Reports » China

China stock market report by ChinaStockAdvice.com (May 20, 2009)

S&P 500 closed low by 1.58 points or 0.17% at 908.13 points.
 
American housing starts and building permits in April were below expectation.
 
Japanese industrial production in March saw month-on-month raise of 1.6% 
 
Hang Seng index closed high by 521.12 points or 3.06% at 17544.03 points.
 
Financial stocks led the H-share surge.
 
Heavyweight Blue-chips: HSBC Holdings PLC (0005. HK) Surged by 6.30%, while The Bank of East Asia (0023.HK) by 5.59%
 
Hang Seng materials industry index surge topped Hang Seng composite index

Home-appliance Industry: Government's Backup Policy Further Propelled Consumption; Industrial Bellwether to Be Main Beneficiaries

The State Council convened general meeting on May 9, 2009, researching and deploying policy of "old for new transaction" among the auto and home-appliance industries. As planned, Rmb2bn will be allocated as subsidy of the home-appliance industry. 
 
Popularization rate of home-appliance in the pilots is obviously higher than that of other regions; industries of air-conditioner and colored TV might be the biggest beneficiaries. 
 
Leverage effect spurred domestic home-appliance consumption. 
 
We suggest that investors continue to focus on bellwether of home-appliance industry.
 
We consider Gree Electric Appliances Inc of Zhuhai (000651) to be the biggest beneficiary of the policy; followings are GD Midea Holding (000527), Hisense Electric (600060) and Qingdao Haier (600690). 

Domestic Iron & Steel Price Index Continued Increasing

Price of international crude oil and non-ferrous metals began to bounce back recently.
 
Having experienced the bulge, global commodity market tended to be rational and fluctuated at high position in recent two weeks.
 
American bearish economic data caused pressure to its commodity market. 
 
Prices of most inorganic chemical products decreased.
 
Viscose price surge became highlight of chemical fiber sector. 
 
Price of iron & steel continued to rally.

Machinery & Metal Industry

- China-Kinwa High Technology (600110): Its Subsidiary Plans to Acquire Total Equity of Bejing Xinshitaide Investment Consulting Co., Ltd
- Sino-Platinum Metals (600459): Audit & Appraisal of Assets Restructuring Completed; CRSC's Approval Being the Biggest Focus  
- Beijing AriTime Intelligent Control (600560): Sent Rmb0.8 for Every 10 Shares; Date of Record Being on May 25th