Aug 28 Things to know before Trading Asia on Monday Plus FT Weekend & Economist summary


28 Aug

This and previous notes can be found at Substack ( Asian Market Sense )
Check out ERI-C.com for  interesting research and trading analysis

Asia Summary

Australia 
Expect market to open higher but earnings still in focus.
Data due Business Inventories, Company Gross Profits
Japan
Markets to open higher following the US close pre market Retail Sales data will be watched carefully.  
S Korea 
Expect markets to open higher but key remains foreign buying
Taiwan 
Expect market to open higher having held above 17,000 on Friday.
Shipping was weak on Friday but may see a re-rating as Japanese Shippers hit highs.
China 
Expect market to open lower with further concerns over ‘Common Prosperity’ as the Supreme Court of the People deems ‘996’ illegal.
HK 
ADR’s -29pts at 25,378 Weakness in Chinese Financials and Ecommerce names as we get further regulation over the sector. Earnings remain in focus another big day (320 companies reporting) Banks, Shipping, Meituan andNetEase. Also with a large number out after market Friday (see list below) watch for analyst rating changes. Also worth noting the large number of Chinese companies buying their share back at these levels.
Europe
Eurozone Consumer Confidence & Inflation Expectations, Sentiment (Economic, Industrial & Services)
Germany Inflation Rate
UK
Bank Holiday so expect lighter Asian flows
US
Ahead Monday 
Pending Home Sales, Dallas Fed Manufacturing Index,  
Focus likely to be the jobs report Friday 
but there is also a lot of housing data this week along with Chicago PMI, Consumer Confidence,  ISM Manufacturing and Non data, Exports and Factory Orders.

FT Weekend & The Economist
Front Page FT

Powell eyes year-end tapering move
• Jackson Hole speech cites recovery progress • Markets expect stimulus cut by January
Also Cook sells $750m of Apple shares after decade at helm notches up tenfold rise  Interestingly The Economist has an article on Tim Cook’s Apple ‘The future of Cappletalism’  Looks at how under Cook its grown more than under Jobs but the fact that the next 10 years will be harder than the last.

Inside the FT Weekend
Still a lot on Afghanistan
Companies weigh HK exit over quarantine  
Territory insists priority is city’s health but admits businesses are being hit.  Increasingly businesses are looking to transfer HQ activities out of Hong Kong to Singapore.  The standoff between business and the administration was made worse by HK allowing Nicole Kidman visit without quarantining. The  administration cites a  low vaccination take-up, especially amongst the elderly.  Another key factor will be the political need to first open its border with China.  I think the administration is also using covid as a means to keep any opposition to its National Security plans in check.  The low number of domestic cases does not seem to justify the lock down, especially on the basis that coivd is not going to be eradicated but something we have to live with.

Lessons on Xi’s political philosophy anger China parents  Whilst President Xi has curtailed after school tutoring he has at the same time launched a campaign to make Chinese children as young as 10 study President Xi’s political philosophy (called Xi JinpingThought); has upset parents.  It parallel’s Mao and raises concerns about the rise of a personally cult also seen under Mao who ruled until he died.  Xi has undone all the protections that Deng put in place to prevent such a re-occurance.  
Lex Chinese celebrity: left idle  Looks at how China’s entertainment industry is being impacted by the new policies.

The Economist has a longer article ‘One more thought
Research centres promoting Xi Jinping’s ideas are proliferating
When will his philosophy get a snappier official name?’  Looks at the rise of research centres within China promoting Xi’s ideas.   It notes that Xi is never questioned in public on his plans for China.  But it says his propagandists are setting out his thoughts via 18 institutes; on subject such as ‘Xi Jinping thought on the rule of law’ others cover economics and green development.  The Economist thinks it is to further boost his profile ahead of next years party congress which is set to scrap the Deng introduced time limit on the term on the Presidency.  The article notes though that many of his thoughts are wide ranging and vague ‘that defy ready definition (although the idea that the party must control everything including academia, permeates his speeches). But those with questions may turn to the party’s main newspaper, the People’s Daily.  It is halfway through a serialisation of a book published in February  titled “Xi Jinping Thought on Socialism with Chinese Characteristics for  the New Era: Questions and Answers for Learners”. Each day it  prominently publishes a couple of new ones. Despite its connections, the  newspaper appears not to have persuaded the man himself to explain.’    

