Mar 29 Asian Macro Initial Thoughts Asia to see a muted open but trade higher on strong China data.


29 Mar

Asia
Australia ASX 200 moving higher in early trades following the closing rally in US stocks
Japan Nikkei futures opened -63pts but eased to -40pts following Friday’s strong rebound.  But expect more upside after strong Industrial profits data from China on Saturday which should be +VE industrial robotics sector (like THK and Yaskawa Electric). Also some window dressing going into the month/quarter and year end for Japanese companies.
S Korea Expect markets to open higher following the US with inflation concerns easing and building on Fridays gains.
Taiwan Expect market to open higher following the late rally for US stocks and strong local data.  Strong Chinese Industrial data out Saturday +VE although some  concerns on Chinese military intervention.
China Expect market to open high following strong Industrial profits data and the US rebound BUT international relations remain tense after China imposed sanctions on US and Canadian citizens add to existing concerns which including the PBoC looking to reign in debt remain.
HK ADR’s +288pts at 28,624 with a broad bounce in stocks but expect Xiaomi (1810) to see weakness as GreatWall Motor denies talks about EV’s.  Tencent may see weakness on news that Tencent Music was amongst the stocks being sold by Archegos Capital on Friday.  Concerns about China’s international relations also likely to curb the upside.
US Futures opened Dow -45pts, S&P and NDX both flat
China stocks Baidu and Tencent Music remain under pressure as there could  br others linked to US private investment firm Archegos Capital which may be in trouble having sold $19b of shares at a discount Friday in response to a margin call; stocks involved were  Baidu, Tencent Music, Vipshop, Discovery, Shopify, Farfetch and ViacomCBS shares but other stocks could be involved.
The United Nations is holding "serious negotiations" with China for unfettered access to the Xinjiang region to verify reports that Muslim Uighurs are being persecuted, UN Secretary General Antonio Guterres said in a CBC interview broadcast on Sunday.
Defense chiefs from a dozen countries, including Japan, released a statement Sunday condemning the bloodbath in Myanmar a day earlier, when at least 90 people — including several children — were killed after security forces opened fire on anti-coup protesters.  The death toll on Sunday was said to be higher at 114.  Comes as Russia seeks closer ties with the generals.

JAPAN 
Nikkei futures opened -63pts but eased to -40pts following Friday’s strong rebound.  But expect more upside after strong Industrial profits data from China on Saturday which should be +VE industrial robotics sector (like THK and Yaskawa Electric). Also some window dressing going into the month/quarter and year end for Japanese companies.
Data due BoJ Summary of Opinions
Tokyo reported 313 new covid cases Sunday down 117 from Saturday but Osaka reported 323 surpassing Tokyo for the first time. The Nationwide tally was 1,784.  There are concerns about people flocking to see the cherry blossoms the Tokyo governor has warned people to "avoid cherry blossom viewing parties" to prevent a resurgence of the disease and possible 4th wave in Japan
Japan is set to issue digital health certificates to citizens who have been vaccinated against COVID-19, joining China, the EU and other countries that have adopted similar measures aimed at opening up overseas travel
Prime Minister Yoshihide Suga has indicated he does not see a need to dissolve the House of Representatives any time soon, effectively dismissing speculation that a general election might be held in May or June. Slight +VE for sentiment.
China's coast guard could step up armament and provocations around the Japanese-controlled Senkaku Islands in the East China Sea following the enforcement of a controversial Chinese law, a Japanese Defense Ministry think tank warns.-VE
Japan’s cabinet approved on Friday a bill that will tighten oversight of land deals and land use near military facilities and border islands, reflecting Tokyo’s concern about overseas security risks.
