Reports » China

China stock market report by ChinaStockAdvice.com (May 14, 2009)

Macro-economic Policies

Measures on Development Acceleration Promotion of Biology Industry Passed by the State Counsel

Domestic Market

President of Sinolink Securities (600109), Mr. Lei Bo, Being under Investigation

As of closing on May 12, 2009, share prices of 6 companies plunged below their net asset value per share, with P/B ratio between 0.57x and 0.97x. These companies covered several fields including iron & steel, real estate and textile & garment industry, etc. From 2007 onwards, 264 companies issued initial public offering. Of these companies, 19 companies’ closing prices were lower than their IPO after their equity rights’ recovery, accounting for 7.2% of the total IPO companies.

Of all companies implemented additional issuance since 2007, 100 companies’ closing prices were lower than their initial additional-issuance prices, among which 36 were public additional-issuance companies, while 64 were directional add-issuance companies. From 2007 onwards, among the 191 companies who announced the additional-issuance plan and additional-issuance prices but not implemented them, 40 companies’ closing prices were below their planned additional-issuance prices, of which, 8 had their plans approved by the CRSC. Additionally, 68 companies abandoned the additional issuance since 2007

Overseas Market

Overview: April Retail Sales Not Satisfactory, American Stock Market Closed Low

Trade Deficit and Unemployment Rate Both Climbed; RMB Exchange Reiterated by US Congress

US Congress Doubted about AIG Refund Plan to Government and Its Future Prospect

Companies & Industries

- Jilin Chemical Fiber Filament Product Line Ceased Production; 452 Employees Received Treatment in Hospital

- CSRC Approved China Eastern Airlines (600115) to Non-publicly Issue A-shares

- Capital Chains Broken by Rmb1mn Electricity Charges; Crisis of Hualun Group Upgraded

- Datang Intl Power Generational (601991): Participated in Restructuring of Yuneng Group; Main Business Expanded Extensionally

Machinery & Metal Industry

- Jilin Guanghua Holding Group (000546): 11.85% Restricted Shares of Total Equity to Become Tradable
- Guangdong Mingzhu Group (600382): Proposal on Awarding of 2009 Iron Ore Purchase & Sales Contract Approved at Meeting of Shareholders
- Sichuan Chengfa Aero Science &Technology (600391): 2008 Dividend Distribution Scheme to Be Implemented

Pharmaceutical Industry

Premier Wen Conducts Research & Deployment on National Science & Technology Key Projects and Principally Approved Measures on Development Acceleration Promotion of Biology Industry