RMB appreciation and inflation.

Securities institutions on January 23rd individual stock briefing

Daily strategy analysis

The market was hit again, the stock index back to 4500 points near the two cities turnover has been enlarged. The market observed that more than 800 stocks were down, spreading panic in the market. The U.S. and Hong Kong markets were sharply lower, affecting the already fragile A-share market. Investor confidence in this round of sharp decline was shaken, it is estimated that the short term is difficult to repair. After this fall, the policy side has become the focus of attention, I estimate that in the policy side of the warm situation, the market may be in the 4500 points near the rebound, in the medium and long term, the fundamentals of China's economy is still good, corporate earnings growth is still continuing, the stock market fell across the board is not in line with the fundamentals of the status quo. (Analyst: You Wenfeng)

Important information review

Contents

★ A brokerage power industry January 2008 tracking report, thermal power efficiency decline, short-term valuation of the high enterprise

★ A brokerage published six chemical tracking report, is expected to 07 years, 08 years EPS 0.45 yuan, 0.70 yuan

★ A brokerage published On the "Borealis: Chengdu TV advertising agency" analysis: the company's current share price implies (compared to recurring profit) 40 times 08 dynamic P/E ratio, the lowest valuation in the media sector, to reiterate the "recommended" investment rating

Report contents

★ A brokerage power industry January 2008 tracking report, thermal power efficiency decline, short-term valuation of high enterprises

Key points: 07 data out, electricity "high before and after the low" growth rate of 14.4%. 07 years of social electricity consumption growth of 14.4%, in line with our previous "High before and low after" judgment. The annual new installed capacity of 100,090MW, after deducting the closure of small thermal power plants, the growth rate of installed capacity was 14.4%. National utilization hours of 5,011 hours, down 3.6%; of which 5,316 hours of thermal power, down 5.3%, confirming our previous expectations. But the industry profitability declined significantly, that is, after deducting the scale of growth, the industry's comparable profit growth of only about 4.3%, of which the thermal power comparable profit has been negative growth, after the scale of growth of profit space is swallowed up by rising coal prices. "Coal power linkage" short-term failure, high debt, thermal power benefits lower than expected into a foregone conclusion. high CPI, as the government a few price-controllable industries, electric power, refined oil together to assume social responsibility. State Council executive meeting in six months after the overall adjustment of electricity prices fell through, "two sessions" after the local relief is expected, but we update the profit forecast found that even in the second half of 08 up 4% of the price of electricity (equivalent to 2% for the year) and corporate bonds and other financing methods to offset interest rate rises under the assumption that most of the key companies in 08 ~ 09 years of performance is still more than the original forecasts There is a 20-30% downward adjustment. Project development is caught in a dead circle, utilization hours rebound or "utopia". No project means lagging behind, because the new batch of large units are very good, but the competition for projects often leads to irrationality of the group. In addition to the number of groups "five and three" rumors, each of the scale of expansion as the primary goal, resulting in each year, the scale of the new investment are expected to exceed. Just through the years of power shortage, utilization hours are at a high level, we expect the probability of a significant rebound in 08 ~ 10 years is almost zero. Public opinion on power generation hatred needs to be changed. 1, power generation is no longer a monopoly industry; 2, industry profit growth should be considered together with the scale of growth; 3, industry profit growth should also be split according to the structure of the water, thermal power. Reduce the industry to "weaker than the market" rating. Currently the market implies the risk of over-optimistic performance of thermal power and the fact that valuation is too high, and thermal power is the main body of the power generation industry, to downgrade the industry rating to "weaker than the market". Continue to optimistic about hydropower, new energy and asset injection and overall listing of short-term opportunities.

Comments: agree with the researcher's view, the medium-term fundamentals of the power industry is not optimistic, it is recommended to take advantage of the rebound when the opportunity to reduce the pound. (Analyst: Chen Jie)

★ A brokerage firm issued a tracking report of six chemical industry, is expected to 07, 08 EPS for 0.45 yuan, 0.70 yuan