Nissan Motor Co Ltd canceled all production at its assembly plants at Smyrna, Tennessee, and Canton, Mississippi, for April 1 and 5, the Japanese automobile manufacturer said on Friday.  Production at its Aguascalientes Plant 1 in Mexico is also canceled on the same days, Nissan said.  The company said production is expected to resume at its Smyrna and Canton facilities on April 6. -VE
Japan Airlines flight attendants will be hired as temporary employees of the government of Edogawa Ward, Tokyo, in April, as the airline has been affected by passenger numbers declining due to the outbreak of the novel coronavirus. The 35 flight attendants will work for up to a year at areas such as the My Number card issuance desk, public relations section and secretarial section.  Slight +VE
From April, all price tags in Japan must reflect final cost with sales tax included. At present some stores do whilst some don’t but that will change with all stores and restaurants displaying tax included prices
Takeda Pharmaceutical Co says it has started regulatory submissions to Europe's health regulator for its dengue vaccine candidate, which is being developed for individuals aged four to 60. The drugmaker said in a statement that the European Medicines Agency would conduct an assessment of the vaccine, TAK-003, under a procedure that also allows it to assess and give opinions on medicines that are intended for use in countries outside the European Union.Muji and Uniqlo Friday became the latest to be embroiled in an escalating controversy over cotton sourced from China’s Xinjiang region.  Ryohin Keikaku Co, the operator of the Muji chain, saw its shares tumble after it issued a statement saying it was “deeply concerned” about reports of human rights abuses in the area, while several Chinese celebrities abruptly cut ties with Uniqlo, the clothing brand owned by Fast Retailing Co.
Tokyo Stock Exchange Inc has unveiled new rules for swiftly restarting trading in the event of a suspension, as the lack of such guidelines puzzled many investors during an unprecedented all-day system outage last year. According to the rules to be put in place next month. +VE

SOUTH KOREA 
Expect markets to open higher following the US with inflation concerns easing and building on Fridays gains.
No data due
KDCA reported 482 new cases Sunday vs 505 cases reported on Saturday, raising concerns that a new waves may be starting.  It comes amid a steady stream of cluster infections at workplaces, public facilities and religious gatherings.
South Korea said on Friday it will extend its coronavirus distancing rules, which include an outside dining curfew and ban on gatherings of five or more people, for two weeks as its daily new cases hit a one-month high.  The government decides whether to ease or tighten distancing curbs every two weeks, and the current rules have been in place since mid-February.
Doosan Infracore Co. said Sunday it has launched its 100-ton excavators, the biggest in its lineup in the global market, and won orders for them from Mongolia  (an 80 ton excavator) and Chile (a 100-ton excavator).  +VE
LG Uplus Corp. said Sunday it signed a deal to export $11.14 million worth of 5G solutions and content to Thailand's top mobile carrier, Advanced Info Service (AIS).  Under the deal, LG Uplus will provide AIS with augmented reality (AR) and virtual reality (VR) 5G content and also oversee the rollout of the service from its testing to launch.
A South Korean independent panel created to review prosecution probes has decided to recommend that prosecutors cease investigating Samsung Electronics vice chairman Jay Y. Lee over an allegation of unlawful use of a prescription sedative, a prosecution official said on Friday Slight +VE
Celltrion’s COVID-19 treatment can be considered for patients at high risk of severe illness, said the Europe’s drug regulator on Friday but added that the monoclonal antibody’s benefits were not entirely clear so far. The treatment, regdanvimab, may lower hospitalisation rates, the European Medicines Agency (EMA) said, adding that its advice was based on the conclusion of an initial review. +VEThe group also saw a generation shift in its leadership as the founder and honorary chairman stepped down from his official posts and his two sons obtained seats in key affiliates’ boardrooms, following a decision made at shareholders meetings Friday.
Suez Canal block +VE for Shippers (HMM was +16% Friday) but Importers -VE as they expect delays and price rises which could have a wider impact on S Korean companies.