FT Opinion Central banks need to stop the mission creep By Merryn Somerset Webb.  Looks at how Central Banks are moving from being Technocrats to being generalists able to look through inflation and influence the political and social agenda.   It notes that this is bad because they have huge power but are unelected.  They have over the past 10 years; caused asset market bubbles and wealth inequality through their loose monetary policy.
Key it says is that Central Banks should resist mission creep and focus on covering their basic remit. It notes ‘The developed world is in as hideous a monetary policy trap as it is possible to imagine. Low rates are causing asset price bubbles all over the place (from housing to NFTs); ordinary people have no hope of getting a real return on their cash; inflation is confusing and potentially frightening; and the rise of cryptocurrencies is threatening central bank control over transactions and deposits.’
It warns that in trying to take on a wider role bankers may find they ‘can’t see the macro for the micro.’
It concludes ‘Mission creep is a common problem. It might be time for national politicians to start insisting that political issues are left to them and that everyone else just gets on with their own jobs. Local councils could fix the roads really quickly. Companies could make, sell and deliver stuff. And central banks could use monetary tools to have a go at controlling inflation. Much easier all round.’

Companies & Markets
Beijing’s top court brands tech sector overtime culture illegal

• Warning to employers • ‘996’ week condemned • Further curbs planned
This will be of concern to investors in Chinese tech and Ecommerce names. Beijing’s top court said the ‘996’ culture was illegal; something that Jack Ma once said was a blessing.
‘China’s Supreme People’s Court and the Ministry of Human Resources and Social Security yesterday jointly issued a set of new “model” cases that will guide courts on how to treat workers’ rights in labour disputes, while warning companies over abuse.’
The 996 culture has been known about and allowed for many years and has probably been responsible for a lot of the success of many of China’s Ecommerce sector. But now Beijing’s policy has changed. It is interesting to compare it with a lot of other businesses like the garment and Tech sectors which had overtime constrained by US and European companies social concerns a few years ago.
This ruling will require immediate action from companies. Interestingly it may help the government as companies are effectively force to hire more staff; that will help the government but hurt company profits. Failing to hire more staff could result in lower service levels which would equally hurt business.
Also on Friday ‘the Cyberspace Administration of China released draft proposals outlining stricter oversight and rules over how tech companies can use algorithms to recommend videos and other content to users.’ This draft it implemented would impact ByteDance and Kuaishou directly; as they would have to define how their algos work and allow users to turn them off.
Looking wider the impact of Xi’s ‘common prosperity’ seems to be just getting started. Ecommerce, tech and gig economy companies are going to have to remain agile, but the likelihood is that companies will be less profitable; that could prompt a rotation out of Chinese names and probably into Indian ones.
The article also makes the point that the ruling by the Supreme People’s court decision seems to indicate that China is moving from statutes to a move precedential system to supplement the law. Worth noting that for years lawyers from Hong Kong have been advising China on the benefits of common law built on precedent and now it seems to be having an impact. Just as Hong Kong’s judiciary comes under threat.

