Oct 23 What to know before trading Asia on Monday updated Sunday


23 Oct

Updates on Things to watch:
More US housing data ahead this week which could impact Techtronics (669 HK) which has recently seen increased shorting.
Weekend property sales will be closely watched as Evergrande’s and other Chinese Developers financial predicament’s continue to overshadow the market.
Increased reporting about a Magnesium shortage, another key element for the Auto sector which means there could be pressure on the supply chain names for the sector. Steering element like Nexteer (1316 HK), Tyre companies, Electric Precision names like Hosideng (6804 JP) as the Auto sector cuts production targets.
Rising fuel prices likely to hurt consumer discretionary spending in Europe and the US.
Interesting to see cooling water; for data centres, becoming an issue in the US as Google wants to build two more centres in Oregon.
Japan
Tokyo confirmed 32 new covid cases and one new fatality on Saturday. The seven-day average of new infection cases dropped 45.8% from a week before to 34.3 +VE.
Bloomberg article suggests that core inflation in Japan is running higher than the headline data suggests. Slight +VE
Mitsui Fudosan selected by Tokyo Tower Company to redevelop a 25,000 sq m area around the Tower +VE
Russian and Chinese warships held their first joint patrols in the western Pacific Ocean over the past week; including a group of 10 vessels making a passage through the Tsugaru Strait separating Japan's main island and its northern island of Hokkaido; a move Japan said it was monitoring. -VE
S Korea 
The U.S. envoy for North Korea arrived in South Korea on Saturday amid stalled denuclearisation talks and tension over Pyongyang’s recent missile tests. +VE
South Korea said on Saturday that it has achieved its goal of vaccinating 70% of its 52 million people, paving the way for a planned return to normal next month. +VE
KDCA reported 1,423 new covid cases Sunday (-85 DoD) but may be due to less testing still +VE
South Korea's antitrust regulator said Sunday it has decided to order Nissan Motor Corp., Porsche AG and their two Korean units to take corrective steps for falsified information over gas emissions of their diesel cars. +VE for a fair market
Taiwan
US News reports Taiwan and US officials discussing how Taiwan can meaningfully participate at the United Nations ahead of President Xi’s speech due Monday to mark China’s 50th anniversary of being a member after Taiwan (then refered to as the Republic of China) was voted out. Likely to further annoy China but +VE for Taiwan being formally recognised for the free country that it is.
The Taiwanese delegation visiting Europe has signed seven Memoranda of Understanding (MOUs) with Slovak officials and scientists that aim to increase bilateral collaboration on trade and technology, according to Taiwan's National Development Council (NDC). +VE
CECC reported 7 new imported covid cases on Saturday
China 
Chinese parliament said on Saturday it will roll out a pilot real estate tax in some regions;  the State Council will determine which regions will host the pilot tax and other details, Xinhua added. Long talked about property tax has gained new momentum as President Xi pushes through profound changes to the country's policies.  The real estate tax will apply to residential and non-residential property as well as land and property owners, but does not apply to legally owned rural homes and residences which are appended. The pilot schemes will have a duration of five years from the issue of the details from the State Council.  Previous schemes were applied to higher end and  second homes at rates of 0.4% to 1.2%.
The China Iron and Steel Association (CISA) said on Saturday that industry players must ensure supply, while keeping prices stable in what is a "complex, volatile, unstable and uncertain market situation."
China says there is no room for comprimise or concessions over Taiwan following President Biden’s comments about defending the country were China to mount an attack. -VE
Creditors of China's HNA Group have voted to approve the company's restructuring plan, according to a court comment posted on HNA's official WeChat page on Saturday. The court in China's southern island of Hainan, where the group is based, said the vote had been conducted in accordance with the country's bankruptcy laws. However many of the smaller creditors are unhappy about the arrangements and threatening to continue their action. -VE coming at a time when the potential restructuring of Evergrande may become an issue.
Hong Kong 
Earnings due Monday include: HSBC (5), Le Saunda (738), ZTE (763), Datang Corporation Renewable (1798), GCL Poly (3800), China Merchant Sec (6099).
CHINA SHENHUA (01088.HK) announced the results for 3Q ended September 2021. The revenue amounted to RMB88.97 billion, up 45.6% YoY. Net profit stretched 21% to RMB14.777 billion. EPS was RMB74.4 fen.
CHINA TELECOM (00728.HK) announced the results for 3Q ended September 2021. The revenue amounted to RMB110.004 billion, up 11.3% YoY. Net profit hiked 17.4% to RMB5.584 billion. EPS was RMB6 fen.
FT article ‘Hong Kong sticks to strict quarantine regime even as region starts to open’ suggests HK may remain ‘closed’ and under a zero-covid regime until Nov 2022, taking it from ‘Asia’s world city’ to Asia’s closed city and effectively just another Chinese city.



