China Ocean rose 3% but big target price discount

China's ocean-going shares have been significantly shaken by the fall in the early morning, with shares of 2.58% to HK $9.93 a half-day, with 58.76 million shares traded.　　But the big line is given a lower rating, and the target price is significantly discounted than the market value. UBS issued a report saying it maintained a sales rating of the unit and a target of HK $2.6, a sharp discount of 74% on market prices. China ocean valuation is high and vulnerable.　　The recent strength of the BDI index is expected to wane, as China's strong iron ore imports support BDI has risen 140% per cent in the past two months, but this is temporary because it is unclear whether that demand will be sustained and that supply is expected to accelerate in the second half of 2009. Credit Suisse also maintained the Chinese-ocean-run market rating, with a target price of HK $4, the equivalent of 0.8 times times the consolidated market for fiscal year 2009, and a discount of 60% per cent on market prices. Refers to the short and medium term prospects of the dry bulk shipping industry because of China's excess iron ore inventories and the oversupply of the industry in fiscal year 2009-10. and the discount (67%) between the forward freight rate and the spot freight rate of the large dry bulk carrier is close to the historical level, indicating that BDI may have a large correction. As BDI fell, Cosco was the most affected stock because, despite being the world's largest dry bulk shipping company, the locked dry bulk freight Force was limited (only 19% per cent was locked in fiscal 2009). China's offshore earnings are expected to continue to fall sharply, as container freight rates are low and BDI are expected to fluctuate at 1,500-1,750 points.