Weekly Report for July 9th-13th

In the week July 9th-13th, the indexes of Shanghai Stock and
Shenzhen Stock increased 3.52% and 3.4% respectively, and
investors' confidence recovered from the negative impact of the
policy change reducing export rebates.
   Hubei Sanonda split, two for one, on July 9th. Yantai Wanhua
also split, adding one share for each 2.5 existing shares on July
10th. So the fall of share prices for these two companies were
steepest among all listed stocks. Anyhow, the P.E. of Sanonda
was too high to support its stock price, which had climbed to
RMB18.8 per share.
   The stock of Cangzhou Chemical was allowed to be publicly
traded from July 12th, on the same day it once again posted the
financial report of its 2006 performance after the previous
report was denied by supervising departments. Its poor
performance was not only caused by high feedstock cost in PVC
production, but also hurt by illegal money operation. On June
12th, the company applied for bankruptcy.
   Cangzhou Dahua, located in the same region with Cangzhou
Chemical, announced that the May 11th explosion in its TDI unit
will not impact its results in the first half of 2007. The TDI
unit has been repaired. The company will apply for certification
to resume production as soon as the unit is able to reach
operating requirements. However, the whole-year performance
will be poor due to the accident.

By Peter Zong


Code    Company     Category
    Closing     1-Week     YTD     Trailing    Weekly volume
    Marketcap     
    Price       change    change    P.E.          change        
    RMB             %    %                        %        
    mn RMB    
000036    China Union Holdings     FM
    6.43     -5.4     36.8     37.8     -19.77     7227     
000059    Liaoning Huajin Tongda    CF
    10.57     4.0     188.0     81.3     10.58     7010     
000155    Sichuan Chemical    CF
    7.42     -2.1     67.9     25.2     -20.12    3487     
000420    Jilin Chemical Fibre    FM
    7.53     12.9     200.0     125.5     23.10     2848     
000422    Hubei Yihua Chemical    CF
    14.15     4.6     197.9     35.7     -20.23     7675     
000498    Dandong Chemical Fibre    FM
    3.52     2.0     76.0     -3.7     -33.41     1373     
000510    Sichuan Jinlu    BI
    6.57     -2.7     155.6     57.3     -25.43     4002     
000515    Chongqing Titanium     BI
    11.48     3.9     78.8     104.4     -28.78     2149     
000523    Lonkey Industrial     SC
    7.29     6.1     90.3     115.7     33.02     1258     
000525    Nanjing Redsun    SC
    8.03     -5.1     13.7     68.9     -62.91     2250     
000553    Hubei Sanonda    SC
    7.63     -59.4     66.6     197.4     21.86     2266     
000554    Sinopec Taishan Petroleum    PC    8.88     4.5     45.6
    55.5     -25.05     4269
000565    Sanxia Paints     SC
    15.10     7.7     260.4     408.1     48.65     2619
000584    Sofcra Special-Typed Fiber    FM    16.85     14.2
    448.9     783.7     41.19     5111
000589    Gui Zhou Tyre    PR
    7.19     -3.0     52.3     30.5     -27.13     1829
000599    Qingdao Doublestar    PR
    5.52     -1.6     118.2     63.4     -29.36     2512
000635    Ningxia Yinglite    BI
    15.89     7.1     195.9     55.2     -13.15     2184
000637    Maoming Petrochemical Shihua    PC
    14.44     7.0     33.3     54.1     22.30     6528
000659   &nbs