Previous posting.
Summary

Key Macro Data ahead this week; interest rate decisions from BoJ and ECB but also GDP data from S Korea, Taiwan, Germany and the US. Also Tokyo CPI, China Industrial Profits & PMI, and US housing data amongst the data. Additionally earnings in focus from Japan, S Korea, Hong Kong and most closely watched the US with results from Apple, Amazon, Twitter, Alphabet and Microsoft are among the 30% of the S&P 500 companies reporting earnings in the week ahead. Others include Feacebook (Monday), Caterpillar, Coca-Cola, Merck, Boeing and McDonald’s.

Earnings
Monday
Facebook, Restaurant Brands, Otis Worldwide, Kimberly-Clark, Owens-Illinois, HSBC, TrueBlue
Tuesday
Alphabet, Microsoft, Visa, Advanced Micro Devices, Texas Instruments, Twitter, Chubb, 3M, General Electric, Robinhood, Eli Lilly, UPS, Novartis, JetBlue, Lockheed Martin, Raytheon, Archer Daniels Midland, Sherwin-Williams, Invesco, Hasbro, Boston Properties, Teradyne, Fortune Brands, Hawaiian Holdings, NCR, Boyd Gaming
Wednesday
Earnings: Coca-Cola, McDonald’s, Boeing, General Motors, Ford, Bristol-Myers Squibb, Kraft Heinz, Norfolk Southern, Glaxo SmithKline, General Dynamics, Brink’s, Automatic Data, CME Group, International Paper, Penske Auto Group, eBay, Cognizant, Extra Space Storage, KLA Corp, Aflac, Harley-Davidson, Flex, Suncor, BioMarin, Community Health Systems, iRobot
Thursday
Earnings: Apple, Amazon, Caterpillar, Comcast, Merck, Northrop Grumman, Altria, Intercontinental Exchange, Sirius XM, Yum Brands, American Tower, Gilead Sciences, Starbucks, Molson Coors, T. Rowe Price, Airbus, Anheuser-Busch InBev, Sanofi, STMicroelectronics, Volkswagen, Royal Dutch Shell, Stanley Black & Decker, AllianceBernstein, Check Point Software, Brunswick, Oshkosh
Friday
Earnings: Chevron, AbbVie, Colgate-Palmolive, Lazard, Booz Allen Hamilton, Weyerhaeuser, Church and Dwight, CBOE Global Markets, Newell Brands, W.W. Grainger, Cerner, Aon, Charter Communications, Phillips 66, Daimler, Nomura, Eni, BNP Paribas

Data
Australia Wednesday Inflation Rate, CPI data, Thursday Export & Import Prices and then Friday Retail Sales, PPI and Private Sector credit
Japan Ahead Final Coincident Index Final & Leading Economic Index on Monday, then Thursday Retail Sales & BoJ Interest Rate Decision and Friday Unemployment, Tokyo CPI, Jobs Ratio, Industrial Production, Consumer Confidence, Housing Starts and Construction Orders.
S Korea This week GDP data Tuesday, Consumer Confidence Weds and then Friday Business Confidence, Construction Output, Industrial & Manufacturing Production and Retail Sales.
Taiwan Monday Industrial Production, Retail Sales, M2 Money Supply and then Friday GDP Growth Rate.
China this week Industrial Profits on Wednesday and on Sunday Manufacturing and Non Manufacturing PMI.
Hong Kong only Balance of Trade, Exports & Imports on Tuesday.
Europe
Eurozone 
Wednesday Loans to Households & Companies and M3 Money Supply. Thursday Sentiment Data (Economic, Industrial & Services) and Consumer Confidence along with the ECB interest rate decision. Then Friday Inflation and GDP Growth data.
Germany 
Monday Ifo Business Climate & Expectations, Bundesbank Monthly Report and Friday GDP Growth Rate
France 
Wednesday Consumer Confidence, PPI, Unemployment & Jobseekers data. Then Friday Inflation Rate
UK 
Tuesday CBI Distributive Trades, then Wednesday Consumer Confidence & Import Prices and Autumn Budget. Thursday Unemployment & Inflation, Car Production and Friday Nationwide Housing Prices, BoE Consumer Credit, Mortgage Approvals and Net Lending to Individuals
US Monday Chicago Fed National Activity Index, Dallas Fed Manufacturing Index, Tuesday Case-Shiller Home Price, House Price Index, New Home Sales, Richmond Fed Manufacturing Index, API Crude Oil Stocks change. Wednesday MBA Mortage data, Durable Goods Orders, Goods Trade Balance, Wholesale Inventories, EIA Oil report. Then Thursday GDP Growth Rate, Initial, Average and Continuing Claims, Core PCE and PCE Prices, Pending Home Sales, EIA Natural Gas Report, Kansas Fed Manufacturing Index. Then Friday Personal Income & Spending, Employment Cost Index, PCE & Core PCE Price Index, Chicago PMI, Michigan Data Final (Consumer Sentiment, 5 yr Inflation Expectations, Consumer Expectations, Current Conditions and Inflation Expectations) and the Baker Hughes data.

