China Investment Daily Report

US stock market rallied on coming earnings season forecast



China 100 Stock Index closes 809.20, up up +20.88 (2.65%).

 
 

US market rallied on coming earnings season forecast With no major economic data reported Wednesday, the US market rallied on a forecast from financial company State Street Corp. about the coming earnings season. State Street announced quarterly earnings at 93 cents per share on $2.3 billion in revenue, exceeding analysts’ expectations, which are estimating a slimmer profit of 72 cents per share on $2.2 billion in revenue. The announcement boosted Bank stocks to a rally followed by industrial and technology shares closing the trading session with the broadest gains in about six weeks.

The China 100 stock index won 20.88 points or 2.65% to 809.20. The Panda China Large Cap Stock Index won 23.23 points or 2.43% to close at 979.51. The Tiger China Small & Mid Cap Stock Index climbed back 23.07 points or 3.08% to close at 771.53 and the Dragon China Undervalued Stock Index jumped 14.12 points or 2.07% to close at 697.57.

China Organic Agriculture, Inc, (CNOA) [0.46, 0.04, +9.52%] last Monday has engaged Li & Company, PC ("Li & Company") as its new independent registered public accounting firm to review the Registrant's consolidated financial statements as of and for quarterly period ending June 30, 2010 and September 30, 2010 and audit the Registrant's consolidated financial statements as of and for the fiscal year ending December 31, 2010. The engagement of Li & Company was approved by the China Organic Agriculture's Board of Directors.

China-Biotics, Inc. (CHBT) [13.02, 1.06, +8.86%] the leading developer, manufacturer and distributor of probiotics products in China, today provides further updates on the Company's bulk additive operation. China-Biotics gained more bulk customers during the quarter ended at June 30, 2010 and the total number of bulk customers increased to 39 by the end of June. Among the 39 customers, 4 are animal feed producers and the remaining are dairy enterprises. During the quarter, the Qingpu facility produced over 15 metric tons of bulk probiotics products and production utilization rate for the Qingpu bulk additive facility has steadily ramped up to over 60 metric tons per year.

American Oriental Bioengineering Inc. (AOB) shares traded at a new 52-week low yesterday of $2.31. Approximately 636,000 shares have traded hands yesterday vs. average 30-day volume of 865,000 shares. American Oriental Bioengineering closed at $2.17, approximately 27% below its 50-day moving average of $3.18. China BAK Battery, Inc. (CBAK) is one of today's worst performing low-priced stocks, down 5.99% to $1.57. Approximately 341,000 shares have traded hands today vs. 30-day average volume of 708,000 shares and they are trading below their 50-day moving average of $1.89 and below their 200-day moving average of $2.64.

American Lorain Corp. (ALN) [3.12, 0.12, +4.00%] a processed snack foods and convenience foods manufacturer announced it has signed a letter of intent to acquire 100% ownership of Shandong Greenpia Foodstuff Co., Ltd., a manufacturer of retail-packaged, Korean-style kimchi cold dishes. The acquisition will include cash and stock offer of $2.1 million in cash and 731,707 shares of American Lorain common stock, respectively. The company is scheduled to complete the equity exchange and obtain governmental approval on the acquisition on or before September 30.

Shandong Greenpia's 2009 posted sales revenue was around $1.5 million, which American Lorain said it expects to double after the acquisition is complete. American Lorain has tentatively forecasted $3 million in sales for 2010 as a result of expanding Greenpia's distribution and sales to 500 additional distributors in Lorain's network. Greenpia's production lines will remain in operation at Greenpia's facilities and thus American Lorain will have a total of two kimchi-style cold dish production lines with annual capacity of 3,500 metric tons.

CNinsure Inc.(CISG) [27.35, 0.57, +2.13%] a leading independent insurance intermediary company operating in China, today announced it intends to offer, subject to market and other conditions, approximately 4,600,000 American depositary shares ["ADSs"], each representing 20 ordinary shares of the Company. In addition, a selling shareholder will be offering 700,000 ADSs, subject to market and other conditions. CNinsure intends to grant the underwriters an option to purchase up to 795,000 additional ADSs. CNinsure plans to use the net proceeds of the offering to establish four new profit centers.

China Life Insurance (LFC) [67.01, 0.64, +0.96%] has signed a three billion yuan 61-month deposit agreement with Guangdong Development Bank to promote its investment business and boost cooperation between the two parties. The deposit agreement is considered a related-party transaction since China Life Insurance holds a 20 percent stake in Guangdong Development Bank. The deposit has a floating interest rate based on the benchmark rate published by the People’s Bank of China. The agreement has been approved by China Life's board.