Main point: In previous reports, we have repeatedly mentioned that diammonium phosphate is the only mainstream fertilizer varieties that do not enjoy the state subsidies are subject to national price control of a product in the main raw materials, the price increases and production capacity relatively put in. In the past three years of rising prices of major raw materials and relatively rapid investment in production capacity, the entire diammonium phosphate industry is hovering in the trough. At the beginning of last year, with the continuous expansion of international demand, the international supply and demand of diammonium phosphate reversed, the international price soared, the current international fob offer at 550-650 U.S. dollars / ton. The state to cancel the diammonium phosphate value-added tax should be "the desire of all", I believe that the diammonium ammonium producers over the years to continue to communicate with the relevant departments of the state lobbying the results of the industry constitutes a positive, judging from the current situation, we mentioned in the report at the beginning of last year, "diammonium phosphate industry out of the doldrums "has been confirmed by the facts. Six countries chemical industry is diammonium phosphate industry leading enterprises, the company management standardization, sales network is perfect, strict cost control, in the industry loss in the past few years, the company is still able to maintain profitability that is a clear example. In the process of the industry gradually warming up, the six countries chemical performance growth elasticity is very large, the main products and raw materials between the price difference between each expansion of 100 yuan / ton, the company's earnings per share increased by about 0.16 yuan, is expected to 07, 08 years of earnings per share of 0.45 yuan and 0.70 yuan, respectively, maintain the investment rating of hold.

Simple comment: the recent stock index plunge, the stock is more compelling resistance. Because of the sensitive factor of product price, so the performance of the stock has a greater flexibility, the chemical industry is more cyclical, so according to the principle of prudent report on its performance in 08 years to give a forecast of 0.7 yuan, the actual situation may be more than expected. (Analyst: Sun Junbo)

★ A brokerage firm published on the "Bori spread: Chengdu TV advertising agency" analysis: the company's current share price implied (compared to recurring profits) 40 times 08 dynamic P/E ratio, the lowest valuation in the media sector, to reiterate the "recommended! "

Main viewpoints: 1, from the strategic point of view, the above announcement is a good reflection of the company's "traditional media operators and emerging media content providers" development positioning, but also in line with our long-term judgment of the company. In the foreseeable future, the further integration of the controlling shareholder Chengdu Media Group's cultural media resources - including newspaper advertising operations, TV advertising operations and cable network resources will become the main catalyst for the company's investment value. 2. Quantitative analysis, the above business will accelerate the company's performance growth, and the impact is expected to be about 10-15%. As our 08 earnings forecast model has reflected the company's expansion in outdoor advertising, purely considering the profit contribution of TV advertising, 08 earnings have 5-10% upward space, earnings per share is expected to exceed 0.8 yuan. (Note: the company's non-recurring gains and losses in 2007, including stock investment of more than 50 million yuan, and our 08 earnings forecast does not reflect any investment income, and thus the earnings forecast is at a lower level in the market, we recommend that investors focus on recurring earnings). 3, Borealis Chengdu Television advertising analysis: Chengdu Television 1 (news channel), 3 (life channel), 4 (film and television), 5 (public service channel), 4 (TV ads), 5 (TV ads), 5 (public service channel), 5 (TV ads), 5 (TV ads). Chengdu TV 1 (news channel), 3 (life channel), 4 (film and television channel), 5 (public **** channel) channel is the mainstream TV channel in Chengdu. However, as we have analyzed in our previous industry reports, China's city TV stations are under tremendous competitive pressure due to the multi-level impact from CCTV, cross-provincial TV stations and provincial TV stations. From what we understand, there is a very obvious gap between the competitiveness and revenue level of Chengdu TV and that of Chengdu Daily Newspaper Group (including Chengdu Daily, Business News and Evening News). The first-year agency cost of Borealis Advertising is only RMB 32 million, which reflects the scale of Chengdu TV's revenue. Although the profit contribution is only 5-10%, the fact that Borealis was able to enter the broadcast media operation for the first time highlights Chengdu Media Group's strategic positioning of the company as a platform for integrating operational assets.

Commentary: Various research firms have issued positive comments on Borealis' representation in Chengdu TV's advertising campaign. In the past two days, the stock price has not been affected by the decline of the market. In my opinion, on the basis of the stable development of print media, entering the field of television advertising will undoubtedly broaden the company's profitability, and the company is expected to become the most influential listed media enterprises in Southwest China. It is recommended to configure from a medium-term perspective. (Analyst: Chen Qiwei)

Important research report information review

Table of Contents

★Kehua Biological (002022) a famous research institutions research report is expected to be 2007-2009 more conservative earnings forecast is 0.55 yuan, 0.85 yuan, 1.19 yuan, a more neutral forecast is 0.55 yuan, 0.99 yuan, 1.40 yuan. Yuan. Stable investors can actively "hold" at the current price.