FT Weekend
US warns business over China links

• Washington says data and tech harvested • ‘Legal and illegal’ methods highlighted. The NCSC are contracting US companies to warn them of ‘the direct and hidden links between Chinese companies and universities and state security, or that Beijing was using a “whole of government approach” to obtain technology.’
Biden vows military defence of Taiwan
White House later plays down the comments as Beijing urges caution. It notes that ‘Wang Wenbin of the Chinese foreign ministry said Taiwan was “an inalienable part of China” and urged Washington to be “cautious in its words and deeds”.’ This could be crucial to President Xi as more countries come out to recognise that Taiwan is not part of China and the previous use of words to appease Beijing have given them a false impression.
China weapon threatens to tilt arms race
Nuclear-capable glider has potential to shift balance of power with Washington. Explains the relevance of these new weapons most crucially their manoeuvrabily which means they could approach from the antartic a direction where America has little in terms of missile defence tech. The Economist has a good article too. Worth reading the Editorial too; Avoiding the next nuclear arms race China and the US must find a framework for managing tensions
Magnesium shortage poses threat to industry 
Linked to the power shortages in China, from where 87% of the global supply comes. Potentially another big problem for the auto sector, as its used to strengthen aluminium but can only be stored for about 3 months; so there is little inventory.
Renault warns of deeper dent in production from chip crisis
• Drop in output more than double forecast • Quarterly revenues down 13%. Could indicate more problems for the Auto sector in the months ahead.
Bitcoin ETF finds hot demand as ‘Wild West’ meets Wall Street
Launch of investment fund lends professional edge to swashbuckling asset class. An interesting read but the costs involved with this ETF and the fact that its backed by futures; seems to be the SFC setting it up to be a costly failure; possibly to try and undermine Bitcoin.
Geely weakens its hold on Volvo Cars by dropping class A stock ahead of IPO Refers to the Chinese parent after investors complained it was selling 20% of the shares but retaining 97% of the voting rights.

The Economist main theme is on the re-shaping of Economics due to the pandemic.
On China
Poetry from the gulag In Xinjiang, officials are trying to stamp out Uyghur identity Uyghur artists and intellectuals are being rounded up, but some of their work escapes.
Glide and seek China’s test of a hypersonic missile worries America
It is the latest front in an emerging nuclear arms race
Chaguan The confidence of China’s Communist Party is striking
It is revealed in a rural county sponsored by the Chinese foreign ministry. It starts with ‘Since the Ming dynasty, Chinese who are oppressed by local officials have sighed, by way of explanation: “The heavens are high, and the emperor far away.” An earthier variant runs: “With no tiger in the mountains, the monkeys are in charge.” Today’s Communist Party bosses have no time for such cynicism. They want the masses to believe that, even in the remotest villages, their welfare is the concern of an all-knowing leader, Xi Jinping, served by officials striving to follow his stern but wise example.’ But it makes the very good point that most in China are only aware of what they are told and see demonstrated by the party. They have seen the improvements and so believe the rest of what they are told about the rest of the world being in decline. It concludes ‘Mr Xi’s China remains a big country with complex problems, run by men who see a world full of hostile forces. But the domestic confidence of its ruling party is unmistakable. Outsiders miss that tigerish swagger at their peril.’
Schumpeter Huawei should dissolve, disperse and seed China’s high-tech future
Finance and Economics A triple shock slows China’s growth
Coal shortages, covid-19 and a construction slowdown all take their toll
The third star Samsung Electronics wants to dominate cutting-edge chipmaking The South Korean dynasty’s third generation is taking on TSMC and Intel. Can it succeed?

