"So in this regard, it is a great thing for the industry and for the country in the long run," he said."News of tougher regulations pushed up share prices of major chemical companies, as investors bet that closures of smaller companies will boost operations of those at larger scale.Trading of shares of more than 50 companies was suspended on Monday after gaining the daily limit of 10 percent.The State Administration for Market Regulation (SAMR) announced on Monday that it would launch special rectification efforts for high-risk areas that may have systemic safety issues, including food packing and chemical products.The efforts, expected to continue through October 2019, will focus on improving accountability for safety loopholes and enhancing oversight and regulation of companies, according to the SAMR.The move, along with usual actions from the government of East China's Jiangsu Province, came after two separate explosions at chemical plants in Jiangsu last month killed 85 people in total and injured dozens of others."With these major incidents naturally come tough regulatory efforts," Lin Boqiang, a professor at Xiamen University in East China's Fujian Province, told the Global Times on Monday.
Will the gathering headwinds be an obstacle for upcoming deals?In 2017, it had more than 5,400 such companies that generated more than 2 trillion yuan (7.64 billion) in revenue, said a report on news website on Thursday.The renewed focus on safety stemming from the explosions will speed the process, according to Lin.Through careful, consistent observation of the businesses we follow and the environments in which they compete, the Diamond Hill research team strives to build a cumulative knowledge base over time.This knowledge, coupled with our intrinsic value philosophy, enables us to uncover attractive investment opportunities.
The industrial gas industry is even more consolidated than the coatings industry and, similar to coatings, these companies generally enjoy pricing power and earn above average returns on invested capital.