Policy
The State Council brings forward 4 measures on Nov. 12 including approving the FAI project, lifting the export rebate of some products, adjusting the export tariff, deternining the detailed arrangment of reconstruction of earquake suffered area and raising the polcy and measures to further strengthen the ecologic reconstruction of forestry. (China Securities Journal)
Market
PBoC released in Oct. the balance of RMB loan grew by 14.58% yoy, 0.1pct higher than Sept. By the end of Oct. M2 balance recorded RMB45.31tn, up 15.02% yoy, 0.27pct lower than Sept, new low since June, 2005, M1 balance posted RMB15.72tn, up 8.85% yoy, 0.58pct lower than Sept. M0 balance at RMB3.13tn, up 10.59% yoy, 10M08 net cash input at RMB94.3bn, RMB30.3bn less yoy. RMB loan balance posted RMB29.83tn, up 14.58% yoy and in Oct. the loan grew by RMB181.9bn, up RMB45.7bn yoy. RMB deposit balance at RMB45.83tn, up 21.1% yoy, 2.31pct higher than Sept. (China Securities Journal)
Economy
MoC released yday in Oct. the FDI recorded USD6.722bn, down 2.02% yoy, first negative growth since 2008. FDI of 10M08 posted USD81.09bn, up 35.06% yoy. (China Securities Journal)
NBS released yday in Oct. total consumer retails grew by 22% to RMB1.0083tn, 3.9pct higher than last year but 1.2pct lower than Sept. 10M08 total consumer retails recorded RMB8.7968tn, up 22% yoy while inflation-adjusted Oct. total consumer retails at 17.3%, 0.5pct lower than Sept. (China Securities Journal)
Sector
China Mobile has completed the second time of RMB30bn worth TD-SCDMA auction, and domestic equipment manufacturers, including DTT, ZTE, and Huawei, obtained the absolutely largest market shares. (Wind) 
The State Grid Corp. of China on Wednesday announced that is to allocate an extra RMB2.73bn to its scheduled budget this year on electricity grid equipment procurement. (Xinhua News) 
China Customs released data of Oct. coal export to be 2.56mn tons, down 51.2%yoy and 1-10M08 coal export to be 38.28mn tons, down 11.5%yoy; coking coal export in the first ten months posted 11.58mn tons, down 12%yoy. (China Securities Journal) 
CAAC decided to invest another RMB30mn on airport construction and rebuilding in several Southwestern provinces. (China Securities Journal)
Company
CSR (601766.CH), one of the largest railway equipments manufacturers, says its subsidiaries have got RMB1.6bn passenger coach orders from the Ministry of Railway.
Guangzhou Refrigeration (000893.CH) will be restructured to an edible oil producer, and the new controlling shareholder promises 2009 net income no less than RMB201mn, or 0.91/share.
Shenzhen Airport (000089.CH)’s freight and passenger turnover of October were up 2.3% and down 4.3% respectively.
SINOMA Int’l (600970.CH) was sued to pay USD16.8mn to the contractor due to delay of project delivery.
China Vanke (000002.CH) is auctioning one of its subsidiaries in Nanjing for RMB226.8mn.
Research Reports by Haitong
01688. HK Alibaba.Com-(BUY)-B2B E-business slightly influenced by global economy slowdown
By-WANG Ruyuan (wangry@htsec.com)
Paying memberships increase greatly contributes to sale income growth
Net profit slows by quarter due to exchange loss and investment loss of Alibaba Japan Joint Venture
Large government subsidy in 1Q-3Q2008
Up selling expenses ratio due to marketing expenses increase
B2B E-business influenced by global economic slowdown less than expectation
Repurchase plan of HKD 2bn will stimulate stock price
Coal (neutral)-Comments of value-added tax reform
By-HAN Zhenguo (hanzg@htsec.com)
The new VAT regime will be effective from Jan. 1, 2009.
We predict the FAI will slowdown in 2009 despite of the favorable policy.
Value-added tax reform will benefit the coal sector slightly and can not change the downtrend of the sector.
Agriculture (neutral)-Agriculture demand falls further
By-DING Pin (dingpin@htsec.com)
US Agriculture Department lowers its forecast of 08/09 global consumption of soybean, soybean meal, soybean oil, corn and cotton as financial crisis is spreading to real economy. It also raises its forecast of 08/09 global inventory/consumption ratio of soybean meal, soybean oil, wheat, corn and cotton.
A-share Market Re-cap
A volatile day with shrinking turnover
SHCOMP   1859.11    +15.50 (+0.84%)  Vol. RMB42.25bn
SZCOMP   6116.67    +16.91 (+0.28%)  Vol. RMB19.8bn
CSI300     1801.82   +20.46pts (+1.10%)  Vol. RMB34.45bn