Reports » China

China stock market report by ChinaStockAdvice.com (May 12, 2009)

Macro-economic Policies

New Credit in April Reported Rmb591.8bn; Money Supply Saw Year-on-year Increase of Nearly 26%

Gross Value Decline of Import & Export in Q1 2009 Reported 24.9%, Tending to Be Steady 
 

Domestic Market
 
Shanghai Stock Exchange to Establish International Board for Boosting of Overseas Red-chip A-shares

CPI & PPI Being in Line with Expectation, with No Big Influence on Capital Market

Hang Seng index closed low by 301.92 points or 1.74% at 17087.95 points.

Financial sub-index basicly kept the pace with Hang Seng index.

Hong kong-funded brokerage stocks drastically surged.

As of closing on May 12, 2009, large shareholders of 151 companies increased holdings since the issuance of new regulation on holding increase on August 28, 2008 by CSRC, including 30 central enterprises and 65 local state-owned enterprises. These companies covered real estate, chemical, commerce, pharmaceutical, iron & steel, components, electric power industry, etc., of which, 62 companies saw year-on-year performance growth or loss in Q1 2009.

26 companies reported holding increase of their senior administrative, among which 8 saw increment of above 500 thousand shares. Of the 26 companies, 13 including Sundiro Holding (000571) and Zhongtian Urban Development Group (000540) realized performance growth in Q1 2009.

Two companies repurchased equity: Livzon Pharmaceutical Group (000513) bought back 7.2mn shares totally, accounting for 2.3527% of the total, while it planned to repurchase 10mn shares; Telling Telecom Holding (000829) initially bought back 3.5889mn shares or 0.3775% of the total, and the company planned to repurchase 20mn shares. Besides, buy-back plans announced by Haima Investment Group (000572) and Chongqing Changan Automobile (200625) were passed at the shareholders conference; they planned to regain not less than 30mn and 423mn shares from secondary market.

Overseas Market
 
Dow Jones Index Declined by 155 Points; while NASDAQ by 7 Points

Overview of Asia-Pacific Market: Main Indexes Experienced Overall High Close; Japanese Market Increased 0.2%

Unemployment Statistics Drop Slowed Down

S&P 500 closed low by 19.99 points or 2.15% at 909.24 points.

Several banks in America planned to issue new shares.

Mitsubishi UFJ Financial Group, Inc. was to acquire USD600mn common stocks of Morgan Stanley, around 20% of the total.

Companies & Industries
 
- China Everbright Bank Denied Financing at USD2bn through Issuance of H-share Firstly; A-share Issuance under Preparation

Machinery & Metal Industry
- Zhuzhou Smelter Group (600961): Share Price Saw Volatility as Fundamentals Turned Better

- CNHTC Jinan Truck (000951): Sales Volume of Q2 2009 Expected to Continue Recovery

IT Industry
- China Telecom: 3G Mobile Phone to Be Formally Introduced; Beijing Branch to Collect User Experience
- Users of Three Major Brands of China Mobile (Beijing) Able to Transfer Product Types Freely without Changing Phone Number since July 2009  

- Datang Telecom Technology (600198): Planning A-shares Issuance, Being Favorable to Expansion of Relevant Businesses
- Huawei and Ericsson Won USD6bn Indent from India

- Nortel: Net Loss in Q1 2009 Expanded to USD507mn

Consumer Goods Industry

- Da An Gene Co., Ltd. of Sun Yat-Sen Uni (002030): Statement on A/H1N1 Influenza Test Kit

- Shandong Denghai Seeds (002041): Meeting of Shareholders Convened, with No Influence to Fundamentals

- Ningbo YAK Technology Industrial (002036): 60.35mn Restricted Shares to Become Tradable

- Shanghai Dragon Corporation (600630): 2008 Annual Meeting of Shareholders to Be Convened, with No Big Events