CIRC strengthens regulation on insurance funds, investment in stocks not to reduce
------
China Insurance Regulatory Commission (CIRC) released the circular on further strengthening the regulation on investment in stocks with insurance funds on Jan. 24. It will implement differentiated regulation based on the shareholding changes. Those meeting the criteria for significant investments shall conduct after-filing while those involved acquisitions shall be approved in advance. There are industries prohibited to be invested in. The temporary bail-outs introduced in the second half of 2015 (increasing the proportion of individual blue chips and equity assets) will resume normal.
 
Comment: The regulation by the CIRC is to prevent radical investment and concentration risks of individual companies and promote diversified investment, value investment and long-term investment by insurance funds. As the overall proportion of equity investment in the insurance industry is far below the upper limit, premium will remain stable growth. The market still sees shortage of quality assets. It is expected that the investment in A shares will expand, but the investment method will change. The shareholding increase and participation in the operation and management of listed companies will reduce. They will conduct more diversified investments in quality listed companies with low valuation and high dividends.
 
[SSN Selection]
○ The State Council recently issued the 13th five-year plan (2016-2020) for the development of ethnic minorities, proposing to strengthen infrastructure construction, cultivate and develop distinctive industries that minority areas have a competitive edge in, and etc.
○ China's central bank raised the interest rate of medium-term lending facility (MLF) by 10 basis points on Jan. 24. Industry insiders believed that the central bank aims to further cut leverage and curb asset bubbles.
○ Securities margin saw a net inflow of 45.6 billion yuan in last week, ending the three-week net outflow.
○ Funds flew to Hong Kong stock market through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect recorded 3.5 billion HK dollars on Jan. 24, the highest in January. Blue-chip Hong Kong stocks were still favored.
○ According to foreign media, China plans to cut 30 percent of the electrolytic aluminum capacity in four provinces located in its northern part. By the time the news is released, the price of aluminum futures in London hikes around 1 percent, hitting a new high in over a year.
 
TOP

[Industry Information]
○ MIIT promotes domestication of aviation aluminum, strives to achieve major progress in 2017
------
The Ministry of Industry and Information Technology (MIIT) should prepare plans for the key works in 2017, and producers should accelerate the development and application of major aviation aluminum brands, striving to achieve major progress in 2017, indicated MIIT Vice Minister Xu Lejiang at the annual work conference on the civil aircraft aluminum upstream and downstream cooperative mechanism held on Jan. 23. Commercial Aircraft Corporation of China Ltd., Aviation Industry Corporation of China, Aluminum Corporation of China Limited and Shandong Nanshan Aluminum Co., Ltd. (600219.SH) reported the progress of the application and preparation of aluminum products for civil aircraft use and gave some suggestions.
 
Comment: Currently, the aluminum lithium alloy applied in C919 passenger airliner accounts for about 65 percent of all materials in the airliner. Most of the materials are imported, and only few are made in home. Institutions believe that as the production of China's large airliner accelerates and the demands for general aircraft increase gradually, the aviation aluminum market is expected to grow rapidly. Among listed companies, Henan Mingtai Aluminum Industrial Co., Ltd. (601677.SH) and Nanshan Aluminum (600219.SH) are aviation aluminum manufacturers.
 
TOP

[Announcement Interpretation]
○ Suzhou TFC Optical Communication to raise RMB718 mln through private placement to increase production of high-speed optical device
------
Suzhou TFC Optical Communication Co., Ltd. (300394.SZ) plans to raise 1.78 billion yuan by issuing 30 million shares at most through private placement to invest in high-speed optical device project. After reaching designed capacity, this project is able to annually produce 30.6 million high-speed optical devices, which will help consolidate the company's advantageous position in optical communication segmented market. The pricing benchmark of this time is based on the first day of issuance.
 
○ GEM to expand recycling of power battery through private placement
------
GEM Co., Ltd. (002340.SZ) plans to raise 2.951 billion yuan at most by issuing no more than 500 million shares at a price of no less than 5.90 yuan per share through private placement to invest in project of dismantlement and recycling of power battery. Xu Kaihua, one of the company's actual controllers, intends to subscribe no less than 13.50 percent of the total shares in the private placement.
 
TOP 

○ Dowstone Technology to raise RMB800 mln by private placement to extend new energy industrial chain
------
Guangdong Dowstone Technology Co., Ltd. (300409.SZ) proposes to issue no more than 26 million shares to raise 802 million yuan for comprehensive lepidolite development ＆ utilization industrialized project. Especially, its controlling shareholder Rong Jihua committed to carry out a subscription no less than 10 percent but no more than 40 percent. The pricing benchmark date is the first day of issuance. The listed company indicated the project invested by raised funds could reach an annual lithium carbonate output of 10,000 tons after it realizes design capacity.
 
○ Sunac China Holdings continues to increase shareholdings in Jinke Property Group
------
Jinke Property Group Co., Ltd. (000656.SZ) announces that Tianjin Runze Property Co., Ltd. and Tianjin Runding Property Co., Ltd. under Sunac China Holdings Limited have totally held 3.14 percent equities of the listed company since Nov. 30, 2016 to Jan. 24, 2017. Up to now, Sunac China Holdings has held 23.15 percent equities of the listed company in total.
 
[Financial Reports Express]
○ Hengtong Optic-electric forecasts growth
------
Hengtong Optic-electric Co., Ltd. (600487.SH) forecasted 120 percent to 170 percent growth in the annual report, primarily due to continuous improvement of profitability of the optical communication industry. Shandong Xiantan Co., Ltd. (002746.SZ) revised upwardly the forecasted annual growth to 964 percent to 1008 percent, primarily due to sharp decline of the price of raw materials. Zhejiang Jingxing Paper Joint Stock Co., Ltd. (002067.SZ) revised the forecasted annual growth higher to 2,632 percent to 2,680 percent due to the prices of its products increased. Norinco International Cooperation Ltd. (000065.SZ) forecasted 128 percent to 133 percent growth in the annual report, primarily due to increase of revenue from international projects.
 
○ Anxin Trust Co., Ltd. (600816.SH) reported 76 percent growth in the annual report. The board of directors has passed the distribution plan of 12-for-10 conversion of capital surplus into shares.
 
[Trading Alarm]
○ Three new shares offer for IPOs on Jan. 25
------
Chahua Modern Housewares Co., Ltd. (732615.SZ) will offer for subscription at the 8.37 yuan per share. The upper limit for each applicant is 24,000 shares. The company is primarily engaged in plastic housewares. Shanghai Tianyang Hotmelt Adhesives Co., ltd (732330.SZ) will offer for subscription at 18.19 yuan per share. The upper limit for each applicant is 15,000 shares. The company is primarily engaged in hotmelt adhesive materials. Yangzhou Chenhua New Material Co., Ltd. (300610.SZ) will offer for subscription at 10.57 yuan per share. The upper limit for each applicant is 10,000 shares. The company is primarily engaged in fine chemical materials.]]> http://en.xfafinance.com/plus/view.php?aid=298308 Xinhua Finance Agency Early Bird Tue, 24 Jan 2017 14:12:31 +0800 http://en.xfafinance.com/plus/view.php?aid=298308 [Today's Guide]
○ NDRC arranges rural work for 2017, agricultural supply-side reform to highlight
○ Guideline for new material industry development to release, graphene to take lead
○ HNA Group buys shares of Northeast Electric Development at premium, Shareholders of Dalian Sunlight Machinery transfer equity
○ Taiji Computer to buy PDE Soft, Billions Chemicals to repurchase shares 

[SSN Focus]
○ NDRC arranges rural work for 2017, agricultural supply-side reform to highlight
------
The economic work conference in rural areas under the National Development and Reform Commission (NDRC) was held on Jan. 23. It proposed to firmly focus on the agricultural supply-side reform and speed up in restructuring and strengthen the reform in rural areas. Among the five key tasks, the agricultural restructuring enjoys priority. It requires adjusting the product structure and making breakthroughs in the adjustment of corn structure to promote the coordinated development of grains, commercial crops and fodders. It will comprehensively improve the safety and quality of agricultural products, promote the standard production of agricultural products and improve the comprehensive recycling of waste from planting and breeding.
 
Comment: Various documents on advancing the agricultural supply-side reform have been released in the previous month. Institutes believe that the adjustment of the corn structure will benefit the development of quality seed companies and the deep processing of corn, such as fuel ethanol. It requires further advancing technologies and policies on agricultural machinery and the transfer of the right to use lands to promote the standard production of agricultural products.
 


[SSN Selection]
○ The central government released the opinions on strengthening the protection of farmland and balanced occupation and compensation, proposing to develop high-standard farmland through various measures.
○ The State Council released the 13th Five-year Plan on market regulation, proposing to eliminate unreasonable restrictions and hidden barriers on private investments in power, telecommunication, transportation, oil and gas as well as other industries.
○ The non-performing loan ratio in the banking industry in Shanghai reached 0.68 percent as at the end of December. It has been decreasing for several consecutive quarters since the beginning of 2016.
○ Beijing Municipal Commission of Economy and Information Technology released its annual work report on Jan. 23, proposing to initiate the pilot on 5G programs this year.
○ Mobike and Foxconn reached strategic cooperation on Jan. 23, proposing to double the capacity of bikes from its own capacity at the current level.
 
TOP

[Industry Information]
○ Guideline for new material industry development to release, graphene to take lead
------
The Ministry of Industry and Information Technology (MIIT), the Development and Reform Commission (NDRC), the Ministry of Science and Technology, the Ministry of Finance jointly released the guideline for the development of the new material industry to guide a healthy and orderly development of the new materials industry during the 13th Five-Year Plan period. The guideline proposes to launch leading projects in cutting-edge new material in the field of graphene, ramming materials, nanomaterials, superconducting materials and extreme environmental materials. The guideline also proposes to make breakthroughs in common key technologies, including the preparation of graphene material on a large scale and the representation of micro-nano structure measurement. It also sets target in developing the large graphene film preparation equipment and the measurement and detection equipment for graphene materials use.
 
Comment: Institutions believe that once breakthroughs are made in the preparation and application of graphene technology, the market will have a huge potential, which will bring subversive changes to many industries. According to data from ASKCI, the graphene industry has achieved a substantial progress in recent years. Its revenue in 2015 reached 600 million yuan. The graphene industry or will see rapid development in the future. 

○ Imidacloprid prices rise further, industry continue to boom
------
SSN learnt that imidacloprid prices continue to rise on short supply. Latest data shows that some of 95 percent imidacloprid powder products rise to 150,000 yuan a tonne, and the price in delivery in Shanghai rose to 135,000 yuan to 140,000 yuan per tonne. The price of 97 percent imidacloprid in delivery in Shanghai rose to 135,000 yuan to 140,000 yuan per tonne, recording a cumulative growth of as high as 30-40 percent since last October.
 
Comment: Imidacloprid manufacturers in Shandong and Anhui will shut down for overhaul, further intensifying the tension in supply. It is learnt that the cost of imidacloprid is about 100,000 yuan per tonne. A continuous hike in price will improve the industry's profitability. In addition, driven by the supply-side reform in agriculture and environmental pressure, the supply and demand conditions in the entire pesticide industry, including herbicide and pesticide, have improved remarkably. Listed companies Nanjing Red Sun Co., Ltd. (000525.SZ) and Jiangsu Changqing Agrochemical Co., Ltd. (002391.SZ) are engaged in the production of imidacloprid.
 
TOP

[Announcement Interpretation]
○ HNA Group buys shares of Northeast Electric Development at premium with above 100 pct.
------
Suzhou Qingchuang Trade Group Co., Ltd., the biggest shareholder of Northeast Electric Development Company Limited (000585.SZ), plans to transfer its 81,494,900 shares (accounting for 9.33 percent of the listed company’s total share capital) to Beijing Haihongyuan Investment Management Co., Ltd. at a price of 15.95 yuan per share. The consideration totals 1.3 billion yuan, enjoying a premium with 109.59 percent when compared with the stock price of 7.61 yuan per share before trading suspension. Haihongyuan Investment Management hence becomes the listed company’s biggest shareholder.
 
Northeast Electric Development signed agreement on subscribing new H shares with HNA Hotel Group Co., Ltd. on Jan. 2. The latter and Haihongyuan Investment Management are subsidiaries under HNA Group. After Northeast Electric Development finishes issuing H shares, HNA Hotel Group may be company’s biggest shareholder.
 
○ Shareholders of Dalian Sunlight Machinery transfer 9.84 pct. equity at premium with over 40 pct.
------
Yu Jianmu and Yu Yang, shareholders of Dalian Sunlight Machinery Co., Ltd. (002621.SZ), intend to transfer their shares accounting for 9.84 percent the company’s total capital to Zhuhai Rongcheng Investment Center (Limited Partnership) at a total cost of 900 million yuan. The share is priced at 40.64 yuan per share, enjoying a premium with 46.77 percent when compared with the company’s latest stock price of 27.69 yuan per share. This transfer will make shareholding proportion of Zhuhai Rongcheng Investment Center increase to 22.69 percent and the company will have the voting right of 6.04 percent equity entrusted by Yu Jianmu and Yu Yang. Xie Zhikun is still the actual controller of the listed company. Zhuhai Rongcheng Investment Center will adjust the listed company’s asset structure and business structure and is likely to buy more shares in the future.
 
TOP

○ Taiji Computer to buy PDE Soft with RMB 450 mln
------
Taiji Computer Corporation Limited (002368.SZ) proposes to buy the entire equities of PDE Soft at the valuation of 450 million yuan, which will be satisfied by issuing 12.93 million shares at 28.32 yuan per share (equivalent to 366 million yuan) and cash payment of 83,775,700 yuan. At the same time, the company proposes to issue shares through private placement at no less than 28.32 yuan per share, to raise supporting fund of no more than 366 million yuan.
 
PDE Soft is a leading archival management software and archival data service provider in China. Its major customers include large and medium sized insurance and banking institutions. The counterparty committed that the audited net profits of PDE Soft for 2017, 2018 and 2019 deducted of non-recurring profit or loss will be 42.35 million yuan, 54.5 million yuan and 63.74 million yuan respectively.
 
○ Henan Billions Chemicals Co., Ltd. (002601.SZ) proposes to repurchase 4.92 of the company’s shares at no more than 20 yuan per share for an employee stock ownership plan (ESOP). The total amount of repurchase will be no more than 1.2 billion yuan. Actual controller of Zhongzhu Healthcare Holding Co., Ltd. (600568.SH) on Jan. 20 and 23 in total increased holding 1.38 million shares of the company. It plans to increase holding no less than 1 percent and no more than 2 percent share capital of the company in the next two months when the price is lower than 21 yuan per share. Largest shareholder of Sealand Securities Co., Ltd. (000750.SZ) on Jan. 23 increased holding 18.31 million shares of the company, and one of the directors plans to increase holding no more than 100 million yuan.
 
○ Humon Smelting to launch ESOP, adopting 2-times leverage
------
Shandong Humon Smelting Co., Ltd. (002237.SZ) proposes to launch an employee stock ownership plan (ESOP) to raise no more than 170 million yuan. The lockup period of the plan is 12 month, and will set prime and subprime units at the proportion of 2:1. The total fundraising will be no more than 500 million yuan.
 
○ Zhongrong International Trust to deploy in Vantone Real Estate
------
K. Wah Orient Holding (Group) Co., Ltd., substantial shareholder of Beijing Vantone Real Estate Co., Ltd. (600246.SH), proposes to transfer the equities of Vantone Holdings Co., Ltd., second largest shareholder of the listed company, to Zhongrong Dingxing Investment Management Co., Ltd., and the latter will directly or indirectly hold the equities of no more than 35 percent of Vantone Holdings. Detailed transaction price and mode will be negotiated. This transfer is a strategic cooperation between K. Wah Orient Holding and Zhongrong International Trust Co., Ltd., and will not change the controlling right of K. Wah Orient Holding on Vantone Real Estate and Vantone Holdings. The registered capital of Zhongrong Dingxing Investment Management is 1.5 billion yuan, wholly owned by Zhongrong International Trust, public data shows.
 
[Financial Reports Express]
○ Biocause Pharmaceutical, Garden Bio-chemical High-tech and others announce growth forecast
------
Hubei Biocause Pharmaceutical Co., Ltd. (000627.SZ) announces a performance growth forecast of 588 to 628 percent in its annual report, mainly due to combined financial statement with Guohua Life Insurance Co., Ltd.; annual net profit growth of 263 percent and growth forecast of 137 to 161 percent for Zhejiang Garden Bio-chemical High-tech Co., Ltd. (300401.SZ), mainly due to sales growth of cholesterol and VD3 products; performance growth forecast of 270 percent for Hangxiao Steel Structure Co., Ltd. (600477.SH), mainly due to gross margin growth of new businesses; annual performance growth forecast increased to 45,488 to 49,312 percent by Neoglory Prosperity Inc. (002147.SZ), mainly due to sales growth of real estate business in Q4.
 
