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Yujing Liu

Srinivasan Iyer

Happy Monday, traders --
The markets closed up today as investors did not let momentum flag. The Hang Seng and Shanghai Composite both ended up with gains of more than 2 per cent. 
Catch up on the day's action below.
-- Yujing Liu and Srinivasan Iyer
 
 


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Hong Kong stock market

Stocks Blog: China, Hong Kong stocks see biggest gains in about two months on Beijing reform plans, trade progress 

The bull sculpture at Exchange Square in Hong Kong. Photo: David Wong

Business

Markets


Hong Kong's Financial Secretary Paul Chan warns city should brace for 'economic typhoon'    
Shares of brokerage firms rise on IPO reforms planned for Shenzhen bourse 



Jefferies sees 'limited downside' for Hong Kong stocks despite ongoing political storm


Live

Morning guidance
Here's what we are watching this morning:
Overnight markets/ What futures foretell
-- The US market rose on Friday, recouping some of the steep losses from a selloff mid-week last week. The S&P 500 jumped 1.4 per cent, the Nasdaq Composite climbed 1.7 per cent, and the Dow Jones Industrial Average rose 1.2 per cent.
-- The Hang Seng Index Futures were 0.2 per cent higher, while the China A50 futures rose 0.2 per cent.
IPO debuts:
None.
Economic statistics/Central Bank action:
The US Federal Reserve’s Federal Open Market Committee (FOMC) will release its July meeting minutes on Wednesday, and its chairman Jerome Powell will be speaking in the opening ceremony of the central bank’s annual retreat in Jackson Hole, Wyoming on Friday.
Corporate events:
-- Chinese drug maker CSPC Pharmaceutical Group (1093 HK), biotechnology firm WuXx Biologics (2269 HK), and express carrier YTO Express Group (6123 HK) will release mid-year results today.
Good reads:
Hong Kong’s flagship carrier Cathay Pacific Airways (0293 HK) finds its brand hurt among all -important Chinese travellers, but analysts are overall bullish about its future, Yujing Liu reports.


Morning guidance 

Mainland developer Sunshine 100 China Holdings (2608 HK) issued a positive profit alert on Sunday, saying its earnings increased by more than 50 per cent in the six months ending in June,  compared to the year before.
“The expected increase was mainly due to the gain from the disposal of non-core assets during the period,” according to the company statement filing to the Hong Kong stock exchange.
Symphony Holdings (1223 HK) says its net profit edged up 13 per cent to HK$34.2 million for the six months to June.
The firm principally is engaged in the retailing and sourcing of consumer goods, as well as the provision of financial services.
Its revenue increased 3 per cent to HK$193.8 million in the first half this year.
No interim dividend was recommended.
New Focus Auto Tech Holdings (360 HK), which is involved in the automotive dealership and services business in Inner Mongolia, announced a net loss of 50.7  million yuan for the first six months to June due to a sharp increase in finance costs.
No interim dividend was given, according to its fiiling to the Hong Kong stock exchange on Sunday.
Regal International Airport Group (357 HK), formerly known as HNA Infrastructure,  says net profit declined 26 per cent to 275.3 million yuan for the six months to June as its franchise income fell.
Franchise income declined 27 per cent to 199.93 million yuan. That was a drag on its revenue from aviation business.  Its aviation revenue declined  23.7 per cent to 371.8 million yuan.
-- Sandy Li 
 


Sunshine 100 China expects big earnings increase, other news from companies 

Investors, get ready for more trade talk twist and turns.
In an official tweet on Sunday, US President Donald Trump said the US “is doing very well with China, and talking!”, after his administration delayed a new round of tariffs on Chinese consumer electronics goods last week.
But Trump also pushed back on media reports that the US Commerce Department would allow Chinese telecommunication giant Huawei Technologies to purchase from American companies.
“Huawei is a company we may not do business with at all,” he told reporters in New Jersey.
Trump also warned that a Tiananmen Square-style crackdown on anti-government protests in Hong Kong would harm trade talks between the US and China.
“I think it’d be very hard to deal if they do violence, I mean, if it’s another Tiananmen Square,” he said.
-- Yujing Liu 


Trump signals trade talk progress but dashes hope on Huawei ban easing

Traders are betting on Shenzhen-related stocks to skyrocket after Beijing unveiled a reform plan to make the city a model for other Chinese cities.
The technology hub in the southern province of Guangdong would become a model of “high-quality development, an example of law and order and civilisation, as well as societal satisfaction and sustainability”, according to a report by state broadcaster CCTV.
By 2035, the city will be competitive in the world by its comprehensive economic abilities. By the middle of the century, it will become a global “benchmark” for competitiveness, innovation and influence.
Released amid the worst political crisis in Hong Kong, the report has raised questions whether Beijing might cut the semi-autonomous city’s status in its push for the Greater Bay Area’s development.
Read full report here.