Markets
For Monday

JAPAN
Nikkei 225 CME futures closed at 28,730 vs 28,870 close in Osaka
Yen close 113.46, slight strengthening +VE Utilities as eases import costs of oil and gas.
The by-election results from the prefecture’s of Shizuoka and Yamaguchi a good barometer for the LDP’s popularity ahead of next weekend’s general election.
Data due lunchtime
Coincident Index Final Aug (July was 94.4 F/cast is 91.5)
Leading Economic Index Aug (July was 104.1 F/cast 101.8)
Tokyo confirmed 26 new COVID-19 infection cases on Friday, the lowest daily tally this year, the metropolitan government said.
Mitsui Fudosan  selected by Tokyo Tower Company to redevelop a 25,000 sq m area around the Tower +VE
Japan adopted a new energy policy on Friday that promotes nuclear and renewables as sources of clean energy to achieve the country’s pledge of reaching carbon neutrality in 2050. The new basic energy plan, adopted by the Cabinet just in time for the climate summit in early November, calls for drastically increasing use of renewable energy to cut fossil fuel consumption over the next decade as Japan pushes to meet its ambitious emissions reduction target. Japan has been undecided over what to do about its nuclear power industry since the 2011 Fukushima plant disaster. It now says reactor restarts are key to meeting emissions targets as Japan tries to step up in the global effort against climate change.
Softbank Group Corp is in talks to sell the Paris-based robotics business behind its Pepper android to Germany’s United Robotics Group, according to sources and documents reviewed by Reuters, scaling back a business it once touted as a major growth driver. The talks are ongoing and plans could change, said two sources familiar with the matter, who declined to be named as they are not permitted to speak to the media. +VE
PM Kishida to attend COP26 climate summit +VE
LDP’s Sec General Akira Amari says Japan needs to ensure its supply chains with allied nations or domestically built on the two pillars of ‘strategic autonomy and indispensibility’.
Foreign Minister calls on the US to join the CPTPP, with many nations wishing the US to join.

SOUTH KOREA
Expect markets to open flat with inflation concerns and earnings in focus. Also caution ahead of the GDP data due Tuesday.
No data due
The country reported 1,508 new cases (+69 DoD) including 1,487 local infections, raising the total caseload to 350,476, the Korea Disease Control and Prevention Agency (KDCA) said.
South Korean President Moon Jae-in will travel to Europe next week to attend a Group of 20 summit in Rome and the U.N. climate conference in Scotland, his office said on Friday.+VE
Stellantis (STLA.MI) and South Korea's Samsung SDI Co Ltd (006400.KS) have entered a preliminary agreement on a joint venture to produce electric vehicle (EV) battery cells and modules in the United States, the two companies said on Friday. The tie-up comes less than a week after the world's fourth largest automaker signed a similar agreement with South Korea's LG Energy Solution (LGES), as it rolls out its 30 billion euro ($35 billion) electrification plan. +VE
Edison Motors will ask for a loan of some 700 billion to 800 billion won ($596 million-$681 million) from Korea Development Bank to acquire the troubled SsangYong Motor, its chief executive officer said Friday. Slight +VE
Posco International Corp. said Friday its third-quarter earnings swelled more than 25 percent from a year ago on strong sales stemming from rising material costs. Its consolidated net income came to 69 billion won ($58.5 million) in the July-September period, up 25.4 percent from a year earlier, the trading arm of top steelmaker Posco said in a regulatory filing.
Celltrion has started a phase 1 clinical trial of an inhalable form of COVID-19 treatment Regkirona in Australia, according to industry sources Friday. +VE
North Korea on Saturday blasted the United States for causing military tension with China by meddling in Taiwan affairs. Pak Myong-ho, the North’s vice foreign minister, also accused the US of trying to topple both Beijing and Pyongyang.

