22 MAY 2015

Hong Kong market to hover around current level over the

short term

Peripheral markets stay firm Germanys Finance Minister said possibility

of Greek debt default cannot be ruled out. The three major European stock
indices rose 0.09-0.26%, respectively. US economic data are mixed. While
initial jobless claims and leading economic indicator were better than
expected, existing home sales and manufacturing data came in worse than
expected. Dow closed flat, while S&P500 and Nasdaq rose 0.23% and 0.38%,
respectively.

MAJOR MARKET INDICES

Chg
Close
pt
HSI
27,523.72 -61.33
HSCEI
14,132.16 -103.74
Turnover (HK$bn) 124.51
SHSECI
SHSECI

4,529.42
2,713.42

Dow
NASDAQ
S&P 500
FTSE 100
Nikkei 225

18,285.74
5,090.79
2,130.82
7,013.47
20,202.87

+/%
-0.2
-0.7

+83.13 +1.9
+94.10 +3.6
+0.34
+19.05
+4.97
+6.21
+6.31

+0.0
+0.4
+0.2
+0.1
+0.0

Source: Bloomberg

HSI forecast Though A-shares rose for a third day, the HSI did not follow
the uptrend. This reflects the lack of funds to support Hong Kong market
upwards. The HSI is expected to hover around current level overt the short
term. According to the ADR closing prices, the HSI is expected to open ~70
points higher. Expected trading range for today is 27,450-27,750.
Sector and stocks in spotlight Oil price rose for a second day. Nymex
crude oil for July delivery closed at US$60.72/barrel, up US$1.74 or 2.9%.
CNOOC (883) and PetroChina (857) are worth attention.

CHINA MERCHANTS HOLDINGS (0144)

SHARE PRICE: HK$33.95
Whats new: Shenzhen Chiwan Wharf Holdings, 38.0
a Shenzhen listed subsidiary of China Merchants
Holdings, may be involved in the restructuring of 33.0
West Shenzhen port assets of the parent
company.
28.0
Comment: Shenzhen Chiwan Wharf has 13
container and bulk cargo berths in Chiwan Port 23.0
(Shenzhen), 3 container berths in Mawan Port
(Shenzhen) and 5 bulk cargo berths in Machong 18.0
Port (Dongguan). It also has an investment in
Laizhou Wharf in Shandong Province. The 13.0
restructuring is deemed to be related to the
8.0
inclusion of port areas in Shekou, Chiwan and
Mawan into the Guangdong Free Trade Zone.
3.0
Since the business scale of Shenzhen Chiwan
May Jul
Sep Nov Jan Mar May
Wharf is far smaller than that of China Merchants
Holdings, the parent company may start its Source: Bloomberg
restructuring with the Chiwan and Mawan ports of
Shenzhen Chiwan Wharf first, which could
possibly be extended to the Shekou Container
Terminal of China Merchants Holdings later.
VOLUME FILTER
Company
Goldin Financial
Goldin Properties
Carnival Group Int'l
Tech Pro Technology
Xiabuxiabu Catering
Sany Heavy Equipment Int'l
COSCO Int'l
Beijing Properties
BYD Co
Mingfa Group Int'l

Price
HK$
17.48
14.36
1.51
7.72
4.99
2.37
5.69
0.80
54.55
2.17

Change
HK$
%
-13.37
-43.3
-9.94
-40.9
-0.01
-0.7
0.56
+7.8
0.04
+0.8
0.38
+19.1
0.22
+4.0
0.05
+6.7
4.45
+8.9
-0.07
-3.1

May 2015
Closing
27,635
Change
+42
Prem./dis. to spot
+111
Volume
53,568
Open Interest
115,122
High
27,642
Low
27,551
Ex-dividend