Jinguyuan Holding Co., Ltd. (000408.SZ) predicts an annual net profit of 950 million yuan in its annual report, greatly from losses, and mainly due to restructuring a potash fertilizer company located in Golmud; annual net profit forecast of 250 million to 300 million yuan for Zhejiang Qianjiang Motorcycle Co., Ltd. (000913.SZ), mainly due to investment yield growth.
 
○ Zhejiang Qianjiang Motorcycle Co., Ltd. (300422.SZ) announces a growth forecast of 43 to 53 percent in its annual report, and its actual controller proposes a 15-for-10 conversion of capital surplus into shares combined with 0.6 yuan dividend for every 10 shares; growth forecast of 10 to 20 percent for All Winner Technology Co., Ltd. (300458.SZ), with chairman proposing a 10-for-10 conversion of capital surplus into shares combined with 3 yuan dividend for every 10 shares, and vice general manager planning to decrease 200,000 shareholdings.
 
[Trading Alarms]
○ IPOs of Anzheng Fashion Group, SI-TECH Information Technology and Oupai Door Industry on Jan. 24
------
Anzheng Fashion Group Co., Ltd. (732839.SH) mainly engaged in women’s dress will issue new shares at 16.78 yuan per share with an upper subscription limit of 28,000 shares; an offering price of 16.16 yuan per share and upper subscription limit of 16,500 shares for SI-TECH Information Technology Co., Ltd. (300608.SZ) mainly engaged in software development; an offering price of 24.83 yuan per share and upper subscription limit of 7,000 shares for Jiangshan Oupai Door Industry Co., Ltd. (732208.SH).

TOP]]> http://en.xfafinance.com/plus/view.php?aid=297314 Xinhua Finance Agency Early Bird Fri, 20 Jan 2017 13:34:42 +0800 http://en.xfafinance.com/plus/view.php?aid=297314 [Today's Guide]
○ Three "national team" funds maintain stable positions and increase investment in infrastructure and power stocks
○ Collective reform in land-reclamation areas to further deepen, companies engaged in land-reclamation to benefit
○ Equity of Jasic Technology transferred at premium, Actual controller of Wanfeng Auto Wheel proposes to buy Changchun Jingkai
○ Cangzhou Dahua expected to turn loss into profit in annual report, Phichem Material proposes share conversion and dividends 

[SSN Focus]
○ Three "national team" funds maintain stable positions and increase investment in infrastructure and power stocks
------
Based on the fourth quarterly reports of three "national team" funds, they maintained stable positions in the fourth quarter of 2016 and held high positions in banking, infrastructure, consumption and pharmaceutical industries. Compared with the end of the third quarter, they increased their positions in infrastructure sector. In terms of stocks with high positions, China Southern Consumption Dynamic Mixed Fund bought China State Construction Engineering Corporation Limited (601668.SH). China New Economy bought China State Construction Engineering and GD Power Development Co., Ltd. (600795.SH). Harvest New Opportunities bough GD Power Development.

As for the subsequent investment, China Southern Consumption Dynamic Mixed Fund will focus on individual blue-chip stocks with low valuation. It will also seek companies with higher EPS growth and reasonable PEG under the environment of economic recovery and the profit recovery of enterprises. Harvest New Opportunities highlights the safety margin and liquidity of individual stocks. China New Economy believes that the market will see short-term performance in the first quarter.

[SSN Selection]
○ The State Council released the 13th Five-year Plan on the development of the national education career, proposing to promote the development of modern vocational education and the IT application in education.
○ Up to 100 million mu of land were under trusteeship under the national supply and marketing system last year. Supply and marketing cooperatives across China will strengthen promotion efforts this year.
○ State Grid Zhejiang Electric Power Company will build public charging service circles with an average radius of 2 kilometers in 11 cities of the province, trying to boost the promotion and application of pure electric vehicles. 
○ The disposal scheme for the recent bond scandal of Sealand Securities Co., Ltd. (000750.SZ) has been nodded, and the company will resume trading on Jan. 20. The bonds undertaken by the company sees a face value of 16.78 billion yuan.
TOP
[Industry Information]
○ Collective reform in land-reclamation areas to further deepen, companies engaged in land-reclamation to benefit
------
The Ministry of Agriculture (MOA) recently released the 13th five-year plan for national land-reclamation economy and social development. It is proposed that by 2020, the strength of land-reclamation economy grows remarkably, and the management and operation systems improve. Focus will be laid on grain, natural rubber, diary and seed industries, and a batch of national large-scale quality production bases for agricultural products will be built. The collective reform in land-reclamation areas will be further deepened. For land-reclamation areas that have already established provincial-level land-reclamation groups, they should move faster in integrating and reorganizing directly-managed enterprises and advance the corporatization reform of state-owned farm companies.

Comment: Institutional research reports believe that land-reclamation reform will bring two substantial benefits to companies engaged in land-reclamation. Firstly, the market-oriented reform, based on enterprization and diversification, will improve the operation efficiency of companies and then drive performance growth; secondly, collective reform will guide land resources in land-reclamation areas to integrate with superior resources, intensify overall strength and improve profitability. China Hainan Rubber Industry Group Co., Ltd. (601118.SH) and Gansu Yasheng Industrial (Group) Co., Ltd. (600108.SH) are two companies under land-reclamation groups.

○ Refrigerant prices continue to rise on increasing material prices and higher demands
------
SSN learnt that driven by an increase in hydrofluoric acid prices as well as demands for air-conditioning, refrigerant prices continue to rise. Data from www.baiinfo.com shows that on Jan. 18, refrigerant R22 prices rose more than 3 percent, marking a cumulative increase of nearly 11 percent in the recent month. Refrigerant R410a rose 2.9 percent, or 9 percent over the same period last year. Relevant manufacturers said that that as the inventory remains low and some manufacturers shut down due to a stricter environmental control, market supply is now tension.

Comment: According to downstream data, air-conditioning sales hit expectations again in December 2016 with an increase of 43 percent year on year. Vehicles sales rose 13.65 percent, a record high in recent years. Driven by expanding demands from downstream and the supply side reform, the refrigerant industry has seen its profitability improving. In addition, the Montreal Protocol's article on the reduction hydrofluorocarbons use also brings an opportunity for industry leaders to gain more market shares.

○ 13th Five-Year Plan for oil and gas detail target, to strengthen exploration and development
------
The National Development and Reform Commission (NDRC) released the 13th Five-Year Plan for petroleum development and the 13th Five-Year Plan for the natural gas development. It proposes to add an average of about one billion tonnes of proved petroleum-in-place each year. It also sets targets for new reserves of conventional natural gas, shale gas and coalbed methane. The target average annual growth rate of natural gas production has lifted to 8.9 percent from 7.2 percent during the 12th Five-Year Plan period. "To strengthen exploration and development and increase the supply of domestic resources" is prioritized among all key tasks mentioned in the two plans.

Comment: The proved rate of China's natural gas resources is only 19 percent, still staying at early stage of exploitation. Industrial experts think that relatively high price of natural gas is the major contradiction in the market currently, so the key is to implement oil and gas system and mechanism reform. Once market-based reform is put in place and natural gas enjoys reasonable pricing, its consumption volume and supply will see improvement or may even outpace target.
TOP
[Announcement Interpretation] 
○ Equity of Jasic Technology transferred at premium 
------
Xu Aiping and Pan Lei, the two biggest shareholders of Shenzhen Jasic Technology Co., Ltd. (300193.SZ), plan to transfer their 24.96 million shares and 19.99 million shares to Shenzhen Qianxinheng Investment Development Co., Ltd. through negotiation. The total shares amount to 44.95 million shares, accounting for 8.85 percent of total share capital of the listed company. They cost 584 million yuan with the price of 13 yuan per share, which see a premium of 37 percent when compared with the company's latest stock price of 9.46 yuan. There's no actual controller before and after the equity change. Qianxinheng Investment Development will become the company's third biggest shareholder in the future and indicated that it may continue to buy more shares of the company as it is rosy about its long-term development prospect.

○ Actual controller of Wanfeng Auto Wheel proposes to buy Changchun Jingkai
------
Changchun Jingkai Venture Capital Holdings, controlling shareholder of Changchun Jingkai (group) Co., Ltd. (600215.SH) proposes to seek for transferee in the open market to transfer 102 million shares (21.88 percent of the total share captial) of the listed company held by it through agreement. At present, it has determined that Wanfeng Jinyuan (Holdings) Group will be the transferee of the share transfer. Wanfeng Jinyuan was established in 2008, primarily engaged in investment and asset management. As of the end of 2015, its total assets were 2,743 million yuan, and its profit in 2015 was 132 million yuan. Chen Ailian, CEO of the company, is also the actual controller of Zhejiang Wanfeng Auto Wheel Co., Ltd. (002085.SZ), a listed company. 

○ Actual controller of Wiscom System Co., Ltd. (002090.SZ) plans to increase holding no less than 1 million shares and no more than 4.22 million shares of the company. Spouse of the actual controller of Everyday Network Co., Ltd. (300295.SZ) from Jan. 16 to Jan.18 increased holding 1.29million shares of the company.
TOP
[Financial Reports Express]
○ Cangzhou Dahua expected to turn loss into profit in annual report
------
Cangzhou Dahua Co., Ltd. (600230.SH) forecasts net profit of 370 million yuan and turns loss into profit, primarily due to its main product TDI saw continuous price hike. Foshan Electrical and Lighting Co., Ltd. (000541.SZ) reported 1,917 percent net profit increase in its annual report, primarily due to the significant increase of investment return. Shenyang Commercial City Co., Ltd. (600360.SH) forecasts net profit of 110 million yuan in the annual report and turns loss into profit, primarily due to increase of investment return. Tianjin Guangyu Development Co., Ltd. (000537.SZ) forecasts 128 to 158 percent growth in its annual report, primarily due to its subsidiary confirmed revenue growth. Dare Power Dekor Home Co., Ltd. (000910.SZ) forecasts 60 percent to 90 percent growth in the annual report, primarily due to increase of gross margin. Holitech Technology Co., Ltd. (002217.SZ) revises upwardly its growth to 292 to 322 percent, primarily due to increase of non-operating income.

○ The actual controller of Shanghai Phichem Material Co., Ltd. (300398.SZ) proposes a 25-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report. Guangxi Fenglin Wood Industry Group Co., Ltd. (601996.SH) announces a growth forecast of 55 to 75 percent in annual report, and its controlling shareholder proposes a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares. 

[Trading Trends]
○ PBOC continues massive reverse repos, capital factor still tight 
------
People's Bank of China, also known as the central bank, on Jan. 19 carried out reverse repos of 250 billion yuan, with a net input of 190 billion yuan. During four trading days this week, a net input over 1 trillion yuan has accumulatively been injected into the open market, likely to set a new historic high regarding to single-week net input scale. But this has not fully released the tightness of capital factor, the DR001 rate increased to 2.56 percent in the interbank market, a nearly-21-month high, and GC001 rate of Shanghai Stock Exchange touched 16.5 percent at the highest. 

Comment: This round of reverse repos is huge scaled, but they are all short-term funds, which have not eased the cautious sentiment before the Spring Festival. Whether the central will continue to carry out medium-term lending facility (MLF) to input long-term funds attracts much attention. 

[Trading Alarms]
○ IPOs of Kangtai Biological Products, Petrochemical Engineering and Hengfeng Information Technology on Jan. 20
------
Shenzhen Kangtai Biological Products Co., Ltd. (300601.SZ) mainly engaged in human vaccines will issue new shares at 3.29 yuan per share, with an upper subscription limit of 12,500 shares; an offering price of 13.86 yuan per share and upper subscription limit of 10,000 shares for Zhenhai Petrochemical Engineering Co., Ltd. (732637.SH) mainly engaged in petrochemical engineering; an offering price of 9.4 yuan per share and upper subscription limit of 8,000 shares for Hengfeng Information Technology Co., Ltd. (300605.SZ) mainly engaged in building intelligent system.
TOP
]]> http://en.xfafinance.com/plus/view.php?aid=296878 Xinhua Finance Agency Early Bird Thu, 19 Jan 2017 13:35:33 +0800 http://en.xfafinance.com/plus/view.php?aid=296878 [Today's Guide]
○ Funds increase investments in petrochemical and military engineering industries in Q4 and bullish about sectors to benefit from policies
○ Fundamentals of construction machinery industry improve, mild recovery to continue
○ MIIT inspects progress of C919 airliner program, airliner integrators to benefit from industry development
○ Yitoa Intelligent Control forecasts 400pct. growth and to repurchase stocks, multiple companies forecast performance growth

[SSN Focus]
○ Funds increase investments in petrochemical and military engineering industries in Q4 and bullish about sectors to benefit from policies
------
Over ten fund companies, including Harvest Fund Management Co., Ltd., ABC-CA Fund Management Co., Ltd., Fortune SG Fund Management Co., Ltd. and Lion Fund Management Co., Ltd., released their fourth quarterly reports in 2016 on Jan. 18. Statistics show that such funds mainly increased the investment in petrochemical, military engineering, non-ferrous metals, anti-consumption consumption and other sectors while reduced the investment in TMT and other sectors with high valuation in the fourth quarter.

As for subsequent investments, fund managers believe that theme opportunities are mainly from sectors to benefit from policies. They will make investments based on the themes highlighted at the central economic work conference, including the agricultural supply-side structural reform and the mixed ownership reform in SOEs. They will select individual stocks among growth stocks based their performance growth and the implementation of transformation.

[SSN Selection]
○ The executive meeting of the State Council held on Jan. 18 approved the 13th Five-year Plan on promoting employment, proposing to develop health, aged care and other living service industries with high employment capacity.
○ Social security funds newly opened six A-share accounts in December 2016, the first time since July 2015.
○ The State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government introduced the plan on the first employee shareholding on Jan. 18, proposing to select five to ten enterprises in fully competitive industries to pilot.
○ Sichuan province will wholly integrate four of its provincial-level state-owned enterprises into Sichuan Provincial Investment Group Co., Ltd. in a bid to build a state-owned capital investment company in the area of commerce circulation.
○ Midea Group Co., Ltd. (000333.SZ) saw a block trading of 2.89 billion yuan on Jan. 18. The shares of the company were sold through one institutional seat but purchased through another four institutional seats.
TOP
[Industry Information]
○ Fundamentals of construction machinery industry improve, mild recovery to continue
------
SSN on Jan. 18 learnt from the China Machinery Industry Federation (CMIF) that some construction machinery products apparently picked up during the August-November period of 2016. Take Sany Heavy Industry Co., Ltd. (600031.SH) as an example, the working hours of its excavators expand by 5 percent averagely. The improvement of Xuzhou Construction Machinery Group Co., Ltd. (XCMG) in fundamentals is mainly mirrored by the decrease of financial expense. XCMG's financial expense decreased by 86 percent in the first three quarters of 2016. In addition, since around 20 percent of the company's products are exported, the depreciation of RMB brings positive influence to the company.

Comment: Everbright Securities believes that the construction machinery industry gradually picked up since the second half of 2016. Since the first half of a year usually sees booming sales of construction machinery products, various construction machinery manufacturers might lay a sound foundation for their annual performance as the sales picks up. In addition, due to the constant growth of investment in infrastructure, construction machinery will need to be upgraded. Mild recovery of the industry might continue at least in the first half of 2017. Leading brand companies might benefit from the trend.
TOP
○ MIIT inspects progress of C919 airliner program, airliner integrators to benefit from industry development
------
Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology (MIIT), on Jan. 17 inspected China Commercial Aircraft Corp., Ltd. (COMAC) and debriefed on the progress of C919 passenger airliner program and preparations of its test trial. Xin pointed out that the MIIT will strongly support COMAC's development as well as the research and development of C919 passenger airliner. COMAC chairman Jin Zhuanglong said that the C919 passenger airliner is sprinting for its debut, and the company will ensure a safe and successful flight of C919.

