<P><FONT size=6><STRONG>GS 高盛：中国每日报告 07.09</STRONG></FONT></P>
<P><FONT size=6><STRONG>China Daily Insights 07.09           8页</STRONG></FONT></P>
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<P>Today’s focus<BR>Maanshan Iron & Steel (H) (0323.HK): First Take: Potential tax concession expiry - minimal target impact<BR>Beijing Enterprises Holdings (0392.HK): Incorporating Yanjing estimates; raising TP and EPS<BR>Headline news<BR>Ministry mulls help for farmers' groups (China Daily)<BR>CBRC annual report outlines current state of banks (China Daily)<BR>China tries to choke off money supply to non-environmentally friendly projects (Xinhua)<BR>Listed firms must unveil non-public issue details (Shanghai Daily)<BR>China to require approval of big state share sales (Yahoo)<BR>Maanshan Iron & Steel (H) (0323.HK): First Take: Potential tax concession expiry - minimal target impact, Song Shen<BR>• News: According to Shanghai Securities News, China’s State Administration of Taxation has ordered the immediate discontinuation of the expired concessionary tax policies that still applied to nine companies nationwide. Maanshan Iron & Steel (Magang, 0323.HK, HK$6.33, Buy, Conviction Buy List) is one of these companies, all of which were authorized by the State Council to issue shares in Hong Kong in 1993. These companies were permitted to pay income tax at a 15% rate vs a standard corporate income tax rate of 33% for 1996 and 1997, and continued to enjoy this tax privilege through 2006. Magang has announced it is now evaluating the possible financial impact on the company and will make another announcement when the situation is clarified.<BR>• Analysis: 1. Our initial analysis suggests that if the tax concession were to be discontinued, our</P>