Report

★Kehua Biological (002022) a well-known research institutions research report is expected to 2007-2009 more conservative earnings forecast is 0.55 yuan, 0.85 yuan, 1.19 yuan, more neutral forecast is 0.55 yuan, 0.99 yuan, 1.40 yuan. Stable investors can actively "hold" at the current price.

Main points: 1, the company's main business includes diagnostic reagents and medical instruments, 2007 is a very important year for the company's development, the company changed the sales model, through the participation of agents to effectively control the channel; developed a series of medical equipment has achieved good growth; 42 biochemical reagents and 3 medical instruments in foreign markets through the European Union CE certification, the overseas market is expected to become a new growth engine. Overseas market is expected to become a new growth engine. The company's main business from diagnostic reagents extended to medical instruments, expanding from domestic to foreign, the next three years will realize the reagents and instruments to go hand in hand, domestic and foreign than the wings of the development strategy. 2, the company's sales channels are solid, the bottom price supply to the agents of the operating expenses are stable, the main expenditure is the R & D investment, the new revenue generated by the gross profit will be converted into profit, net profit margin in 2007-2009 is expected to be From 29% to 36%. From the company's historical data, 2003-2007 gross profit margin is relatively stable, but the level of net profit margins continue to improve, we believe that the net profit margin can continue to improve the company in the A-share market is not rare.

3, we are on the company's 2007-2009 more conservative earnings forecast is 0.55 yuan, 0.85 yuan, 1.19 yuan, a year-on-year growth of 55%, 54%, 40%, more neutral forecast is 0.55 yuan, 0.99 yuan, 1.40 yuan. According to our conservative earnings forecast, the company's 07-09 years predicted price-earnings ratio of 68 times, 44 times, 31 times, respectively, from the business development space and growth, the valuation of the bubble. 2008 the company will continue to increase the overseas market certification of medical devices, the domestic blood screening market in the second half of the year is also expected to promote the Mérieux joint-venture project began to produce results in 2009, the three major business market capacity is considerable, and is expected to bring a leap forward in 2009 operations. The three businesses have considerable market capacity and are expected to bring a leap in operations in 2009.

The company's compound growth rate of net profit in the next five years may be more than 50%, earnings certainty, and health care reform is very high, is the current market safer varieties, full shareholding to solve the internal mechanism, we believe that prudent investors in the current price level can actively "hold". From the market level, the company's share capital is small, there is the possibility of expansion; the launch of the GEM is expected to drive the small and medium-sized plate stock activity, these are the catalyst for the rise in share prices.

Briefly assessed from the forecast performance level, the stock is currently corresponding to the current valuation, in the biomedical sector there is a certain degree of attractiveness. Tuesday's share price strong shock against the market rise, adjusted with a focus on the value. (Luo Li long)

Dongguan Securities:

Panic fall reappeared all the line down

The disk research judgment:

The U.S. economic recession as well as subprime debt and other shadows loomed over the global stock market on Monday not only Asia-Pacific stock markets collectively fell sharply, but also began to feel the subprime debt storm killing power of European stock markets have also plunged in recent days, the global stock market, including China's stock market The black Monday was a black Monday for the world's stock markets, including China's.

Tuesday there was no good news on the policy front, the result of Tuesday's Shanghai and Shenzhen stock indexes jumped sharply lower open, the opening half hour in the heavyweights collectively killed under the leadership of the market panic sell-off, the Shanghai indexes fell sharply, the plate only 5 red, other stocks a miserable green, after the disk appeared in a wave of strong rebound, the plate once a lot of stocks turned red, but the afternoon session of the Hong Kong stock market in the early closing fell 2,000 points driven by panic, the stock markets in the morning. 2000 points of panic driven by the Shanghai market index fell all the way to the early rally all swallowed up, the disk was once the lowest touch to 4511.95 points. At the close of the Shanghai index at 4559.75 points, down 7.22%, the Shenzhen market index at 15995.9 points, down 7.06%, nearly 1,000 stocks fell, Shanghai and Shenzhen turnover of about 230 billion yuan, compared with yesterday's volume.