Comment: China Merchants Securities notes in its research report that investors can seek for opportunities along the airliner industrial chain from three aspects. Firstly, complete airliner integrators in the top of the pyramid will monopolize the industry for a long run and become the largest beneficiary for the development of the airliner industry. Comprehensive suppliers at system level will also find a position along the industrial chain by building risk partnership with airliner integrators. Materials, with high technical barrier, stable competition pattern and available for both military and civilian use, will also see a huge market.
TOP
[Announcement Interpretation]
○ Yitoa Intelligent Control to repurchase stocks, New Huangpu Real Estate and others see shareholding increase
------
Shenzhen Yitoa Intelligent Control Co., Ltd. (300131.SZ) forecasts a 400 percent growth in its annual report. The company plans to repurchase no more than 400 million shares which will be canceled or used for staff incentives. Shanghai Lingtou Private Equity Fund Partnership plans to increase shareholding in Shanghai New Huangpu Real Estate Co., Ltd. (600638.SH) by over 20 million shares in the next 6 months after acquiring its shares to the 5 percent limit in the secondary market. The actual controller of Beijing Watertek Information Technology Co., Ltd. (300324.SZ) plans to increase shareholding in the company with no less than 200 million yuan in the next 12 months. In addition, the controlling shareholder of Shahe Industry Co., Ltd. (000014.SZ) has increased shareholding in the company by a total of 2.53 million shares from Aug. 12, 2016 up till now. Two senior managers of Insigma Technology Co., Ltd. (600797.SH) increased shareholding in the company by a total of 0.8 million shares from Jan. 17 to 18. 

○ Proposal of Shaanxi Blower transferring equity of Dagang Road Machinery approved by SASAC of Shaanxi 
------
The proposal of Shaanxi Blower (Group) Co., Ltd., state-owned shareholder of Xi'an Dagang Road Machinery Co., Ltd. (300103.SZ), on transferring equity publicly has been approved by the State-owned Assets Supervision and Administration Commission (SASAC) of Shaanxi Province. The group plans to transfer 20-29.95 percent equity of Dagang Road Machinery by negotiating and the final transferred price will be decided after taking various factors into consideration. According to transfer condition, intended transferee and its important related party should not have competitive relation and conflict of interest with the existing principal business of Dagang Road Machinery and should not be major rival of the company. 

○ Heilongjiang Agriculture Company and Zhongnan Construction Group to set up agricultural e-commerce company of block chain 
------
Heilongjiang Agriculture Company Limited (600598.SH) plans to set up a joint-ventured e-commerce company with Jiangsu Zhongnan Construction Group Co., Ltd. (000961.SZ). They will introduce block chain technology based on the agricultural Internet of Things of Heilongjiang Agriculture Company, set up closed agricultural product supply and authentication and tracing system of block chain of agricultural products and development agricultural e-commerce platform. The joint venture will be established with registered capital of 300 million yuan with Heilongjiang Agriculture Company holding 20 percent equity by contributing 1 yuan in currency and the remaining 80 percent equity held by Zhongnan Construction Block Chain Agricultural Development (Shenzhen) Company, partnership of Zhongnan Construction Group. 

Zhongnan Construction Group indicated that this cooperation accords with the company's strategy of making transformation towards block chain. In last November and December, it announced it would invest in two block chain companies, which are mainly engaged in financial field. 

○ Hubei Guochuang Hi-tech Material to buy entire equities of YunFang Network Technology with RMB3.8 bln
------
Hubei Guochuang Hi-tech Material Co., Ltd. (002377.SZ) proposes to buy the entire equities of Shenzhen YunFang Network Technology Co., Ltd. at the valuation of 3.8 billion yuan, which will be satisfied by issuing 257 million shares at 8.53 yuan per share through private placement and cash payment of 1,607 million yuan; at the same time, the company also proposes to raise no more than 2,097 million yuan through private placement. The counterparty committed that net profits of the subject company from 2016 to 2019 will be no less than 243 million yuan, 258 million yuan, 323 million yuan and 365 million yuan respectively. Upon completion of the transaction, the company's main businesses will be traditional modified asphalt industry and real estate intermediary services.

[Financial Reports Express]
○ Multiple companies forecast performance growth
------
Dezhan Healthcare Company Limited. (000813.SZ) expects 10,458 percent growth in the annual report, primarily due to the approval of major assets restructuring. Jiangsu Huaxicun Co., Ltd. (000936.SZ) revises higher its growth to 588 to 617 percent, primarily due to revenue from financial investment beat expectation. Shanghai Wanye Enterprises Co., Ltd. (600641.SH) forecasts 220 to 260 percent growth in its annual report, primarily due to increase of revenue from delivery of Baoshan project; Xi'an Longi Silicon Materials Corp. (601012.SH) forecasts 169 to 208 percent growth in its annual report, primarily due to significant increase of operational revenue. Xin Jiang Ready Health Industry Co., ltd. (600090.SH) forecasts 3,225 to 3,567 percent growth in its annual report, primarily due to the completion of major assets restructuring.

○ Jouder Precision Industry (Kunshan) Co., Ltd. forecasts 16 to 21 percent growth in its annual report. The actual controller proposes 10-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for each 10 shares. Sichuan Hebang Biotechnology Co., Ltd. (603077.SH) forecasts 25 to 46 percent growth in its annual report. The board passed the distribution plan of 10-for-12 conversion of capital surplus into shares combined with 0.1 yuan dividend for each 10 shares. The controlling shareholder will reduce shareholding.

[Trading Trends]
○ Offline subscription for new shares explosive, IPO investment funds stable
------
Investors recently still keep their enthusiasm to invest in new shares offline, data shows. Even during fierce fluctuation of stock index last week, offline subscription for several new shares with a market value threshold of 30 million yuan were still explosive. The number of investors reaching the threshold of 50 million yuan also constantly increases in recent period, even after this threshold commonly rises.

Investors are not very possible to aggressively dump the new shares now, many insiders indicated in the interview. On the contrary, along with the rising threshold of investing in new shares, IPO investment funds still increase the market value position recently. The pace to issue new shares speeds up, which will possibly impact on growth rate of new shares in a short run, but based on issuance of new shares low in "stock price, circulating equity and valuation", the growth rate of new shares is not pessimistic in a long term. Referring to C-grade investors, IPO investment return of over 10 percent will continue to attract more funds.

[Trading Alarms]
○ IPOs of Tuna Environmental Science ＆ Technology, Yankershop Food and Enpack Packaging on Jan. 19
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Zhejiang Tuna Environmental Science ＆ Technology Co., Ltd. (732177.SH) mainly engaged in fume treatment will issue new shares at 3.6 yuan per share with upper subscription limit of 20,000 shares; an offering price of 9.14 yuan per share and upper subscription limit of 12,000 shares for Yankershop Food Co., Ltd. (002847.SZ) mainly engaged in snack food; an offering price of 8.33 yuan per share and upper subscription limit of 12,000 shares for Guangdong Enpack Packaging Co., Ltd. (002846.SZ) mainly engaged in metaled easy-open end. 
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]]> http://en.xfafinance.com/plus/view.php?aid=296523 Xinhua Finance Agency Early Bird Wed, 18 Jan 2017 13:32:35 +0800 http://en.xfafinance.com/plus/view.php?aid=296523 [Today's Guide]
○ Energy development plan proposes reforms, oil reform plan to release this year
○ Supply-side reform produces desired results, supply-demand structure of polyester fiber industry keeps improving
○ Harbin Air Conditioning's equity to be transferred, Gangtai Holding to buy top Italian jeweler
○ Shaanxi Coal Industry, Baoshan Iron ＆ Steel and others announce growth forecast, Doron Technology and Yongli Belting propose high share conversion and dividend in annual report

[SSN Focus]
○ Energy development plan proposes reforms, oil reform plan to release this year
------
The 13th Five-year Plan on Energy Development was officially released on Jan. 17. It proposes to optimize the energy consumption structure. The consumption proportion of non-fossil energy and natural gas will be increased to over 15 percent and 10 percent while the coal consumption will be reduced to below 58 percent. The Plan also mentioned the systematic reform in energy price, power, oil and gas industries. It requires advancing the oil and gas systematic reform, introduce plans on the reform of the oil and gas systems to gradually expand the pilot reform.

Comment: Niu Li, director of the Economic Forecast Department of the State Information Center, expects that the detailed plans on the oil and gas systematic reform will be released this year. Institutes believe that the core in the oil and gas reform plans will be breaking the monopoly and loosen the market access to give full play to the role of the market. Specifically, it will deregulate the right for the exploration, development and import of crude and regulate the exit and transfer of mining rights in the upper stream. In the middle stream, it will further the separation of the networking and operation of oil and gas pipelines and open the pipeline to third parties in a fair way. In the downstream, it will introduce social capitals in the distribution of oil and gas and conduct the mixed ownership reform to improve the efficiency in the sale of oil and gas.

[SSN Selection]
○ The regulatory authorities are mulling relevant policies on re-financing, Xinhua News Agency reported in an article on how to view the new normal of IPOs on Jan. 17.
○ The State Council recently released a circular on expanding opening to the outside with the focus on loosening the access restrictions on foreign-funded banks, securities and insurance companies as well as other financial institutes.
○ The Ministry of Industry and Information Technology (MIIT) released the 5-year development plan for the information and communications industry on Jan. 17, proposing clearly to initiate the commercial services of 5G at the end of the "13th five-year" plan period (2016-2020).
○ The outflow of securities margin in last week stood at 36.9 billion yuan, representing a net outflow for the third consecutive week.
○ As reported by www.caixin.com, China Petrochemical Corporation Group (Sinopec Group) invested 5 billion yuan in JZ Securities, further expanding its financing business.
○ The official website of Shenzhen Stock Exchange reported on Jan. 16 that Dong Mingzhu, chairwoman of China's largest air conditioning manufacturer Gree Electric Appliances Inc., purchased 130,000 shares of Zhuhai Gree Electric Appliances Inc. (000651.SZ) at the price of 23.58 yuan per share.
TOP

[Industry Information]
○ Supply-side reform produces desired results, supply-demand structure of polyester fiber industry keeps improving
------
Tongkun Group Co., Ltd. (601233.SH) announced on Jan. 17 evening that it forecasts an annual growth of 855-907 percent. Based on this, its net profit in the fourth quarter of 2016 recorded around 540 million yuan, increasing sharply by 157 percent from previous quarter. The company claimed that thanks to the state's supply-side reform, sound results are produced in cutting the capacity and inventory of the polyester filament yarn (PFY) industry. Domestic demand for textile grows steadily, driving constant growth on the demand for PFY.

Comment: PFY prices have risen remarkably in last December. Points out in its research report that growth in oil prices is a major driver for this round of price hike. The polyester fiber industry is expected its newly added capacity increase less than 3 percent and demands expand over 5 percent in the next two years. The industry's supply and demand conditions are expected to improve more than expected. Leading companies with high polyester fiber productivity and flexible performance are expected to benefit first. Hengyi Petrochemical Co., Ltd. (000703.SZ) and Rongsheng Petrochemical Co., Ltd. (002493.SZ) respectively own 1.65-million-tonne and 1-million-tonne PFY productivity

○ China increases support for major science and technology project, domestication of numerically-controlled machine tool to speed up
------
SSN learnt that relevant authorities approved the special project in high-end numerically-controlled machine tool and basic manufacturing equipment as one of major national science and technology projects, and will appropriate more national fund for the project during the 13th Five-Year Plan period. Most of the fund will be appropriated from 2017 to 2018 so that the project may achieve progress in 2020. The project has also been included into the "brain exchange program". That is to say, the project will take the lead to replace imported numerical control system with domestically-made one in national defense and military industry. The Ministry of Industry and Information Technology (MIIT) will hold a promotion conference on Jan. 18.

Comment: National defense and military industry has tough requirements on performance of equipment including numerically-controlled machine tool. According to research report of "brain exchange program", 6,000 sets of numerically-controlled machine tools need to change domestic numerical control system. Industrial insiders think that the special project might reach peak in 2018. Among A-share listed companies, Wuhan Huazhong Numerical Control Co., Ltd. (300161.SZ) is one of the 5 enterprises receiving major support from the special project. Sales of i5 machine tool of Shenyang Machine Tool Co., Ltd. (000410.SZ) surge significantly after adopting independent numerical control system. 
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[Announcement Interpretation]
○ Harbin Air Conditioning's equity to be transferred with VAM on performance 
------
Harbin Industrial Investment Group Co., Ltd., controlling shareholder of Harbin Air Conditioning Co., Ltd. (600202.SH), plans to publicly transfer its 25 percent equity of the listed company at a price of 11.74 yuan per share at least, making its shareholding proportion down to 9.03 percent. The transferee needs to sign valuation adjustment mechanism (VAM) on performance with Harbin Industrial Investment to ensure that total operating revenues and net profits of air conditioning sector of the listed company shouldn't be less than 2 billion yuan and 600 million yuan respectively during 2017 and 2019; otherwise, the differential in net profits should be compensated by the transferee to Harbin Industrial Investment. Net profits of Harbin Air Conditioning recorded about 14 million yuan in 2015 and the company suffered a loss worth around 82 million yuan in the first three quarters of last year. The company's stock price was 12.10 yuan per share before trading suspension. 

○ Gangtai Holding to buy top Italian jeweler
------
Gansu Gangtai Holding (Group) Co., Ltd. (600687.SH) proposes to issue shares at 15.42 yuan per share to its largest shareholder Gangtai Group through private placement. The fundraising will be used to acquire the entire equities of Yuelong Industries Co., Ltd. held by Gangtai Group. At the same time, it proposes to raise no more than 1.36 million yuan at the same price from Gangtai Group and Hangzhou Zhenyuan for the construction of marketing networks. Upon completion of the transaction, the listed company will hold 85 percent equities of BHI through Yuelong Industries. BHI is top Italian Jeweler with hundred years of history which primarily operates the Buccellati brand.

○ Property developer CIFI Group buys Yang Guang to 5 pct on secondary market
------
Yang Guang Co., Ltd. (000608.SZ) announced that Shanghai Yongpan Industries from Nov. 2, 2016 to Jan. 17, 2017 increased holding 37,495,600 shares of the company on the secondary market, accounting for 5 percent of the company's total share capital. It is learnt that Shanghai Yongpan is a wholly-owned subsidiary of property developer CIFI Group.

○ Actual controllers of several companies increase shareholding
------
Actual controller of Europol Intelligent Network Co., Ltd. (002711.SZ) proposes to increase no more than 500 million yuan value of shares of the company in the next four month. Controlling shareholder and actual controller of Hand Enterprise Solution Co., Ltd. (300170.SZ) proposes to increase holding no more than 70 million yuan value of shares of the company in the next six months.

Controlling shareholder of Suzhou Tianma Specialty Chemicals Co., Ltd. (002453.SZ) from Jan. 12 to 17 increased holding 8.98 million shares of the company. Zhejiang Dian Diagnostics Co., Ltd. (300244.SZ) announced that the company had repurchased 3.48 million shares so far. Actual controller of Beijing BEILU Pharmaceutical Co., Ltd. (300016.SZ) from Jan. 10 to 17 increased holding 4.11 million shares of the company. Secretary of the board of Palm Eco-Town Development Co., Ltd. (002431.SZ) on Jan. 17 increased holding 1.22 million shares of the company.
TOP

[Financial Reports Express]
○ Shaanxi Coal Industry, Baoshan Iron ＆ Steel and others announce growth forecast
------
Shaanxi Coal Industry Company Limited (601225.SH) announces a profit forecast of 2.5 to 3.0 billion yuan in its annual report, greatly stopping the loss due to increasing coal price; a growth forecast of 770 percent for Baoshan Iron ＆ Steel Co., Ltd. (600019.SH) mainly due to sales volume of advanced and strategic products outperforming the targets; a growth forecast up to 500 to 550 percent for Goldenmax International Technology Ltd. (002636.SZ) mainly due to its growth in product price; a growth forecast of 100 to 125 percent for Kyland Technology Co., Ltd. (300353.SZ) mainly due to strong uptrend of military business; a growth forecast of 196 to 246 percent for Hunan Investment Group Co., Ltd. (000548.SZ) mainly due to determined interest income of land project. 

○ Doron Technology and Yongli Belting propose high share conversion and dividend in annual report
------
The actual controller of Nanjing Doron Technology Corporation Ltd. (603528.SH) proposes a 10-for-10 conversion of capital surplus into shares combined with 5 yuan dividend and additional 10 shares for every 10 shares according to its annual report; a 26-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares proposed by the controlling shareholder of Shanghai Yongli Belting Co., Ltd. (300230.SZ).

