Red Dragon Fund:
SAIC Motor (600104.SH) has been underperforming in the recent weeks. An important reason is objections to its private placement plan – to issue no more than 900m additional shares to as many as 10 specified investors for around RMB10 billion – which was approved by CSRC on November 26. It is likely that the target investors are hammering the stock to get a desirable trade price. As the private placement process comes to an end, we expected SAIC to return to a fundamental-driven trend. Guangfa Securities estimates the company to archive an EPS of
The Red Dragon Fund launched in August 2005 and is run by an industry professional. The Capitalist Roader Fund launched in June 2008 and is run by China Economic Review’s editorial team. Both funds are run solely as an editorial exercise.