[ET Net News Agency, 4 January 2018] Morgan Stanley expects the pilot program for full
H-share circulation to start by 1Q, with full rollout by 3Q and share unlocking to peak in
2020.
It thinks the market impact of full H-share circulation should be limited near-term but
positive long-term. Morgan provided two stock screens: (1) potential candidates for the
pilot program; (2) potential H-share beneficiaries of advance positioning for Southbound
flow.
Potential candidates for the full H-share circulation pilot program:
(06060) ZhongAn Online P & C Insurance Co Ltd
(01508) China Reinsurance (Group) Corporation
(03908) China International Capital Corporation Ltd
(03618) Chongqing Rural Commercial Bank Co Ltd
(01099) Sinopharm Group Co Ltd
(03898) Zhuzhou CRRC Times Electric Co Ltd
(03996) China Energy Engineering Corporation Ltd
(06198) Qingdao Port International Co Ltd
(02386) SINOPEC Engineering (Group) Co Ltd
(00598) Sinotrans Ltd Industrials
(01829) China Machinery Engineering Corporation
(03969) China Railway Signal & Communication Co
(03396) Legend Holdings Corporation
(00728) China Telecom Corporation Ltd
(00552) China Communications Services Corporation
(01816) CGN Power Co Ltd
(00916) China Longyuan Power Group Corporation
H-share companies with domestic shares and accessible through Stock Connect Southbound
Channel:
(01958) BAIC Motor Corporation Ltd
(01658) Postal Savings Bank of China Co Ltd
(02328) PICC Property and Casualty Co Ltd
(01339) The People's Insurance Co (Group) of China Ltd
(02799) China Huarong Asset Management Co Ltd
(01359) China Cinda Asset Management Co Ltd
(06060) ZhongAn Online P & C Insurance Co Ltd
(01508) China Reinsurance (Group) Corporation
(03908) China International Capital Corporation Ltd
(03618) Chongqing Rural Commercial Bank Co Ltd
(03698) Huishang Bank Corporation Ltd
(01099) Sinopharm Group Co Ltd
(01066) Shandong Weigao Group Medical Polymer Co Ltd
(03898) Zhuzhou CRRC Times Electric Co Ltd
(02386) SINOPEC Engineering (Group) Co Ltd
(02357) AviChina Industry & Technology Co Ltd
(01055) China Southern Airlines Co Ltd
(03969) China Railway Signal & Communication Corporation
(03396) Legend Holdings Corporation
(02777) Guangzhou R&F Properties Co
(01816) CGN Power Co Ltd
(KL)