On 12 May, CPI growth for Apr 2008 was revealed, which was 8.5% and was in conformance with previous market expectation. As crude oil price on the international market surged, domestic coal stocks also saw collective gains. Analysts have recommended Daqin Railway Co. Ltd (601006), which operates a coal transport artery of China.

Daqin Railway Co. Ltd transports 16% of all coal transported by railway in China. With a 200 million tonne transport capacity, it is an artery for transporting coal from Western China to Eastern China. As the economic growth of China pushed up coal demand and with the expansion of its transport capacity, the company will strengthen its status as the country's leading coal transporter.

Source: Shanghai Securities News

Date: 13 May 2008

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