Samsung SDS President and CEO Hwang Sung-woo urged the company to realign itself into a cloud-based business platform that focuses on logistics and security services. “It is now time for Samsung SDS to transform into a true cloud company. Let us concentrate all strengths on cloud, logistics and security,” Hwang said Friday in an email sent out to staff and executives. +VE
Cho Won-tae, CEO of the nation’s flag carrier Korean Air and its holding Hanjin Group, has been reappointed to lead the company, despite the country’s pension fund operator’s disapproval in doing so. Shareholders in attendance at the meeting on Friday, or those who had submitted a proxy statement in advance, represented 56.91 percent in terms of shares. Nearly 83 percent of the shareholders with voting rights voted in favor of Cho, the company said.
SK Innovation said it cannot accept rival LG Energy Solution’s demands for damage compensation it suffered after its battery technologies were stolen, dragging on an already drawn-out settlement dispute involving the two battery makers. Over the weekend it said 'the punishment by the United States’ trade watchdog “catastrophic and a harm to public interest,” South Korean battery maker SK Innovation said it was considering all options, including abandonment of its $2.7 billion manufacturing facilities in the US state of Georgia.’  -VE and considering that the company was found guilty of stealing from LG in order to further its own business; saying now that it will not accept LG’s demand as it would seriously undermine the competitiveness of its battery business is hypocritical to say the least.
Doosan Heavy Industries & Construction Co. said Friday it has completed the construction of its second plant for wind power generators in the country.   The plant in Changwon, 398 kilometers southeast of Seoul, will assemble and test 5.5-megawatt wind power generators, Doosan Heavy said.  +VE
Korea Shipbuilding & Offshore Engineering Co. (KSOE) said Friday it has clinched a 637 billion-won ($562 million) order from Wan Han Lines to build five container carriers.  It is to start delivering the 13,200-twenty foot equivalent unit (TEU) vessels in the first half of 2023, Korea Shipbuilding said in a regulatory filing.
Samsung Heavy Industries Co. said Friday it has obtained a 2.8 trillion-won ($2.5 billion) order from a Panamanian company to build 20 container carriers.  Under the deal, Samsung Heavy Industries will deliver the 15,000-TEU vessels, on which energy saving devices will be mounted, by June 2025, the shipbuilder said in a regulatory filing.
South Korea’s major banking groups expressed a willingness to review various ways to increase their dividend payouts -- including interim dividends – amid government restrictions that have placed a cap on earnings distribution (at 20%), in shareholders meetings held through Friday.

TAIWAN 
Expect market to open higher following the late rally for US stocks and strong local data.  Strong Chinese Industrial data out Saturday +VE although some  concerns on Chinese military intervention.
No data due 
The government’s business climate monitor last month was “red” for the first time in a decade, as the economy is heating up due to strong demand for tech and non-tech products, as well as a low comparison base last year.  The monitor gained 3 points to 40, the highest in 32 years. Officials shrugged off bubble and inflation concerns, saying the “red” signal came on the back of solid economic fundamentals. “Robust exports, private investment and consumer spending accounted for the boom that had nothing to do with bubbles or drastic inflation,” National Development Council (NDC) Deputy Minister Kao Shien-quey told a media briefing.  +VE but could lead to Govt tightening in the 2H if it continues.
Taiwan reports largest ever incursion by Chinese air force with 20 warplanes entered Taiwan’s air defence identification zone soon after the island sealed a new coastguard deal with the US.  Taiwan’s air force has deployed missiles to ‘monitor’ the incursion, its defence ministry said.  A dramatic escalation -VE for sentiment and will raise concerns that President Xi may be seeking to be more aggressive in order to boost his domestic image in the face of China becoming increasingly isolated internationally.