Call for wealth redistribution hits luxury’s China boom
Beijing’s focus on ‘common prosperity’ dents shares in Hermès, Kering and rivals.
Looks at the recent sell off / increased shorting of the luxury sector following the announcement of Xi’s ‘common prosperity’ and whether luxury goods will be next in line for a clampdown as the party looks to regulate income and redistribute wealth. China has been a focus for the luxury retailers especially as covid has stopped many from traveling. It notes that Chinese buyers are the largest buyers of luxury and also that the luxury companies often mark up good sold in China.
It notes that whilst China is stressing that ‘common prosperity’ is not about ‘robbing the rich to help the poor’.  But how the actual implementation will be done is less clear.  The article sets out ‘China may boost taxes on expensive products, crack down on influencers  who flaunt on social media, impose advertising curbs, or intensify  border controls on daigou, the professional shoppers who travel abroad to buy on behalf of Chinese — all could weaken luxury demand.’  It could also lean on companies to bring selling prices in line with international levels.  Ultimately it depends upon the priority that Xi puts on this area vs other policies.    For the moment I would say that investors should remain wary.
The Economist also looks at this in an article Xi Jinping’s talk of “common prosperity” spooks the prosperous
The idea might be motivating everything from China’s crackdown on tech tycoons to a putative property tax.
It includes the moves towards a property tax (I think that is unlikely until the sector resolves such issues as Evergrande and more widely ensures that all property companies borrowings are brought in line with its declared limits) and the pressure on large companies to give back to society via large charitable donations.
The articles makes clear ‘common prosperity’ is not a new theme, Deng was happy with the idea as long as those that got rich first helped others catch up. ‘The ideal appears not just in Marx but also in Confucius, Mr Xi said. He quoted a well known line from “The Analects”, which says something to the effect that a wise leader worries not about poverty but about inequality; not that his people are too few, but that they are too divided’.
As noted above, much is vaguely defined but clearly it does not mean egalitarianism and it is not going to happen immediately. Entrepeneurs who create their own wealth through hard work and guts will be rewarded. But the Xi wants to stop the divide between rich and poor getting wider. ‘People in the top fifth of Chinese households enjoy a disposable income more than ten times as high as people in the bottom fifth, according to official figures. Disposable incomes in cities are two and a half times as high as in the countryside. And the top 1% own 30.6% of household wealth, according to Credit Suisse, a bank (compared with 31.4% in America).
The big problem for investors is at the moment there are no details of what levels are going to be targetted.
‘Common prosperity will require a stronger safety-net for the unfortunate, better pensions, more equal access to public services, including education and health. It will result in an “olive-shaped” distribution of income that is fat in the middle but thin at the bottom and top. China has about 400m people living on incomes between 100,000 and 500,000 yuan (roughly $15,000-77,000) for a family of three or the equivalent. It wants to double that number to 800m people in about a decade, according to the Development Research Centre, a think-tank attached to China’s State Council.’
That taxation has been mentioned is important along with reasonableness but a crackdown on tax evasion is likely. I think that is especially true as the PBOC gets access to the Ant and Tencent data bases connected to their payments systems. It will have a much clearer picture of peoples spending vs their declared incomes. Also will be ‘expenses’ both from companies and local governments; ‘This week the party’s corruption watchdog said it had instructed over 24,800 party cadres in the city of Hangzhou to undertake “self-examination” and confess to any illegal borrowing from local firms or other conflicts of interest.’
It also mentions that there is not going to be a common policy but one that addresses local circumstances. It concludes ‘Just because common prosperity remains nebulous does not, however, mean it is vacuous. “Achieving common prosperity is not only an economic issue, but also a significant political issue,” Mr Xi said in January. The party hopes that reviving this ancient ideal will help strengthen the foundations of its rule. Confucius again got there first. “Where there is contentment,” the sage says, “there will be no upheavals.”’
I wonder whether the rising middle class will be happy with the increased restrictions that the Party is placing upon them without giving them a say in policy. As England found out when the America’s broke away ‘No taxation without representation’; Confucious may have been right but taxation doesn’t usually result in contentment.
See also FT’s Ant-controlled fund invested in groups linked to detained Chinese official ‘A private equity fund controlled by Ant Group, the fintech group founded  by Jack Ma, invested in companies established by relatives of  Hangzhou’s top official, according to business filings and a person  familiar with a Chinese Communist party probe into links between  politicians and businesses.’
It does say ‘President Xi Jinping has launched the party’s fiercest anti-corruption drive in years, focused on senior government and military officials as well as top executives at large state-owned enterprises.’
But it is interesting note that family members of his and some senior party officials still benefit and whilst not listed as key owners of businesses they are still involved. For all that President Xi says about property being for living in; his sister and husband own a luxury house in Hong Kong that hasn’t been lived in for years.

For Interest from the FT Weekend
Wall St titans lay claim to affordable housing
Fears grow for tenants as fights break out between US charities and investors over apartments funded by tax credits.
I still think parts of the US housing market remain precarious especially as the Govt has just lost the right to extend the protection to tenants against eviction. The landlords won the right to evict again, they made the good point that they have incurred debts due to the moritorium, many are not as rich Funds mentioned in the article but housing is an important source of income/pension to many investors. I think more so now that bonds fail to give you an income and portfolio protection.

SEC seeks comments from public over ‘gamification’ of trading on broker apps  An interesting move and makes you wonder whether Robinhood and others are about to come under more pressure.

Buybacks reveal a fairer wind for shareholders By  Joe Rennison
Well worth a read on the number of buybacks being undertaken by companies using cheap money. But makes the point that with markets at highs and there being a high probality of a retrenchment at a time when interest rates are liklely to rise that could be risky. But sitting on cash is equally risky; marking a company out as a potential acquisiiton target
It concludes ‘ “What are investors really focused on right now? Investors really want companies to focus on growth.”
That means spending money on investment, acquiring other companies or paying shareholders through buybacks and dividends.
In other words, favouring shareholders over debtholders.