Shenzhen stocks set to jump after grand plan by Beijing

After turning its first annual profit in three years just four months ago, Cathay Pacific Airways (293 HK) suddenly finds itself trying to navigate through fierce turbulence.
Protests that have rocked Hong Kong turned into a menacing storm for Cathay.
Halfway through a three-year plan to revive its stalling business, Cathay has been buffeted by political turbulence as Hong Kong’s hometown carrier found itself between China’s aviation regulator and its unionised crew. It’s turbulence that claimed the career of Rupert Hogg, just 27 months into his job as the Hong Kong carrier’s chief executive officer.
It’s also turbulence that sent Cathay’s share price into a nosedive, hurt its brand among all-important mainland Chinese travellers and set off a warning buzzer about its ability to juggle its loyalty to its democracy-loving customers and employees and the demands of the Chinese government.
Read full story by reporter Yujing Liu here. 


Should investors get back on Cathay Pacific's bumpy flight?

A gauge tracking 27 Shenzhen-based companies surged by 7.5 per cent in early trading, on the back of Beijing’s new reform plan for the city.
As many as 13 stocks tracked by the gauge jumped by the daily limit of 10 per cent, such as airport operator Shenzhen Airport (000089 SZ) and bike manufacturer Shenzhen China Bicycle (000017 SZ).
The optimism has spilled over to the broader market.
The Shanghai Composite Index rose 0.5 per cent to 2,838.7, while the Shenzhen Component Index climbed 1.3 per cent. The ChiNext Index of start-ups listed in Shenzhen was up 1.4 per cent.
In Hong Kong, the Hang Seng Index rose 1.6 per cent to 26,153.84.
-- Yujing Liu 


Shenzhen stocks lift up China, Hong Kong markets

Hong Kong stocks are likely to be resilient despite the ongoing political storm, according to Jefferies.
“HK has always bounced back from crises -- the Hang Seng Index climbed 51 per cent in the 12 months after June 4, 1989. It recovered from the Asian Financial Crisis, Sars and the Global Financial Crisis,” analysts led by Edison Lee wrote in a report published on Sunday.
“We see limited downside in the stock market from here, even if the protests drag on.”
Part of this is because the market has already priced in a lot of negatives of the protests based on its current valuation levels, according to the analysts.
“Since May 2019, MSCI HK underperformed the MSCI AC World index by 13.3 per cent. As a comparison, during Sars, the worst crisis HK has experienced in recent decades, the underperformance versus MSCI AC World peaked at 14.7 per cent.”
But investors should avoid retail and property stocks as mainland Chinese tourists decline, and future government policies are likely to shift to boost land supply to promote housing affordability, they wrote.
On the other hand, Macau’s gaming stocks are a bargain right now, as mainland tourists could increasingly choose Macau over Hong Kong, and the city could enjoy more policy support from Beijing.
For investors interested in Macau casino stocks, here's a full feature.
 
-- Yujing Liu 


Jefferies sees 'limited downside' for Hong Kong stocks despite ongoing political storm

For many people, the lesson from the US$12 billion fraud by drug maker Kangmei Pharmaceutical (600518 SH) is that the A-share market can be shockingly forgiving.
Chinese drug maker Kangmei Pharmaceutical (600518 SH) rose by the daily limit of 5 per cent for shares under special treatment, after the company and its controllers received fines of up to 900,000 yuan (US$127,800) for fabricating revenue and cash holdings.
In an investigation, the China Securities Regulatory Commission found that Kangmei inflated its annual revenue by 9 billion yuan in 2016 alone and fabricated 87 billion yuan of cash assets on its book in the three years from 2016.
It also provided its shareholders and related parties 11 billion yuan to buy stocks and repay debts, without any internal approval, according to a stock exchange filing on Friday.
Currently, the toughest punishment for a listed company over fraudulent disclosure is 600,000 yuan. The regulator banned Kangmei’s controllers including Ma Xingtian and Xu Dongjin from participating in the securities market, and did not rule out the possibility of delisting Kangmei.
“The light punishment is good news to Kangmei but bad news to other honest companies,” a stock investor commented on Xueqiu, a Chinese investment forum.
“The Chinese stock market is encouraging frauds,” another investor wrote.
-- Yujing Liu


