Investment Daily Note

Fosun Intl (656.HK)and Fosun Pharma (2196.HK)announced last Friday the resumption of trading in their shares today. Mainland Chinese media Caixin reported that chairman of Fosun Intl has finished assisting investigation. Vice-chairman and chief executive officer of Fosun Intl Liang Xinjun said the company may considering repurchase of shares. However, with market sentiment already affected, we expect share price of both companies would be pressured.

Cosco Pacific (1199.HK), China Cosco (1919.HK), China Shipping Dev (1138.HK)and CSCL (2866.HK)resume trading today. After the merger of Cosco Group and China Shipping Group, Cosco will focus on container transport and terminal business, while China Shipping will focus on transport finance and oil and gas transport. Though the merger could reduce competition and alleviate the problem of over-capacity, with shipping industry still depressed, the merger may not help share prices of the four companies alot.