Common sense of how to manang money,comments of finance news.

Week hot incidents Comment

Central parity of RMB against the U.S. dollar since May 2009 to scale new high

Event: According to the China Foreign Exchange Trade System published data, April 8, 2010 U.S. dollar foreign exchange market trading currencies such as the central parity of RMB exchange rate: 1 U.S. dollar against 6.8259 yuan. And April 7 of the central parity unchanged, compared with April 6 6.8260 yuan edged higher by 1 basis point. This figure has been set in May 2009 a new high since. “This week’s adjustment to rise next week”

Comments: every 1% appreciation of RMB will cause large losses of export industries, so the economic damage of RMB appreciation on China’s very large, but still some benefits to this industry. Such as real estate, paper, aviation, and gold, but the secondary market, the relevant individual stocks were mixed today, property stocks are still weak, but Air China Air China is the leading heavy volume hit a rebound high rebound.

The western half of two research and development of the State Council, the next phase of the seven key deployment

Event: all over the country to emphasize the regional economy, development of industries and has access to national support when the position of the western development strategy has not wavered. Yesterday, Premier Wen Jiabao chaired a State Council executive meeting, again in-depth implementation of the western development strategy focused on tasks and policy measures. This is already half a month, the State Council, the second development on the western points of future work to study and plan.

Comments: This year’s drought to the central concern of the central and western regions has increased substantially, the central government continue to increase transfer payments to the western region and the various special funds to support efforts mean that this year a series of Western China will speed up infrastructure construction pace. Stimulation in the news, today part of Tibet, Xinjiang, more outstanding performance of local shares.

Agricultural Bank of China started the world’s largest IPO to raise 234 billion investment bank to be robbed 900 million underwriting fee

Events: the long-awaited listing of the Agricultural Bank received by the market, has recently listed a further ABC news. Sources said the ABC has launched IPO (initial public offering) process, while 21 reported investment bank investment program will be ABC. Reported that the Agricultural Bank of China listed finance as much as 30 billion U.S. dollars scale, the bank plans to issue 10 billion U.S. dollars worth of A shares and 20 billion U.S. dollars worth of H shares, listing plan to be launched at 9 months for.

Comments: The world’s largest IPO financing of 234 billion, a huge demand for funds caused market panic, coupled with the banking sector this year, the proportion of capital increase, the market expanded significantly to enlarge the financial pressure of fear. The bad news for the market, hit by the news today, stock index continues to fall shock.

The State Council recently announced the nine industries and eliminate backward production capacity goal

Event: According to the Chinese Government Network 6 released “The State Council on Further Strengthening the elimination of backward production capacity of work notice,” In the near future will further play to the market in allocating resources based on role, give full play to the laws and regulations of the restraints and technical standards of the threshold effect electricity, coal, steel, cement, nonferrous metals, coke, paper, leather, printing and dyeing industries and eliminate backward production capacity. According to “notice”, the end of 2010, China’s power industry will phase out small thermal power 50 million kilowatts or more; the coal industry will close with poor safety conditions, do not meet industrial policy, waste resources and pollute the environment of small coal mines 8000, out of production 200 million tons.

Comments: The impact of overcapacity has become China’s sustained and healthy development of traditional industries the main tumor, eliminate backward production capacity, inter-industry merger and reorganization is the solution of the primary means of excess capacity, one of the industry reshuffle, will some of the leading companies more competitive force. The message for the iron and steel, coal, cement and other industries good, but related industries, today stocks flat.

Control over provincial another telling the property market

Events: In order to further regulate the real estate market, recently, Hunan, Xiamen, Guangzhou and other cities put more land to housing sales from all aspects of real estate control policies.

It is reported that Hunan will be strictly enforced this year, real estate land development and utilization reporting system, this month, city and county land and resources management departments should establish a reporting system and completion of real estate land, land users and land and resources departments should be written to declare the project started , completion time.

Comments: 3 months, the country appeared in some cities the more stressed the more housing prices rose the Guaizhuang, the government is helpless against the high price the developers source of impunity. Although many provinces and cities another telling control the property market, most investors still believe the short term is difficult to drop prices, but the message remains in the secondary market, investors in real estate stocks led the sell-off, related species significantly weaker today .