Yingli Green Energy Holding Company Limited (YGE) [11.60, 0.65, +5.94%] a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which holds the brand "Yingli Solar" today announced the initial production of its latest 400 MW capacity expansions. The new solar PV manufacturing lines include a 300 MW PANDA monocrystalline silicon based production capacity at the Company's Baoding headquarters, and a 100 MW multicrystalline silicon based production capacity in Haikou, Hainan Province.

Orient Paper, Inc. (ONP) [6.98, 0.21, +3.10%] a leading manufacturer and distributor of diversified paper products in Hebei, China, today provided an additional response to the allegations made by Muddy Waters LLC ("Muddy Waters") in their reports of June 28, 2010 and July 1, 2010. Muddy Waters stated that "Approximately $30 million has been misappropriated since October 2009." This accusation is false. Orient Paper has appropriately allocated the proceeds from its October 2009 and April 2010 financings.

In October 2009, Orient Paper raised net proceeds of $4.9 million to purchase two digital photo paper coating lines from Hebei Shuangxing Paper Co., Ltd. The total price of the two coating lines was RMB 93 million (approximately $13.6 million). Orient Paper funded the acquisition with the proceeds of its financing and cash from operations. The price paid for the two coating lines is based on the Assets Appraisal Report issued by Baoding Chengxin Assets Appraisal Limited on October 25, 2009. This third party appraisal, which was based on the replacement cost of the subject properties, valued the two digital paper coating lines at RMB 103.6 million (approximately $15.2 million). The Company ultimately paid RMB 93 million (approximately $13.6 million) for the two lines after negotiating with the seller.

In April 2010, Orient Paper raised net proceeds of $26.9 million to purchase machinery for the Company's new corrugating medium paper production line with an annual production capacity of 360,000 tons from Henan Qinyang First Paper Machine Ltd. ("Henan Qinyang"). Henan Qinyang will assemble the machinery, with at least 60% of the parts made in China, and install it in the Company's factory over a period of six to nine months. The total price for the new machinery was RMB 190 million (approximately $27.8 million). Orient Paper has provided a copy of the definitive equipment purchase agreement for this equipment in an 8-K filing with the SEC on April 12, 2010. The 8-K filing also includes the agreed upon installment payment schedule.

TOP GAINERS
China Shandong Industries, Inc. (CSNH) 4.68 2.37 Stock Price Increase 2.37 / + 102.60%
Yanglin Soybean Inc. (YSYB) 2.28 0.30 Stock Price Increase 0.30 / + 15.15%
Solarfun Power Holdings Co. Ltd. (SOLF) 8.13 0.87 Stock Price Increase 0.87 / + 11.98%
China Organic Agricultr (CNOA) 0.46 0.04 Stock Price Increase 0.04 / + 9.52%
China-Biotics, Inc. (CHBT) 13.02 1.06 Stock Price Increase 1.06 / + 8.86%
TOP LOSERS
China America Holdings, Inc. (CAAH) 0.01 0.00 Stock Price Decrease 0.00 / - 12.50%
American Oriental Bioengineering Inc. (AOB) 2.17 -0.16 Stock Price Decrease 0.16 / - 6.87%
China BAK Battery, Inc. (CBAK) 1.57 -0.10 Stock Price Decrease 0.10 / - 5.99%
Yucheng Technologies Limited (YTEC) 3.24 -0.11 Stock Price Decrease 0.11 / - 3.28%
HQ Sustainable Maritime Industries, Inc. (HQS) 4.65 -0.15 Stock Price Decrease 0.15 / - 3.12%

SEC Filings

Wednesday, July 07, 2010


 

China Architectural Engineering, Inc. (CAEI) files 8-K - Current report. On July 1, 2010, China Architectural Engineering, Inc. (the “Company”) received a letter from The NASDAQ Stock Market (“NASDAQ”) indicating that for 30 consecutive business days the Company’s common stock did not maintain a minimum bid price of $1.00 (“Minimum Bid Price Requirement”) per share as required by NASDAQ Listing Rule 5450(a)(1). The notification of non-compliance has no immediate effect on the listing or trading of the Company’s common stock on The NASDAQ Global Market. Under the NASDAQ Listing Rules, if during the 180 calendar days following July 1, 2010, which ends on December 28, 2010, the closing bid price of the Company’s common stock is at or above $1.00 per share for a minimum of 10 consecutive business days, the Company will regain compliance with the Minimum Bid Price Requirement and the matter will be closed. If the Company does not regain compliance with the Minimum Bid Price Requirement by December 28, 2010, NASDAQ will provide written notification to the Company that its common stock is subject to delisting. At such time, the Company may be eligible for an additional grace period to meet the Minimum Bid Price Requirement if the Company meets the initial listing standards, with the exception of bid price, for The Nasdaq Capital Market and if the Company submits an application to transfer its securities to The Nasdaq Capital Market.

