[20081121]CICC China Market Wrap

Equity Market (Please see A/B and A/H Premium/Discount Table in attached file)
Shanghai Composite opened at 1977.21 and closed at 1983.76 (+0.25%) volume RMB87.77bn (US$12.84bn)
Shenzhen Component opened at 6564.44 and closed at 6696.83 (-1.67%) volume RMB42.17bn (US$6.17bn)
Local market still appeared to be resilient when most of the regional peers started to sell off, helping buy the surge from the property names due to the Shanghai’s Disney Project. Today’s Shanghai Security Journal headline reported that Disney Corp is for sure to choose Shanghai to build its next Park which ignite local’s passion on the Shanghai property names. The SHCOMP once surged above the Par in the morning but swung lower in the PM, which is very understandable, given the plunged Asia Market. The 3G names still outperformed with the 3G license likely to be released sooner than we thought and white appliance producers got a boost thanks to the government encouragement on rural area consumption. The oversea performance and whether we could maintain the sector rotations are the key to the A shares in the short term.
It’s almost for sure that the new Disney World is going to land in Shanghai, which supposed to be a new engine of the local economy, per the source that has been involved in this project for years. The Shanghai government and the Walt Disney Co are still in negotiation to knock down the details.
It’s rumored that the China central bank is considering adding another 4000 ton of gold to its giant foreign reserves for more diversity. Currently PBoC’s gold reserve level is only 600 ton.
SHCOMP: ADVANCERS OUTPACED DECLINERS 1.02:1
SHENZHEN: DECLINERS OUTPACED ADVANCERS 1.281
BLUE-CHIP LARGE CAPS mostly surging: CHINA UNICOM (600050) -2.16%, BAOSTEEL (600019) -3.41%, YANGTZE POWER (600900) SPECIAL SUSPENSION, SINOPEC (600028) +0.60%, DAQIN RAILWAY (601006) -5.61%, AIRCHINA (601111) -2.83%, CHINA LIFE (601628) -3.98%, PINGAN (601318) -5.74%, SHENHUA ENERGY (601088) -3.88%, CHINA COAL (601898) -3.21%, PETROCHINA (601857) -2.60%, CHINA COSCO HOLDINGS (601919) -4.06%, CHINA RAILWAY (601390) -4.12%
BANKS taking off: SPDB (600000) SUSPENDED due to EGM, MINSHENG SUSPENDED due to EGM, CMB (600036) -3.61%, HUAXIA BANK (600015)+0.57%, ICBC (601398) -1.45% BOC (601988) -2.59% INDUSTRIAL BANK (601166) -1.96%, BOCOMM (601328) -3.28%, CCB (601939) -2.01%, CITIC BANK (601998) -2.49%, SZDB (000001) -4.01%
PROPERTY STOCKS rocketing: VANKE (000002) +2.00%, GEMDALE (600383) +2.29%, COFCO PROP (000031) +3.95%, FINANCIAL ST. (000402) +2.01%, CHINA MERCHANTS PROP (000024) +1.50%, POLY (600048) +3.69%(Up-limit), LUJIAZUI (600663) +9.99%(Up-limit)
Government Bond Market
CGB market dropped 0.04% to close @ 119.60. Volume dropped to 8.77bn. Of total 51 bonds 6 up,28 flat and 17 ended in green. The heavily traded bonds mixed: 10-yr bond 009908 -0.01% yield 2.42%.10-yr bond 010203 -0.01% yield 2.60%.7-yr bond 010115 +0.02% yield 2.41%.