For Interest from The Economist
Trading in Japanese government bonds is drying up. Does that matter?
Trading desks in Tokyo have fallen silent as the Bank of Japan has hoovered up bonds.
Concludes ‘Movements in bond markets typically convey useful information about investors’ expectations for growth and inflation. But in Japan both are so consistently low that there is little useful information to be gleaned from a livelier market. QE may have helped kill off trading activity, but ultimately the euthanasia of trading desks, like the QE programme itself, is a consequence of a stagnant economy and static prices.
That may be the best lesson for other countries—and, as the past 30 years have shown, what happens in Tokyo today is often repeated in the rest of the rich world tomorrow. Should they find themselves in similar economic circumstances, worrying about the effect of bond-buying on how the market functions may be the least of their concerns.’


DOW +0.69%, NDX +1.23%, S&P +0.88%, Russel 2K +2.85%
Markets opened higher rose initially and then traded sideways, as Powell outlined the timing for the pull back of the tapering programme but that it would not impact the interest rate policy as the 2% inflation target is maintained.  Energy names rebounded strongly; Autos +VE along with Travel names.  Workday +9% on good earnings but Peloton -8.5% after weak earnings
Banks JPMorgan Chase +0.8%, Citigroup +2.7% Wells Fargo +1.6%, Amex +1.9%
Work from home names: Facebook +2.3%, Apple +0.7%, Amazon +1%, Netflix +1.6%,  Disney +2%, Zoom Video flat, Alphabet +1.8% and Microsoft +0.2%,
Tech NXP Semi +1.9%, Nvidia +2.6%, Micron +1.7%, AMD +3.9%, Skyworks +1.4%
Re-opening stocks  Boeing +2.4%, Caterpillar +0.8%, Simon Property +2%, Kohl’s +1%, Nordstrom +2.5%, Gap +0.6%, United Airlines +1.5%, Carnival +3.8%, Wynn Resorts +1.5%, Chevron +1.5%, Exxon Mobil +1.9%,  
Lock down names Campbell Soup +2.4% General Mills +0.8%, JM Smucker -0.3%
DATA
Personal Income Jul +1.1% MoM vs +0.2% Jun revised (F/cast was +0.2%)
Personal Spending Jul +0.3% MoM vs +1.1% Jun revised (F/cast was +0.5%)
Goods Trade Balance Jul $-86.38b vs -92.05b Jun (F/cast was -89b)
Wholesale Inventories Adv Jul +0.6% MoM vs +1.2% Jun revised (F/cast was +0.3%)
PCE Price Index Jul +4.2% YoY vs +4% Jun (F/cast was +4.1%)
PCE Price Index Jul +0.4% MoM vs +0.5% Jun (F/cast was +0.4%)
Core PCE Price Index Jul +3.6% YoY vs +3.6% Jun revised (F/cast was +3.5%)
Core PCE Price Index Jul +0.3% MoM vs +0.5% Jun revised (F/cast was +0.3%)
Michigan Data Final
Inflation Expectations Aug +4.6% vs +4.7% Jul (F/cast was +4.6%)
Consumer Sentiment Aug 70.3 vs 81.2 Jul (F/cast was 70.2)
5 yr Inflation Expectation Aug 2.9% vs 2.8% Jul (F/cast was 3%)
Consumer Expectations Aug 65.1 vs 79 Jul (F/cast was 65.2)
Current Conditions Aug 78.5 vs 84.5 Jul (F/cast was 77.9)
Baker Hughes Total Rig Count 508 vs 503 prior
Baker Hughes Oil Rig Count 410 vs 405 prior
Jackson Hole symposium
USD was weaker vs Yen & Euro. Bitcoin +4.4% @ 48,938.01, VIX -13% @ 16.4, US T10 @ 1.3% as Powell sees tapering to start this year but not rate rises.
OIL Brent +2.3%, WTI +2%
Gold +1.4%, Silver +2%, Copper +1.7% Platinum +3.2%, Palladium +1.1%.
AHEAD Pending Home Sales, Dallas Fed Manufacturing Index.

DAX +0.37%, CAC +0.24%, FTSE +0.32%
Markets opened flat/lower and trading sideways around flat; Miners +VE and Utilities weak. Most investors sidelines watching for comments out of the Fed Jackson Hole symposium, as Powell preps investors for an earlier than expected start to tapering but no change to the mantra on interest rates. Concerns about violence in Afghanistan -VE for sentiment. German and French data was concerning.
DATA
Germany
Import Prices Jul +15% YoY vs +12.9% Jun (F/cast was +13.2%)
Import Prices Jul +2.2% MoM vs +1.6% Jun (F/cast was +0.6%)
France
Consumer Confidence Aug 99 vs 100 Jul (F/cast was 100)
AHEAD
Eurozone Consumer Confidence & Inflation Expectations, Sentiment (Economic, Industrial & Services)
Germany Inflation Rate
France No data due  
UK  No data due

