ChinaScope Daily Dim Sum

Thursday, April 12, 2012

Apr 12 - Entrepreneur Confidence Index Shows Some Optimism

Source: NBS, ChinaScope Financial (Data)

+ According to data released by the National Bureau of Statistics on April 10, the entrepreneur confidence index for 2012Q1 was 123, up 2.1 points quarter-on-quarter.

+ The spot entrepreneur confidence index was 121.2, down 0.8 point quarter-on-quarter; and the predictive entrepreneur confidence index was 124.2, up 4.0 points quarter-on-quarter, reflecting higher expectations among entrepreneurs.

+ The NBS also released the business climate index for 2012Q1, which was 127.3, 0.5 points lower than in 2011Q4.

While the business climate index declined slightly in 2011Q1, the entrepreneur confidence index and the predictive entrepreneur confidence index increased some.

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Friday, April 6, 2012

Apr 6 - Poly Real Estate’s Net Profit CNY 6.53 Bn in 2011, up 32.74% YoY

Source: Shanghai Stock Exchange, ChinaScope Financial (Data)

+ Poly Real Estate Group Co., ltd. released its 2011 annual report today, showing operating revenue of CNY 47.04 billion, up 31.04% year-on-year, and net profit attributable to the parent company of CNY 6.53 billion, up 32.74% YoY

+ In 2011, due to the expansion of real estate projects, Poly’s inventory value increased 38.41% year-on-year to CNY 15.21 million.

The sales growth of Poly (600048.SH) slowed down in 2011, mainly due to the slower sales growth in tier-one cities.

In 2011 average sales prices dropped in tier-three cities, while they rose quickly in tier-one cities.

Both property inventory growth and cash ratios are at reasonable levels.

Apr 6 - Four Major Insurance Companies Report CNY 65 Billion Surrenders in 2011

Source: CLIC, NCI, PINGAN, CPIC, ChinaScope Financial (Data)

+ 2011 performance disclosures of China’s four major insurance companies all show increase in surrenders. Last year the amount of surrenders by China Life Insurance Co., Ltd. (601628. SH, 2628. HK), Ping An Insurance (Group) Co. of China Ltd. (601318.SH, 2318.HK), China Pacific Insurance (group) Co., Ltd. (601601.SH, 2601.HK), and New China Life Insurance Co. Ltd. (601336. SH, 1336. HK) exceeded CNY 65 billion, and the surrender ratio increased considerably compared with last year. Among them, Pacific Insurance surrender rate increased the most, by 113.6% year-on-year.

+ The higher surrender rate is explained by poor capital market return, higher bank deposit rates and the tighter bancassurance control of the China Insurance Regulatory Commission (CIRC).

Due to rise in interest rates and the larger issuance of financial products, the surrenders of major insurers increased rapidly last year.

Trading Comparable

Apr 6 - Property Transaction in Major Cities Grows MoM but Falls YoY in March

Source: Cnstock, ChinaScope Financial (Data)

+ Data from the China Index Academy shows that of 40 monitored cities, 33 recorded month-on-month increase in transaction volume.

+ On a yearly growth basis, 14 out of 20 cities recorded lower transacted areas. The decrease in Dalian was the highest, reaching 73.14%. The transacted areas in the other 6 cities rose compared with last year, the rise in Suzhou being the highest, with over 100%.

Commodity housing trading in key cities increased considerably in Q1 2012

However, the trading volume of land market, especially residential land, continued to decrease.

Thursday, April 5, 2012

Apr 5 - Founder Securities: Net Profit Drops 79% to CNY 256 Million in 2011

Source: Shanghai Stock Exchange, ChinaScope Financial (Data)

+ According to Founder Securities’ 2011 financial report released on April 4, the brokerage firm made CNY 1.7 billion in revenues last year, a 44.65% year-on-year decrease. Net profit attributable to shareholders was CNY 256 million, declining 79.42% year-on-year. Basic earnings per share were CNY 0.0504.

+ The company plans to pay a cash dividend of CNY 0.7 per share.

Due to poor market performance, Founder Securities’s profits declined dramatically last year.

Trading Comparable

Apr 5 - Housing Prices in 100 Chinese Cities Fall for Seven Consecutive Months

Source: Soufun, ChinaScope Financial (Data)

+ Data from the China Index Academy shows that the average price of residential properties in 100 Chinese cities was CNY 8,741 per square meter, down 0.3% month-on-month in March. The price has been declining in month-on-month terms since last August.

+ Property prices in major cities such as Beijing and Shanghai are also declining. Statistics show that the average housing price in ten major cities was CNY 15,454 per square meter in March, down 0.4% month-on-month.

For the last seven months, the average price in 100 cities has dropped in month-on-month terms.

In March, the number of cities that experienced month-on-month growth of average sales price was 7 more than in February.

The average housing prices dropped year-on-year in seven out of China’s ten major cities. Prices in Shenzhen, Guangzhou and Wuhan rose.

Apr 5 - China’s Non-Manufacturing PMI Grows to 58% in March

Source: NBS, ChinaScope Financial (Data)

+ In March, China’s seasonally adjusted non-manufacturing PMI was 58%, 0.7 percentage points higher than in February and still high above the demarcation line of 50. All sub-indices; new orders, business activity index, input costs, sales price and business activity outlook all increased.

The Non-manufacturing PMI continued its upward climb and landed at 58 in March 2012. Among sub-indices, business activity outlook increased the most, by 2.8 ppt.