[Trading Alarms]
○ IPOs of Qijing Machinery, Bio-Chem and Golden Sun Abrasives on Jan. 18
------
Qijing Machinery Co., Ltd. (732677.SH) mainly engaged in components for household appliances will issue new shares at 21.13 yuan per share with upper subscription limit of 20,000 shares; an offering price of 9.24 yuan per share and upper subscription limit of 13,000 shares for Dalian Bio-Chem Co., Ltd. (732360.SH) mainly engaged in industrial bactericide; an offering price of 8.36 yuan per share and upper subscription limit of 8,000 shares for Dongguan Golden Sun Abrasives CO., Ltd. (300606.SZ) mainly engaged in coated abrasive tools.
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]]> http://en.xfafinance.com/plus/view.php?aid=296131 Xinhua Finance Agency Early Bird Tue, 17 Jan 2017 13:34:42 +0800 http://en.xfafinance.com/plus/view.php?aid=296131 [Today's Guide]
○ Lower threshold on power battery capacity brings higher requirements on performance
○ New list of drugs covered by medical insurance to released soon, Chinese patent medicine and children's drug become highlight
○ Liaoning SG Automotive to see new controlling shareholder at premium
○ Controlling shareholders of several companies to increase shareholding, Kibing Group and others announce growth forecast

[SSN Focus]
○ Lower threshold on power battery capacity brings higher requirements on performance
------
SSN learnt that the conditions on the regulation of the power batteries for vehicles has solicited opinions and will be released soon. Compared with the draft for opinions issued by the Ministry of Industry and Information Technology (MIIT), the revised version has two major changes. Firstly, it lowered the capacity threshold from "no more than 8 billion watt-hours" to 3 to 5 billion watt-hours. Secondly, it raised the requirements on the research and development and the performance of power batteries.

Comment: If the threshold is set at no more than 8 billion watt-hours, only BYD Company Limited (01211.HK; 002594.SZ) and other few companies can meet the requirements. Guoxuan High-Tech Co., Ltd. (002074.SZ), China Aviation Lithium Battery CO., Ltd., Optimum Nano and EVE Energy Co., Ltd. (300014.SZ) have a capacity of 3 to 8 billion watt-hours. The lower threshold will bring in more excellent enterprises. In addition, the higher requirements on the performance of power batteries will see more policy supports. The newly released policies on the subsidies on new energy vehicles will consider the energy density. Tertiary materials and other industries will catch more attention from institutes.

○ ChiNext Price Index down for eight consecutive days, insurance, banking and other blue-chips performed well
------
The ChiNext Price Index closed 3.64 percent lower on Jan. 16. It has been declining for eight consecutive days and is close to the lowest level in the second half of 2015. Driven by the insurance, banking and other blue-chip stocks, the SSE 50 Index increased for the second consecutive trading days. 

Analysts believe that the recent fluctuation experienced by the ChiNext Board is under the backdrop of the repair of valuation. The market is worried about the rising prices of commodities and the tightening of capital supply. At present, retail investors are not quite willing to buy in more shares, and the incremental capital in the market mainly comes from institutions with low risk preference, such as banks and insurance companies. These institutions prefer value stocks with sound performance and cyclical stocks with sufficiently cleared supply and improving industrial concentration ratio.

[SSN Selection]
○ Under a guideline issued by the State Council on Jan. 16, the paid use system of state-owned natural resources like land, water and mineral resources will be improved.
○ Five departments recently teamed up for a special rectification action about illegally refitted goods wagons. Such move might boost the demand for the heavy truck industry.
○ Baidu Inc. announced the establishment of its augmented reality (AR) laboratory on Jan. 16, involving technologies like image technology, vision localization and tracking, and face recognition.
○ Shanghai Municipal Transportation Commission indicated on Jan. 16 that the guidance on the development of public rental bike system (public-sharing bike) is under formulation.
○ China Petrochemical Corporation held its annual work conference on Jan. 16, proposing to advance the mixed-ownership reform in an active and steady way.
TOP
[Industry Information]
○ New list of drugs covered by medical insurance to released soon, Chinese patent medicine and children's drug become highlight 
------
SSN learnt that the circular on issuing the list of drugs covered by medical insurance (2017 version) has been sent to all local governments which are required to give feedback before Jan. 16. Industry insiders point that this would be the last time that the new list of drugs covered by medical insurance solicits public opinions, and is expected to be released soon.

Comment: In addition to innovative drugs with excellent clinical effect, another highlight in the new list is Chinese patent medicine and children's drug. Relevant medicine enterprises expected to benefit from medicines that are very likely to be included in the list. Among listed companies, Tasly Pharmaceutical Group Co., Ltd. (600535.SH) and Tianjin Chase Sun Pharmaceutical Co., Ltd. (300026.SZ) own exclusive Chinese patent medicines. Yabao Pharmaceutical Group Co., Ltd. (600351.SH), Honz Pharmaceutical Co., Ltd. (300086.SZ), Sunflower Pharmaceutical Group Co., Ltd. (002732.SZ) and Hubei Jumpcan Pharmaceutical Co., Ltd. (600566.SH) are engaged in the research and development of children's drug. Their hit products of children's drug are very likely to be included.

○ MoA to increase subsidies on purchase of agricultural machinery, green machinery gains support 
------
Vice Minister of Agriculture Zhang Taolin indicated at the work conference on national agricultural mechanization on Jan 16 that the Ministry of Agriculture (MoA) will increase the subsidies on the purchase of agricultural machinery. It will introduce open subsidies on high-efficient agricultural machinery for soil deep loosening, concentrated fertilization and film retrieving. In addition, it will expand the scope of subsidies on waste agricultural machinery and eliminate old machinery with high energy consumption and heavy pollution. It will promote the application of National III power equipment and promote the energy saving and emission cut of agricultural machinery.

Comment: It is introduced that comprehensive mechanization ratio of cultivation, plantation and harvest of crops in China is expected to be more than 65 percent last year, up by about 2 percentage points year on year. But according to action plan on agricultural machinery and equipment development, agricultural mechanization ratio should reach 75 percent by 2525. Analysts point out that there is still growth potential for agricultural machinery on the whole. Enterprises with technological advantages and leading in high-end agricultural machinery manufacturing ability will benefit from industrial development and improvement in market concentration. 
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[Announcement Interpretation]
○ Liaoning SG Automotive to see new controlling shareholder at premium 
------
Liaoning SG Group Co., Ltd., controlling shareholder of Liaoning SG Automotive Group Co., Ltd. (600303.SH), plans to transfer 97.895 million shares of the listed company (accounting for 14.49 percent of total share capital of the company) at a price of 23.21 yuan per share to Hawtai Motor Group and entrusts the voting right of 45,818,300 shares to the latter. With this deal done, Hawtai Motor will become controlling shareholder of Liaoning SG Automotive and the listed company's actual controllers will be Zhang Xiugen and Zhang Hongliang. Stock price of Liaoning SG Automotive was 9.02 yuan per share before trading suspension and transfer price is 157 percent of that price.

○ Shareholders of Meida Nylon transfer shares at 97 percent premium
------
Tianchang Investment and Tagen Group, the third and fourth largest shareholder of Guangdong Xinhui Meida Nylon Co., Ltd. (000782.SZ), proposes to transfer 9.81 percent and 5.68 percent of the listed company held by them to Qingdao New Energy Solutions Inc. (NESI) at 19.93 yuan per share, representing premium of 97 percent compared with the price before suspension of trading of 10.14 yuan per share; at the same time, the largest shareholder Junhe Investment also proposes to entrust voting rights of 13 percent equities held by it to NESI. The two transferors and one entrusting party are all controlled by the actual controller Liang Weidong. Upon completion of the transaction, NESI will hold 15.49 percent equities of the company and 28.49 percent voting rights of the company. Li Jianzhi will become actual controller of the company. NESI is primarily engaged in solar photoelectric product. It has a net asset of 848 million yuan and recorded loss of 4.58 million yuan in 2016.
TOP
○ Controlling shareholders of several companies to increase shareholding
------
Zhou Shiping, actual controller of Fujian Sunnada Communication Co., Ltd. (002417.SZ) plans to increase shareholding in the company in the next 12 months at no more than 18 yuan per share with a total of no more than 200 million yuan. Controlling shareholder Henan Kedi Dairy CO., Ltd. (002770.SZ) on Jan. 16 increased holding 4.13 million shares of the company, and plans to increase holding no less than 1 percent and no more than 2 percent shareholding in the company in the next year. CRRC Guiyang Co., Ltd., party acting in concert with South Huiton Company Limited (000920.SZ), on Jan. 13 and Jan. 16 in total bought in 2.03 million shares of the company. In the next year, CRRC Guiyang will increase holding no more than 2 percent of the total share capital of the listed company, at no more than 18 yuan per share. In addition, controlling shareholder of ORG Packaging Co., Ltd. (002701.SZ) on Jan. 16 increased holding 3.78 million shares of the company. Actual controller of Meinian Onehealth Healthcare Holdings Co., Ltd. (002044.SZ) on Jan. 13 and Jan. 16 continued to increase in total 1 million shares of the company. Controlling shareholder of Kaidi Ecological and Environmental Technology Co., Ltd. (000939.SZ) on Jan. 16 increased holding 1.06 million shares of the company.

○ Kemen Noodle Manufacturing launches ESOP
------
Kemen Noodle Manufacturing Co., Ltd. (002661.SZ) proposes to launch an employee stock ownership trust plan (ESOP) at the cap of 350 million yuan. The plan will be divided into prime and subprime units. No more than 285 employees, including directors, supervisors and senior management will subscribe the whole subprime unit of 117 million yuan. Chen Keming, chairman of the company, and Chen Kezhong, vice chairman of the company will subscribe 15.88 percent respectively. The ESOP will raise 233 million yuan prime fund in the market.

[Financial Reports Express]
○ Kibing Group and others announce growth forecast in annual report
------
Zhuzhou Kibing Group Co., Ltd. (601636.SH) announces a growth forecast of 390 to 410 percent in its annual report, mainly due to sales growth; a growth forecast of 180 to 210 percent for Guangdong Biolight Meditech Co., Ltd. (300246.SZ), mainly due to great revenue growth of main businesses; a growth forecast of 182 to 208 percent for Beijing Sinnet Technology Co., Ltd. (300383.SZ), mainly due to expectation that Beijing Meganest Technology Co., Ltd. and Beijing Agrantsem Technology Co., Ltd. will realize the performance commitment; a growth forecast up to 155 to 165 percent for Anhui Jinhe Industrial Co., Ltd. (002597.SZ), mainly due to chemical product price uptrend; a growth forecast up to 320 to 370 percent for Henan Billions Chemicals Co., Ltd. (002601.SZ), mainly due to price uptrend of its main product titanium dioxide; a growth forecast of 285 to 323 percent for Fujian Fynex Textile Science ＆ Technology Co., Ltd. (600493.SH), mainly due to investment dividends. 

○ Ceepower, Cihang Group, and others propose high share conversion and dividend in annual report
------
Ceepower Co., Ltd. (300062.SZ) announces a growth forecast of 270 to 300 percent in annual report, and its actual controller proposes a 20-for-10 conversion of capital surplus into shares; a growth forecast of 236 to 253 percent for Jinzhou Cihang Group Co., Ltd. (000587.SZ), with its controlling shareholder proposing a 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares; a growth forecast of 50 to 60 percent for Shandong Sinocera Functional Material Co., Ltd. (300285.SZ), with its actual controller proposing a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares; a growth forecast of 50 to 80 percent for Shenzhen JT Automation Equipment Co., Ltd. (300400.SZ), with its actual controller proposing a 5-for-10 conversion of capital surplus into shares combined with 1 yuan dividend and additional 5 shares for every 10 shares; a net profit forecast of 220 million to 260 million yuan for Shenzhen Capstone Industrial Co., Ltd. (000038.SZ) with its chairman proposing a 6-for-10 conversion of capital surplus into shares.

[Trading Alarms]
○ IPOs of Athub, Frd Science ＆ Techonology and Leon Technology on Jan. 17
------
 Shanghai Athub Co., Ltd. (732881.SH) will issue new shares at 7.8 yuan per share, with upper subscription limit of 21,000 shares, and it is mainly engaged in data center service; an offering price of 14.82 yuan per share and upper subscription limit of 10,000 shares for Shenzhen Frd Science ＆ Techonology Co., Ltd. (300602.SZ) mainly engaged in electromagnetic shielding ＆ heat conducting components; an offering price of 4.55 yuan per share and upper subscription limit of 10,000 shares for Leon Technology Co., Ltd. (300603.SZ) mainly engaged in communication network technical service. 
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]]> http://en.xfafinance.com/plus/view.php?aid=295725 Xinhua Finance Agency Early Bird Mon, 16 Jan 2017 13:31:45 +0800 http://en.xfafinance.com/plus/view.php?aid=295725 [Today's Guide]
○ Shanghai advances listing of state-owned assets, mixed-ownership reform of competitive enterprises to speed up
○ Policies to favor charging facilities for electric vehicles, facilities construction expected to accelerate
○ Commercial aerospace industry advances, market expected to expand continuously
○ Leshi Internet Information ＆ Technology gains financing worth RMB16.8 bln from 3 firms including Sunac China Holdings, Lingzi Equity Investment Fund buys shares of New Huang Pu Real Estate at 5 pct limit through secondary market acquisition

[SSN Focus]
○ Shanghai advances listing of state-owned assets, mixed-ownership reform of competitive enterprises to speed up
------
The Fifth Session of the 14th Municipal People's Congress of Shanghai kicked off on Jan. 15. Yang Xiong, mayor of Shanghai, indicated during his government work report that in 2017, Shanghai will deepen the reform of state-owned assets and state-owned enterprises (SOEs), move faster in advancing the overall listing or the listing of core business/assets of enterprises, pilot the professional manager salary system reform, and encourage non-publicly-owned assets to get involved in the mixed-ownership reform of SOEs. It is also proposed in the report that Shanghai will pool efforts of the whole city to build Chongming island into a world-class eco-island, fully facilitate the construction of technology innovation center, and concentrate on the construction of a comprehensive national science center in Zhangjiang. 

Comment: The reform of state-owned assets and SOEs in Shanghai has always attracted wide attention. According to the meeting spirit and relevant work arrangement of the Central Economic Work Conference, Shanghai will further boost the mixed-ownership reform of local competitive enterprises. By the end of the 13th five-year plan period (2016-2020), enterprises achieving overall-listing will take up over 50 percent of all competitive enterprises. Institutions will pay great attention to listed SOEs whose equities have been transferred to Shanghai International Group and Guosheng Group, platform SOEs "which are small but subordinate to big groups", and SOEs with poor performance that might see equity transfer.

[SSN Selection]
○ China Securities Regulatory Commission (CSRC) approved the IPO applications of 13 enterprises on Jan. 13. No more than 4.1 billion yuan will be raised in total.
○ The CRSC will speed up in the formulation of the regulation rules on the businesses of regional equity markets, indicated the CSRC at the press conference held on Jan. 13.
○ The central bank of China conducted an MLF with 305.5 billion yuan on Jan. 13 and most of them have a period of one year. It shows that the central will tighten the short-term policies while loosen long-term ones.
○ The opinions on facilitating the healthy and orderly development of the mobile Internet has been issued recently, proposing to speed up in the coverage of 4G network and the research and development of 5G technologies.
○ The work report of the government of Beijing released on Jan. 14 proposed to promote the joint establishment of technical parks and industrial bases in Beijing, Tianjin and Hebei.
○ Chongqing will adjust the policies on the property tax from Jan. 14. The ley of property taxes on certain buyers will expand from the second house to the first house.
TOP
[Industry Information]
○ Policies to favor charging facilities for electric vehicles, facilities construction expected to speed up
------
China will strive to build 800,000 new charging piles in 2017, among which 700,000 will be for specific use and 100,000 for public use, Zheng Zhajie, deputy director of the National Energy Administration said at the China EV 100 Forum 2017 held on Jan. 14. Meanwhile, China will guide the industry to explore into reasonable business model and strictly carry out preferential electricity price. Subsidy will be inclined to charging from car purchasing. 

Comment: Data shoes that in 2016 public charging piles across the country increased to 150,000 from less than 50,000 at the beginning of the year. Over 80 percent of the newly installed charging piles were private. Institutes estimate that with the rapid construction of charging network, China's charging facilities market will reach a size of 132 billion yuan by 2020. XJ Electric Co., Ltd. (000400.SZ) undertook the construction of the electric vehicle fast-charging network along Beijing-Hong Kong-Macao Expressway, Beijing-Shanghai Expressway and Qingdao-Ningxia Expressway. Shenzhen Auto Electric Power Plant Co., Ltd. (002227.SZ) owns a matrix flexible charging pile which is characterized by modularization, standardization, pre-installation and integration.
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○ Commercial aerospace industry advances, market expected to expand continuously
------
SSN learnt that Beijing Landscape Technology Corporation and Denmark company GomSpace signed a cooperation agreement on rocket launching service in Hangzhou on Jan. 13. It is the first order in commercial launching service that Chinese private enterprise obtained from the international market. Not long before China Aerospace Science and Industry Corporation (CASIC) successfully launched its KZ-1A carrier rocket, becoming China's first commercial rocket.

