Yamato believes that China Iron & Titanium (0893.HK)'s recent move to acquire 7.23% of Wealth Connect's minority shares and all of Aba Mining's shares for HK$695 million is to place its long-term strategy to more than double its resource volume in 2013; the relevant acquisition is expected to be implemented in early 2011. Daiwa expects China's iron and titanium to carry out further acquisition activities to increase iron ore production, which will help drive profit growth in 2012, yet these factors have not been fully reflected in the bank's forecasts. In view of strong bargaining power and good profit growth prospects, Daiwa maintained China's iron and titanium buying rating, with a target price of HK$4.50. China's iron and titanium fell 6.68% throughout the day to close at HK$3.52.