Jun 2015
27,378
+47
-146
10,005
29,486
27,382
27,293

-4.85

-348.01

Source: Bloomberg

HSCEI FUTURES

Kaiser Choi Kaiser.choi@sctrade.com (852) 2820 7221

Stock
code
530
283
996
3823
520
631
517
925
1211
846

HSI FUTURES

Volume
m shares
32.3
40.3
67.9
31.4
2.2
47.9
19.0
69.7
24.4
1.7

Change
%
2,520.7
1,051.3
555.3
293.1
252.0
234.2
226.7
198.6
190.8
182.3

The Volume Filter is a tool to spot stocks where there is an increase in trading activity, which may not always be
apparent by a change in the share price. The last column in the table shows the percentage change in volume
on the last trading day, relative to the average for that stock over the preceding month. The table shows the top
10 gainers by volume change, drawn from the members of Hang Seng Composite Index.
Source: Bloomberg
Im portant: please refer to our disclosures and disclaimers at the end of this report.

Closing
Change
Prem./dis. to spot
Volume
Open Interest
High
Low

May 2015
14,193
+52
+61
100,506
230,390
14,201
14,121

Jun 2015
13,967
+59
-165
30,116
99,643
13,967
13,892

-8.77

-306.88

Ex-dividend

Source: Bloomberg

SHANGHAI-HK STOCK CONNECT

Northbound Top 10 Turnover Stocks
Stock
Company
Turnover
Code
(RMBm)
600585 Anhui Conch Cement 450.32
601318 Ping An Insurance
402.95
600881 Jilin Yatai
290.85
600519 Kweichow Moutai
239.95
600887 Inner Mongolia Yili
183.68
600036 China Merchants Bank 177.22
600009 Shanghai Intl Airport 176.88
601398 ICBC
164.74
600030 CITIC Securities
143.65
601166 Industrial Bank
138.57
Southbound Top 10 Turnover Stocks
Stock
Company
Turnover
Code
(HK$m)
0493
GOME
213.25
2727
Shanghai Electric
144.99
2866
CSCL
138.40
1919
China COSCO
136.06
1060
ALI Pictures
116.38
0530
Goldin Finance
115.35
3333
Evergrande
112.35
1165
SFCE
110.95
1816
CGN Power
106.11
0981
SMIC
96.26

Source: HKEx

BOND/ FOREX & COMMODITIES

Exchange mth

Close
(US$)
Crude Oil NYMEX 07/15 60.72
Gold
NYMEX 06/15 1,204.10
10 Yr Note CBOT 06/15 127.72
BP
CME 06/15 1.5670
EUR
CME 06/15 1.1134
Jap
CME 06/15 82.69

Source: Bloomberg

+/- Chg
(US$) (%)
1.74 2.95
-4.60 -0.38
0.45 0.36
0.0127 0.82
0.0014 0.13
0.1400 0.17

22 MAY 2015
AH PREMIUM/DISCOUNT MOVEMENT
H share
stock Company
code
Expanded
995
Anhui Expressway
317
Guangzhou Shipyard
1108
Luoyang Glass
2727
Shanghai Electric
338
Shanghai Petrochemical
Condensed
895
Dongjiang Environmental
1071
Huadian Power Int'l
347
Angang Steel
2318
Ping An Insurance
2009
BBMG Corp

H share close
last day
1mth
(HK$)
(HK$)

A share
stock
code

A share close
last day
1 mth
(RMB)
(RMB)

H/A dis. (Prem.)#

last day
1mth
%
%

Chg*
% pt

6.850
32.650
6.590
7.900
3.900

6.650
34.950
6.890
8.050
3.920

600012
600685
600876
601727
600688

12.350
64.560
16.990
21.570
8.540

8.650
50.170
12.900
15.740
6.590

55.7
59.6
69.0
70.7
63.5

38.5
44.3
57.3
59.1
52.4

17.1
15.3
11.7
11.6
11.0

43.500
8.700
6.390
113.000
9.050

30.400
7.770
6.270
109.900
8.630

002672
600027
601939
601318
601992

62.190
8.530
7.030
86.600
12.010

50.260
8.130
7.360
87.990
12.290

44.1
18.5
27.3
(4.3)
39.8

51.6
23.6
31.9
0.2
43.9

7.6
5.1
4.6
4.5
4.1

127.3

128.09

0.8

Hang Seng AH Prem. Index (Condensed)