Comment: Evidences show that China's commercial aerospace industry is booming. According to the Space Report 2015 published by the US Space Foundation, the aggregate global aerospace economy is around 330 billion U.S. dollars. The proportion of commercial aerospace industry is as high as 76 percent. Institutes note in their research report that as China gradually removes its policy barriers and the business model becomes clearer, the commercial aerospace market will expand continuously. They are bullish for satellite launching and application.
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[Announcement Interpretation]
○ Leshi Internet Information ＆ Technology gains financing worth RMB16.8 bln from 3 firms including Sunac China Holdings 
------
Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) and relevant entities related to Leshi gained more than 16.8 billion yuan of capitals from Sunac China Holdings Limited, Leran Investment Management Co., Ltd. and Hua Insurance Co., Ltd. The listed company and its holding subsidiary will receive capitals worth about 7.1 billion yuan. Specifically, Jia Yueting will transfer its 8.61 percent equity of Leshi Internet Information ＆ Technology to Jiarui Huixin Co., Ltd, which is actually controlled by Sunac China Holdings, at a price of 35.39 yuan per share. So the transaction will cost 6.041 billion yuan. And Sunac China Holdings becomes the second largest shareholder of Leshi Internet Information ＆ Technology. Jiarui Huixin gets 15 percent equity of Le Vision Pictures at 1.05 billion yuan; and it also becomes the second largest shareholder of Leshi Zhixin Electronic Technology (Tianjin) Co., Ltd. by getting 33.5 percent equity at 7.95 billion yuan. Leran Investment Management and Hua Insurance invest 1.43 billion yuan and 400 million yuan in Leshi Zhixin Electronic Technology, and Leshi Internet Information ＆ Technology is still the controlling shareholder of Leshi Zhixin Electronic Technology. 

Leshi Internet Information ＆ Technology and Sunac China Holdings conduct cooperation in fields such as intelligent hardware, Internet plus real estate, Internet eco-town themed with automobile and films and movies, smart home and smart community. The listed company indicated that this move tackles the capital bottleneck issue during implementing strategy. 

○ Lingzi Equity Investment Fund buys shares of New Huang Pu Real Estate at 5 pct limit through secondary market acquisition 
------
Shanghai New Huang Pu Real Estate Co., Ltd. recently received a notice that Shanghai Lingzi Equity Investment Fund Partnership (Limited Partnership) bought 28,058,200 shares of the listed company during Jan. 10 and 13, with equity proportion among the total share capital reaching 5 percent limit through secondary market acquisition. Lingzi Equity Investment Fund stated that it had the shareholding increase mainly because it was rosy about the company's future development prospect, and would continue to buy more shares depending on situation in next 12 months. Substantial shareholder of Lingzi Equity Investment Fund is Xiamen International Trust Co., Ltd holding 99.9 percent equity. 

○ Electric Company to raise RMB1 bln by private placement for investing in main business 
------
Guoguang Electric Company Limited (002045.SZ) proposes to issue no more than 92,592,600 shares to Nantong Juda Investment Co., Ltd., Beijing Genimous Deguang Investment Center (Limited Partnership) and Tibet Genimous Investment Co., Ltd. through private placement at 10.80 yuan per share so as to raise no more than 1 billion yuan, which will be used for technical improvement projects of mini loudspeaker products and intelligent sound products. The latter two are persons in concerted action, and will totally hold 10.90 percent equities of the listed company after private placement. 

○ The controlling shareholder of Haimo Technologies Group Corp. (300084.SZ) on Jan. 12 bought 3.85 million shares of the latter. Fujian Snowman Co., Ltd. (002639.SZ) announces, up to Jan. 13, its actual controller and senior management had totally increased 4,436,500 shareholdings in the listed company. 

[Financial Reports Express]
○ Summit Resources and others announce growth forecast
------
Tibet Summit Resources Co., Ltd. (600338.SH) announces growth forecast of 287 to 337 percent in its annual report, mainly due to rebounding lead and zinc princes; net profit forecast of 600 to 700 million yuan for China Enterprise Company Limited (600675.SH), greatly gaining profits from losses mainly due to selling 30 percent equities of Tianjin Xinghuacheng Property Co., Ltd.; growth forecast of 201 to 229 percent for Xuzhou Handler Special Vehicle Co., Ltd. (300201.SZ) mainly due to combined financial statement with Shenzhen Lianshuo Automation Technology Co., Ltd.; growth forecast of 130 to 150 percent for Shenzhen Sunway Communication Co., Ltd. (300136.SZ) mainly due to sales scale expansion; growth forecast of 87 to 112 percent for Jiangsu Xiuqiang Glasswork Co., Ltd. (300160.SZ) mainly due to combined financial statement with Hangzhou Whole Person Education Group; performance forecast of 356 to 378 million yuan for Teamax Smart City Technology Corporation Limited (000662.SZ), greatly gaining profits from losses mainly due to combined financial statement with Teamax Technology Group. 

[Trading Alarms]
○ IPOs of BizConf Telecom, Ruite Electric and Add Industry on Jan. 16
------
BizConf Telecom Co., Ltd. (300578.SZ) mainly engaged in telecommunication cooperation service will issue new shares at an offering price of 9.7 yuan per share with upper subscription limit of 18,000 shares; offering price of 13.73 yuan per share and upper subscription limit of 10,000 shares for Changshu Ruite Electric Co., Ltd. (300600.SZ) mainly engaged in marine electronics system; 11.63 yuan per share and 9,000 shares respectively for Add Industry (Zhejiang) Corporation Limited (732089.SH) mainly engaged in damper for vehicle suspension system.

[Weekly review]
○ Wait for the market to restore confidence
------
The major indexes of the Shanghai and Shenzhen bourses last week declined for four consecutive days, and the money effect of the market continue to weaken. In Western economics, the relationship between supply and demand is a key emphasis. People adhering to this belief thus attributed the market declines to the increase of IPOs of new shares. In fact, according to historic experience, the new IPOs and up and downs of stock indexes are not so relevant. A quick turn from plummet to surge doesn't necessarily require significant improvement of fundamentals or relation between supply and demand, but key events that can restore the confidence of the market are indispensable.

The Treasury bond futures showed a V-shape trend last year, from shocking decline to the daily limit to continuous rebound. It is the improvement of market confident rather than prudent and neutral monetary policy that lifted the market. On Dec. 20, Sealand Securities and various institutions involved in unauthorized transactions reached a consensus to jointly assume the responsibility, and eased the investors' concern that liquidity might be frozen due to default events. Steel futures also experienced an up and down at the beginning of the year. The turning point came on Jan. 10 when the National Development and Reform Commission (NDRC) required that all the outdated capacity of steel production should be cleaned in the first half of 2017. Thus steel market participants' confidence on de-capacity policy reignited. 

Concerns on the implementation of policy execution, foreign exchange fluctuation, tight money supply. all these are unassailable in explaining the decline of the stock, bond and futures market after it happened. However, investors who put money into the market should not focus on such broad themes. Instead, they should observe carefully iconic events that could restore the market confidence.
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]]> http://en.xfafinance.com/plus/view.php?aid=295115 Xinhua Finance Agency Early Bird Fri, 13 Jan 2017 13:37:44 +0800 http://en.xfafinance.com/plus/view.php?aid=295115 [Today's Guide]
○ SASAC set tasks in SOEs reform, mixed ownership reform and overall listing to speed up
○ Plan on transformation and upgrading of ship industry released, construction of information infrastructure to embrace investment with RMB1 trln
○ Lingyun Industrial Corporation to buy military assets at RMB1.289 bln, actual controller of EGing Photovoltaic Technology to transfer equities
○ Shenzhen Metro to acquire equities of China Vanke held by China Resources with premiums, Dear-Hanyu Electrical Joint-Stock proposes high share conversion and dividend

[SSN Focus]
○ SASAC set tasks in SOEs reform, mixed ownership reform and overall listing to speed up
------
The meeting of responsible persons of central enterprises and local state-owned assets supervision and administration commissions (SASACs) was held on Jan. 12. It proposed to fully advance the classified reform of central enterprises, deeply promote the corporate and mixed ownership reform and actively explore diversified equity reform of groups. It will complete the corporate reform of SOEs, encourage cross-shareholding among central enterprises and local SOEs and advance the restructuring and listing to make breakthroughs in mixed ownership reform. It will make substantial progresses in power, oil, natural gas, railway, civil aviation, telecommunication and military engineering industries and focus on the pilot employee shareholding in 10 central enterprises with mixed ownership.

Comment: 2017 is crucial in SOEs reform and the mixed ownership reform will see breakthroughs. Many central enterprises in the key major industries proposed by the SASAC have initiated the mixed ownership reform. China National Petroleum Corporation and China North Industries Group Corporation (Norinco Group) have released the guidance on mixed ownership reform. It is reported that the classification of SOEs' functions has been completed and will be released soon. It means that the mixed ownership on the basis of classification will speed up. The meeting also highlighted the diversified equities and the restructuring for listing. The overall listing of central enterprises will speed up.

◆ The State Development ＆ Investment Corporation (SDIC) held the work conference for 2017 recently. It proposed to fully advance pilot reforms and grant classified authorizations to 11 subsidies, including SDIC Power Holdings Co., Ltd. (600886.SH). It also chose SDIC Power Holdings to conduct the pilot reform on professional managers. The asset management business of SDIC exceeded 1 trillion yuan last year. It will build a financial control platform. 

○ SSF initiates bidding, basic pension insurance fund to invested in securities market around Spring Festival at the soonest
------
SSN learnt that substantial progress has been achieved again for the investment of basic pension insurance fund in the securities market. China's National Council for Social Security Fund (SSF) officially initiated the bidding process in early January and shortlisted institutions will be further selected from four directions, which are stock, bond, cash and quantification. Up to now, the bidding in some directions has nearly been completed. Industry insiders estimate that according to current progress, at the soonest, the account opening and fund appropriation for the securities investment and management accounts of some basic pension insurance fund can be done before the Spring Festival, while most of the basic pension insurance fund will be invested in the securities market after the Spring Festival.

[SSN Selection]
○ As indicated by the China Financial Futures Exchange (CFFEX) on Jan. 12, it noticed that some media reported that there will be some changes about the trading rules of the stock index futures. The CFFEX has always been working on the research and proof of relevant work, trying to make stock index futures play a positive role in the market.
○ Data from China's central bank shows that 1.04 trillion yuan was added to the RMB loans in December 2016, representing a year-on-year growth of 446.6 billion yuan.
○ An inspection team of the State Council focusing on obsoleting outdated capacity in iron ＆ steel and coal industries went to Shanxi province for supervision. It is required that the resurgence of outdated capacity must be completely walled up.
○ The General Office of the State Council recently released the Guidance on Constructing the Technology System of "Internet plus Government Affairs Services". Such move aims to build a unified data sharing and exchanging platform.
○ The national insurance regulation work conference held on Jan. 12 required advance three strategies and put the "prevention and control of risks" in the first place.
TOP
[Industry Information]
○ Plan on transformation and upgrading of ship industry released, supports conversion of civil and military technologies
------
The Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission (NDRC) recently issued the action plan on deepening the structural adjustment and accelerating the transformation and upgrading of the ship industry (from 2016-2020). The plan proposes that by 2020, China should reach the world advanced level in high-tech ship and marine engineering equipment concepts/infrastructure and fully grasp core technologies in ship power, deck machinery, cabin equipment, communication and navigation and intelligent system and equipment. China should further strengthen researches on the conversion of military technology for civil use as well as the technology for both civil and military use and support two-way conversion of civil and military technologies. 

Comment: Xin Guobin, vice-minister of the MIIT said that the conversion of mature and stable military technology for civil use will give powerful impetus to the economic and social development, cultivate new industrial form and form new economic growth point. Enterprises with military ship technologies are expected to open wider market by converting military technologies for civil use. Xiangtan Electric Manufacturing Co., Ltd. (600416.SH) plans to build a research system and production base for naval vessel power-driven system. CSSC Offshore ＆ Marine Engineering (Group) Company Limited (600685.SH; 00317.HK) has developed the military ship file by acquiring CSSC Guangzhou Huangpu Shipbuilding Co., Ltd.

○ Construction of information infrastructure to embrace investment with RMB1 trln, optical communication market to keep high prosperity 
------
National Development and Reform Commission and Ministry of Industry and Information Technology issued 3-year action plan on major projects of information infrastructure. They put forward that by 2018, the length of fiber optic trunk cable will increase 90,000 kilometers and the number of terminal of fiber to the home will be added by 200 million; 2 million 4G base stations will be added so as to realize full coverage of 4G network in towns and densely populated administrative villages, and more than 75 percent of houses use mobile broadband. In order to ensure achievement of task and goal, 1.2 trillion yuan needs to be invested in construction of information infrastructure during 2016 and 2018. 

Comment: Institutions think that driven by development and upgrading of fixed network broadband and demand for data center, optical communication market will keep high prosperity in 2017. Hengtong Optic-electric Co., Ltd. (600487.SH) has the ability to produce optical wand, optical fiber, optical cable and optical distribution network. Accelink Technologies Co., Ltd. (002281.SZ) is engaged in development and manufacturing of optoelectronic device of optical communication field. 
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[Announcement Interpretation] 
○ Lingyun Industrial Corporation to buy military assets at RMB1.289 bln 
------
Lingyun Industrial Corporation Limited (600480.SH) plans to purchase 100 percent equity of CNGG Hebei Taihang Machinery Industries Co., Ltd. held by North Lingyun Industrial Group Co., Ltd. by issuing 110 million stocks at a price of 11.63 yuan per share through private placement. It will also acquire 100 percent equity of OLinkStar Co., Ltd. held by several institutes and companies and 8 natural persons at a total cost of 1.289 billion yuan. The appreciation ratio is estimated to be 266.42 percent. Meanwhile, the company plans to raise 236 million yuan at most by issuing 18,055,900 shares to North Lingyun Industrial Group and North Industries Group Investment Management Company Ltd. at a price of 13.05 yuan per share through private placement. Via this acquisition, the company's new business will include parts and components of launcher of light rocket (missile) and rail transit cars, chips for Beidou Navigation and other military and civil products.

○ Actual controller of EGing Photovoltaic Technology to transfer 7.59 pct equities with great premiums
------
Xun Jianhua, actual controller of EGing Photovoltaic Technology Co., Ltd. (600537.SH), plans to transfer his held 89.28 million shares (7.59 percent equities) to Keenstar Investment Co., Ltd., and the transaction price totals at 1.5 billion yuan, including specialized compensation of 695 million yuan for Xun to make up the profit of the listed company. After equity transfer, Xun's shareholding proportion will reduce to 22.77 percent. 

Based on calculation of 1.5 billion yuan, Keenstar Investment will cost around 16.8 yuan per share to invest in the listed company this time, with a premium of 126 percent compared to the stock price of 7.43 yuan per share before the trading suspension. Keenstar Investment indicated it is optimistic on PV industrial development prospect of China, and this move could help it step into new energy sector. 
TOP
○ Shenzhen Metro to acquire equities of China Vanke held by China Resources with premiums
------
China Resources (Holdings) Co., Ltd. proposes to transfer its held 15.31 percent equities of China Vanke Co., Ltd. (000002.SZ) to Shenzhen Metro Group Co., Ltd., and the transaction price is 22 yuan per share, higher than China Vanke's stock price of 20.4 yuan per share before the trading suspension. After the transaction, State-owned Assets Supervision and Administration Commission of Shenzhen Municipality and its "allies" (management of China Vanke, Evergrande Group and etc.) will hold a total shareholdings more than those held by Baoneng Group. 

○ Controlling shareholder of Changjiu Biochemical Industry to publically transfer equities 
------
Jiangxi Changjiu Chemical Group Co., Ltd., controlling shareholder of Jiangxi Changjiu Biochemical Industry Co., Ltd. (600228.SH), plans to transfer its held 99.58 percent equities through Jiangxi Assets and Equity Exchange. Currently, the system reform of Changjiu Chemical Group has not been fully finished yet, Changjiu Biochemical Industry indicated. 

○ Mizuda Printing＆ Dyeing Group proposes to acquire Wangneng Energy with RMB4.25 bln
------
Zhejiang Mizuda Printing＆ Dyeing Group Co., Ltd. (002034.SZ) proposes to acquire the entire equities of Zhejiang Wangneng Energy Co., Ltd. at the valuation of 4.25 billion yuan. It plans to purchase the assets by issuing shares at 31.34 yuan per share through private placement. At the same time, the company proposes to raise supporting fund of 1.5 billion yuan at no less than 31.6 yuan per share. Wangneng Energy is a leading player in the waste to energy (WTE) industry. Its committed net profits deducted of non-recurring profit or loss for 2017, 2018 and 2019 will be no less than 240 million yuan, 300 million yuan and 400 million yuan respectively.  