TAIWAN
Expect market to open flat again
Data due 
Industrial Production, Retail Sales, M2 Money Supply
After market Friday
Unemployment Rate Sept +3.92% vs 4.08% Aug (F/cast +3.9%) a five month low.
The government is planning to create a legal basis for the nation’s efforts to reach net carbon neutrality by 2050 by amending the Greenhouse Gas Reduction and Management Act and renaming it the “Climate Change Response Act,” the Environmental Protection Administration (EPA) said on Thursday. The draft amendment changes the emissions goal stipulated in the act to “net zero” by 2050, the EPA said, adding that the act currently only aims at a 50 percent reduction in emissions from 2005 levels.
US President Joe Biden’s remarks about protecting Taiwan shows Washington’s policy is steering toward “strategic clarity,” although it does not change its policy toward Taiwan, observers in Taipei said yesterday. +VE
TSMC the world’s largest contract chipmaker, yesterday denied a report that there has been a delay in its Arizona investment project, saying the plan is on schedule. Construction of a planned 12-inch wafer foundry in Arizona started in June and equipment installation is to start in the second half of next year, TSMC said. In the fab’s initial phase, it is to produce 20,000 wafers a month starting in the first quarter of 2024, the company said. +VE It also said it will submit its comments to the United States in response to Washington's request for chipmakers to provide information on the semiconductor supply chain by November 8.
Panel price declines continued in the second half of this month, with the price of a 55-inch TV panel plunging at the fastest rate ever on a monthly basis, the latest price information from TrendForce Corp showed. The average price of a 55-inch TV panel slumped 21.6 percent, or US$40, to US$170 in the second half of this month, following the end of inventory buildup demand ahead of the holiday season in the US, Europe and China, the Taipei-based researcher said. -VE

CHINA
Expect market to open lower with continued concerns about covid cases, Evergrande and other possible property defaults and growth prospects as President Xi seeks to re-orientate the economy. Interesting to note the limited response from China to Biden’s ‘defend Taiwan’ comment.
No data due
China's National Health Commission reported 50 confirmed cases of COVID-19 yesterday, with 38 of them being local infections (17 in Gansu, 11 in Inner Mongolia, 6 in Beijing, 3 in Ningxia and 1 in Yunnan).
Chinese President Xi Jinping has reaffirmed efforts to strengthen bilateral relations with North Korea, Pyongyang’s state media reported Saturday. Xi made the remarks in a reply to Kim‘s earlier letter to mark the 72nd Chinese National Day, according to the Korean Central News Agency (KCNA).
China has passed an education law that seeks to cut the “twin pressures” of homework and off-site tutoring in core subjects, the official Xinhua news agency said on Saturday. Beijing has exercised a more assertive paternal hand this year, from tacking the addiction of youngsters to online games, deemed a form of “spiritual opium”, to clamping down on “blind” worship of internet celebrities.
The Ministry of Finance (MOF) announced that China's size of stamp duty reached RMB348.5 billion in the first nine months of 2021, up 34.4% YoY. Of which, stamp duty on stock transactions burgeoned 40% YoY to RMB230.2 billion.
China's National Development and Reform Commission (NDRC) announced that, in light of the recent change of oil prices in the international market, the domestic prices of gasoline and diesel (standard) will be lifted by RMB300 and RMB290 per ton respectively, starting from 24:00 Friday. NDRC remarked that, the three major oil companies, namely PetroChina, Sinopec and CNOOC, are required to cooperate for the production and transport of refined oil products, so as to ensure stable supply for the market. +VE
Chinese President Xi Jinping expressed that China has to endeavor to ensure stable supply of coal and electricity for the smooth operation of the society and economy, reported Xinhua News Agency. Xi further cautioned against any rash push for the "two-high" scheme which is intended to restrict high-energy consumption and high-emission construction projects, stating that the government has to adjust the energy production structure in an orderly manner.
G7 says there is no place for ‘state-sponsored’ forced labour in veiled dig at China’s Xinjiang policies G7 trade ministers vow to eliminate the practice and express concern about it being imposed on vulnerable people and minorities. Western criticism of China’s treatment of the Uygurs has intensified amid allegations of forced labour in Xinjiang cotton production -VE
Beijing warned Slovakia and the Czech Republic on Friday that nobody should harbor any illusions about the "necessary measures" China will take to defend its sovereignty, ahead of a visit to both countries next week by Taiwan's foreign minister. -VE for sentiment.
According to the KPMG report "2021 China CEO Outlook", almost 80% China's CEO voiced confidence in the country's economic growth outlook for the coming three years, with the percentage surpassing the pre-epidemic level.  The survey was conducted on more than 1,300 CEOs across 11 major global markets, including 125 China's senior executives. It found that although the epidemic has wreaked uncertainty in the recovery of the global economy, Chinese CEOs' confidence in local economic growth and corporate development prospects has bounced back sharply.
Shenzhen Municipal Cyber Administration, along with Shenzhen Public Security Bureau, Shenzhen Administration for Market Regulation and Shenzhen Communications Administration, held the Shenzhen city APP person data protection conference, during which over 20 major APP operating companies, including TENCENT, Huawei, ZTE and Ping An Insurance, pledged not to invade the personal privacy of the users through illegal surveillance. +VE
China is expanding booster shots to people participating the upcoming Winter Olympic Games in Beijing, amid an ongoing Covid-19 outbreak that’s seeing cases quickly spread across the country. +VE
Wuhan Marathon postponed amid surge of Covid-19 cases in China Organisers pull the plug just days before 26,000 runners were set to return to Hubei capital, with strict Covid-19 protocols in place. Registered runners will retain entry for race, which will be rearranged for a later date, and also have their registration fees refunded -VE for sentiment.