*A shares prices have been converted to HK$ for calculation

Source: Bloomberg, *South China Research

HK STOCKS ADR LAST CLOSING (MOST ACTIVE)

Stock
code
16
700
857
762
2388
1398
2318
883
941
1

Company
SHK Properties
Tencent
PetroChina
China Unicom
BOC HK
ICBC
Ping An Insurance
CNOOC
China Mobile
CK Hutchison

Closing (HK$)
HKEx
ADR
131.00
132.19
156.80
158.09
9.42
9.49
13.54
13.63
30.65
30.78
6.70
6.73
113.00
113.39
12.46
12.49
103.40
103.64
171.30
171.66

Rel to HK closing
HK$
%
1.19
+0.91
1.29
+0.82
0.07
+0.73
0.09
+0.67
0.13
+0.42
0.03
+0.39
0.39
+0.35
0.03
+0.28
0.24
+0.24
0.36
+0.21

Stock
code
1088
5
386
3988
2628
939
11
2600
13
66

Company

Closing (HK$)
HKEx
ADR
China Shenhua Energy 19.10
19.13
HSBC Holdings
74.25
74.37
Sinopec
6.82
6.82
Bank of China
5.16
5.16
China Life Insurance 37.35
37.33
CCB
7.58
7.57
Hang Seng Bank
157.30
157.00
Chalco
4.82
4.81
Hutchison Whampoa 116.10
115.76
MTR Corp
38.75
38.22

Rel to HK closing
HK$
%
0.03
+0.16
0.12
+0.16
0.00
+0.04
0.00
-0.05
-0.02
-0.06
-0.01
-0.07
-0.30
-0.19
-0.01
-0.21
-0.34
-0.30
-0.53
-1.36

Source: Bloomberg

UPCOMING IPO
Stock Company
code
6839 Yunnan Water H
(IPO report)
1301 D&G Technology
(IPO report)
8355 i-Control

Listing
date
27/05/15
(Application lists closed )
27/05/15
(Application lists closed )
27/05/15
(Listing by placing )
6886 HTSC H
01/06/15
(Application lists close: 22/ 05 / 15 )
(IPO report)
1113 CK Property
03/06/15
(Listing by introduction )

IPO
Price
HK$
5.00-5.80

Mkt Cap
HK$m
6,670

Sponsor

Business

CMS

1.82-2.40

1,440

BOCOMI

0.30-0.39

390

Pan Asia

20.68-24.80

38,192

HTS/JP/UBS

Integrated service providers in the municipal

wastewater treatment & water supply
Design, manufacturing and sale
of asphalt mixing plants
Video conferencing and multimedia
audiovisual solution provider
Securities firm

BoAML/HSBC

Property developer

Sources:Bloomberg, Prospectus, South China Research

2
South China Group

22 MAY 2015
ECONOMIC DATA
Date
21/05/15
21/05/15
21/05/15
21/05/15
22/05/15
26/05/15
26/05/15
26/05/15
29/05/15
29/05/15
29/05/15
29/05/15
01/06/15
01/06/15
01/06/15
01/06/15
02/06/15
02/06/15
02/06/15
03/06/15
03/06/15
03/06/15
04/06/15
05/06/15
05/06/15
06/06/15

Country
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US

Indicators
Existing Home Sales (April)
Initial Jobless Claims (16 May)
Leading Index (April)
Philadelphia Fed (May)
CPI (April)
Consumer Confidence (May)
Durable Goods Orders (April)
New Home Sales (April)
Chicago PMI (May)
GDP (1Q2015)
Personal Consumption (1Q2015)
University of Michigan Confidence (May)
Construction Spending (April)
ISM Manufacturing (May)
Personal Income (April)
Personal Spending (April)
Factory Orders (April)
Domestic Vehicles Sales (May)
Total Sales (May)
ADP Employment Change (May)
ISM Non-Manufacturing (May)
Trade Balance (April)
Nonfarm Productivity (1Q2015)
Nonfarm Payrolls (May)
Unemployment Rate (May)
Consumer Credits (April)

