Weekly Report for July 23rd-27th

In the week July 16th-20th, the indexes of Shanghai Stock and
Shenzhen Stock increased 3.7% and 4.7% respectively, which may
lead to a new financial policy that may tighten credit further.
   On July 21st, PBC announced an increase of the interest rate
for a one-year deposit from 2.79% to 3.03%, effective July 23rd,
2007. But the policy had no impact on the stock market in the
week of July 23rd-27th, the indexes of Shanghai Stock and
Shenzhen Stock increased 7.06% and 8.91% respectively.
   Hubei Sanonda, which split two for one on July 9th enjoyed
the largest growth of stock prices in the week July 23rd-27th.
The stock prices of all chemical firms except Shanghai Jahwa
moved on.
   Some companies have posted their financial reports for the
first half of 2007. Chemical fiber manufacturers such as Sofcra
Special-Typed Fiber (spandex), Shandong HELON (viscose fiber),
Yunnan Yunwei (polyvinyl alcohol) increased their EPS
significantly. Zhejiang Xinan Chemical, a pesticide
manufacturer, increased its EPS by 50%. Aeolus Tyre posted an
EPS of RMB0.237 for H1, compared RMB0.042 in the same period of
2006. Two chemical fertilizer manufacturers - Sichuan Meifeng
and Luxi Chemical each posted a decreased EPS because of
unexpected costs in overhaul and raw materials.
   Many firms predict good performance for their H1 report,
which will support the stock indexes at their historical high.

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
MB    
000036    China Union Holdings     FM
    8.00     16.4     70.2     47.1     73.75    8991     
000059    Liaoning Huajin Tongda    CF
    11.89     13.3     224.0     91.5     113.14    7886     
000155    Sichuan Chemical    CF
    8.89     17.3     101.1     30.2     71.58    4178     
000420    Jilin Chemical Fibre    FM
    9.04     16.3     260.2     150.7     55.15    3419     
000422    Hubei Yihua Chemical    CF
    15.31     11.3     222.3     38.6     108.94    8304     
000498    Dandong Chemical Fibre    FM
    4.33     17.3     116.5     -4.6     263.85    1689     
000510    Sichuan Jinlu    BI
    7.95     12.9     209.3     69.3     53.3    4843     
000515    Chongqing Titanium     BI
    14.21     26.6     121.3     129.2     167.83    2660     
000523    Lonkey Industrial     SC
    8.75     19.5     128.5     138.9     11.11    1510     
000525    Nanjing Redsun    SC
    9.94     16.3     40.8     85.2     103.59    2786     
000553    Hubei Sanonda    SC
    11.42     59.5     149.3     295.1     163.9    3391     
000554    Sinopec Taishan Petroleum    PC
    10.25     9.2     68.0     64.1     34.49    4928
000565    Sanxia Paints     SC
    17.52     10.8     318.1     473.5     58.25    3038
000584    Sofcra Special-Typed Fiber    FM
    17.90     2.4     483.1     832.6     59.39    5430
000589    Gui Zhou Tyre    PR
    9.01     18.7     90.9     38.2     194.48    2292
000599    Qingdao Doublestar    PR
    6.29     13.1     148.6     72.3     172.21    2862
000635    Ningxia Yinglite    BI
    18.28     7.3     240.4     63.5     26.32    2513
000637    Maoming Petrochemical Shihua    PC
    15.60     9.2     44.0     58.4     107.42    7052
000659    Zhuhai Zhongfu     PR