HONG KONG 
ADR’s -90pts at 26,036 with weakness in Chinese Financials, Ecommerce and Petro names.
No data due but after market Friday
Inflation Rate Sept +1.4% vs +1.6% Aug (F/cast was +3.8%)
Business confidence Q4 1 vs 6 Q3

SHORT SELLING HSI Friday 22.8% vs 20.7% Thursday
Top shorts 
Country Garden (2007) 52%, Hengan (1044) 47%, BoC HK (2388) 47%, HSBC (5) 47%, Haidilao (6862) 45%, CM Bank (3968) 36%,
Baba (9988) 36%, Techtronic (669) 35%, Wharf REIC (1997) 35%, Hang Lung Ppty (101) 34%, Hang Seng Bank (11) 33%, CKI (1038) 32%, China Res Land (1109) 32%, Ali Health (241) 32%, Sunny Optical (2382) 30%, Geely (175) 30%, Shenzhou (2313) 30%, Bank of China (3988) 27%, HK & China Gas (3) 27%, Ping An (2318) 26%
LEGAL
Government has completed revising the legal aid scheme and defendants in criminal cases in the future will be assigned a lawyer instead of choosing the one they are in favor of,
according to sources.
As for civil cases, the number of cases to be handled by a barrister a year will be limited from 20 to 15. The number will drop from 35 to 30 for solicitors on the other hand. Contenious as seen as again varying from the provsions of the Basic Law.

16 more councillors expelled over oaths. That brings the total number of disqualified councillors to 49 of 452 elected seats. The 49 were all stripped due to invalid oaths after authorities asked them to pledge allegiance to the SAR and uphold the Basic Law.

WATCH
SIHUAN PHARM (00460.HK) announced that, on the previous trading day (22nd), it has repurchased on the market a total of 11.62 million shares 
of the company, at an average price of $1.7454 per share, involving approximately a total of $20.28 million. +VE

HOPSON DEV HOLD (00754.HK) announced that the gross contracted sales of the group in aggregate for the nine months ended 30 September 2021 amounted to approximately RMB30.2 billion, representing an YoY increase of approximately 37.2%. Amongst which, property contracted sales amounted to approximately RMB28.616 billion, representing an increase of approximately 35.3%. +VEEvergrande Real Estate Group under EVERGRANDE (03333.HK) announced that, since 14 September, there has been no material progress on sale of assets of the group. In view of the difficulties, challenges and uncertainties in improving its liquidity, there is no guarantee that the group will be able to meet its financial obligations under the relevant financing documents and other contracts, the announcement added. -VE

GANFENGLITHIUM (01772.HK)’s wholly-owned subsidiary Ganfeng international trade (Shanghai) Co., Ltd. and Bacanora Lithium PLC announced that the U.K. Panel on Takeovers and Mergers has halted the timetable of GANFENGLITHIUM's proposed acquisition for all the issued share capital of Bacanora Lithium, until the deal obtains approval or exemption in the antitrust review in Mexico. -VE