China regulator’s pain-free slap on Kangmei Pharma boosts stock, angers investors

Shares of solar farms construction firm China Singyes Solar Technologies Holdings (750 HK) plunged as much as 41.1 per cent, after trading resumed for the first time since early April pending announcement of financial results.
Late on Friday it posted a net loss of 679 million yuan for last year, compared to a profit of 144 million yuan in 2017.
Revenue declined 22 per cent to 4.4 billion yuan. Gross profit margin shrank to 17 per cent from 22 per cent.
The privately controlled firm blamed tightened credit availability in the mainland and Hong Kong, which led to its default on various bonds and insufficient working capital to procure material to complete some projects.
State-backed white knight Shuifa Energy Group had agreed in May to buy new Singyes shares at 92 HK cents each for HK$1.53 billion, which would give it a 67 per cent stake and help restructure Singyes' debt.
Singyes was last trading down 34.3 per cent at 65 HK cents.
-- Eric Ng


China Singyes Solar plunges after trading resumes

Prada (1913 HK) rose 1.77 per cent despite announcing the closure of its retail store in Causeway Bay next June because of fewer tourists.
The Italian fashion house pays HK$9 million a month in rent for a 15,000 sq ft store on Russell Street, the world's most expensive shopping strip.
Read Sandy Li's exclusive story here.
 
-- Srinivasan Iyer


Prada shares rise even as it announces store closure

The shares of Shenzhen-based companies rallied on the city's stock exchange as well as in Hong Kong.
Shenzhen Investment (604 HK) surged as much as 16 per cent in Hong Kong, the most in four years, to HK$3.01.
Shenzhen International Holdings (152 HK), a state-owned investment company, jumped as much as 13 per cent to HK$15.80.
Tencent Holdings (700 HK), China's largest games publisher and Shenzhen's biggest hometown technology company, rose 2.6 per cent in Hong Kong to HK$334.80.
-- Eugene Tang 


Shenzhen stocks rally as China bolsters city's role to rival Hong Kong

Chinese pork producers are suffering a big sell-off today, as investors apparently are taking profit after a year-long dizzying rally.
Muyuan Food (002714 SZ), China’s second-largest pork breeder, plunged by as much as 10 per cent in morning trading, before paring losses to trade at 68.77 yuan. That’s its biggest intraday decline since February 2018.
The stock is still 209 per cent higher from a year ago amid diminishing pork supply and skyrocketing prices as a result of an outbreak of the deadly African swine fever, which is now in its second year.
Official data released over the weekend shows that average pork prices hit 28 yuan (US$4) per kg across the country, up 10 per cent from a week ago and 15 per cent from the end of July.
Provincial governments have handed out subsidies totalling 2 billion yuan to poor families in the face of surging pork prices, which is a staple meat in China.
Eric Ng has done a deep dive on the plight of Chinese pig farmers. Read it here.  
 

-- Yujing Liu


Profit taking leads to big intraday plunge in pork producer Muyuan Food

Cathay Pacific Airways (293 HK) is having a bumpy morning.

It took off to HK$10.84 but then fell and was last trading down 0.2 per cent at HK$10.58.
Cathay's situation is complicated, says Alan Li, portfolio manager at Atta Capital.
Some investors are betting that the resignation on Friday of CEO Rupert Hogg will "calm down" the Chinese government, while others think the Communist Party "may keep sanctions" on the airline, Li said. He expects the stock will stay bumpy.
Jefferies today maintained its buy rating on the stock, with a 12-month target price of HK$15, citing Cathay's strong valuation and expected strong profitable second half.
"(We) expect the company to remain profitable, same as management and consensus view," Jefferies analysts Andrew Lee and Lois Zhou write. "However, we believe negative newsflow, such as weak Hong Kong inbound/outbound passenger traffic, could cap near-term share price performance despite attractive valuation."
A full story for investors on Cathay's situation can be read here.
-- Deb Price