 

HQ Sustainable Maritime Industries, Inc. (HQS) files DEF 14C - Other definitive information statements. To the stockholders of HQ Sustainable Maritime Industries, Inc.: This Notice and the accompanying Information Statement are being furnished to the stockholders of HQ Sustainable Maritime Industries, Inc., a Delaware corporation (“we,” “us,” “our” or the “Company”), in connection with action taken by the holders of a majority of the voting power of the issued and outstanding voting securities of the Company. By written consent dated June 30, 2010, the holders of a majority of the voting power approved the initial public offering of no more than 35% of the equity securities (the “Offering”) of a newly formed, wholly owned subsidiary (“NewCo”), which will hold our Marine Bio and Healthcare Products segment. The Company expects that the Offering will consist primarily of newly-issued shares of NewCo. If market conditions permit, the Company may include equity securities of NewCo held by the Company in the Offering. At the same time, the holders of a majority of the voting power also approved the listing of the equity securities of NewCo on The Stock Exchange of Hong Kong Limited or any other stock exchange the board of directors may deem desirable (the “Listing”). These assets are currently owned by Hainan Jiahua Marine BioProducts Co. Ltd. (“Jiahua Marine,” NewCo and Jiahua Marine are hereinafter collectively referred to as “Jiahua”), a wholly owned Chinese subsidiary of the Company engaged in the manufacturing and selling of marine bio and healthcare products in China. We intend to maintain a controlling stake in Jiahua immediately after the Offering and Listing and we have no plans to sell any additional portions of our stake in Jiahua in the future. Subject to market conditions, we intend to complete the Offering and Listing within a reasonable time, but in no event later than 24 months from the date the accompanying Information Statement is first sent or given to the Company’s stockholders.

 

JA Solar Holdings Co., Ltd. (JASO) files 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]. SHANGHAI- July 6, 2010 - JA Solar Holdings Co., Ltd., (Nasdaq: JASO), a leading manufacturer of high-performance solar power products, today announced that it has entered into an agreement to acquire 100 percent of the shares of Shanghai Jinglong Solar Technology Co., Ltd. from Ningjin Jinglong PV Investment Co., Ltd., a company controlled by JA Solar’s Chairman, Mr. Baofang Jin. Located in the Minhang Export Processing Zone within the Fengxian district of Shanghai, Shanghai Jinglong Solar Technology Co., Ltd. owns the land, building and facility currently being leased by JA Solar for its module production operation in Fengxian, Shanghai. Through the acquisition, JA Solar would acquire approximately 206,590 square meters of land, 58,706 square meters of buildings and related facilities. Under the terms of the agreement, JA Solar will acquire Shanghai Jinglong Solar Technology Co., Ltd. for a cash consideration of RMB 198.96 million (US $29.3 million), representing the fair value of the company based on an independent third party valuation. The acquisition will enhance JA Solar’s ability to further expand its manufacturing operation to better support customer’s growing requirements. The acquisition and the terms of the acquisition agreement have been approved by JA Solar's Board of Directors and its independent Audit Committee pursuant to its related-party transaction policies. The transactions have been reviewed and approved by the two companies' Boards of Directors.

 

JA Solar Holdings Co., Ltd. (JASO) files 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]. SHANGHAI, July 6 /PRNewswire / -- JA Solar Holdings Co., Ltd., (Nasdaq: JASO), a leading manufacturer of high-performance solar power products, today announced that it has entered into a strategic multi-year supply agreement with MEMC Electronic Materials, Inc. Under the agreement, JA Solar will provide high performance solar modules beginning in the third quarter of 2010 and going through 2012. “MEMC, through its subsidiary Sun Edison, is a leading solar power project developer with an extensive project pipeline, particularly in North America and Europe. This supply agreement demonstrates JA Solar’s ability to work with solar industry leaders and create strategic partnerships in the global photovoltaic industry,” said Dr. Peng Fang, JA Solar’s Chief Executive Officer. “Our partnership with MEMC greatly enhances JA Solar’s position in the solar value chain, further diversifying our geographic presence and enhancing our order visibility, as well as providing us with access to its large project development pipeline. We look forward to building upon this agreement with MEMC to bring solar energy to the world,” he said.