Macau's Novel Coronavirus Response and Coordination Center announced that, for the purpose of pandemic prevention and control, starting from 00:00 of today (23rd), individuals who are subject to medical observation due to having residence or travel history to Hong Kong are not allowed to travel to the Mainland China via Macao within 7 days after completion of medical observation. Slight -VE

CM BANK (03968.HK) announced that the net profit in the third quarter rose 21.07% YoY to RMB32.465 billion. Net operating income was RMB82.655 billion, an annual increase of 13.03%. The net interest spread of the Group was 2.37% in the quarter, representing a decrease of 1 basis point QoQ. +VE

BYD COMPANY (01211.HK) (002594.SZ) announced that it entered into a partnership agreement today (22nd). As one of the limited partners, the company participated in the initiation of the establishment of the GBA Technology Innovation Industry Investment Fund (Limited Partnership),
with a proposed capital contribution of RMB100 million. Currently in the fundraising stage, the fund has a total target size estimated to be RMB20 billion. +VEThe Financial Reporting Council (Amendment) Bill 2021 passed its third reading at LegCo today (22nd), wrote Christopher Hui, Secretary for Financial Services and the Treasury, in a blog. Meanwhile, the authority will continue to actively join hands with sectors to look into and propel future development directions, while seizing market opportunities in Mainland. One of the key points is to explore facilitative pilot measures for professional accounting services in the Greater Bay Area. Upon implementation of a full reform, the FRC will be responsible for issuing practising certificates and the registration of practising accountancies and corporate practices.

CHINA GAS HOLD (00384.HK) announced that it repurchased 3.7 million shares today (22nd) at a repurchase price between $19.2-19.7 per share, involving approximately $71.7614 million. +VE

CK ASSET (01113.HK) announced that Li Ka Shing Foundation Limited acquired a total of 140,000 shares in CK Asset at the average price of HK$46.475 per share on Monday (18 October). In addition, a wholly-owned subsidiary of Li Ka Shing (Global) Foundation acquired a total of 100,000 shares in CK Asset at the average price of HK$46.6 per share on Tuesday (19 October). As a result, the deemed interests of Li Ka-shing, Victor T K Li and Li Ka Shing Foundation Limited in CK Asset under the Securities and Futures Ordinance increased from 46.24% to 46.25%; increased from 46.31% to 46.32%; and increased from 11.531% to 11.534%. +VE

MTR CORPORATION (00066.HK) mentioned the smooth progress in the Cross Harbour Section of the East Rail Line (EAL), expecting the section to be put into service as soon as June or July 2022. This will be the fourth cross-harbour train route upon commissioning.

ZHAOJIN MINING (01818.HK) announced the result for the first three quarters ended 30 September 2021. The net profit amounted to RMB34.9207 million in accordance with PRC GAAP, down 96.1% yearly. EPS was RMB0.01. -VECHINARES CEMENT (01313.HK) announced the results for the first three quarters ended 31 September 2021. The turnover amounted to HK$30.816 billion, up 13.3% YoY. The net profit, on the other hand, plunged 28.1% YoY to HK$5.314 billion. EPS was HK$0.761. -VE

The four major overall indices of CCL broadly weakened as the U.S. announced the impending taper on the bond-buying program, remarked the research department of Centaline Property.
Centa-City Leading Index (CCL) last posted at 186.51, -0.34% WoW.
CCL Mass -0.47% WoW to post at 188.91.
CCL (small-and-medium units) -0.37% WoW at 186.97
CCL (large units) -0.18% WoW, to post at 184.09.

