Towards the end of recent years, the daily related party transaction bill of 2014 after the adjustment of WISCO shares was finally passed at the shareholders'meeting held yesterday. The related party transaction bill, involving a total amount of about 48.5 billion yuan, has been put on the agenda of the shareholders'meeting for the second time.

Because the affiliated Wuhan Iron and Steel Group must avoid voting, the voting tendency of Jifu Venture Capital, a two-shareholder holding 216 million shares, will directly affect the voting results. At the shareholders'meeting in May this year, it was Inji Fu that voted against the proposal of daily affiliated transaction of WISCO shares in 2014. At that time, the total amount involved in the motion amounted to 55 billion 400 million yuan.

A person close to the shares of WISCO disclosed that after the last affiliated transaction proposal was rejected, WISCO shares had communicated with the shareholders on the above-mentioned proposal, and finally reached an agreement. Yesterday's scene was similar to that of two years ago: at the 2011 Annual shareholders'meeting of WISCO, Jefferson voted against the company's daily affiliated transactions bill in 2012; after that, WISCO had to hold another shareholders' meeting to reconsider the bill.

Although Jefferson Venture Capital did not give a clear reason for objection, some analysts pointed out that as an institutional investor, the two shareholders'"opposition" is likely to be due to their dissatisfaction with the long-term downturn in the stock price of WISCO. In 2013, WISCO had planned to increase its acquisition of the mining assets of its major shareholders, but the much-anticipated acquisition was forced to end because of the large upside-down of the fixed price and share price.

However, with the recent improvement of the stock market, the performance of Wuhan Iron and Steel shares has also improved significantly. Wuhan Iron and Steel Group yesterday closed 3.31 yuan / share, compared with the price of about 2 yuan / share in May this year rose by nearly 66%. In this context, the company also timely launched the asset replacement program, in which the investment output is a loss, while the WISCO put in a bright performance, 2013 and the first half of 2014 net profit reached 138 million yuan, 145 million yuan.

Analysts believe that in a warmer Market environment, the introduction of a good company's asset replacement program, which investors are very much looking forward to, is conducive to the company's share price rise, so shareholders are more likely to agree to the program. It is not difficult to understand the change of attitude of Ji Fu venture to the related party transactions bill. The above assets replacement plan was also adopted at the shareholders' meeting yesterday.

In addition, at yesterday's shareholders'meeting, investors were very concerned about the company's state-owned reform and equity incentives. In response, Deng Qilin, chairman of Wuhan Iron and Steel Co., said the company is studying the feasibility of equity incentives, and the specific matters of state-owned assets reform are still in the planning.