LED related industries benefit from national policy support

Electronics industry a week. The Shanghai and Shenzhen 300 index rose by 2.02% this week, electronic components (SWS) index rose by 6.51%, outperforming the broader market by 4.49 percentage points. As of November 4th, after the elimination of the negative value of all A shares TTM 14.26 times the value of the electronics industry after the elimination of the negative value of TTM was estimated to be 40.41 times, compared to the previous week's valuation rose. Electronic industry, the premium rate is relatively 283% of all A shares, the valuation premium rate is relatively high on the last two weeks, is still at historic highs. Maintain industry neutral judgment.

Huaqiang North electronic market price a week index. The comprehensive index of Huaqiang North electronic market reported 96.15 points, down 0.32 percentage points, or 0.33%. Composite index fell again after a stable period.

Global industry performance. Last week (October 31st -11 4) the world's major capital markets, Philadelphia Semiconductor Index SOX closed at 391.48 points, down by 1.22%. The Dow Jones industrial average DJI closed at 11983.24 points, down by 2.03%. Taiwan science and technology index TWIT closed at 5803.23 points, or 0.75%. Hang Seng IT industry index HSITSI closed at 2280.99 points, down by 0.90%.

The national development and Reform Commission and other departments issued a "phased out incandescent roadmap" in November 4, 2011, in addition to our will or consumption tax levied on incandescent lamp products, while giving policy support for energy-saving lamp industry, in order to achieve energy-saving emission reduction policy. Expected policy will help boost the demand for LED lighting. Affected by this good news last week, the largest increase in LED stocks.

Semiconductor Industry Association (SIA) said on Monday that three quarter global chip sales fell by 1.7%. The third quarter chip sales decline is the largest in the Japanese market, up to 9.3%. Americas sales fell 3.7%.

The first three quarters of China's imports of electronic information products $347 billion 500 million, exports accounted for 34.5% of the country's foreign trade exports, up to $480 billion 500 million. Total import and export of electronic information products reached $828 billion, an increase of 13.7%.

Countries are full deployment of smart city construction related work. In September this year, Deputy Minister of the Ministry of Yang Xueshan said that this year the formulation of relevant and smart city planning more than 10 in public, including "12th Five-Year" information planning, information security, electronic information industry, software industry, communications industry planning, planning, e-government, e-commerce and other networking planning, is expected to be released before the end of the year.

The worst flooding in 50 years in Thailand, the impact of the Asian and global supply chain. Among them, the computer, automobile and other industries bear the brunt. Thailand is the world's second largest producer of hard drives after China, accounting for nearly half of global output. Consultancy IHS iSuppli warned that in the past three months, affected by the floods in Thailand, the global hard disk production is likely to decline 30%.

Investment advice: as the country gradually introduced the LED industry support policies, and is expected in November will launch the corresponding subsidy policy should continue to focus on the benefit of related stocks in the development of LED industry, such as upstream and downstream Silan Yankon enterprises etc..