JAPAN
Markets to open higher following the US close pre market Retail Sales data will be watched carefully.  
Data due Retail Sales. Later this week Employment data, Industrial Production, Consumer Confidence, Housing Starts, Capital Spending and PMI data.
A possible merger between storage hardware maker Western Digital Corp (WDC.O) with its Japanese partner and chipmaker Kioxia Holdings could create a NAND memory chipmaking giant that rivals Samsung Electronics (005930.KS). But analysts are questioning whether Kioxia's investors will accept the price and terms of the reported $20 billion all-stock offer from Western Digital, which would provide no cash to the Japanese firm and put a lower value on it than other comparable deals in the industry. Western Digital on Friday filed documents to issue more shares but did not disclose the size of the offering.  

SOUTH KOREA
Expect markets to open higher key remains foreign buying
No data due. This week Industrial & Manufacturing Production, Construction Output, Retail Sales, Trade Balance, PMI data, Inflation and GDP growth.
KDCA announced 1,793 new covid cases (-18 DoD) but the number of critical cases still rising.
Unionized workers at Kia, South Korea's second-biggest carmaker, voted Friday to accept the company's wage proposals without a strike for the first time in a decade. +VE
South Korea’s antitrust watchdog will embark on a process of punitive action against SK Group and its chairman Chey Tae-won over an accusation that he plundered corporate profits during the group’s 2017 buyout of silicon wafer manufacturing firm LG Siltron, now SK Siltron.
+VE for shareholders
Posco is partnering with Hyundai Mipo Dockyard to develop liquefied carbon dioxide carrier to gain an upper hand in the carbon capture, utilization and storage market, the steelmaker said Friday. +VE
GM Korea Co. and its labor union have signed a wage agreement for the year amid the extended COVID-19 pandemic and sluggish sales, the company said Friday. +VE
Daewoong Pharmaceutical is under a prosecutors’ investigation, with  industry sources suggesting Friday that the subject of the probe is  trade secret misappropriation. -VE
Samsung’s Galaxy Z Fold 3 and Galaxy Z Flip 3 officially landed in stores worldwide Friday. +VE
South Korea on Friday saw its first public real estate investment trust debut on the domestic stock market this year, with more debutants headed for the listing soon.

TAIWAN
Expect market to open higher having held above 17,000 on Friday.
Shipping was weak on Friday but may see a re-rating as Japanese Shippers hit highs.
No data due. This week we get Manufacturing PMI data
The number of incursions into Taiwanese waters by Chinese dredgers last year was 54 times greater than three years ago, a report from the National Audit Office shows.  Last year, there were 3,974 incursions into Taiwanese waters by dredgers compared with 73 in 2018, with 86 percent of the incidents having occurred in Penghu County, the report shows.
The government’s business climate monitor last month flashed “red” for the sixth straight month, signaling a continued economic boom even though the overall score shrank slightly due to a local COVID-19 outbreak, the National Development Council (NDC) said yesterday.
Consumer confidence edged down this month, as a stock market rout weakened investment sentiment, but purchases of durable goods were robust, backed by pent-up demand, a survey released yesterday by National Central University showed.
Qisda Corp Friday warned about “price gouging” and its consequences as price hikes persists amid an ongoing shortage of raw materials and components. “Not all the price hikes for [electronic] parts are reasonable,” Qisda chairman Peter Chen (陳其宏) told reporters. “There are those who have been looting the store while it’s on fire.”
Chen said he has been “losing sleep” over component price spikes, as electronics price increases could lead to inflation “by the end of this year or in 2022.”

CHINA
Expect market to open lower with further concerns over ‘Common Prosperity’ as the Supreme Court of the People deems ‘996’ illegal.
No data due. Tuesday we get Official Manufacturing PMI and the Caixin data on Friday.
China's defense ministry protested Saturday the passage of a U.S. Navy warship and Coast Guard cutter through the waters between China and Taiwan, a self-governing island claimed by China.  
Top Chinese actress Zheng Shuang was hit with a $46 million tax evasion fine Friday while references to film star Zhao Wei were wiped from video streaming sites
as Beijing steps up its campaign against celebrity culture.A statement posted on the ministry's website called the move provocative and said it shows that the United States is the biggest threat to peace and stability and creator of security risks in the 160-kilometer (100-mile) wide Taiwan Strait.

HONG KONG 
ADR’s -29pts at 25,378 Weakness in Chinese Financials and Ecommerce names as we get further regulation over the sector. Earnings remain in focus another big day (320 companies reporting) Banks, Shipping, Meituan andNetEase. Also with a large number out after market Friday (see list below) watch for analyst rating changes. Also worth noting the large number of Chinese companies buying their share back at these levels.
No data due. This week Retail sales and PMI data.

