Highlights: General director of economic construction department of Ministry of Finance Mr. Zeng Xiao’an recently said in the 4th Expo Central China that, Ministry of Finance and Ministry of Science and Technology co-issued the announcement to encourage the utilization of energy-saving and new energy-typed automobiles in 13 pilot cities under the support of financial support. All expenses occurred will be afforded by local and central government. Detailed subsidies have been classified.
We are still optimistic with heavy truck industry and sub-sector of saloon car industry. We maintain “Buy” rating for counters of CNHTC Jinan Truck (000951) and Faw Car (000800), and suggest investors pay attention to counters like Weichai Power (000338), FuYao Glass Industry Group (600660) and Zhengzhou Yutong Bus (600066), and “Overweight” rating is maintained for the above recommendations.