Cathay stock searching for a stable altitude in bumpy trading

Five stocks including Chinese car maker Geely Automobile (0175 HK) and conglomerate Fosun International (0656 HK) will be added to the Hang Seng China Enterprises Index from September 9.
The gauge, also known as the H-share index, tracks shares of mainland China companies listed in Hong Kong. The index was up 1.51 per cent at 10,114.32 close to the lunch break.
Rice cake and flavoured-milk maker Want Want China Holdings (0151 HK), insurer China Taiping Insurance Holdings (0966 HK) and property developer Sunac China Holdings (1918 HK) will also be added to the index, according to the index compiler.
Meanwhile, stocks including Dongfeng Motor Group (489 HK), China Cinda Asset Management (1359 HK), Guangzhou Automobile Group (2238 HK), China Huarong Asset Management (2799 HK) and Huatai Securities (6886 HK) will be left out of the gauge.
-- Yujing Liu


Geely, Fosun to be added to H-share index

Hong Kong investors are getting used to mysterious, jaw-dropping crashes in small-cap stocks.
Youyuan International Holdings (2268 HK), a paper maker based in the southeastern province of Fujian, plummeted by 86.3 per cent to HK$0.26 before trading was halted at 11:08am.
Guan Chao Holdings (1872 HK), a Singapore-based car dealer that went public in February, sank by 63 per cent, after plunging by 79 per cent on Friday.
While the reasons behind the crash are not immediately clear, the concentrated shareholding structure of Guan Chao may offer some clue. Stocks with highly concentrated shareholding are often prone to volatile price movement.
Stock exchange data shows that Guan Chao’s chairman and chief executive Tan Shuay Tarng Vincent and his wife Beng Lee Ser Marisa controlled 67.3 per cent of the overall stakes in the company.
 

-- Yujing Liu


Stock flash crash returns to haunt Hong Kong market

Information technology and health care stocks are sending the Hang Seng soaring this morning, with both sectors up more than 4.25 per cent. The Hang Seng was up 1.9 per cent to 26,214.72.
"The main driver on the market is the trade war, with (US president Donald) Trump keeping on saying there will be a deal soon," said Alan Li of Atta Capital. In a Tweet on Sunday, Trump said the US “is doing very well with China, and talking!”
Also boosting traders' spirits was the massive -- but peaceful -- march in Hong Kong on Sunday, Li said.
"There was no conflict between protesters and police in the demonstration yesterday. The concern of military action by the Chinese government is likely relieved."
The top gainers in early trading were Country Garden Holdings (2007 HK), up 5.6 per cent to HK$9.98, and Want Want China Holdings (151 HK) , which surged 6.44 per cent to HK$6.44.
Several Macau casino stocks were joining the lucky streak. Sands China (1928 HK) was up 5.3 per cent to HK$36.80, while Galaxy Entertainment (27 HK) shot up 4.4 per cent to HK$48.90.
A number of property stocks were struggling, led by Wharf Real Estate Investment (1997 HK), which was down 2 per cent to H$47.20. The Hong Kong property sector has been hit hard by the ongoing protests, which, among other things, have hurt foot traffic at malls and contributed to gloomy sentiment about the economy.
Cathay Pacific (293 HK) has been bumpy, and had last turned up 0.75 per cent to HK$10.68.
-- Deb Price


Hang Seng on track for biggest gain in two months

China markets rallied over a new grand plan to promote Shenzhen, the southern tech hub, and a signal from US president Donald Trump that there is progress toward a trade deal. 
The Shanghai Composite Index jumped 1.5 per cent to 2,865.32 by lunch break. That was its biggest intraday surge since July 1.
The Shenzhen Component Index climbed 2.4 per cent to 9,277.11, also the biggest increase since July 1.
Shenzhen-based companies led the advance. A gauge tracking 45 such companies jumped 8.8 per cent, with 33 of them rising by the daily 10 per cent limit, such as computer storage device maker Shenzhen Kaifa Technology (000021 SZ) and Shenzhen Cotran New Material (300731 SZ), maker of waterproof products.
-- Yujing Liu 
 


