Investment Daily Note

Citing a source familiar with the matter, Guangzhou Daily reported that the State Council will announce reform on mixed banking system this month, with BankComm (3328.HK, HK$7.63)selected as the pilot bank. The reform proposal on BankComm will be approved by theState Council in two-week time the earliest. The report also mentioned that the State Council is also working on a mixed financial system plan, including granting securities brokerage licenses to banks. This may send negative impact to China’s securities firms but positive to banks.

BYD (1211.HK, HK$54.50)announced yesterday to raise up to RMB15bn through non-public issuance of A shares, with the issue price not lower than RMB57.40. ADR of BYD H-share fell in the US market last night, closing at US$13.62, equivalent to ~HK$52.80 per share, ~3.1% below the closing price of H-share HK$54.50 before trading halted.