Earnings due Monday include China Merchants Ports (144), Kingboard  (148), Lippo China Resources (156), Dongyue (189), Honghua (196), Lippo (226), Shun Tak (242), Guangdong Invest (270), Wing On (289), NewOcean Energy (342), Beijing Water (371), China Railway (390), Founder (418), Minth (425), GCL Energy (451), Guangshen Rail (525), China Comm Services Corp (552), Bonjour (653), China Eastern Air (670), CHina Evergrande NEV (708), Truly (732), China Rare Earth (769), Shimao (813), Glorious Property (845), China Qinfa (866), Hisense Home App (921),  Lianhua Supermkt (980), Datang (991), CBanner (1028), China Water (1129), Cosco Shipping(1138), Zoomlion (1157), China Railway Const (1186), Agri Bank (1288), Nissin Foods (1475), China Re(1508), Sunvac Services (1516), Virscend Ed (1565), China Comms Const (1800), Kingboard Laminates (1888),  Xingda (1899), Sunac (1918), Cosco Shipping (1919), BAIC Mtr (1958), Bank Chongqing (1963), West China Cement (2233), Weichai Pwr (2338), BoCHK(2388),  Shanghai Pharm (2607), Cosco Ship Devel (2866), Waison (3393), Meituan (3690), Naga Corp (3918), BoC (3988), NetEase (9999).

SHORT SELLING Friday 18.4% vs 21.4% Thursday
Top shorts 
Bank Comm (3328) 64%, Country Garden (2007) 51%, HSBC (5) 47%, Ali Health (241) 46%, Hengan (1044) 43%, Bank of China (3988) 40%, CLP (2) 40%, CK Assets (1113) 37%, Sino Biopharm (1177) 35%, Wharf REIC (1997) 35%, AAC Tech (2018) 35%, Petrochina (857) 32%, Hang Seng Bank (11) 32%, AIA (1299) 32%, Baba (9988) 31%, CCB (939) 31%, New World Development (17) 30%, SHKP (16) 28%, BYD (1211) 28%, Galaxy (27) 27%, Sunny Optical (2382) 27%, Longfor (960) 26%, MTRC (66) 26%, HKEX (388) 25%, CSPC Pharma (1093) 25%.  

WATCH
TENCENT (00700.HK) announced that it repurchased 220,000 shares of the company on the Stock Exchange on August 27 at a price ranging from $462.6 to $478.2 per share, involving about $104 million.   YTD, TENCENT has repurchased a total of 892,600 shares, accounting for 0.0093% of the company's share capital.

XIAOMI-W (01810.HK)  +0.400 (+1.636%)    Short selling $504.00M; Ratio 20.694%   announced that it repurchased 4 million shares of the company through the Stock Exchange on August 27, at a price of $24.75-24.9 per share, involving $99.3444 million.  YTD, the company has repurchased 27.4 million shares, which is equivalent to approximately 0.11% of the issued share capital.

HENGAN INT'L (01044.HK)  +0.450 (+1.049%)    Short selling $31.80M; Ratio 43.171%   announced that it repurchased 500,000 shares of the company through the Stock Exchange on August 27, at the price per share of $43-44, involving $21.743 million.

NEW WORLD DEV (00017.HK)  0.000 (0.000%)    Short selling $22.68M; Ratio 29.624%   announced that it has repurchased 405,000 shares on 27 August, at a price of $37 per share, involving $14.985 million. Year to date, the company has repurchased a total of 35.873 million shares, accounting for approximately 1.407% of its share capital.

SUNSHINE 100 (02608.HK) issued a Profit Warning,
announcing that the group is expected to record a loss of no more than RMB300 million for the six months ended 30 June 2021, as compared to a profit of approximately RMB260 million for the six months ended 30 June 2020.

POP MART (09992.HK) Short selling Ratio 26.165% had 215 retail stores and 1,477 roboshops as of the end of June. 
The blind box seller will strengthen its layout in tier-1, tier-2 and some major tier-3 Mainland Chinese cities going ahead to boost its brand appeal, said COO Si De.

Information from Macao's Statistics and Census Service (DSEC) indicated that Gross Domestic Product (GDP) rebounded by 69.5% year-on-year in real terms in the second quarter of 2021. The economy of Macao resumed positive growth on account of a relatively low base of comparison in the same quarter last year when local economic activities were limited due to the entry restrictions for visitors amid the COVID-19 pandemic. Exports of services ballooned by 555.6% year-on-year over 2Q21, of which exports of gaming services and other tourism services rocketed by 1,089.7% and 1,328.3% respectively.