[Financial Reports Express]
○ Dear-Hanyu Electrical Joint-Stock proposes high share conversion and dividend 
------
Jiangmen iDear-Hanyu Electrical Joint-Stock Co., Ltd. (300403.SZ) expects 26 percent to 36 percent growth in the annual report. Its actual controller proposes 15-for-10 conversion of capital surplus into shares. Shenzhen Ysstech Info-Tech Co., Ltd. (300377.SZ) expects its results to double in the annual report. Its actual controller proposes 30-for-10 conversion of capital surplus in to shares combined with 2 yuan dividend for each 10 shares. Its shareholder will reduce shareholding.

○ Nanshan Power turns losses into gains
------
Shenzhen Nanshan Power Co., Ltd. (000037.SZ) reports profit of 1.3 billion yuan in the annual report and turned losses into gains, primarily due to disposal of the equity rights of its subsidiary. Hisense Kelon Electrical Holdings Co., Ltd. (000921.SZ) forecasts 80 percent to 100 percent growth in its annual report, primarily due to revenue growth. Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) forecasts 86 percent to 116 percent growth in the annual report, primarily due to the rapid development of composite quartz business. 

[Trading Alarm]
○ Three new shares offer for subscription on Jan. 13
------
Huada Automotive Technology Co., Ltd. (732358.SZ) will offer subscription at 31.18 yuan per share. The upper limit for each applicant is 16,000 shares. The company is primarily engaged in auto parts. Eurocrane Co., Ltd. (732966.SZ) will offer for subscription at 7.32 yuan per share. The upper limit for each applicant is 16,000 shares. The company is primarily engaged in hoisting machinery. Shenzhen Tongxingda Technology Co., Ltd. (002845.SZ) will offer for subscription at 15.99 yuan per share. The upper limit for each applicant is 9,500 shares. The company is primarily involved in LCD module.
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]]> http://en.xfafinance.com/plus/view.php?aid=294801 Xinhua Finance Agency Early Bird Thu, 12 Jan 2017 13:37:17 +0800 http://en.xfafinance.com/plus/view.php?aid=294801 [Today's Guide]
○ Third FTZs to establish, Shaanxi and Hubei prepared for official establishment
○ Tencent introduces new red envelope game, Tungsten concentrate prices rise slightly
○ Controlling shareholder of Chang Jiang Shipping Group Phoenix transfers all of its equity, Shenda to buy overseas assets at USD300 mln
○ Longwei Culture Media invests in Zhejiang Wanjia, Saimo Electric and others propose high share conversion and dividend

[SSN Focus] 
○ Third FTZs to establish, Shaanxi and Hubei prepared for official establishment
------
SSN learnt that the third batch of pilot free trade zones (FTZs) will be released soon. Shaanxi and Hubei have initiated the preparation for the official establishment of FTAs. The official establishment of Shaanxi FTZ has been initiated, indicated Zhao Runmin, director of the Department of Commerce Shaanxi Province. Local media reported that the leading group on the China (Hubei) Pilot Free Trade Zone held the first meeting on Jan. 10, making arrangements on the preparation of the establishment of Hubei FTZ and advancing the construction of the FTZ.

Comment: China determined to establish the third batch of FTZs last August. Based on past experiences, it takes months from the approval of the establishment of FTZs by the State Council to the official establishment. Shaanxi FTZ will focus on aerospace, trade logistics, cultural tourism and energy and finance. Xi'an Tourism Co., Ltd. (000610.SZ) is developing full industrial chains in tourism. Hubei FTZ is positioned as a base for strategically emerging and high-tech industries. Wuhan East Lake High Technology Group Co., Ltd. (600133.SH) is engaged in the development of technical industrial parks.

○ XPCC to support listed companies with continuous losses
------
Xinjiang Production and Construction Corps (XPCC) held a work conference on development and reform on Jan. 10. SSN learnt that the XPCC will actively assist listed companies with difficulties and continuous losses in consolidating quality assets through financial channels. It will also promote certain listed companies to conduct industrial adjustment and asset reorganizations.

[SSN Selection]
○ The executive meeting of the State Council held on Jan. 11 defined the measures to develop regional equity market in a standardized way, and qualified investor system will be implemented.
○ The State Council held a video and telephone conference for national safety production on Jan. 11, requiring enhancing the support of safety technology and the ability to dispose accidents.
○ The National Development and Reform Commission (NDRC) released the 13th five-year plan for the construction of national major technology infrastructure, proposing to prioritize the construction of 10 projects with high-precision foundation timing system included.
○ The National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) recently issued guidance on boosting healthy development of food industry, proposing to perfect the logistics construction and operation standards of food cold-chain.
○ The northbound trading of the Shanghai-Hong Kong Stock Connect saw a net inflow of 793 million yuan on Jan. 11, and it was the first net inflow in past dozens of trading days.

TOP
[Industry Information]
○ Tencent introduces "LBS   AR Red Packet", relevant enterprises to benefit from explosive growth of "AR LBS" industry
------
On Jan. 11, Tencent introduced how to play QQ red envelopes during the Spring Festival in 2017, including "LBS   AR Red Packet". The red envelopes will be distributed by merchants, stars and individuals. Based on LBS technology, merchants and stars will distribute cash or coupons prepared by them at millions of geographical locations in the country. As long as people are within 120 meters of the places where the "red envelopes" are placed, they can click on the red envelope, switch on the camera automatically and get the chance to draw money from one of the three red envelopes.

Comment: Institutes believe that AR red envelope is a new AR LBS technology-based marketing model that has great potential. Leading companies that have advantages in technology research and development and made investment in online and offline traffic entrance are expected to benefit from the explosive growth of the AR LBS industry. Hi-Target Navigation Tech Co., Ltd. (300177.SZ) says on its interactive platform that its 3D laser and indoor positioning technology can be applied in the field of panoramic information and AR. Svg Optronics Co., Ltd. (300331.SZ) has developed nanometer waveguide optical-field lens for AR use.

○ Tungsten concentrate prices rise slightly on fewer supplies
------
SSN leant that tungsten concentrate prices increased slightly on Jan. 11. The price of black tungsten concentrate rose by 500 yuan per tonne to 71,000 yuan to 73,000 yuan per tonne. The price of APT also rose slightly. Most APT manufacturers are likely to shut down for overhaul before the latter half of the month. As the operation rate and productivity reduced remarkably, APT supply decreases.

Comment: Recently, Tungsten Industry Association of Ganzhou City released MSRP for January of 2017 with prices of various products all increasing slightly when compared with those in December last year. At present, sales prices of manufacturers stand high. Supply and demand situation of tungsten products are expected to see improvement due to few supply from the market. 
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[Announcement Interpretation]
○ Controlling shareholder of Chang Jiang Shipping Group Phoenix transfers all of its equity 
------
Tianjin Shun Hang Marine Transportation Co., Ltd., controlling shareholder of Chang Jiang Shipping Group Phoenix Co., Ltd. (000520.SZ), plans to transfer all of its 181 million stocks of the listed company (accounting for 17.89 percent of total share capital of the listed company) to Guangdong Wenhua Furui Investment Co., Ltd. The transfer price is provisionally set at 1.9 billion yuan, namely stock price set at about 10.50 yuan per share with a premium of over 30 percent compared with the price before trading suspension. With the transfer done, the company's actual controller will be changed into Chen Wenjie. Guangdong Wenhua Furui Investment has registered capital of 30 million yuan and 95 percent of equity is held by Chen. Business of the company covers investment and management, automobile components and parts, automobile decoration, mechanical and electrical products, metal material and chemical products. 

○ Shenda to buy overseas assets at USD300 mln 
------
Shanghai Shenda Co., Ltd. (600626.SH) plans to purchase 70 percent equity of companies related to ST＆A business of LACG SA through paying in cash. The consideration is estimated to be 310.8 million US dollars. After the deal is finished, Shenda will gain huge global customer base, which will further enlarge its market share in automobile interior business and develop itself into a global ST＆A supplier. 
TOP
○ Longwei Culture Media invests RMB 3.06 bln in Zhejiang Wanjia，actress Zhao Wei becomes actual controller
------
Wanjia Group, the largest shareholder of Zhejiang Wanjia Co., Ltd. (600576.SH), entered into a share transfer agreement with Tibet Longwei Culture Media Co., Ltd. The latter proposes to use 3.06 billion yuan fundraising to buy 29.135 percent equities of the listed company. Upon completion of the transaction, Longwei Culture Media will become the new largest shareholder of the listed company. The well-known actress Zhao Wei holds 95 percent equities of Longwei Culture Media, thus she will become the new actual controller of the listed company. Zhejiang Wanjia indicates that Zhao Wei as famous actress has rich experience in running various culture companies. She will bring benefits to the company in terms of both market influence and industrial resources. 

○ Flowers King Ecological Engineering Co., Ltd. (603007.SH) won the bid for the Engineering Procurement Construction project of wetland restoration and protection for Linhe District, Bayannur City in Inner Mongoli. The contract sum of the project is 989 million yuan.The total revenue of the company in 2015 was 539 million yuan. 

○ Controlling shareholder increase holding in Zhongtai Bridge Steel Structure
------
Controlling shareholder of Jiangsu Zhongtai Bridge Steel Structure Co., Ltd. (002659.SZ) from Jan. 10 to Jan. 11 in total increased holding 4.98 million shares in the company. Controlling shareholder of Xiwang Foodstuffs Co., Ltd. (000639.SZ) from Jan. 6 to Jan.11 in total increased holding 1.41 million shares of the company. Controlling shareholder of Suzhou Hesheng Special Material Co., Ltd. (002290.SZ) from Dec. 26, 2016 to Jan. 11, 2017 in total increased holding 1.4 million shares of the company. Controlling shareholder of Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH) from Dec. 26, 2016 to Jan. 11, 2017 in total increased holding 4.92 million shares in the company. 

[Financial Reports Express]
○ Saimo Electric, Transtek Medical Electronics, Kaiser (China) Culture and Emperor Technology propose high share conversion and dividend 
------
Saimo Electric Co., Ltd. (300466.SZ) announces growth forecast of 85 to 105 percent according to its annual report, and its actual controller proposes a 20-for-10 conversion of capital surplus into shares combined with 0.3 yuan dividend for every 10 shares; growth forecast of 60 percent for Guangdong Transtek Medical Electronics Co., Ltd. (300562.SZ), with its controlling shareholder proposing a 22-for-10 conversion of capital surplus into shares combined with 2 yuan dividend; growth forecast of 72 to 122 percent and a 20-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for Kaiser (China) Culture Co., Ltd. (002425.SZ); growth forecast of 10 to 16 percent and a 15-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for Shenzhen Emperor Technology Company Limited (300546.SZ).

○ China Fangda Group, Xinke New Materials and others announce growth forecast
------
China Fangda Group Co., Ltd. (000055.SZ) announces growth forecast of 506 to 562 percent in its annual report, mainly due to greatly grown sales revenue; growth forecast of 400 to 520 percent for Anhui Xinke New Materials Co., Ltd. (600255.SH), mainly due to growth in film ＆ TV ＆ culture business and investment yields; growth forecast of around 461 percent for Ningbo Marine Company Limited (600798.SH), mainly due to soared profit of holding subsidiaries.  

Sichuan Jinlu Group Co., Ltd. (000510.SZ) announces growth forecast of 291 to 341 percent in its annual report, mainly due to constantly rebounding prices of its main products PVC resin and caustic soda; growth forecast of 100 percent for Shenzhen Capchem Technology Co., Ltd. (300037.SZ), mainly due to booming production and sales of lithium products. Zhejiang Satellite Petrochemical Co., Ltd. (002648.SZ) increases its growth forecast rate to 157 to 180 percent, mainly due to product price uptrend.

[Trading Alarms]
○ IPOs of Zhangjiagang Rural Commercial Bank, Jlu Communication Design Institute and Jiyou New Materials on Jan. 12
------
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd. (002839.SZ) is mainly engaged in banking and financial business, with an offering price of 4.37 yuan per share and upper subscription limit of 54,000 shares; 5.53 yuan per share and 24,000 shares for Jilin Jlu Communication Design Institute Co., Ltd. (300597.SZ) mainly engaged in communication engineering projects; 15 yuan per share and 17,000 shares for Anhui Jiyou New Materials Co., Ltd. (732429.SH) mainly engaged in cigarette fitter paper.
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]]> http://en.xfafinance.com/plus/view.php?aid=294423 Xinhua Finance Agency Early Bird Wed, 11 Jan 2017 13:41:07 +0800 http://en.xfafinance.com/plus/view.php?aid=294423 [Today's Guide]
○ CBRC arranges debt-for-equity swaps, SOEs with high debts to participate
○ Policies support private investment in medical sector, private hospitals expected to expand rapidly
○ Glyphosate price keeps growing, institutions think potential for price to continue to hike 
○ Actual controller of Tatwah Smartech transfers 7.8 pct. equity to Zhicheng Investment Center, actual controller of Int'l Group possibly to change

[SSN Focus]
○ CBRC arranges debt-for-equity swaps, SOEs with high debts to participate
------
China Banking Regulatory Commission (CBRC) held a video and telephone conference on the supervision and regulation on the national banking industry in 2017 on Jan. 10 and made plan on key tasks of the year. It proposed to steadily conduct market-based debt-for-equity swaps and support de-leveraging. The subjects, prices and conditions of debt-for-equity swaps shall be determined through independent negotiation and quality enterprises with rosy prospects and temporary difficulties will be encouraged to conduct market-based debt-for-equity swaps. The total agreed amount of debt-for-equity swaps has exceeded 300 billion yuan, indicated Xu Shaoshi, Chairman of National Development and Reform Commission, on the same day.

Comment: State-owned banks have introduced various debt-for-equity swap programs recently. The Industrial and Commercial Bank of China and SOEs in Shanxi, including Taiyuan Iron ＆ Steel Group, Datong Coal Mine Group and Yangquan Coal Industry Group, China Construction Bank and SOEs in Shaanxi, including Shaanxi Coal and Chemical Industry Group, Shaanxi Non-ferrous Metals Holding Group and Shaanxi Energy Group have signed agreements with tens of billions of yuan. Institutes are rosy about SOEs with high debts in coal, iron ＆ steel, non-ferrous and other cyclical industries to benefit from optimized financing structure. The profitability of AMC companies as professional agencies for the disposal of bad assets will be improved.

[SSN Selection]
○ The government work report released by Ningxia Hui autonomous region on Jan. 10 proposed to actively develop mixed-ownership economy. The government work report released by Tibet autonomous region laid stress on the integration and reorganization of state-owned enterprises.
○ The National Technology Work Conference was held on Jan. 10. Wan Gang, minister of science and technology, indicated that the special plan for artificial intelligence will be worked out in 2017.
○ The Air Traffic Management Bureau of Civil Aviation Administration of China indicated that the investment demand in China's air traffic management system is expected to total 57 billion yuan during the 13th five-year plan period (2016-2020), and the construction of infrastructure for air traffic management will be accelerated.
○ SSN learnt that the core premium indicators of listed insurance companies embraced "a good start" in the first week of 2017, and product cost also obviously declined.
○ The securities margin witnessed a net outflow of 18.7 billion yuan in the first week after the New Year, while the same periods of previous two years both saw a net inflow of over 100 billion yuan.
TOP
[Industry Information]
○ Policies support private investment in medical sector, private hospitals expected to expand rapidly
------
The State Council proposed various development indicators for the medical sector in the recently-issued 13th Five-Year Plan on public healthcare. One of the most prominent indicators is that by 2020 the proportion of berths in private hospitals should increase to over 30 percent from 19.4 percent in 2015. The plan also proposes to develop private investment in the medical sector and encourage private capital to participate in the health service sector.

Comment: Institutes point out that under the background of supportive policies and extremely imbalance of supply and demand of medical services, private capital will maintain a high passion to invest in hospitals. Private hospitals are expected to integrate doctor resources to improve their quality and contents of medical services and expand rapidly. Ningbo Sanxing Medical Electric Co., Ltd. (601567.SH) has transformed its business to medical services after acquiring the largest grade-III hospital Zhejiang University Mingzhou Hospital in Zhejiang province. Guizhou Yibai Pharmaceutical Co., Ltd. (600594.SH) owns three hospitals and several treatment centers. The company has actively transformed to precision treatment for tumor.
TOP
○ Glyphosate price keeps growing, institutions think potential for price to continue to hike 
------
Enterprises continue to raise quotation of glyphosate in recent week. FOB of 97 percent of raw powder of Jiangsu Yangnong Chemical Co., Ltd. (600486.SH) at Port of Shanghai is raised by 200 US dollars per ton to 3,500-3,600 US dollars per ton now. Price of 98 percent of pmida of Sichuan Hebang Biotechnology Co., Ltd. (603077.SH) is raised by 500 yuan per ton to 16,000 yuan per ton in Port of Shanghai. Glyphosate price keeps growing by over 40 percent since the fourth quarter of last year. 