Tuesday the fund's 2007 4 quarterly report has been disclosed. From the average position level of funds, the average stock position of 345 funds in 4Q07 dropped to 78.42%, 1.27% lower than that in 3Q. From the past six quarters, the fund's average position level only twice decreased, one of which occurred in the first quarter of 2007, when the fund's average position was reduced by 0.8%, taking into account that at that time was in the peak of the fund issue, a large number of new funds too late to build a position in the stock fund dilution of the average position, is a passive reduction in the level of the average position; and the average fund's average position in the fourth quarter is reduced is the initiative to reduce the position, the fund has been cautious about the future of the market, the average position is reduced by 1.27%. Visible fund has been cautious about the market, is the deep-seated reasons for the abortion of this round of market. From the industry configuration point of view, securities, insurance, non-ferrous metals, steel, real estate and other sectors suffered a fund to reduce holdings, while the increase in holdings of the industry is mainly concentrated in the food and beverage, petrochemical plastics and information technology industry, which is just in line with the recent stock hotspot characteristics. Fund substantial reduction of non-metallic metals and real estate industry 4 quarter into a deep adjustment, become the "hardest hit", while the fund substantially increased positions in the food and beverage, chemical industry sector recent trend is strong, repeated record highs. It is worth a question is the Ping An of China is the first of the 4 quarter fund holdings of long positions, the Ping An of China's sky-high refinancing plan if the smooth implementation of the stock price in the early period will reach 07 A shares of the total financing scale of one-fifth, more than two major IPOs of China Shenhua and PetroChina financing and the sum of the stock market in 07 years in the two carriers of the IPO of the blow to the top of the Ping An of China's refinancing scale is so The scale of Ping An's refinancing is so large that it will naturally trigger panic in the market.

From the disk, in the internal and external blow, the market has produced a serious panic, Tuesday, there was a clear irrational selling behavior, the release of this systemic risk, completely rely on the market to digest is not a day or two can be accomplished, by the U.S. subprime crisis, the largest listed company, the Bank of China on Tuesday, the suspension of the resumption of trading on Wednesday, if the market will bring a further impact, the short-term look at the market habitually down, the total amount of the two aircraft carrier IPO, the top of the 07 stock market is the two aircraft carrier IPO, the refinancing scale is so, naturally, will trigger a market panic. Short-term look at the stock market after the inertia of the setback will likely be a technical retaliatory rebound, but the Ping An incident is exposed to China's stock market system on the crisis, to solve this can only rely on policy. It is recommended that investors do not blindly kill the fall, short-term pay close attention to the policy whether there is a rescue behavior such as the approval of the issuance of new funds, etc., in the case of uncertainty on the policy side do not rush to do a rebound, to wait and see.

Trend forecast:

The market may rebound with a vengeance after the inertial setback, but whether it can really stop falling depends on the policy side.

Operating suggestions:

It is recommended that investors do not blindly kill the fall, continue to wait and see.

Hot spotlight host: Zheng Gang

A shares trapped in the "global stock market crash"

Tuesday, Shanghai and Shenzhen stock market continued to fall sharply on Monday, the Shanghai Stock Exchange in the early morning session on the penetration of the 4,600 points, a decline of more than six percent, the plate rose few stocks, the market is a miserable green. Although the stock index rebounded once in the disk, but the market popularity is low, the afternoon disk again turned down, many of the previous decline in the blue chip stocks are not big make-up market, which aggravated the short-term panic selling pressure on the stock market. Tuesday's plate no hot spots to speak of, can rise in addition to the varieties of institutional stocks in addition to the warmth of the group, that is, the low-priced theme concept stocks, the two cities added up to a total of no more than thirty stocks. From the major indices, the SSE index due to the presence of PetroChina has been broken down in the form of decline, while the SZSE index and CSI 300 index has been back to the end of November last year's lows, despite the performance of the pattern of high shock, but just six trading days of the plummeting market has also made the previous low support is relatively fragile.

The market's plunge since Monday was triggered by financial stocks, and Tuesday's continued decline was also related to the shortfall in financial stocks. Bank of China was suspended on Tuesday, the company announced that there are important matters have not been announced, and the market rumors that the Bank of China due to the need to increase the provision for U.S. subprime assets, the company's loss increased will lead to a sharp decline in its fourth-quarter results. This negative news will naturally also spread to other state-owned listed banks, ICBC plate once stopped, the construction bank shares also hit a new low since the listing, especially ICBC before the adjustment of the space is relatively limited, the complementary fall also announced the market do more camp disintegration.