FROM FRIDAY

DOW +0.21%, NDX -0.82%, S&P -0.11%, Russel 2K -0.21%
A mixed open; Dow ticked higher, dipped and then traded sideways/slightly higher to close at a new high. NDX opened lower and dipped before trading sideways and the S&P opened flat, dipped and recovered to flat and traded sideways. Intel -12% and Snap -27% continued weakness which spread to Facebook and Twitter. But Tesla extended its rally to a new high; along with highs for Netflix, Ebay and Microsoft. Beyond Meat -11% on weak guidance due to covid and labour shortages in the retail sector.
Earnings continue to be encouraging but there are concerns for the end of the year.
Banks JPMorgan Chase +1.4%, Citigroup +1.2% Wells Fargo +0.7%, Amex +5.4%
Work from home names: Facebook -5% as whistleblower document reveal more about the company culture, Apple -0.5%, Amazon -2.9%, Netflix +1.8%,  Disney -1.1%, Zoom Video +1%, Alphabet -3% and Microsoft -0.5%,
Tech NXP Semi -0.7%, Nvidia +0.2%, Micron -1.7%, AMD +0.4%, Skyworks -1.1%
Re-opening stocks  Boeing -0.6%, Caterpillar -0.7%, Simon Property +0.8%, Kohl’s +3.9%, Nordstrom +0.5%, Gap -1.8%, United Airlines flat, Carnival -0.2%, Wynn Resorts -2.2%, Chevron +1%, Exxon Mobil +0.7%,  
Lock down names Campbell Soup +0.2% General Mills +0.3%, JM Smucker +1%
DATA
Flash PMI
Composite Oct 57.3 vs 55 Sept (F/cast was 54)
Manufacturing Oct 59.2 vs 60.7 Sept (F/cast was 60.4)
Services Oct 58.2 vs Sept 54.9 (F/cast was 55.1)
Baker Hughes Oil Rig Count 443 vs 445
Baker Hughes Total Rig Count 542 vs 543
Monthly Budget Statement Sept $-62b vs-171b Aug (-90b)
USD was stronger vs Yen & Euro. Bitcoin -3.1% @ 61,114.86, VIX +2.8% @ 15.43, US T10 @ 1.638%
OIL Brent +1.1%, WTI +1.5% rising as US supplies remain tight, although coal and gas supply crunch eases.
Gold +0.63%, Silver +0.91%, Copper -1.24% Platinum -0.59%, Palladium -0.03%.
AHEAD Chicago Fed National Activity Index, Dallas Fed Manufacturing Index

DAX +0.46%, CAC +0.71%, FTSE +0.2%
Market opened higher and saw some initial choppy but upward trending moves with some relief over the Evergrande payment but caution ahead of earnings with Renault, Banco Sabadell, the London Stock Exchange and InterContinental among those reporting.
Eurozone PMI was at a 6 month low. Markets effectively traded sideways after the initial rise but dipped into the close. Leaders were Tech names with Oil and Gas names easing. Other data was mixed with UK consumer confidence weak due to covid, rising costs and inflation fears. Dax slightly higher on hopes of an election settlement.
L’Oreal +5% after announcing better-than-expected third-quarter growth.
Thule +9% after strong third-quarter earnings.
Klepierre +8% after hiking its full-year guidance, as retailer sales and rent collection neared their pre-pandemic levels in Q3.
Data
Eurozone 
Flash PMI
Composite Oct 54.3 vs 56.2 Sept (F/cast was 55.4)
Manufacturing Oct 58.5 vs 58.6 Sept (F/cast was 57.5)
Services Oct 54.7 vs Sept 56.4 (F/cast was 55.5)
Germany 
Flash PMI
Composite Oct 54.7 vs 55.5 Sept (F/cast was 54.7)
Manufacturing Oct 53.5 vs 58.4 Sept (F/cast was 57.1)
Services Oct 56.6 vs 56.2 Sept (F/cast was 55.1)
France 
Flash PMI
Composite Oct 54.7 vs 55.3 Sept (F/cast was 54.9)
Manufacturing Oct 53,5 vs 55 Sept (F/cast was 54.4)
Services Oct 56.6 vs 56.2 Sept (F/cast was 55.5)
UK 
Gfk Consumer Confidence Oct -17 vs -13 Sept (F/cast was -14)
Retail Sales Sept -0.2% MoM vs -0.9% Aug (F/cast was +0.5%)
Retail Sales Sept -1.3% YoY vs 0% Aug (F/cast was -0.4%)
Retail Sales ex Fuel Sept -0.6% MoM vs -1.2% Aug (F/cast was +0.5%)
Retail Sales ex Fuel Sept -2.6% YoY vs -0.9% Aug (F/cast was -1.6%)
Flash PMI
Composite Oct 56.8 vs 54.9 Sept (F/cast was 54.2)
Manufacturing Oct 57.7 vs 57.1 Sept (F/cast was 55.9)
Services Oct 58 vs 55.4 Sept (F/cast was 54.7)
AHEAD
Eurozone No data due
Germany Ifo Business Climate & Expectations, Bundesbank Monthly Report
France No data due  
UK  No data due

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