China markets record biggest intraday jump in nearly two months

Fosun Tourism Group (1992 HK), the Chinese owner of the Club Med resort chain, saw a 67.7 per cent rise in gross profit to 3.01 billion yuan and a 35.9 per cent jump in revenue to 9.06 billion yuan in the first half of 2019.
Profit attributable to shareholders amounted to 490 million yuan for the first six months of the year, against a net loss of 254.5 million yuan for the same period last year, mainly due to rising profit from tourism operations.
Shares traded 2.1 per cent higher at HK$8.16 at the lunch break.
-- Martin Choi 
 


Fosun Tourism soars as it reports big jump in gross profits  

Bloomberg reported today, citing a blog post written by Hong Kong's Financial Secretary Paul Chan Mo-po on Sunday, that the city should also brace itself for an “economic typhoon” caused by the US-China trade war and recent political unrest.
The warning from Chan came after Hong Kong last week slashed its 2019 growth forecast to as little as zero, down from a previous range of 2 per cent to 3 per cent.
The government has adopted a US$2.4 billion spending package to try to buoy the economy -- a move that Chan likened to the food stockpiles that households gather to gird themselves against a typhoon.


Financial secretary warns Hong Kong should brace for 'economic typhoon' 

Hong Kong investors are piling into the A-share market to catch the stunning rally.
Northbound buying in the mainland Chinese market totalled 6 billion yuan (US$851 million) through the Stock Connect programme today, according to figures from financial data provider Wind and online portal Aastock.
It reverses net selling of 217 million yuan in northbound trading on Friday, and looks set to surpass the recent high of 6.2 billion yuan of net buying achieved on July 19.
Meanwhile, mainland Chinese investors have bought HK$2.2 billion worth of shares in southbound trading today, and are on course to extend their longest buying spree since February 2018.
-- Yujing Liu
 


Investors flock into Chinese markets through Stock Connect

Sinopec Engineering (Group) (2386 HK) is confident of winning a bid to expand an oil refinery in Bangladesh in the second half, president Xiang Wenwu told analysts and reporters on Monday without giving details.
India’s The Financial Express newspaper reported in May that parent China Petrochemical Corp (Sinopec Group) was looking to team up with French firm Technip to jointly build a US$1.15 billion refinery with a capacity of 3 million tonnes per year refinery in the southeastern port city of Chattogram.
Sinopec Engineering has yet to respond to a request for comment on the report.  
If the company bags the project it should help arrest a decline in overseas orders and revenue.
The engineering unit of Sinopec Group today posted an 8.2 per cent rise in net profit to 1.2 billion yuan for the first-half. Overseas revenue fell 4.9 per cent year on year to 5.9 billion yuan, while newly signed overseas contracts declined 32.9 per cent to 2.2 billion yuan.
Its share price was flat at HK$5.6 in late trading.
-- Eric Ng


Sinopec Engineering confident of winning Bangladesh refinery contract

Chinese drug maker CSPC Pharmaceutical Group (1093 HK) rose 4.5 per cent to HK$13 in late trading, after reporting a jump in first-half profits.
Net profit climbed by 25 per cent year on year to 1.9 billion yuan (US$269 million) for the first half of this year, according to the company.
The growth was driven by a 55 per cent jump in sales of innovative drugs to 6.1 billion yuan.
-- Yujing Liu


CSPC Pharma jumps on upbeat first-half results

Securities brokerages advanced broadly after Beijing signalled fresh reforms for initial public offerings (IPO) on the Shenzhen bourse.
In a directive on wide-ranging reforms to be implemented in Shenzhen, China’s top leaders said the city would “create conditions to push forward a registration-based reform” for IPOs on the ChiNext board of start-ups.
The new listing rules, already applied to the new STAR technology board in Shanghai last month, increase the transparency of the review process and make it easier for companies to go public.
Authorities in Shenzhen will also “study and improve the existing mechanisms for companies’ listing, refinancing and mergers and acquisitions” on ChiNext, according to the directive.
A gauge of 39 brokerages listed in Shanghai and Shenzhen climbed 5.4 per cent in the latest trading, with First Capital Securities (002797 SZ), China Great Wall Securities (002939 SZ) and Guosen Securities (002736 SZ) jumping by the 10 per cent daily limit.


