paper packaging trades have been low distribution!

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1. the 2nd quarter of 2009, according to the SFC industry classification, Fund holdings of papermaking and printing industry, the total market value of the Fund¨s stock market capitalization ratio of 0.55% (papermaking and printing industry circulation market value representing A share companies total circulation market value 0.78%), low distribution industry. As of February 2009 quarter, the fund company zhongcang held paper packaging market value totals $ 8.04 billion, and 1 quarter of 2009 compared to reduce 28.06%, total number of shares held by more than 1 quarter 2009 4983.66 million shares, 33.21%, holds shares ratio of 5.02%, over the 2.29 of a percentage point. Shareholders, we think that the main reasons are: (1) paper packaging industry into the bottom end of 2008, there are still in the recovery phase, the product price remains low; (2) 1, the quarterly loss, there is still a large number of failed to effectively integrate industry recovery; (3) a quarterly paper packaging plate rise higher; (5) plate whirled, financial real estate etc. plate prices, attract capital. injection molded packaging


2. and 2009 1 quarter, the Fund held paper packaging zhongcang shares, is still six, but reduces Jia co., increased Meili. In Q2 2009 six Fund zhongcang held paper packaging unit, 1 company shares is increased, 2 House was underweight, and another two with no changes. Among them, chenming paper holdings are small, and Q1 2009 compared to fund the company shares 23.56 million shares, the holders of company shares zhongcang fund company stock accounted for response of proportion from 2009 1 quarter of 3.23% 3.25%. We think that this was mainly due to the company as an industry leader, offering comprehensive absolute, product in the market environment a better culture paper of the company¨s revenue share of larger, business performance relative to be stable, strong against risk. The Yueyang paper be plunge, Fund holdings of the company shares 5659.02 million shares, the holders of company shares zhongcang fund company stock accounted for response of proportion from 2009 1 quarter of 23.06% declined to 11.89%, this Fund holdings, we think that the zhongcang and the crisis-affected, pulp and paper industry is in the doldrums, the company profit greatly reduced, and a large number of pulp production could not profit, on the other hand, as the market rumours of Yueyang paper due balance rate too high, its controlling shareholder taige paper Group may be acquired, but also to bring greater uncertainty. Another holding company is Wei Hua Co., also is the Fund zhongcang stock circulation percentage minimum company, zhongcang stock response only accounted for 0.04%.  
3. from the zhongcang holding paper packaging unit number of the Fund, to end Q2 2009, holding chenming paper and the number of Yueyang paper of the Fund, with a maximum of 2 family; the remaining four companies have only been one fund zhongcang.  
4. the 1st quarter of 2009 compared to zhongcang in funds held by paper packaging unit, rose to a forestry market value growth of 15.81%. According to the days of securities investment analysis system provides statistics, 2nd quarter of 2009, rose to a forestry count up 16.93%, is paper packaging plate Fund to increase the maximum in stocks. We think that this is the real estate industry company downstream, another forest in the warmer reform moving forward, the company as a forestry company also will benefit, besides Q2 2009 Shanghai composite index is up 24.70%.  
5. from Q2 2009 zhongcang holding paper packaging Fund stock characters look, there are several points: (1) the Fund on the paper packaging industry concern surface is still not great, only 6 companies held by zhongcang; (2) subject to the effects of economic crisis, paper and packaging industry experience winter at the end of 2008, there are still in the early stages of recovery, industry continued to be low.(3) plate, Fund zhongcang holding focused, chenming paper Yueyang paper and the two companies have been holding over the six House was held by the company zhongcang is the total number of shares held by 86.33%.  

6. in summary, paper and packaging industry and is not a fund positions which are opened in key industries, but the present paper packaging industry is with the downstream demand recovery and gradually warmth returns, enterprise has returned to normal production sales, product gross margin and constantly improve, industry warms McFadden, expected in Q3 will further good in Q2, we maintain industry "holdings" rating, can suitably increase the stock of paper packaging plate configuration.