Weekly Report for October 8th-12th    

In the week of October 8th-12th, the indexes of the Shanghai and Shenzhen stock markets rocketed 6.42% and 1.43% respectively, new highs historically. The startling increase was mainly pushed by the stock prices of large scale companies such as Sinopec Corp. and Bank of China. PBC again announced on October 13th an increase in the deposit reserve requirement for commercial banks, this time raising reserves by 0.5% to 13%, effective October 25th. This is the eighth increase this year, pushing the rate to a new high. It is expected to freeze a total of RMB180 billion of funds in banks.
   Companies have started to post financial results for the third quarter, with most of them reporting sound performance.  However, some consulting agencies predict that the refining sector will report losses for the quarter due to the increased price of crude oil. Despite such assessments, the growth rate of Sinopec Corp. stock (SH: 600028) ranked first among chemical makers. October 16th is the day that 4.9 billion shares of Sinopec Corp., held by Sinopec Group, was allowed to be publicly traded after a one-year freeze.

By Peter Zong
Ticker or Code    Company name    Category
Closing    1-Week    YTD    Trailing.     Weekly volume    Marketcap   
price    change    change    P.E.     change    
RMB     %    %        %    mn RMB
000036    China Union Holdings     FM
    7.97     1.3     69.6     46.9     31.2     8957
000059    Liaoning Huajin Tongda    CF
    13.47     -4.1     267.0     103.6     63.7     8934
000155    Sichuan Chemical    CF
    12.53     6.2     183.5     42.6     192.0     5889
000420    Jilin Chemical Fibre    FM
    12.18     -1.0     385.3     203.0     20.3     4607
000422    Hubei Yihua Chemical    CF
    20.00     -11.6     321.1     50.4     13.7     10848
000498    Dandong Chemical Fibre    FM
    8.94     -8.3     347.0     -9.5     -19.5     3487
000510    Sichuan Jinlu    BI
    8.28     -6.8     222.2     72.2     32.5     5044
000523    Lonkey Industrial     SC
    8.49     -8.0     121.7     134.8     -3.8     1465
000525    Nanjing Redsun    SC
    11.00     -10.9     55.8     94.3     -25.7     3083
000553    Hubei Sanonda    SC
    11.20     6.5     144.5     289.4     162.0     3326
000554    Sinopec Taishan Petroleum    PC
    14.14     -2.1     131.8     88.4     8.4     6798
000565    Sanxia Paints     SC
    17.13     5.1     308.8     463.0     116.2     2971
000584    Sofcra Special-Typed Fiber    FM
    20.44     17.8     565.8     950.7     207.6     6200
000589    Gui Zhou Tyre    PR
    10.60     1.8     124.6     44.9     167.9     2696
000599    Qingdao Doublestar    PR
    6.64     -10.1     162.5     76.3     -39.8     3021
000635    Ningxia Yinglite    BI
    28.22     -1.3     425.5     98.0     22.9     3879
000637    Maoming Petrochemical Shihua    PC
    15.70     -8.4     45.0     58.8     -9.7     7097
000659    Zhuhai Zhongfu     PR
    12.66     -13.5     300.6     84.4     -24.6     8714
000665    Wuhan Plastics     PR
    8.32     -11.5     107.0     64.0     -2.1     1477
000668    Sinopec Wuhan Petroleum    PC
    22.50     -3.8     117.2     83.3     9.8     3304
000677    Shandong HELON    FM
    20.69     0.9     453.2     120.6     -10.5     8511
000683    Yuan Xing Natural Alkali     BI
    16.16     -15.2     297.1 &nbs