We think there are three main reasons for this sharp decline in the market: First, high valuation levels lead to a rational return to the trend of stock prices. Although the blue chip bubble in October last year in the administrative intervention of the management to gradually be dissolved, however, the end of November, the issue of stock market once again raised the average valuation level of the market, blue chip stocks, although there is news of earnings growth, but due to the macro-control expectations, the slowdown of the overseas economy as well as the market operating strategy and other factors affecting the market, and the good out of the market. The continuous suppression of blue chips has shrunk the space for the operation of the bubble of the theme stocks, resulting in the return of stock prices. Second, the U.S. subprime crisis spread to the Chinese stock market. It should be said that the proportion of overseas funds involved in the Chinese stock market is relatively small, the Chinese stock market and foreign capital markets lack of effective arbitrage mechanism, therefore, directly because of the tightening of the capital side of the A-share market is unlikely to fall, more public funds on the aftermath of the market bearish, as well as the impact of the psychological factors of the market. Third, the blue chips of the large amount of financing programs and the pressure of large and small non-prohibition. Ping An of China threw out more than 100 billion level refinancing program, obviously want to make money activities to the extreme, but the market reaction is obviously not conducive to its financing program through, the stock since the announcement of the financing news has been two consecutive downturns, perhaps its financing program will be the market will be a good thing. 2, in March, the financial stocks of the large and small non unblocked, but also to the market to bring a negative impact, but if the stock market continues to slump, the large and small non cash out of the pressure of the market. However, if the stock market continues to be in the doldrums, the impetus for large and small non-cash may not be as serious as expected.

Irregular stock review moderator: Yi Shixiong

Shenyang Xinkai (600167):

Tuesday's biggest amplitude of the two markets, up to 20%, closed down 9%, the turnover rate of 14.7%. The company's profitability is poor, the third quarterly report in 2007 earnings per share of only 1 cent. The company has announced that there is a directional issuance of capital injection proposal. But the short-term 7-day rate of increase close to doubling is obviously a short-term speculation by lobbyists. It is recommended to avoid the risk.

Xinlong Holdings (000955):

Tuesday's amplitude of 19.38%, closing up 6%. The turnover rate was 29.76%. The company's main nonwoven fabrics. 07 3Q report loss. One of the recent market continuous surge of the stock, the reason is a media published a "future king of potash fertilizer" article, but the company has clarified the relevant content. However, the stock price is the more clarification the more high rise. Behind the scenes is nothing more than some lobbyist speculation. It is recommended to avoid this kind of game of strong varieties.

Kehua Biological (002022):

Tuesday's amplitude of 17.47%, closing up 2.96%, the turnover rate of 5.66%. The company's main biological reagents, the third quarterly report of 07 earnings per share of 0.43 yuan, an increase of 57% year-on-year. Fund long position. From the stock market against the red, low turnover rate and other disk characteristics, Tuesday's amplitude may be a small number of institutional cash due to, but chip stability is very good. We recommend that you continue to hold on to your shares.

Fudan Fuhua (600624):

Tuesday's amplitude of 17.34%, closing up 4.39%, turnover rate of 29.76%. The company's profitability is general, the past two trading days copied the concept of venture capital for two consecutive stops. Unable to help the market turned sharply downward, the intervention of speculative funds can not get out of the way, can only be hard to lift the barbell. The game is very strong, it is recommended not to chase high.

CITIC:

Information Overview: Today's News

Shanghai Composite Index six-day 1,000-point plunge brings stage buy: from the highest point on January 15, 5505.03 points to yesterday's lowest

4511.95 points, the Shanghai Composite Index in just six trading days fell a maximum of 993.08 points, a maximum loss of 18.04 percent! that averaged a daily drop of

3 percent. Although the subprime mortgage fiasco has hit the global stock market hard and it's impossible to accurately judge the extent of the negative impact, it can be expected

that sooner or later, the stock market, which has continued to fall sharply, will see a stage of rebound. However, the general trend is still difficult to accurately determine, the rebound is only a stage

sexual, under the premise of good stock price flexibility, the investment target to "grasp the small enlargement". Compensating for the fall with "fast, hard, fierce" color

color, the decline is often beyond the market expected. However, market participants believe that it is due to the above characteristics of the A-share short-term plunge, soon

will make the stage trading opportunities. (China Securities Journal)

