Tai Fook Securities Plate pre-Reviews: Commodity stocks regain green graces

The Made Wang Hongzhi market shows that China continues to increase its holdings of oil and other commodities as another reserve for US dollar assets, providing support for the prices of related commodities. In the Friday, oil, Jin Ye and other stocks of raw materials, such as the general surge, led the shipping unit also performance. The index rose by 6% in 3 consecutive trading days, closing at 18,600 points in the weekly report. Similar to the last round of the rally, which peaked two weeks ago, China Mobile (0941.hk,$78.70) led the city up to a two-week high. However, in Sunday, the transaction was only 61.7 billion yuan, far less than 3 weeks before the daily average of 91.2 billion yuan, it is clear that the big city transactions compared to the last round of the rally significantly reduced. Property stocks are still the main driver of last week's big city rally, with the index rising 679 points, or 3.8%, throughout the week. In fact, although the sale of second-hand market is reduced, liquidity is not the problem.　　Mainland renowned shampoo manufacturer Overlord Group (1338.HK) IPO, the amount of enthusiastic subscription by local individual investors or more than $70 billion, equivalent to initial available for public investors to subscribe to 420 times times the value of the shares. Hot stocks in the investment climate, more companies are interested in the market to raise money. In the financial crisis, although the dividend payment and share repurchase of Chinese estates (0127.hk,$15.24, Holdings) were generous, the company continued to raise funds in the market. After spending nearly $2.3 billion on the purchase of shares last year, the company returned more than $2 billion to its shareholders at the beginning of this month through a special dividend of $0.99. In addition, the large shareholder's injection into the listed companies is timely, poly-GCL Energy (3800.hk,$2.70) to purchase the solar energy industry in polysilicon and silicon wafer manufacturing business, a price of 26.4 billion yuan, equivalent to its existing shareholder funds of more than 10 times times, is a very aggressive injection of capital, To inject business into the leadership of the mainland of the solar industry polysilicon and wafer suppliers. We are cautious about acquisitions because at least the supply of polysilicon will continue to be surplus for the next two years.　　In the aftermath of the financial tsunami, the demand for polysilicon from solar-chip customers has plummeted, and the spot price of polycrystalline silicon peaked in 08 at about $500 a kg, and has fallen sharply below the current level of $100 per kilogram. Statistics from the National Bureau of Statistics show that the rate of decline in earnings for industrial companies above the size of the country has slowed since March, easing investors ' worries about the economic downturn in the economy and its unavoidable drag on corporate earnings. In January-May this year, industrial enterprises above the national scale achieved a profit of 850.2 billion yuan, down 22.9% year-on-year, the decline was significantly slower than the 37.3% in January-February. The year-on-year decline in overall profits for most industries has slowed. Better, the overall earnings of 1-5-month power generation companies and building materials manufacturers grew by 14.6% and 8.6% per cent year-on-year, compared with a year-on-year profit setback of January-February 77% and 3.6%. In addition, crude oil, coking coal and nuclearThe fuel processing industry continued to improve, from last January-May net loss of 449 yuan billion yuan to the same period of profit of RMB 11.7 billion yuan. In the US, the jobless claims data were less than expected, cooling the optimism that investors were stabilizing the US job market. According to the Department of Labour data, the number of new claims for unemployment benefits for the week ended June 20 was 627,000, compared with the upward revision of 612,000 in the week ended June 13, by 15,000, and above the market forecast of 600,000 people.　　The number of continuing applications for the week ended June 13 was 6.74 million, exceeding the market forecast of 6.71 million. Market Outlook We still believe that the city will continue to run rampant, while the HSI will linger in the short term or at 18,000-19,000 point level. In a recent article, former chairman of the Federal Reserve, Alan Greenspan, said the expected inflation would be a major challenge for the next 10 years and that the market would focus on Greenspan's view of the U.S. economy and the country's future fiscal policy, so the market focus would fall on the issue of inflation. In addition, China's tendency to increase reserves of energy and raw materials should stimulate a resurgence of buying of commodities and related stocks. property, as an inflation-resistant investment vehicle, should also provide sustained support to property stocks.