re: Ann: Proposed Selective Capital Reduction... 1) During...

re: Ann: Proposed Selective Capital Reduction... 1) During Jan-Feb 2012, China exported 12kt PA, imported 57kt PA, seems it is rather difficult to produce high quality PA domestically.

2) When everyone is expanding production capacity, margins will be pressed, so in the end it is a question of competitiveness domestically and internationally.

3) I doubt the recent buying interest is from fundamental investors, because FI won't buy like this...It was like what happened in August-Sep last year when rich speculator push the price up and went wrong...

4) Overall I still expect the trading condition to improve, as well as the margins in the LT.