Fed emergency rate cut 75 basis points: The U.S. Federal Reserve Board of Governors announced Tuesday that the U.S. federal funds rate fell 75 basis points,

from the current 4.25 percent to 3.5 percent, the lowest level since September 2005, the Fed said. The Fed also lowered the discount rate by 75 basis points to 4 percent. A U.S. White House spokesman said President Bush did not rule out the possibility of expanding the size of the stimulus program. Buoyed by the news,

U.S. stocks opened sharply lower after losses were pared. As of 23:45 GMT on the 22nd, the Dow Jones 30 industrial stock average

grid was down 0.92 percent at 11,987 points, while the Standard & Poor's 500-stock index was down 1.98 percent at 1,298 points. In the European stock

markets, France's CAC 40 was up 0.42 percent at 4,764 and Britain's FTSE 100 was up 0.45 percent at 5,603.

(China Securities Journal)

Bank-insurance cooperation breaks the ice: The China Banking Regulatory Commission (CBRC) and the China Insurance Regulatory Commission (CIRC) signed the Memorandum of Understanding between CBRC and CIRC on Strengthening Banking and Insurance Cooperation and Cross-Industry Supervision Cooperation on January 16th. According to experts, the move kicks off the prelude to deeper

cooperation between banks and insurance companies. In addition, allowing banks to invest in insurance companies will improve the competitiveness of commercial banks in comprehensive operations and will accelerate the reshuffling of the insurance

industry. (China Securities Journal)

The first time China Eastern Airlines and China Southern Airlines joined hands to carry out comprehensive cooperation: In the market have speculated about how China Eastern Airlines will "take over" the cooperation proposed by China National Aviation Company Limited

case, China Eastern Airlines and China Southern Airlines signed the framework agreement on business cooperation in Shanghai yesterday, so that the three major airlines in the two first time to join hands to carry out comprehensive cooperation.

With the signing of the business cooperation framework agreement between China Eastern Airlines and China Southern Airlines yesterday in Shanghai, two of the three major airlines have joined forces for the first time to launch a comprehensive cooperation

in China's civil aviation industry. Liu Shaoyong, president of China Southern Airlines Group and chairman of the board of directors of the company, said yesterday that China Southern

Air China and China Eastern Airlines will cooperate in marketing, aircraft purchasing, aircraft materials **** enjoy and ground services. At present, Air China, China Eastern Airlines and the South

Air is located in Beijing, Shanghai, Guangzhou, three hubs into the three major airline stand, according to the profitability, the first half of 2007, Air China's strongest profitability,

According to the fleet and passenger traffic, South China Airlines is in the first place. What's interesting is that Li Fenghua, president of China Eastern Airlines Group, used to

serve as deputy general manager of China Southern Airlines, while Liu Shaoyong, head of China Southern Airlines, used to serve as general manager of China Eastern Airlines. (Shanghai Securities News)

Famous flow of the issue encountered a "cold stream" social security 920 million flash was set: just implemented the public issue of the famous flow of real estate yesterday, a resumption of trading that is a large

single sealed in the fall, 14.76 yuan closing price has been lower than the 15.23 yuan of the increase in the price of the social security fund of one thousand one hundred and twenty-two combination of 920 million yuan subscription

Social security fund, the social security fund of one thousand one hundred and twenty-one combination of The social security fund 112 portfolio contributed 9.2 million yuan to subscribe

the shares of the lightning was set. In addition, due to the winning rate as high as 93.02%, the combination of shares held by Mingliu Real Estate shares accounted for the proportion of the total share capital of

to 7.26%, will be passive lifting Mingliu Real Estate. With yesterday's closing price, the social security fund 112 portfolio subscription of the Mingliu property has

generated 28.41 million yuan of book loss. According to the current market performance of Mingliu Property, the short-term situation of the portfolio may be even more serious

. (Shanghai Securities News)