Proposed IPO reform on ChiNext lifts brokerage stocks

A slew of good news is catapulting Hong Kong and Chinese markets today, Kenny Tang Sing-hing, chief executive of Royston Securities, said.
First, Trump softened his attitude on trade with China and signalled progress over negotiations. Then, China’s central bank made a major change to its interest-rate setting system that’s seen as a stealth-easing policy.
Beijing’s grand new plan to build Shenzhen into a global “benchmark” for competitiveness, innovation and influence by the middle of the century also helped.
“Shenzhen’s breathtaking development over the past few decades was the direct result of Beijing’s special policy. Now people are hopeful that the city will grow faster with more policy support, not just in the technology sector but also finance and medical services,” said Tang.
Tang prefers China-based consumer companies, as the country continues pushing for a consumption-driven economy. He named drug maker CSPC Pharmaceutical Group (1093 HK), rice-cake producer Want Want China Holdings (0151 HK), dairy products maker China Mengniu Dairy (2319 HK) and sportswear manufacturer Li Ning (2331 HK) as his favourites.
While Hong Kong stocks’ valuations are cheap, the market is still likely to seesaw as it’s extremely news-sensitive right now, he said.
-- Yujing Liu


Market hopes run high as mix of good news lifts sentiment

Chinese consumer stocks will continue to outperform while Hong Kong local companies will struggle as the trade war drags on, according to Alex Wong, director at Ample Finance Group.
“Investors should take this opportunity to cut their holdings of Hong Kong equities and move into overseas or Chinese companies listed either in the mainland or in Hong Kong,” said Wong.
The market is getting very confident about China’s consumption-related economy. He cited beer maker Tsingtao Brewery’s (0168 HK) better-than-expected second-quarter result.
Wong also named its rival China Resources Beer Holdings (0291 HK), electronic tool maker Techtronic Industries (0669 HK), and property manager China Overseas Property Holdings (2669 HK) as his top picks.
“It’s a global phenomenon that consumption economy stocks do better than manufacturing economy ones. But the phenomenon is even more obvious in China,” he said.
Meanwhile, he expects Chinese companies listed in Hong Kong Kong to outperform homegrown Hong Kong firms.
“The fundamentals of Hong Kong local companies are dampened by the social movement.”
Wong believes that Hong Kong market's current valuation, which is at a near two-year low, does not provide a compelling reason to be bullish.
This is because the traditional banking and property industries have become naturally devalued over the past decade as competition increased along with regulatory risks.
-- Yujing Liu


Investor prefers Chinese consumer names over Hong Kong firms

The Chinese central bank’s move over the weekend to improve the mechanism for determining lending rates is a “stealth easing policy”, Jefferies analysts led by Sean Darby wrote in a note disseminated today.
“[It] is a form of monetary easing and should help to lower real interest rates,” they wrote.
The change is intended to let the actual lending rate be based more on market forces instead of the regulator’s wishes.
It’s particularly good news to real estate developers, who are usually heavily indebted, but will weigh on banks’ net interest margins, which measures the difference between a bank’s funding costs and what it charges for loans, according to Jefferies.
-- Yujing Liu 


China’s rate reform to benefit property developers, Jefferies says

What a spectacular day for the Hong Kong and Chinese markets.
The Hang Seng Index surged 2.2 per cent, or 557.62 points, to finish at 26,291.84, recording its biggest daily advance in two months.
The Shanghai Composite Index climbed 2.1 per cent to 2,883.1, posting its best daily performance since July 1. The Shenzhen Component Index jumped 3 per cent, and the ChiNext Index of start-ups was 3.5 per cent higher.
As many as 113 stocks listed in Shanghai and Shenzhen skyrocketed by the daily 10 per cent limit. Shenzhen’s homegrown companies led the advance, while brokerages also outperformed.
Shenzhen-headquartered internet giant Tencent Holdings (700 HK) rose 3.2 per cent to HK$336.8, contributing 84 points to the benchmark Hang Seng Index’s advance, the most among the 50 constituents.
-- Yujing Liu


Stocks Blog: China, Hong Kong stocks see biggest gains in about two months on Beijing reform plans, trade progress

Hong Kong's Financial Secretary Paul Chan warns city should brace for 'economic typhoon' Shares of brokerage firms rise on IPO reforms planned for Shenzhen bourse

Hong Kong's Financial Secretary Paul Chan warns city should brace for 'economic typhoon'

Shares of brokerage firms rise on IPO reforms planned for Shenzhen bourse