Comment: Securities traders think that there is still potential for price of glyphosate to increase driven by tightened policy on environmental protection and small input in newly-added capacity. In addition, re-stocking of downstream enterprises and recovery in agrochemical industry will boost demand to pick up. Yangnong Chemical owns annual capacity of producing 30,000 tons of glyphosate. It has sophisticated technologies, which are in accordance with environmental protection, and has stable profitability. Hebang Biotechnology owns production capacity of 50,000 tons of glyphosate and 135,000 tons of pmida. It keeps running in full capacity since the beginning of this year. 
TOP
[Announcement Interpretation]
○ Actual controller of Tatwah Smartech transfers 7.8 pct. equity to Zhicheng Investment Center 
------
Cai Xiaoru, actual controller of Tatwah Smartech Co., Ltd. (002512.SZ) plans to transfer his 85,412,300 shares (accounting for 7.8 percent of the company's total share capital) to Zhuhai Zhicheng Investment Center (Limited Partnership) at a price of 18.56 yuan per share. It sees 12 percent premium when compared with the company's latest closing price of 16.50 yuan. The deal will cost 1.585 billion yuan. After the deal is finished, Cai's shareholding will decrease to 23.39 percent but he will still be the company's actual controller. 

Cai transferred the held 10.07 percent equities to Zhuhai Zhiyuan Investment last November, but Zhicheng Investment Center and Zhuhai Zhiyuan Investment are persons acting in concert, and the actual controller is Xie Zhikun. Therefore, Zhongzhi Enterprise Group Co., Ltd. will hold 17.87 percent equities of the listed company, making it the second largest shareholder. Subsidiaries of Zhongzhi Enterprise Group also indicated this move is to achieve value-added benefits of the shares. In next 12 months, there still is a possibility to decrease the shareholdings. 

○ Actual controller of Int'l Group possibly to alter to SASAC, ZJ
------
Sinochem Group, actual controller of Zhejiang Int'l Group Co., Ltd. (000411.SZ), is negotiating with State-owned Assets Supervision and Administration Commission of Zhejiang Province (SASAC, ZJ) on major issues. If everything goes well, the controlling shareholder of the listed company will be altered to Zhejiang International Business Group Co., Ltd., with actual controller going to be altered to SASAC, ZJ. Its current controlling shareholder Zhejiang Pinghu Hualong Industrial Co., Ltd. and related parties totally hold 28.08 percent equities, and Sinochem Group is now the final controller. 

○ Chengtun Mining Group increases private placement price
------
According to new private placement scheme of Chengtun Mining Group Co., Ltd. (600711.SH), it increases the price to 6.9 yuan per share, with private placement no more than 362 million shares, and reduces fundraising to a scale no more than 2.5 billion yuan. The private placement will be offered to special targets, such as Xiamen C＆D Inc. (600153.SH), asset management plan of Xiamen ITG Group Corp., Ltd. (600755.SH), Yang Xueping who is actual controller of Dr.peng Telecom ＆ Media Group Co., Ltd. (600804.SH) and etc. The fund is raised for supplementing the liquidity, investing in Hengyuan Xinmao project, and building information-oriented platform.

○ The pure electrical passenger car project with annual output of 50,000 of Chongqing Jinkang, a wholly owned subsidiary of Chongqing Sokon Industry Group Co., Ltd. (601127.SH) was approved by the National Development and Reform Commission (NDRC). The listed company indicated that it symbolizes the company has obtained the qualification for the production of pure electric passenger car.

[Financial Reports Express]
○ Multiple companies forecast performance growth
------
Beijing Sanju Environmental Protection ＆ New Materials Co., Ltd. (300072.SZ) forecasts 90 percent to 100 percent growth in the annual report. The controlling shareholder proposes 5-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for each 10 shares. Jiangsu Zhongtian Technology Co., Ltd. (600522.SH) forecasts 60 percent to 80 percent growth in the annual report, primarily due to the price hike of optical fiber. Shenzhen V＆T Technologies Co., Ltd. (300484.SZ) forecasts 104 percent to 126 percent growth in the annual report, primarily due to substantial growth of the company's sales of machine controller for electric passenger cars. Shanghai Dingli Technology Development (Group) Co., Ltd. (600614.SH) forecasts 90 percent to 110 percent growth in the annual report, primarily due consolidation of the financial statements of Luoyang Pengqi. 

[Trading Alarm]
○ Three new shares offer for subscription on Dec. 11
------
China Galaxy Securities (780881.SZ) will offer for subscription at 6.81 yuan per share. The upper limit for each applicant is 180,000 shares. The company is primarily engaged in comprehensive securities service. Guangdong Xiongsu Technology Industrial Co., Ltd. (300599.SZ) will offer for subscription at 7.04 yuan per share. The upper limit for each applicant is 300,000 shares. The company is primarily engaged in plastic conduit. ArcherMind Technology (Nanjing) Co., Ltd. (300598.SZ) will offer for subscription at 8.73 yuan per share. The upper limit for each applicant is 200,000 shares. The company is primarily engaged in software technology service.
TOP
]]> http://en.xfafinance.com/plus/view.php?aid=294017 Xinhua Finance Agency Early Bird Tue, 10 Jan 2017 13:34:38 +0800 http://en.xfafinance.com/plus/view.php?aid=294017 [Today's Guide]
○ Policies support dairy supply-side reform, powder registration to improve supply and demand
○ Chenming Paper expects earnings to double, paper in short supply
○ Controlling shareholder of Maoye Communication and Network transfer equity at premium, Sichuan Langsha bought by Tibet Julang Technology to 5 pct again through secondary market acquisition
○ Zhongtai Chemical, Guangji Pharmaceutical and others announce great growth forecasts, Haili Metal One proposes high share conversion and dividend

[SSN Focus]
○ Policies support dairy supply-side reform, powder registration to improve supply and demand
------
The Ministry of Agriculture and the National Development and Reform Commission (NDRC) released the Plan on the Development of the Dairy Industry (2016-2020), proposing to make significant progresses in the modernization of the dairy industry and make substantial results in the supply-side structural reform in the dairy industry. It also proposed to implement the system on the administration of the registration of formula for powder products for infants and babies and promote the merger and reorganization of relevant enterprises. It will establish domestic brands of powder products for infants and babies with international influence and competitiveness.

Comment: Institutes pointed out that it is expected that the first batch of list in the powder registration system will be released in the second quarter. It will bring another 15 to 20 percent of market share with the elimination of inferior brands. Besides, the currently low inventory will bring a wave of demand for supplementing the inventory. Beingmate Baby ＆ Child Food Co., Ltd. (002570.SZ) is a leader in the domestic powder industry and institutes are rosy that its performance will recover. Inner Mongolia Yili Industrial Group Co., Ltd. (600887.SH) enjoys the biggest market share in the domestic powder market and competitive advantages in channels.

○ Xinjiang to promote state-owned assets reform through mixed ownership reform
------
The fifth meeting of the 12th session of the people's congress of Xinjiang Uygur Autonomous Region was held on Jan. 9. It is disclosed that the mixed ownership reform in state-owned assets reform was under hot discussion. It is reported that Xinjiang will make breakthroughs in mixed ownership reform and promote the state-owned enterprises and assets reform in 2017. It will further loosen the market entry of non-public ownership economies and eliminate all hidden barriers. It will focus on the modern enterprise system and make breakthroughs in the corporate governance structure, the pilot employee shareholding and classified reforms. 

[SSN Selection]
○ The State Council recently released a circular in a recent effort to enhance medical reform during the 13th Five-Year Plan period (2016-2020), proposing to achieve new breakthroughs in the establishment of five systems which are hierarchical diagnosis and treatment, modern hospital management, national medical insurance, medicine supply guarantee and comprehensive supervision.
○ China's central bank on Jan. 9 conducted a net input of 70 billion yuan in the open market to support capital supply before the Spring Festival, ending the net withdrawal in previous four consecutive trading days.
○ The Ministry of Industry and Information Technology (MIIT) and the Ministry of Housing and Urban-Rural Development (MOHURD) released the interim standards and conditions for construction waste resource utilization industries, encouraging key industries to integrate industrial chain.
○ The rocket Kuaizhou-1A (KZ-1A) has successfully sent three satellites into space in its first commercial mission on Jan. 9.
○ Aero Engine Corporation of China held its 2017 annual meeting on Jan. 9, proposing to make great efforts in the development of key types of engines and the implementation of special plans for aero-engine and gas turbine.
TOP
[Industry Information]
○ Chenming Paper expects earnings to double, paper in short supply
------
Shandong Chenming Paper Holdings Limited (000488.SZ; 01812.HK) announced on Jan. 9 night that it expects its net profit to grow 90 to 110 percent year on year in 2016. It explains that it is because continuously rising prices of coated paper and ivory board benefiting from the supply side reform. Records of investors' relationship activities show that a great number of institutions investigated Shandong Sun Paper Industry Joint Stock Co., Ltd. (002078.SZ) and Zhejiang Jingxing Paper Joint Stock Co., Ltd. (002067.SZ). The two companies said that their products are now in short supply and inventories are low, and that their product prices will rise further at a faster pace than cost rise.

Comment: After years of eliminating capacity, those paper companies have become leaders with absolute right of speech. In recent years, the paper industry has seen limited new capacity and environmental factor has reduced market supply. Paper leaders are expected to see their profit improve in an upward cycle due to scale effect and pricing right.

○ Zhao Zhongxian and Tu Youyou win State Supreme Science and Technology Award
------
The National Science and Technology Award Conference was held in Beijing on Jan. 9. Zhao Zhongxian from the Institute of Physics, Chinese Academy of Sciences and Tu Youyou from China Academy of Chinese Medicine Sciences w0n the top Science and Technology Awards. The first prize of the State Natural Science Award falls on the new neutrino oscillation model discovered in a neutrino experiment in Daya Bay rector. The second prize of the State Natural Science Award falls on 41 results, including the "connection between the monsoon changes in Asia and the global climate". The first prize of the State Technical Invention Award falls on three results, including the "high-/super high-temperature coating materials technology and application". 

◆The Beidou Navigation Satellite System (Beidou-2) was the outstanding winner of National Prize for Progress in Science and Technology. It is learnt from Test and Assessment Research Center of China Satellite Navigation Office by China News Service that China will finish launching about 18 global networking satellites around 2018, including 6-8 Beidou Navigation Satellites in 2017. 
TOP
[Announcement Interpretation]
○ Controlling shareholder of Maoye Communication And Network transfers equity 
------
Zhongzhao Investment Management Co., Ltd., controlling shareholder of Maoye Communication And Network Co., Ltd. (000889.SZ), singed agreement with Shenzhen Tongtaida Invesment Center (Limited Partnership) on Jan. 9 to transfer its 70 million shares of Maoye Communication and Network (accounting for 11.26 percent of the company's total share capital) at a price of 20 yuan per share. The deal will totally cost 1.4 billion yuan. The latest stock price closes at 15.59 yuan per share. 

With the transaction done, shareholdings of Zhongzhao Investment Management and its persons acting in concert in Maoye Communication and Network decrease to 24.20 percent, lower than 28.35 percent equity held by Xiaochang Yingxigu Investment Center (Limited Partnership) and its persons in concert. So Zhongzhao Investment Management is no longer controlling shareholder of the listed company, and Xiaochang Yingxigu Investment Center becomes the company's biggest shareholder with 23.86 percent equity. 

○ Sichuan Langsha bought by Tibet Julang Technology to 5 pct again through secondary market acquisition
------
Sichuan Langsha Holding Ltd. (600137.SH) bought by Tibet Julang Technology again through secondary acquisition in just a month. Information disclosure shows that Tibet Julang Technology has bought in 5 percent equities of the listed company from Dec. 19 2016 to Jan. 9, 2017. Previously from Nov. 3 to Dec. 13, 2016, Tibet Julang had bought in 4,861,900 shares of the company. So far, Tibet Julang Technology in total holds 9,721,800 shares of the company, representing 10 percent of its total share capital. Tibet Julang indicates that the acquisitions are financial investments, and it has no intention to obtain the actual controlling right of the company.

○ Ready Health Industry repurchases shares to launch ESOP
------
Xin Jiang Ready Health Industry Co., Ltd. (600090.SH) proposes to repurchase an estimated 6,666,700 shares (representing 0.46 percent of the total share capital) of the company at no more than 15 yuan per share with a total of 100 million yuan, which will be used as subject shares for its employee stock ownership plan (ESOP). The above repurchase price has a premium of 27.7 percent compared with the price before suspension of trading. The repurchasing period will last from the approval at the general meeting to June 30.

○ Largest shareholder of Nbtm New Materials decrease shareholding to motivate senior management team
------
Nbtm Metal, largest shareholder of Nbtm New Materials Group Co., Ltd. (600114.SH), proposes to transfer 22.3 million shares (representing 5.24 percent of the total share capital) of the company held by it to the senior management shareholding platform, to motivate the management team. The transfer price is 15.42 yuan per share, 90 percent of the company's price before suspension of trading. Upon completion of the transaction, the shareholding percentage of Nbtm Metal in the listed company will be reduced to 14.21 percent. The listed company still has no sole controller.
 TOP
[Financial Reports Express]
○ Zhongtai Chemical, Guangji Pharmaceutical and others announce great growth forecasts 
------
Xinjiang Zhongtai Chemical Co., Ltd. (002092.SZ) increases its performance growth forecast to 22,697 percent to 24,651 percent according to annual report, mainly due to market price uptrend of its main products, such as PVC, viscose and yarn; growth forecast of 593 percent to 641 percent for Hubei Guangji Pharmaceutical Co., Ltd. (000952.SZ), mainly due to increase of product sales price and decline of raw materials cost; that for Sinosteel Anhui Tianyuan Technology Co., Ltd. (002057.SZ) is raised to 80 percent to 130 percent, mainly due to massive compensations for demolition; 179 percent to 263 percent for Guangdong Sky Dragon Printing Ink Group Co., Ltd. (300063.SZ), mainly due to combined financial statement with Beijing Unique Advertisement Co., Ltd. 

○ Haili Metal One proposes high share conversion and dividend
------
The controlling shareholder of Qingdao Haili Metal One Co., Ltd. (002537.SZ) proposes a pre-scheme of 12-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares according to its annual report.

[Trading Alarms]
○ IPOs of Carthane, Eddie Precision Machinery and Bichamp Cutting Technology on Jan. 10
------
Shanghai Carthane Co., Ltd. (732037.SH) is mainly engaged in car damping components, with an offering price of 16.01 yuan per share and upper subscription limit of 20,000 shares; hydraulic pressure products, 6.58 yuan per share and 17,000 shares for Yantai Eddie Precision Machinery Co., Ltd. (732638.SH); double-metal-strap saw, 6.08 yuan per share and 14,000 shares for Bichamp Cutting Technology (Hunan) Co., Ltd. (002843.SZ). 
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]]> http://en.xfafinance.com/plus/view.php?aid=293720 Xinhua Finance Agency Early Bird Mon, 09 Jan 2017 13:34:18 +0800 http://en.xfafinance.com/plus/view.php?aid=293720 [Today's Guide]
○ Gains supply-side reform to speed up, corn industry to see new opportunities
○ Geothermal energy to embrace great development, Major national science and technology project shifts to 5G
○ Bohai International Trust to get 15.13 pct. of equity of Longxing Chemical, EVE Energy signed orders worth RMB1 bln with King Long Bus 
○ Two companies proposes high share conversion and dividend，several companies report performance growth
 
[SSN Focus]
○ Gains supply-side reform to speed up, corn industry to see new opportunities
------
The work conference on national grains circulation was held in Beijing from Jan. 7 to 8. It required advancing the reform in the corn purchase and storage system and speeding up in de-stocking of corns. It will cooperate in expanding the output of fuel ethanol and the application and support the processing and transformation of corns. In addition, it will deepen the reform of state-owned grains enterprises and actively develop the mixed ownership grain economy.
 
Comment: Securities companies believe that the seeding industry is a key area in the agricultural supply-side structural reform. As the restructuring and de-stocking complete, the profitability of the corn and other industries will improve. Shandong Denghai Seeds Co., Ltd. (002041.SZ) is a leader of corn seeds and its products are widely planted. COFCO Biochemical (Anhui) Co., Ltd. (000930.SZ) is principally engaged in fuel ethanol. It is a leader in the deep processing of corns. Its controller shareholder is COFCO.
 