GEELY AUTO (00175.HK) +0.650 (+2.584%) Short selling $399.81M; Ratio 24.210% announced that on 27 August, the Share Purchase Agreement was entered into among ZEEKR Intelligent Technology and five investors, pursuant to which ZEEKR Intelligent Technology agreed to place to such investors, in aggregate, 126 million Series Pre-A Preferred Shares, at the total consideration of US$500 million. The investors are namely a subsidiary of Intel Corporation (INTC.US), CATL (300750.SZ), CMOC (03993.HK) 's controlling shareholder CFC, Bilibili Inc. (BILI.US) (09626.HK) Related Investor, and Boyu Capital.

The Securities and Futures Commission (SFC) and Commercial Crime Bureau of the Police today conducted a joint operation against a Hong Kong-listed company and its former senior executives suspected of a series of corporate fraud related offences involving a total of $450 million.  

Centa-City Leading Index (CCL) last posted 189.52, down 0.46% WoW. The index has lost a total of 0.95% over the last two weeks.

CCL Mass rose 0.14% WoW to post at 192.77.
CCL (small-and-medium units) last stood at 190.28, down 0.01% WoW. CCL (large units) dropped 2.81% WoW; last posted 185.47.
CCL Mass for the New Territories West hiked 2.27% WoW to post another record new high at 178.56. The index gained 1.02% over the past four weeks.

Guangzhou Futures Exchange and HKEX (00388.HK) signed a memorandum, signifying the future collaboration of the two parties on strengthening connection between Mainland China and Hong Kong markets while developing new business models that support a green and low-carbon economy, reported Chinese media. The two parties will explore the possibility of product collaboration in both Chinese and overseas markets, while sharing resources and experience in terms of exchange clearing, technologies, market advertising and investor education.

RESULTS after market Friday
FULLSUN INT'L (00627.HK)  announced the interim results for the six months ended 30 June 2021.
The revenue for the period declined by 10.2% YoY to RMB615 million. The loss narrowed to RMB169 million from the loss of RMB372 million for the corresponding period of previous year. LPS was RMB1.48 cents. No interim dividend was declared.

DONGFANG ELEC (01072.HK)  announced the interim results for the six months ended 30 June 2021.  Operating revenue for the period amounted to RMB22.737 billion, up 28.1%  YoY. Net profit grew 41.3% to RMB1.348 billion. EPS was RMB43 fen. No interim dividend was declared.

MINSHENG BANK (01988.HK)  +0.030 (+0.915%)    Short selling $14.50M; Ratio 26.616%   announced its interim results. Net profit fell 6.7% YoY to RMB26.556 billion, and EPS was RMB0.56. No interim dividend was declared.

AIR CHINA (00753.HK)   announced interim result ended June 2021. The loss narrowed from RMB9.44 billion in the corresponding period of previous year to RMB6.781 billion. LPS was RMB49.37 fen. No dividend was declared.

BYD ELECTRONIC(00285.HK) announced interim result ended June 2021. The net profit amounted to RMB1.643 billion, down 33.6% YoY.
EPS was RMB0.73. No dividend was declared

.BYD COMPANY (01211.HK)  +6.000 (+2.340%)    Short selling $516.01M; Ratio 27.576%   unveiled the interim results. The net profit fell 29.4% YoY to RMB1.174 billion, with an EPS of RMB0.41. No interim dividend was declared.  During the period, revenue increased 53.6% YoY to RMB89.131 billion, and gross profit fell 5.3% YoY to RMB9.921 billion.

JW THERAP-B(02126.HK) announced interim result ended June 2021. The loss narrowed from RMB650 million in the corresponding period of previous year to RMB281 million. LPS was RMB0.71. No dividend was declared.

CHINA SOUTH AIR(01055.HK)  -0.080 (-1.798%)    Short selling $15.47M; Ratio 42.151%   announced interim result ended June 2021. The loss narrowed from RMB8.179 billion in the corresponding period of previous year to RMB4.69 billion. LPS was RMB0.3. No dividend was declared.

CHINA LONGYUAN(00916.HK) announced interim result ended June 2021. The net profit amounted to RMB4.42 billion, up 37.7% YoY.
EPS was RMB55 fen. No dividend was declared.

CRRC (01766.HK)  announced its interim results. Net profit increased by 8% YoY to RMB3.988 billion, and EPS was RMB0.14. No interim dividend was declared.

