ChinaScope Daily Dim Sum

Tuesday, February 7, 2012

Feb 07 - IMF Lowers China’s Economic Growth Forecast in 2012 to 8.25%

Source: Caijing, ChinaScope Financial (Data)

+ In a report released on February 6, the International Monetary Fund (IMF) lowered China’s economic growth expectations in 2012 to 8.25%. Before this, IMF expected a 9.2% growth.

+ ChinaScope Financial expects China’s GDP growth in 2012 to be 8.6%.

+ Related Data: Gross Domestic Product

ChinaScope Financial forecasts growth in 2012 at 8.6 %, 0.35 percentage point higher than the IMF forecast.

Other News Headlines:

n IMF Lowers China’s Economic Growth Forecast in 2012 to 8.25%

n Premium Income Rose in Property Insurance But Fell in Life Insurance in 2011

n Seven Listed Banks Estimate Net Profit Growth Over 35% in 2011

n Housing Market Turnover Fell in First Working Week

n Sougou’s Q4 Operating Revenue Rises 248% YoY

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Monday, February 6, 2012

Feb 06 - Private Investment Surpassed CNY 1 Trillion in Guangdong

Source: Xinhua, ChinaScope Financial (Data)

+ According to data from the Statistics Bureau of Guangdong Province, in 2011, the total private investment volume in the province reached CNY 1 trillion, a 37% increase year-on-year.

+ Related Data: Fixed Asset Investment of Guangdong, Growth of Fixed Asset Investment of Guangdong, Composition of FAI.

Private sector is becoming the main focus of fixed asset investments in Guangdong province.

Other News Headlines:

n China to Form an Institution to Manage Pension Fund Investment

n Central and Western Regions Witnessed Faster Economic Growth Compared with Eastern

Regions in 2011

n Total Assets of Insurance Companies Exceeded CNY 6 Trillion in 2011

n CEC: Power Supply Predicted Tight for 2012

n Private Investment Surpassed CNY 1 Trillion in Guangdong

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Feb 06 - Total Assets of Insurance Companies Exceeded CNY 6 Trillion in 2011

Source: Economic Information Daily, ChinaScope Financial (Data)

+ Data released by the China Insurance Regulatory Commission (CIRC) on February 3 show that at the end of 2011, total assets of insurance companies reached CNY 6.01 trillion, ten times higher compared with CNY 600 in 2002.

+ Meanwhile, China’s insurance premium income reached CNY 1.43 trillion in 2011, a 10.4% year-on-year increase.

+ Related Data: Direct Written Premiums, Total Assets

Direct written premiums in decline compared to last year

The growth of total assets stable since 2009

Other News Headlines:

n China to Form an Institution to Manage Pension Fund Investment

n Central and Western Regions Witnessed Faster Economic Growth Compared with Eastern

Regions in 2011

n Total Assets of Insurance Companies Exceeded CNY 6 Trillion in 2011

n CEC: Power Supply Predicted Tight for 2012

Feb 06 - Central and Western Regions Witnessed Faster Economic Growth Compared with Eastern Regions in 2011

Source: Beijing Morning Post, ChinaScope Financial (Data)

+ Most Chinese provinces have reported their regional GDP for the year 2011. GDP growth rate was 13.8% in Hubei, 16.4% in Chongqing, 9% in Zhejiang and 10% in Guangdong. The figures show that economic growth in central and western regions was remarkably faster than in the eastern regions.

+ Furthermore, central and western regions also witnessed a faster per capita GDP growth in 2011. For example, per capita GDP growth in Inner Mongolia has surpassed that of Guangdong, and is close to that of Zhejiang and Jiangsu.

+ Related Data: Provincial GDP Growth 2011

Growth of western provinces exceeds that of the Eastern. Beijing, Shanghai and Zhejiang grew

slower than the national average.

Other News Headlines:

n China to Form an Institution to Manage Pension Fund Investment

n Central and Western Regions Witnessed Faster Economic Growth Compared with Eastern

Regions in 2011

n Total Assets of Insurance Companies Exceeded CNY 6 Trillion in 2011

n CEC: Power Supply Predicted Tight for 2012

Friday, February 3, 2012

Feb 03 - CBRC Strictly Investigates Inter-bank Placement

Source: Caijing, ChinaScope Financial (Data)

+       Some market participants informed that the China Banking Regulatory Commission (CBRC) had released an urgent notification to commercial banks in mid-January. The notification required banks to report the scale, operating mode and counterparty of their inter-bank placement.

+       Since last year, multiple banks have been expanding their inter-bank placement to avoid regulations on lending scale and loan-deposit ratio. In the third quarter of 2011, Bank of China Ltd. (BOC) (SSE: 601988; HKEX: 3988) and Agricultural Bank of China Ltd. (ABC) (SSE: 601288; HKEX: 1288) witnessed 55% and 60% increases respectively in this business. .

+       Related Sector: Commercial Banks

+       Related Data: Placements

The scale of inter-bank placements doubled in 11Q3 compared with 10Q4.

Trading Comparable

Other News Headlines:

Chinese Social Media Stocks Boosted by Facebook’s IPO
Land Transactions in 300 Chinese Cities Fell Over 50% in Jan.
CBRC Strictly Investigates Inter-bank Placement
Central Huijin to Cut Dividend Payout Ratio of Banks
NDRC Raises the Price Floor for Rough Rice Procurement

Feb 03 - Land Transactions in 300 Chinese Cities Fell Over 50% in Jan.

Source: Caijing, ChinaScope Financial (Data)

+ The latest data by the China Index Academy shows that the supply and transaction of land in 300 Chinese cities had decreased month-on-month and year-on-year in January. Average floor prices were also on a downward trend.

+ Transactions in the land market were fairly sluggish in January. A total of 2,735 land lots were put on the market in 300 cities, decreasing 39% month-on-month and 23% year-on-year. The total area was 114.84 million square meters, decreasing 41% month-on-month and 21% year-on-year.

+ Related Data: Sector Data of Real Estate

The area of land on sale and sold slumped.

Average land price drops.

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Other News Headlines:

Chinese Social Media Stocks Boosted by Facebook’s IPO
Land Transactions in 300 Chinese Cities Fell Over 50% in Jan.
CBRC Strictly Investigates Inter-bank Placement
Central Huijin to Cut Dividend Payout Ratio of Banks
NDRC Raises the Price Floor for Rough Rice Procurement

Feb 03 - Chinese Social Media Stocks Boosted by Facebook’s IPO

Source: ChinaScope, ChinaScope Financial (Data)

+ Facebook Inc. submitted its IPO application to the US Securities and Exchange Commission (SEC) on February 2, which led Chinese media stocks on an upward trend in the recent trading sessions.

+ Boosted by the news of Facebook’s IPO, Renren Inc. (NYSE: RENN)’s stock price shot over USD 6 in January 30, and closed at USD 5.48 on February 3.

+ The closing price of Sina Co. (NASDAQ: SINA), owner of a major Chinese micro blog, was at USD 75.30 yesterday.

+ Related Companies: Renren (NYSE: RENN), Sina (NASDAQ: SINA), Tencent (HKEX: 0700)

+ Related Data: Contribution of Advertising Revenue to Total Revenue, Comparison of Margins, Growth Rate of Daily Active Users, Growth Rate of Monthly Active Users, Number of Registered Users on Major Social Network Sites

Renren is involved in more types of online business, and rely less on advertising compared to Facebook .