EQUITIES HONG KONG STRATEGY
INSTITUTIONAL RESEARCH: TRADING PLACES
DATE MONDAY JULY 20, 2015
QUAM PULSE China to Launch CSI China Manufacture 2025 Index (CSJ) – China Securities Index Co., Ltd. announced last Friday the launching of CSI China Manufacture 2025 Index, th CSI Internet Plus Index and CSI 360 Internet plug big data 100 index on 10 August this year. For the CSI China Manufacture 2025 Index, constituents will be selected based on the daily average trading value (the bottom 20% will be excluded); industry themes: companies which belong to the new generation of IT, high-end CNC machine tools and robotics, aerospace equipment, marine engineering equipment and high-tech ships, advanced rail transportation equipment, energy-saving and new energy vehicles, power equipment, new materials, bio-medicine and high-performance medical instrument, agricultural machinery and equipment and the top 20 stocks of internet plus theme stocks with the largest daily average total market capitalization. A periodic review on the index constituents will be carried out twice a year in June and December. Our Take: We believe the establishment of the above indexes is significant, which will pave the way for institutional investors to place their position and provide a performance benchmark. Hence, mainly large cap companies with active trading volume under the relevant sector will benefit most, such as BYD (002594 CH) and AVIC Aviation Engine (600893 CH).
CHINA TAKEAWAYS China Unveils Guidelines on Internet Finance – China has rolled out a raft of policies and measures to support innovation and minimize risks to ensure healthy development of Internet finance. The guidelines highlight overall requirements for authorities in supporting Internet finance, and urge government red tape to be cut and related fiscal and taxation policies to be improved to ward off potential risks for the industry’s development. SOE Reform Plans to Roll Out Soon – The Chinese government has been speeding up the formulation of a state-owned enterprise(SOE) reform plan due to be released soon, according to information received by a reporter of the Economic Information Daily from related authorities. The SOE reform plan will include mixed ownership system reform, permission for employees to hold shares, duties of the State-owned Assets Supervision and Administration Commission and classification of SOEs, etc. China’s Crowdfunding Platforms Raised RMB4.6bn in 1H15 – 53 crowdfunding platforms were established in China in the first half this year, making up a total of 211 platforms in the country that raised RMB4.6bn in 1H15, according to the latest data released by wangdaizhijia.com. The crowdfunding platforms are concentrated in Beijing, Guangzhou and Shanghai, with Beijing topping the number of platforms and accounted for 27.5% of the total. State Grid Unit Wins Contract for Transmission Project in Brazil – State Grid Brazil Holding has won a contract to build a transmission line for the Belo Monde hydroelectric dam, which is located deep in the Amazon rainforest. At an auction held in the San Paulo Stock Exchange, the subsidiary of China’s State Grid Corp made the lowest bid on Thursday by offering to operate the dam’s second power line in exchange for USD309mn a year.
HSI TOP MOVERS Leaders Ticker BELLE INTL LENOVO GROUP LI & FUNG LT KUNLUN ENERG CKH HOLDINGS
Laggers % 4.67 3.46 2.86 2.82 2.68
Ticker CHINA RES PO CHINA RES LA SINOPEC CORP HENGAN INTL HONG KG CHIN
INDEX
% -1.44 -0.65 -0.65 -0.39 -0.38
1D Chg
1D % Chg
25415.27 11850.14 4151.50 9045.98 2076.79 3353.45 1726.73 28463.31 8609.85
252.49 101.06 154.14 3.77 -11.10 14.59 -0.53 17.19 1.80
1.00 0.86 3.86 0.04 -0.53 0.44 -0.03 0.06 0.02
1479.31 4869.85 7617.13 5670.11
-1.95 -31.96 58.09 0.50
-0.13 -0.65 0.77 0.01
Asia HSI HSCEI SHSZ300 TWSE KOSPI FSSTI KLCI SENSEX NIFTY SET JCI PCOMP AS51
COMMODITIES
Close
1D % Chg YTD % Chg
Energy WTI Brent Natural Gas Gasoline
50.86 57.05 2.89 190.21
-0.10 0.23 1.40 0.28
-10.57 -10.19 -4.36 10.11
249.60 1144.08 15.01 1004.50
-1.07 -0.11 -0.04 -0.59
-11.72 -3.40 -4.46 -16.85
Corn Wheat Soybeans Coffee Sugar Cotton
440.25 560.50 1012.75 128.10 12.20 65.03
-0.17 -0.31 0.17 -0.58 -0.57 -0.32
4.57 -7.32 0.72 -26.46 -22.14 0.95
Baltic Dry
1009.00
6.10
29.03
Metals Copper Gold (Spot) Silver (Spot) Platinum (Spot)
Agriculture
HSI Daily
Institutional Research Team
[email protected] Jennifer So, Head of Research
+852 2971-5433
Christopher Ho, Analyst
+852 2971-5436
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