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China stock market report by ChinaStockAdvice.com (June 5, 2009)

Domestic Market

Hang Seng index closed low by 73.70 points or 0.40% at 18502.77 points.
 
Financial sub-index surged against the market trend.
 
Shipment shares plunge topped the market.

Overseas Market

S&P 500 increased 10.70 points or 1.15% at 942.46 points as of closing.
 
Weekly initial unemployment rate tended to stabilize.
 
Japanese commercial investment slid by 25.3% in Q1 2009. 

Companies & Industries

Metal industry

- Non-ferrous metal industry fluctuated up in May 2009.

- Manufacturing index of May 2009 was better than expectation.

- Investment in real estate industry maintained surging, which was expected to drive mental consumption.

- Metal import sharply grew in April 2009, but export sustained sluggish. We hold that substantive import will increase domestic supply demand pressure; the pressure is likely to expand in case of unsteady domestic demand recently. However, with gradual narrowing of price difference in May 2009, pressure due to China’s substantive metal import will be eased; besides, since overseas economic recession slowdown brings demand release, overseas metal consumption is expected to see surprising performance.

- LME copper and zinc inventory saw sustained decline in May 2009, whereas SHFE inventory reported increase. We maintain “Overweight” rating for the whole non-ferrous metal industry and suggest investors concerning about companies with resource edges.

Transportation & Building Material Industry

- Shenzhen Chiwan Wharf Hldgs (A Share) (000022): Business Volume Saw Inconspicuous Improvement in the First Five Months of 2009

- Tianjin Marine Shipping Co. Ltd. B (600751): Likely to Sharply Improve Due to Progress of Historical Issues

- Avic Sanxin (002163): Planned to Issue Non-public Shares and Raise ~Rmb900mn Fund

- Cargo Handling Capacity in Rizhao Harbor Continued Surging against the Market Trend

- Idling Status of Container Ships Improved to Some Extent

IT Industry
- The First Mainland Purchasing Delegation Fulfilled USD2.2bn Indent with Taiwan

- Datang Telecom Technology (600198): To Build TD Experimental Network in Taiwan
- TCL Corporation (000100): Proactive Self-financing on LCD Module Project Reached Rmb397mn

- Global Video Users of Charging Mobile Phones to Hit 534mn in 2014

- Intel to Acquire Wind River at USD884mn

Consumer Goods Industry

- Yanbian Shixian Bailu Papermaking (600462): Shareholders Reduced Equity Holding
- Yibin Paper Industry (600793): The Biggest Shareholder Reduced Equity Holding
- ChangChun Department JiTuan Store (600856): Shareholder Transference Completed, Indicating the End of Equity Dispute