21/05/15
27/05/15
28/05/15
01/06/15
01/06/15
03/06/15

CH
CH
CH
CH
CH
CH

HSBC PMI Manufacturing (May)

Industrial Profits (April)
Leading Index (April)
Manufacturing PMI (May)
Non-Manufacturing PMI (May)
HSBC PMI Services (May)

21/05/15
29/05/15
02/06/15
03/06/15
03/06/15
05/06/15

EURO-ZONE
EURO-ZONE
EURO-ZONE
EURO-ZONE
EURO-ZONE
EURO-ZONE
HK
HK
HK
HK
HK
HK
HK
HK
HK

21/05/15
28/05/15
28/05/15
28/05/15
29/05/15
29/05/15
29/05/15
02/06/15
05/06/15
Source: Bloomberg

Consensus
5.23m
270K
+0.3%
8.0
+0.1%
95.2
-0.5%
500K
53.0
-0.9%
+2.0%
90.0

Actual
5.04m
274K
+0.7%
6.7

Previous
5.21m
264K
+0.4%
7.5
+0.2%
95.2
+4.4%
481K
52.3
+0.2%
+1.9%
88.6
-0.6%
51.5
0.0%
+0.4%
+2.1%
12.88m
16.46m
169K
57.8
-US$51.4bn
-1.9%
223K
5.4%
US$20.523bn

49.3

50.2

49.1

48.9
-0.4%
98.32
50.1
53.4
52.9

Consumer Confidence (May)

Money Supply M3 (April)
PPI (April)
Retail Sales (April)
Unemployment Rate (April)
GDP (1Q2015)

-4.8
+4.9%

-5.5

-4.6
+4.6%
-2.3%
+1.6%
11.3%
+1.0%

Composite CPI (April)

Exports (April)
Imports (April)
Trade Balance (April)
Money Supply M1 (April)
Money Supply M2 (April)
Money Supply M3 (April)
Retail Sales Value (April)
Foreign Currency Reserves (May)

+4.3%

+2.8%

+4.5%
-1.8%
-2.7%
-HK$46.2bn
+29.2%
+15.2%
+15.2%
-2.9%
US$343.2bn

3
South China Group

22 MAY 2015

South China Financial Holdings Ltd

HEAD OFFICE
28/F, Bank of China Tower,
1 Garden Road, Central, HK
Tel: (852) 2820 6333
Fax: (852) 2845 5765
URL: http://www.sctrade.com
E-mail: research@sctrade.com
Telex: 69208 SCSL
LONDON OFFICE
4/F, Sabadell House, 120 Pall Mall,
London SW1Y 5EA,
United Kingdom
Tel: (4420) 7930 9037
Fax: (4420) 7925 2189
HUNG HOM BRANCH
RM1002-03, Nan On Com Bldg
69A Wuhu Street,
Hung Hom
Tel: (852) 2330 5881
Fax: (852) 2627 0001

WAN CHAI OFFICE

19/F, Tesbury Centre,
28 Queens Road East,
Wan Chai
Tel: (852) 3196 6233
Fax: (852) 2537 0606

NORTH POINT BRANCH

Shop 1 G/F, Majestic Apartments,
301-319 King's Road,
North Point
Tel: (852) 2979 4800
Fax: (852) 2979 4898

KWUN TONG BRANCH

Office G1, 15/F, Legend Tower,
7 Shing Yip Street,
Kwun Tong
Tel: (852) 2191 2822
Fax: (852) 2793 3000

YUEN LONG BRANCH

Shop D, G/F, Kar Ho Building,
27-31 Hong Lok Road,
Yuen Long
Tel: (852) 2442 4398
Fax: (852) 2479 4418

