Xining Special Steel Co. Ltd (600117) has prominent status in the industry as the largest specialty steel producer in northwest China. It has completed its transformation from a smelting concern to a comprehensive resources company, also becoming the only steelmaker to own both iron and coal resources.

In addition, the company has moved into the coal sector. As international coal prices have consistently been hitting record highs, institutional investors may be attracted to the company. Amid the recent market tumble however, its share price has been under pressure. Analysts expect that the stock may rebound in the future and have advised investors to pay due attention.

Source: Shanghai Securities News

Date: 17 Jun 2008

CN01/DM/BT/MM