GS 高盛-中国每日报告 07.26

China-Daily-Insights 07.26 10 页

Today’s focus
China: Insurance: QDII officially launched; positive to LT yields & duration matching
Mengniu Dairy (2319.HK): Continuing high growth in 1H07; less aggressive promotion ahead
Suntech Power (STP): 2Q results preview
China: Utilities: Power Technology: Implications of Hoku's 1Q08 results on China solar sector
Stock price rally to stall; Downgrade to Neutral
Headline news
China to Limit Exports of Labor-Intensive Products (Bloomberg)
China's financial market sees brisk trade in first half: central bank (People’s Daily)
Prices to continue upward trend (China Daily)
China passes draft law on food safety (Yahoo)
State resists pressure to raise power prices (Shanghai Daily)
China: Insurance: QDII officially launched; positive to LT yields & duration matching, Darwin Lam, CFA
• What has changed: The CIRC has officially launched the QDII program for insurers by promulgating the “Provisional Rules for Overseas Investment of Insurance Funds”. Key highlights of the new QDII rules for insurers include: 1. Insurers will be allowed to convert Rmb into forex funds for overseas investment (currently insurers can only use their own forex funds). 2. The new cap on overseas