Dear all,

Firstly, with reference to my write-up published on 12 Dec 2015 where Ying Li was trading at $0.152, there is a typo regarding the paragraph on the minimum trading price. The date should be 1^st March 2016, instead of 1 Sep 2016. I have already amended the typo (see here for the write-up). Apologies for the typo.

Secondly, on 28 Dec 2015 early afternoon, I have emailed my clients on the possible trading interest in Ying Li in the next few months. Ying Li was trading between $0.158 – 0.164 on 28 Dec and closed at $0.159. I have also emailed the readers on my website signup list on 28 Dec late evening on Ying Li, together with their announcement on the pre sales amounting to RMB1.06b for their Beijing Tongzhou Project – Future Beijing Tower 1 which was announced on 28 Dec, after market. Please refer to their announcement here

 

Ying Li may see some trading interest in the next few months

Just to reiterate, there may be trading interest in Ying Li in the next few months due partly to some of the following catalysts:

1. There seems to be some interest in the property developers in China. Vanke (2202.HK) has suspended trading and there is talk that there may be a subject of a possible eventual hostile takeover by Baoneng. Vanke trades at 2.4x P/BV. It is expected to resume trading no later than 18 Jan 2016. FYI, Ying Li trades at 0.44x P/BV. NAV / share is S$0.364;
2. According to a Bloomberg article dated 21 Dec, it was reported that “…China pledged assistance for rural residents seeking to buy homes in urban areas. Outdated restrictions on home ownership will be removed…” –> I.e. positive to property developers like Ying Li over the long term;
3. According to some market talk which I am unable to verify and could not find on the internet, Singapore may be bringing a team of companies to Chongqing as a follow up to the 3rd Singapore Government to Government (“G-G”) project in the next couple of months, likely in Jan. To recap, Chongqing has been selected to be the 3rd G-G Project between China and Singapore, first announced in Nov 2015.

 

Chart outlook

Ying Li closed at $0.166 on 31 Dec 2015. Day range was $0.165-0.168. Chart is still in a downtrend as seen from the red line in Chart 1. Indicators are mixed with 50D, 100D and 200D exponential moving averages (“EMAs”) trying to halt their declines. 21D EMA has started to turn up. Ying Li’s downtrend / mild bearishness is likely to be negated if it can breach $0.176 with volume expansion on a sustained basis.

Near term supports: $0.165 / 0.162 / 0.156 – 0.157

Near term resistances: $0.171 / 0.173 / 0.175 – 0.176

Chart 1: Ying Li – downtrend likely to be negated if it can breach $0.176 with volume expansion

Source: CIMB chart as of 31 Dec 15

 

Conclusion

This write-up is to highlight the typo in my 12 Dec write-up and the potential trading interest in Ying Li in the next few months. As usual, there are risks involved in trading. Readers should do their own research and form their independent opinion before they execute any trades.

As mentioned previously, readers who wish to be notified of my write-ups and / or informative emails, they can consider to sign up at http://ernest15percent.com so as to be included in my mailing list. However, this reader’s mailing list has a one or two-day lag time as I will (naturally) send information (more information, more emails and more details) to my clients first. For readers who wish to enquire on being my client, they can consider to leave their contacts here http://ernest15percent.com/index.php/about-me/

 

Disclaimer

Please refer to the disclaimer here