 

Origin Agritech Limited (SEED) files 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]. BEIJING--(BUSINESS WIRE)--July 6, 2010--Origin Agritech Limited (NASDAQ: SEED) (“Origin” or the “Company”) is pleased to announce that it has been named National Agricultural Industrialization - ‘Leading Enterprise’ by a joint committee of eight ministries of the Chinese Government. Origin will hold this premier title and benefit from preferential policies such as corporate taxation exemption, preferential purchase rights, and other core development issues. This qualification is valid for the company until July 2012, and was approved by the Ministry of Agriculture (MOA), National Development and Reform Commission (NDRC), Ministry of Finance (MOF), Ministry of Commerce (MOFCOM), People's Bank of China, State Administration of Taxation, China Securities Regulatory Commission (CSRC), and the China Federation of Supply and Marketing Cooperative. Mr. Liang Yuan, Chief Executive Officer and President of Origin Agritech, stated, “The State of Agricultural Industrialization - ‘Leading Enterprise’ designation not only gives evidence of the strength of our base business, but also is further recognition of our current and future status in this crucial industry. Furthermore, a number of projects assigned by these various government ministries expressly state that only ‘Leading Enterprises’ can qualify toward participation. This title plays an active role of the long term development of our Company.”

 

Featured News and Commentary

Wednesday, July 07, 2010


 

China Security & Surveillance Technology, Inc. Demonstrates Security Offerings at 2010 Guangdong International Social Public Security Expo. SHENZHEN, China, July 7 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("CSST" or the "Company") (NYSE: CSR; Nasdaq Dubai: CSR), a leading provider of digital surveillance technology in the P.R.C., is showcasing its latest security and surveillance products and solutions at 2010 Guangdong International Social Public Security Expo ("Expo") from 7 to 9 July 2010. Visitors to CSST's booth will see the Company's latest products and solution demonstrations, including a full range of unique Safe City and E-city solutions. CSST's booth is located at 4A55 & 4A56 in Hall C Section 14 of the Expo at the China Import and Export Fair Pazhou Complex, Guangzhou, China.

 

Yongye International to Present at the Global Hunter Securities China Conference in San Francisco on July 11 - 13, 2010. BEIJING, July 7 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (Nasdaq: YONG), ("Yongye" or the "Company") a leading developer, manufacturer, and distributor of Shengmingsu brand plant and animal nutrient products in the People's Republic of China ("PRC"), today announced that the Company's management team will present at the Global Hunter Securities ("GHS") China Conference from July 11 to July 13 in San Francisco.

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China 100 Stock Index
The China 100 Stock Index closed Wednesday, July 07, 2010:
803.44 19.82 Stock Price Increase19.82 (2.53 %)
China Shandong Industries, Inc. (CSNH) led the Gainers closing 7/7/2010:
4.68 2.37 Stock Price Increase2.37 (102.60 %)

China America Holdings, Inc. (CAAH) was the Index biggest loser closing 7/7/2010:
0.01 0.00 Stock Price Decrease0.00 (12.50 %)

 

China Large Cap Stock Index
The China Vesting Large Cap Stock Index (Panda) closed Wednesday, July 07, 2010:
984.68 23.27 Stock Price Increase23.27 (2.42 %)
Baidu, Inc. (BIDU) led the Index closing 7/7/2010:
72.37 4.92 Stock Price Increase4.92 (7.29 %)

China Unicom (Hong Kong) Limited (CHU) was the Index biggest loser closing 7/7/2010:
13.60 0.07 Stock Price Decrease0.07 (0.51 %)

 

China Mid and Small Cap Stock Index
The China Vesting Small and Mid Cap Stock Index (Tiger) closed Wednesday, July 07, 2010:
758.08 22.29 Stock Price Increase22.29 (3.03 %)
China-Biotics, Inc. (CHBT) led the Index closing 7/7/2010:
13.02 1.06 Stock Price Increase1.06 (8.86 %)

American Oriental Bioengineering Inc. (AOB) was the Index biggest loser closing 7/7/2010:
2.17 0.16 Stock Price Decrease0.16 (6.87 %)

 

China Undervalued Stock Index
The China Vesting Undervalued Stock Index (Dragon) closed Wednesday, July 07, 2010:
694.81 11.35 Stock Price Increase11.35 (1.66 %)
China Shandong Industries, Inc. (CSNH) led the Index closing 7/7/2010:
4.68 2.37 Stock Price Increase2.37 (102.60 %)

China America Holdings, Inc. (CAAH) was the Index biggest loser closing 7/7/2010:
0.01 0.00 Stock Price Decrease0.00 (12.50 %)