FORTRESS HILL BRANCH

Unit 02, 15/F, Olympia Plaza
255 King's Road,
North Point
Tel: (852) 2570 4422
Fax: (852) 2570 4688
TSUEN WAN BRANCH
Unit A&B 17/F, Hang Seng Tsuen Wan Bldg
289 Sha Tsui Road,
Tsuen Wan
Tel: (852) 2614 1775
Fax: (852) 2615 9427

DISCLOSURES: This report is prepared and approved by the research team member(s) (Analyst) of South China Research Limited (SCRL). The analyst hereby
declare the views expressed in this research report accurately reflect the analyst personal views about the subject companies( The Company ) and the securities
covered in this report. In accordance with the applicable requirements and relevant definitions mentioned in the code of conduct issued by The Hong Kong Securities
and Futures Commission, the Analyst confirm that neither the Analyst nor the Analysts associates (1) have dealt in or traded in the securities covered in this report
within 30 days prior to the date of issue of this report; (2) will deal in or trade in the securities covered in this report three business days after the date of issue of this
report; (3) serve as an officer of any of The Company; and (4) have any financial interests in The Company. The Analyst also declare the Analyst have not been, are not,
and will not be receiving direct or indirect compensation for expressing the specific recommendations(s) or view(s) in this report.
South China Financial Holdings Limited including its subsidiaries, and its associated companies (SCFH) may have financial interests in relation to The Company in
respect of which are reviewed in this report, and such interests aggregate to an amount may equal to or more than 1 % of its market capitalization or 1% of its new
listing issued shares covered in this report. One or more directors, officers and/or employees of SCFH may be a director or officer of the securities of The Company.
SCFH and its affiliates, officers, directors and employees, excluding the Analyst, will from time to time have long or short positions in, act as principal in, and buy or sell,
the securities or derivatives (including options and warrants) of The Company; and/or perform services or solicit business for The Company; and/or have a position or
holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. SCFH may have served as manager
or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any of the entities mentioned in this report or may be providing,
or have provided within the last 12 months, significant advice or investment services in relation to the investment concerned or a related investment or investment
banking services to the shares issuer(s) mentioned in this report. SCFH may have received compensation for investment banking services from The Company within the
preceding 12 months and/or may currently seeking investment banking mandate from The Company.
IMPORTANT: This report and the information and opinions provided or expressed herein have been prepared by SCRL and/or SCFH for the information of its or their
respective clients only, and has been compiled with reasonable care using data, information, or sources believed to be true, reliable, and accurate at the time of
publication. No representation or warranty whatsoever, whether express or implied, is made to the accuracy or completeness or otherwise of this report or any of the
contents thereof. SCRL and/or SCFH and their or their directors, officers, associates, representatives, or employees accordingly do not accept any responsibility or
liability whatsoever for any direct or consequential loss or damage of whatsoever nature arising from or as a result of the use, publication, or distribution in whole or in
part of this report or any of its contents. The information and opinions contained in this report are or may be subject to change or revision without any notice. SCRL
and/or SCFH and their or their respective directors, officers, associates, representatives, or employees may have positions or otherwise be directly or indirectly
interested in the securities mentioned in this report or may buy, sell, or deal or offer to buy, sell, or deal in or with such securities from time to time, whether as principal
for its or their own account or as agent or in any other capacity for or on behalf of another person. This report is not, and is not intended to be, nor constitutes any offer
or solicitation for the purchase or sale or other dealing in the securities mentioned herein. Copyright protection and other rights exist or subsist in this report, which may
accordingly not be used for any other purpose, nor sold, distributed, published, or reproduced in any manner without the express consent of SCRL. This publication is
approved for distribution in the UK by South China Securities (UK), a firm authorized and regulated by the FSA. Investors, when reading this report, should understand
and comprehend the investment objectives and its relevant investment risks, and consult their own independent financial advisers before making any investment
decision when necessary.

4
South China Group