China Financial Investment Management announced that it will issue 300 million shares by allocating shares using the old, then the new method, at a placement price of HK$0.55 per share. The net proceeds from the subscription (approximately HK$162,700,000) will be used as the Group's general working capital. The placement price of HK$0.55 is equivalent to: (i) a discount of approximately 12.70% from the closing price of HK$0.63 on the previous trading day; and (ii) a discount of approximately 12.97% from the average closing price of HK$0.632 for the previous five consecutive trading days. The company's stock price and trading volume both rose sharply today. Broaden financing channels to support future loan business growth. Over the past two years, CICC Group has used various non-bank channels to supplement capital. In our opinion, it is currently one of the best microfinance companies, and it has broken through financial bottlenecks in this industry through comprehensive financing methods. In 2013, the company's total external loan balance increased by 76.6% from HK$1.07 billion at the beginning of 2013 to HK$1.89 billion at the end of 2013, which is in line with management's earlier expected target of $1.5 billion. Management has formulated a compound annual growth rate of 30% in loans over the next three years through a series of non-bank fundraising activities, including bond issuance, asset securitization programs, bank loans, and trust plans. In particular, looking ahead to 2014, the company expects to raise 600 to 800 million yuan through non-bank channels. The results for the first quarter of fiscal year 2014 were steady, thanks to tight market liquidity. Liquidity constraints remained severe in the first quarter of 2014, which provided more opportunities for microfinance companies to develop their business. We believe that small and medium-sized enterprises will always have cash flow requirements for operating turnover, and that they have the characteristics of being “short, frequent, and fast,” and that this part of the demand cannot be satisfied by banks, so there is room for small loan companies to develop for a long time. Facing different customer needs in the future, CICC Investment will also further diversify their loan business and further refine the hierarchical loan structure. While continuing to meet the short-term turnover needs of the original specialty with high interest rates (30% annualized or more) (such as banks still borrow new bridge loans), it will further dig deeper into the demand for loans of about 6 months where the interest rate range for annualized loans is around 20% in the middle. valuation. In view of the company's high return on capital of 18.6% and good prospects for loan business growth, we maintain the company's purchase rating. The target price is HK$0.85, which is equivalent to 1.1 times the net market ratio for the 2014 fiscal year.