[SSN Selection]
○ China Securities Regulatory Commission (CSRC) approved the IPO applications of 14 enterprises, including Chongqing Construction Engineering Group CO., Ltd. They will raise a total of no more than 4.8 billion yuan.
○ Many manufacturers released hardware products based on the Alexa of Amazon at the CES opened on Jan. 5
○ The quoted price of cobaltosic oxide products rose by nearly 10 percent on Jan. 6. Statistics show that the output of cathode materials of lithium batteries surged 43 percent year on year in 2016.
○Chengdu city, Sichuan province recently released its government work report, proposing to perfect urban non-motorized traffic system and support healthy development of sharing traffic like bike-sharing.
○Shanghai Municipal Commission of Housing and Urban-Rural Development announced on Jan. 7 that it will join hands with relevant departments to clear up and exam commercial office projects. During this period, online signing of contracts for such projects will be suspended during this period.
TOP
[Industry Information]
○Renewable energy enjoys advantages in heating, geothermal energy to embrace great development
------
CCTV News on Jan. 7 reported typical cases about that some places in the north part of China use renewable energy for clean heating. A housing estate in Zibo city, Shandong province circularly displaces the heat of underground soil (around 13 ℃) through three terrestrial heat pumps and then gathers the heat together for heating. Qingfeng county, Henan province pumps water from underground 2,000 meters and then heats it up for heating. The geothermal water is poured back directly without pollution.

Comment: Coal-fired boilers are considered to be one of the main causes of haze in northern China in winter. Liang Zhipeng, deputy director of the New Energy Department of the National Energy Administration, said recently that in the process of the transformation of the energy structure and the mode of energy production and consumption, to promote heating supply may have more significant and direct impacts. Geothermal energy is the most important form of renewable energy heating. By 2020, geothermal heating should reach 1.6 billion square meters, with a net increase of 1.1 billion square meters. Among Listed companies, Zhejiang Kaishan Compressor Co., Ltd. (300257.SZ) owns a rich serious of advanced geothermal products and technologies. Yantai Moon Co., Ltd. (000811.SZ) can produce ground source heat pumps.

○ Major national science and technology project shifts to 5G, fully promote 5G R＆D
------
The Ministry of Science and Technology on Jan. 6 held a press conference on the major national science and technology project - "new generation of broadband wireless mobile communication network." It announced that the project will continue during the 13th Five-year Plan period, with its focus changing from 4G to 5G. The project will promote the formation of a unified 5G standard around the world, basically complete the research and development of 5G chips, terminals and system equipment and promote 5G to support the integrated and innovative development of mobile Internet and the Internet of Things, thus laying an industrial foundation for commercializing 5G in 2020 and making China one of the world leader in 5G.

Comment: China Securities expect that China will invest a total of 650 billion yuan in 5G network, up by over 60 percent from the investment in 4G. The main changes in 5G network will concentrate in base station, antenna on the terminal and RF and computing unit. It is bullish about main equipment leader ZTE Corporation (000063.SZ) and base station antenna leader Tongyu Communication Inc. (002792.SZ).
 TOP
[Annoucement Interpretation]
○Bohai International Trust to get 15.13 pct. of equity of Longxing Chemical at RMB1.043 bln 
------
Golden Eagle Fund Management Co., Ltd., second largest shareholder of Longxing Chemical Stock Co., Ltd. (002442.SZ), plans to transfer all of its 72,629,400 shares, accounting for 15.13 percent of the company's total share capital, to a capital trsut plan managed by Bohai International Trust Co., Ltd. at a price of 14.36 yuan per share (the latest closing price is 14.17 yuan per share). The transfer will be worth about 1.043 billion yuan. Bohai International Trust indicates that this transaction is financial investment. 

○EVE Energy signed orders worth RMB1 bln with King Long Bus 
------
EVE Energy Co., Ltd. (300014.SZ) recently signed strategic cooperation agreement with Nanjing King Long Bus Co., Ltd. According to the agreement, King Long Bus will buy power battery worth 1 billion yuan from the listed company in 2017. Operating revenues of EVE Energy recorded 1.349 billion yuan in 2015 and that in the first three quarters posted 1.448 billion yuan. 

○Century Huatong Group expected to gain over 90 pct. equity of Shanda Games
------
Zhejiang Century Huatong Autotive Part Co., Ltd., controlling shareholder of Zhejiang Century Huatong Group Co., Ltd. (002602.SZ), plans to acquire 47.92 percent equity of Shanda Games Limited. This transaction will allow controlling shareholder and substantial shareholders of Century Huatong Group to hold 90.92 percent equity of Shanda Games indirectly. Century Huatong Group thinks that it has the rights to transfer 90.92 percent equity of Shanda Games to listed company. Shanda Games was delisted from Nasdaq Stock Market at the end of 2015. 
 
○ Zhao Dongmei, spouse of the director of Sailun Jinyu Group Co., Ltd. (601058.SH), on Jan. 6 increased holding 6 million shares of the company at the consideration of 24.48 million yuan. 
TOP
[Financial Reports Express]
○ Two companies proposes high share conversion and dividend
------
Loncin Motor Co., Ltd. (603766.SH) reported 13 percent growth in its annual report. The Board of directors has passed the distribution plan of 10-for-15 conversion of capital surplus into shares combined with 5 yuan divided for each 10 shares. Actual controller and controlling shareholder of Zhongzhu Healthcare Holding Co., Ltd. (600568.SH) propose 18-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for each 10 shares in the annual report.

○ Several companies report performance growth
------
Guangdong Wen's Foodstuffs Group Co., Ltd. (300498.SZ) reported 83 percent to 104 percent growth in its annual report, primarily due to the growth of scale of its main business and the price hike of pork. Beijing Lanxum Technology Co., Ltd. (300010.SZ) reported 109 percent to 138 percent growth in its annual report, primarily due to consolidation of the financial statements of Kangbang Technology. Beijing Jetsen Technology Co., Ltd. (300182.SZ) reported 70 percent to 90 percent growth in its annual report, primarily due to the optimistic development of its main business. Beijing Miteno Communication Technology Co., Ltd. (300038.SZ) reported 90 percent to 120 percent growth in its annual report, primarily due to the consolidation of financial statements of Riyue Tongxing Information Technology (Beijing) Co., Ltd.

[Trading Alarm]
○ Three New shares offer for IPO on Jan. 9
------
Jack Sewing Machine Co., Ltd. (732337.SZ) will offer for subscription at 17.72 yuan per share. The upper limit for each applicant is 20,000 shares. The company is primarily engaged in sewing machine. Huakai Creative Co., ltd. (300592.SZ) will offer for subscription at 5.21 yuan per share. The upper limit for each applicant is 12,000 shares. The company is primarily involved in the design of exhibition hall. CVTE (002841.SZ) will offer for subscription at 19.06 yuan per share. The upper limit for each applicant is 11,500 shares. The company is primarily engaged in liquid crystal display (LCD) master card.

[Weekly Review]
○More information to provide based on main market trend 
------
SSE index increased 1.63 percent last week, seeing a favorable performance at the beginning of 2017. But in terms of sector details, performance of individual stocks were very different, as stocks of state-owned enterprises reform (SOEs reform), increasing chemicals price, anti-inflation and other themes were continuously pursued by the market, but those related to sub-new shares and industrial chain of Apple Inc. were weak. Under this situation, it is undoubted to gain more yields from investment closely based on the main market trend. 

It is lucky that we have gained some achievements for helping investors master the main market trend. In fact, "SOEs reform steps in deepening phase, and mixed ownership reform becomes a key direction for breakthroughs", [SSN Focus] of the last publication in 2016 pointed out; "China North Industries Group Corporation (CNIGC) releases opinions on mixed ownership reform", we also reported on Jan. 5 of this year. At the beginning of 2017, individual stocks related to railway mixed ownership reform and CNIGC subsidiaries become the main investment orientation for the market. Additionally, SSN will continue to closely follow up the information of the booming chemical industry. Besides repeatedly-stressed petrochemical industrial chain, we also reported on Jan. 3 that "price of sodium carbonate is raised in some regions", and related individual stocks, like Shandong Haihua Company Limited (000822.SZ), soared around 20 percent within one week. 

Referring to recent attitude of regulatory authorities, the word "stability" will be constantly run through the whole year of 2017 for the capital market. With a premise that monetary policies are hard to ease and new shares are constantly supplied, structural trend may become a main market trend this year. In the future, SSN will consecutively report news closely related to the main market trend, and meanwhile, it will find potential market hotspots, and create bigger value for investors.
TOP]]> http://en.xfafinance.com/plus/view.php?aid=293169 Xinhua Finance Agency Early Bird Fri, 06 Jan 2017 13:37:19 +0800 http://en.xfafinance.com/plus/view.php?aid=293169 [Today's Guide]
○ Guidance on mixed ownership reform in NORINCO Group released, more central enterprises to initiate mixed ownership reform
○ 13th Five-year Planning for agricultural mechanization development issued, high-end demand to escalate
○ Intel launches first 5G communication chip, boost industry development
○ Insigma Tech. wholly controls Watone Cloud Data, Tianyuan Dic Information Technology to acquire Vive ＆ Best Technology

[SSN Focus]
○ Guidance on mixed ownership reform in NORINCO Group released, more central enterprises to initiate mixed ownership reform
------
The guidance on the development of mixed ownership economy in China North Industries Group Corporation (NORINCO Group) (for trial implementation) was released recently. It proposes to improve the modern enterprise system and the corporate governance structure, promote the enterprise to transform the operation system and strengthen the functions of state-owned capitals to achieve the value preservation and increase and promote the joint development of capitals with different ownerships.

Comment: The central economic work held last December proposed that the mixed ownership reform in railway and military engineering industries shall make substantial progresses. China Railway indicated at a work conference that it will advance the mixed ownership reform. Institutes believe that this round of mixed ownership reform targets at monopolized industries. As a belt connecting real economies and social capitals, the capital market will plat an essential role in the mixed ownership reform. There are 11 A-share companies under NORINCO Group. The Group held a training program with Shenzhen Stock Exchange on capital operation. The market expects that more mixed ownership plans on central enterprises in other industries will be released later.

[SSN Selection]
○ A five-year plan (2016-2020) to save energy and cut emissions was recently issued by the State Council. Goals for total energy consumption and intensity have been assigned to provinces (autonomous regions and municipalities).
○ The 13th five-year national energy saving action plan, jointly released by 13 departments, proposed 10 key energy saving projects in areas like waste-heat utilization.
○ A net withdrawal of 435 billion yuan was conducted by China's central bank in the first three trading days of 2017, but capital supply is still relatively easing in the market.
○ China Banking Regulatory Commission (CBRC) recently released the guidance on the supervision over private banks, requiring complementary development of private banks and existing commercial banks.
○ On Jan. 5, China Construction Bank entered into market-oriented debt-to-equity swap framework cooperation agreement with Shaanxi Coal and Chemical Industry Group Co., Ltd., Shaanxi Energy Group Co., Ltd. and Shaanxi Non-ferrous Metals Holding Group Co., Ltd, respectively. The agreements total 50 billion yuan.
TOP
[Industry Information]
○ 13th Five-year Planning for agricultural mechanization development issued, high-end demand to escalate  
------
The Ministry of Agriculture issued the 13th Five-year Planning for national agricultural mechanization development on Jan. 5. According to the planning, remarkable progress should be achieved in full-process mechanization of major crop production and planting mechanization by 2020. Comprehensive mechanization rate of cultivating and harvesting wheat, rice and corn should reach and be stabilized at over 80 percent. Statistics show that comprehensive mechanization rate of cultivating and harvesting crops across the country is 63 percent. In addition, the planning requires improvement in agricultural machinery equipment level. 

Comment: Institutions think that it is difficult to sustain the extensive agricultural development path relying on resources and input due to increasing agricultural production costs. It is predicted that demand for high-end agricultural machinery which are advanced, applicable and high-tech will grow continuously, so will demand for agricultural informatization. Loncin Motor Co., Ltd. (603766.SH) is involved in operating unmanned planting and agricultural informatization. Zoomlion Heavy Industry Science And Technology Co., Ltd. (000157.SZ) finds solutions to full-process mechanization for agricultural production through making deployment in medium and high-end agricultural machinery products. 
TOP
○ Intel launches first 5G communication chip, boost industry development
------
Intel launched its first communication chip for 5G network on Wednesday (Jan. 4). The company plans to produce 5G modem chips in limited quantities in the next half of 2017, aiming to promote the test and deployment of preliminary 5G frequency band across the world. Previously, Qualcomm launched its 5G modem chips, and will produce the chips in in limited quantities in the next half of this year.

Comment: Institute believe that with the increasing penetration of 4G and the coming of 5G, radio frequency (RF) devices on mobile and other 5G terminals will become more complicated and have higher requirements on integration. The value of stand-alone RF will improve remarkably. GSMA expects that there will be over 20 million sets of networking devices around the globe by 2020, and 2.9 sets for per capita mainly due to expansion in Internet of Things (IoT) devices. As most wireless connections need RF modules, RF devices will greatly benefit from the growth in IoT devices.
TOP
[Announcement Interpretation]
○ Insigma Tech. controls Watone Cloud Data for RMB 1.8bln.
------
Insigma Technology Co., Ltd. (600797.SH) plans to acquire 80 percent equities of for 1.8 billion yuan which will be paid by issuing additional shares via private placement at 12.96 yuan per share and in cash. The listed company will hold 100 percent equities in the latter after the transaction. The company also plans to raise about 750 million yuan supportive fund for cash payment.

The latter mainly provides IDC trusteeship, internet resource accelerating, and cloud computing services, and is also specialized political affairs based cloud service provider for The People's Government of Zhejiang Province and other governmental organizations. Its clients cover Tmall.com, Taobao.com, Alibaba cloud computing, Wasu Media Holding Co., Ltd. (000156.SZ), Wasu Broadcasting ＆ TV Network Co., Ltd. and etc. It promises to achieve no less than 158 million yuan, 197.5 million yuan and 247 million yuan as net profit after deduction from 2017 to 2019 respectively. 

○ Tianyuan Dic Information Technology to acquire Vive ＆ Best Technology with RMB800 mln
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Shenzhen Tianyuan Dic Information Technology Co., Ltd. (300047.SZ) proposes to acquire 94.94 percent equities of Vive ＆ Best Technology Co., Ltd. with 798 million yuan; especially, 728 million yuan will be raised by issuing 42.62 million shares at 17.07 yuan per share, while 70 million yuan will be paid in cash. It also plans to raise no more than 137 million yuan as supporting fund through private placement. Vive ＆ Best Technology is a software company mainly providing IT and application services for financial institutions and enterprises, and it promises to gain a net profit no less than 38 million yuan, 47.50 million yuan and 59.40 million yuan from 2016 to 2018 respectively. 

○ Thunder Software Technology to merge and acquire vehicle-mounted software supplier with 64 mln euros 
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Thunder Software Technology Co., Ltd. (300496.SZ) plans to acquire the 100 percent equities of Rightware with 64 million euros. The latter is a globally leading supplier providing car user interface design tools and embedded graphics engine software products, which also maintains favorable cooperation with around 20 famous automobile manufacturers worldwide. The transaction can help the listed company transform to vehicle-mounted software product provider from vehicle-mounted service designer.

○ Two companies signed big orders
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Wuxi Xuelang Environmental Technology Co., Ltd. (300385.SZ) has won the bid for flue gas purification system equipment procurement project with an amount of 220 million yuan, representing 38 percent of the company's operating revenue in 2015. Montnets Rongxin Technology Group CO., Ltd. (002123.SZ) has won the bid for State Grid networking equipment open tender project with an amount of 575 million yuan, representing 32 percent of the company's operating revenue in 2015.

○ Prices of titanium pigment products of Billions Chemicals continue to rise
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The selling prices of various types titanium dioxide of Henan Billions Chemicals Co., Ltd. (002601.SZ) increased by 700 yuan per ton since Jan. 5. The price for foreign customers is up by 100 dollars per ton. 

[Financial Reports Express]
○ Lingyuan Iron ＆ Steel Co., Ltd. (600231.SH) reported 100 percent to 200 percent growth in its annual report, primarily due to the pickup of the steel market.

[Trading Alarm]
○ Three new shares offer for IPO on Jan. 6
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China Science Publishing＆ Media Ltd. (780858.SZ) will offer for subscription at 6.84 yuan per share. The upper limit of subscription is 39,000 shares. The company operates in the publishing industry. Autek China Inc. (300595.sz) will offer for subscription at 23.81 yuan per share. The upper limit for each applicant is 17,000 shares. The company is a player in the non-surgical vision correction area. Rianlon Corporation (300596.SZ) will offer for subscriptin at 11.29 yuan per share. The upper limit for each applicant is 12000 shares. The company is primarily involved in chemical additive.
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