Bank of China: U.S. subprime bonds won't hinder year-on-year profit growth: Bank of China (BOC) today issued an announcement clarifying media reports that the bank's 2007 profit may have dropped sharply, or even suffered a loss, due to its holding of

subprime mortgages. In the announcement, the bank said that based on its preliminary unaudited 2007 operations, and taking into account the impairment provision for subprime mortgages and loss on disposal, the management believes that the bank's after-tax profit for 2007

will continue to grow compared with that of the previous year. By the end of the third quarter last year, the bank's holdings of subprime mortgage-related assets had been reduced by $1.7 billion from the middle of the year

to about $7.947 billion. Accordingly, the bank made impairment charges of US$186 million (for subprime mortgages) and US$287 million (for CDOs) for the two types of assets. (China Securities Journal)

Chengdu Construction Investment's merger with Guojin Securities approved: Chengdu Construction Investment (600109) announced that on January 22, the company received approval from the China Securities Regulatory Commission (CSRC) for the restructuring of Chengdu Construction Investment (CCDI) in accordance with the relevant procedures and approved the merger of Chengdu Construction Investment (CCDI) with Guojin Securities Limited by means of the exchange of new shares for shares. (China Securities Journal)

Peace of China or stake in Aviva and Prudential: Ping An of China (601318) has suffered two consecutive losses after announcing its refinancing plan, and the use of the proceeds that has been the subject of concern is beginning to emerge: Ping An is likely to use the capital raised to make overseas acquisitions, and the targets are likely to be the UK's oldest insurer, Aviva, and the financial group Prudential, which is also the largest insurer in China. Prudential. In the past year, the share prices of Aviva and Prudential have fallen about 34 percent and 19 percent, respectively, and their price-to-earnings ratios are lower than the average of 11 to 12 times for insurance stocks in mature markets, according to the data. Founded in

1696 and headquartered in London, Ingevity was ranked 35th among the world's 500 largest companies by Fortune magazine in 2005, making it the largest insurance group in the United Kingdom

and the sixth largest in the world. Founded in 1848 in London, Prudential is one of the largest financial and retail fund

management companies in the UK. (Shanghai Securities News)

JACC to invest 800 million yuan in medium-heavy truck project: JACC (600418) announced that the company intends to invest 837 million yuan in the construction of the project with an annual output of 40,000 medium-heavy trucks, and at the same time, to make additional investment in the Hefei JAC Casting Co. JAC said the company intends to use its own funds to invest

in the project with an annual output of 40,000 medium and heavy trucks, with a total project investment of 837 million yuan, of which 647 million yuan will be invested in fixed assets, and 19

million yuan will be spent on working capital. At the same time, the company with casting phase II project assets 74.6476 million yuan additional investment in Hefei JAC Casting Co.

After the completion of the capital increase,

JAC's investment in Hefei JAC Casting Co., Ltd. is 232,743,500 yuan, accounting for 98.98% of its total investment. In addition, in order to

facilitate the development of passenger car marketing business, JAC will set up a multi-functional vehicle marketing branch of Anhui Jianghuai Automobile Company Limited and a car marketing branch of

Anhui Jianghuai Automobile Company Limited. (China Securities Journal)

Jiangxi Copper to issue 6.8 billion yuan of convertible bonds: Jiangxi Copper (600362) announced today that the company intends to issue share options and bonds divided

away from the trading of convertible bonds of not more than 6.8 billion yuan, the proceeds of which are mainly used for the acquisition of copper, gold, molybdenum and other related assets of Jiangtong Group;

Dexing Copper Mining to expand the scale of mining and production Technological transformation; Afghanistan and North Peru overseas resource development; repayment of financial institution loans and supplemental liquidity

moving capital. It is worth noting that about 1.3 billion yuan of the fund-raising was used to acquire the equity of Canada's North Peru Copper Company (NPC)

and about 1.2 billion yuan to acquire Afghanistan's Aynak Copper. (China Securities Journal)

Central Expressway 400 million yuan to increase the capital of Centaline Trust: Centaline Expressway (600020) Board of Directors recently considered and passed the resolution to invest 400

million yuan in cash to participate in the capital increase of Centaline Trust Company Limited, with a shareholding ratio of 33.28%. The capital increase of the Centaline Trust is still subject to the approval of the China

State Banking Regulatory Commission (CBRC). After the capital increase, the shareholders of Centaline Trust will be as follows: 48.42% held by Henan Investment Group, 33.28% held by Centaline High

speed and 18.30% held by Henan Shengrun. (China Securities Journal)