ZTE (00763.HK) announced interim result ended June 2021. The net profit amounted to RMB4.079 billion, up 119.6% YoY. EPS was RMB0.88. No dividend was declared.

GREATWALL MOTOR (02333.HK)  +1.450 (+4.524%)    Short selling $184.76M; Ratio 18.214%   announced the interim results. Net profit increased 2.08 times YoY to RMB3.529 billion, and earnings per share
were RMB0.39. An interim dividend of RMB0.3 per share was declared.

CCB (00939.HK)  +0.050 (+0.894%)    Short selling $186.17M; Ratio 30.613%   announced the interim results. The net profit for the period stretched 11.4% YoY to RMB153.3 billion. EPS  was RMB0.61. No interim dividend was declared. According to the forecast of five brokers as compiled by us, the bank was expected to record a net profit of between RMB145.6-152.55 billion in the first half of 2021.

YANZHOU COAL (01171.HK) announced its interim results. Net profit increased by 38% YoY to RMB6.278 billion, and earnings per share were RMB1.29. No interim dividend was declared.

SHENZHEN INVEST(00604.HK)  -0.010 (-0.429%)    Short selling $2.01M; Ratio 26.739%   announced interim result ended June 2021. The net profit amounted to HK$1.393 billion, up 331.8% YoY.  EPS
was HK15.65 cents. An interim dividend of HK7 cents was declared.

CNBM(03323.HK) announced interim result ended June 2021. The net profit amounted to RMB7.959 billion, up 47.9% YoY. EPS was RMB0.944. No dividend was declared.

SMIC (00981.HK)  unveiled the interim results. Net profit leaped 3.2 times YoY to US$847 million, and EPS was US$0.11. No dividend was declared.  During the period, revenue increased 32.8% YoY to US$2.448 billion, and gross profit hiked 35.9% YoY to US$655 million.

CONCH CEMENT(00914.HK)  -0.350 (-0.845%)    Short selling $91.91M; Ratio 32.691%   announced interim result ended June 2021. The revenue rose 8.7% year on year to RMB80.433 billion. The net profit amounted to RMB14.968 billion, down 7% year on year.  EPS  was RMB2.82. No dividend was declared.

CNT GROUP (00701.HK)  announced the interim results for the six months ended 30 June 2021.
The revenue for the period hiked 47.2% YoY to HK$433 million. Net profit amounted to HK$4.29 million, compared to a loss of HK$63.45 million for the corresponding period of previous year. EPS was HK0.23 cents. No interim dividend was declared.

PSBC (01658.HK) +0.130 (+2.434%) Short selling $107.49M; Ratio 42.260% announced interim result ended June 2021. 
The net profit amounted to RMB41.01 billion, up 21.8% year-on-year. EPS was RMB0.4. No interim dividend was declared.

SHANGRI-LA ASIA (00069.HK) announced interim result ended June 2021. 
The loss narrowed to US$59.77 million from US$283 million in the corresponding period of previous year. LPS was US1.673 cents. No dividend was declared.

ICBC (01398.HK) +0.020 (+0.463%) Short selling $112.17M; Ratio 22.655% announced the interim results. 
Net profit for the period soared 9.9% YoY to RMB163.473 billion, close to the upper end
of the forecasts. EPS was RMB0.46. No interim dividend was declared.
Management expressed on a call meeting that the impact from the COVID-19 outbreak on the bank is expected to normalize soon and that the bank will improve the overall risk management. The management added that ICBC will strive to maintain high-quality development over 2H, aiming to achieve stable loan growth, to optimize the credit structure and to support the real economy.

BANKCOMM (03328.HK) +0.020 (+0.457%) Short selling $54.97M; Ratio 63.959% announced the interim results for the six months ended 30 June 2021. Net profit stretched 15.1% YoY to RMB42.019 billion. EPS was RMB0.54. No dividend was declared. The bank will not convert any capital reserve into share capital for the period.   Vice President Guo Mang forecast that the 2H21 NIM will maintain the  sturdiness overall, whilst the national policies such as RRR cut and  optimized pricing are favorable to the company. Yet, fierce deposit  competition and loan yield decline are posing risks on the company,  which will therefore roll out multiple measures to stabilize NIM.

AEON STORES(00984.HK) -0.020 (-1.266%) announced interim result ended June 2021.
The revenue declined 6.8% year on year to HK$4.807 billion. The loss widened to HK$245 million from HK$72.029 million in the corresponding period of the previous year. LPS was HK94.38 cents. An interim dividend of HK3 cents was declared against a dividend of HK5 cents in the corresponding period of the previous year.

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