Yang Ming Marine Transport Corp on Thursday reported that it returned to the black last year with a profit of NT$11.98 billion (US$418.9 million), after a net loss of NT$4.3 billion in 2019, thanks to increased revenue, higher freight rates and relatively low bunker fuel prices.  Earnings per share last year reached NT$4.51, after losses per share of NT$1.66 in 2019, while revenue rose 1.4 percent to NT$151.28 billion, up from NT$149.18 billion, the company said, adding that gross margin rose to 17.24 percent, thanks to lower fuel costs.  The company’s board of directors decided not to distribute a cash dividend this year, continuing a policy began in 2011. Slight +VE
BizLink Holding Inc has proposed a cash dividend of NT$8.25 per share, after the wire harness maker reported earnings per share of NT$14.01 for last year, it said last week.  The board of directors’ proposed dividend was lower than last year’s distribution, when the company paid NT$9 per share on earnings per share of NT$15.54 in 2019.  The proposal represents a payout ratio of 58.89 percent. Based on the company’s closing share price of NT$268 on Friday, it also suggests a dividend yield of 3.08 percent.BizLink is the sole supplier of wiring harnesses for battery management systems in Tesla Inc’s Model 3 sedans. +VE.
Electricity rates are to remain unchanged at an average of NT$2.6253 per kilowatt-hour over the next six months, the Ministry of Economic Affairs said on Friday. The decision came after a meeting of its electricity price review committee on Friday, which considered maintaining stability of electricity prices amid the COVID-19 pandemic.
Three current and former members of Taiwan’s central bank board are calling for an overhaul of its currency policy, saying that efforts to tamp down on the New Taiwan dollar’s appreciation are increasingly having a negative effect on the economy.
The Central Epidemic Command Center (CECC) yesterday reported one new imported case of COVID-19, bringing the total number of cases in Taiwan to 1,013.  The new case is a migrant worker from the Philippines in his 30s who arrived in Taiwan on Feb. 28 with proof of a negative COVID-19 test issued within three days of his flight.
The US House of Representatives’ Committee on Foreign Affairs on Thursday approved a bipartisan bill that seeks to mandate US assistance to Taiwan in its bid to regain observer status in the WHO. The bill, introduced by Democratic Representative Brad Sherman and Republican Representative Young Kim on Feb. 18, won unanimous support in an oral voting session.
Compal Electronics Inc yesterday forecast year-on-year double-digit percentage growth for its laptop computer shipments, thanks to strong demand.  Compal president Martin Wong told an investors’ conference that he predicted double-digit percentage growth year-on-year “without too many difficulties.”  Even with uncertainty over component shortages, Compal’s PC and non-PC businesses should grow by double-digit percentage points this year, with overall growth of 20 to 25 percent, Wong said.
Housing and construction loans rose to their highest levels at the end of last month at NT$8.1 trillion (US$283.2 billion) and NT$2.83 trillion respectively, but their rate of increase slowed after the central bank tightened credit controls, the Financial Supervisory Commission (FSC) said on Thursday.  Slight -VE for Banks
CPC Corp, Taiwan  and Formosa Petrochemical Corp Sunday announced that they would raise gasoline prices by NT$0.3 per liter and diesel prices by NT$0.2 per liter this week, the sixth consecutive week of increases.

CHINA 
Expect market to open high following strong Industrial profits data and the US rebound BUT international relations remain tense after China imposed sanctions on US and Canadian citizens add to existing concerns including the PBoC looking to reign in debt remain.
No data due
Out Saturday 
Industrial Profits YTD Feb +178.9% YoY vs +4.1% Jan (F/cast was +4.7%)
Suggests the economy consolidated its recovery from last year's massive slump. Profits soared at both state-owned industrial firms (182%) and private-sector (136.7%). Among the 41 industries surveyed, 38 saw profit rises. The communications posted the largest increase in profit (-5,891.5%), followed by automobile (2,525.6%), chemical raw materials (498.4%), electrical machinery & equipment (430.8%), special equipment manufacturing (399%), general equipment (319.3%), ferrous metal smelting (3,895.8%), coal mining (204.4%), textile (142.5%), non-metallic mineral products (81.9%), and power, electricity (44.7%). In contrast, profits at oil and natural gas extraction industry fell (-28.7%).
The White House on Friday criticized China for profiting from human rights abuses and said it was watching the issue of forced labor closely after U.S. and other international companies came under attack from Chinese consumers for committing not to use cotton from China’s Xinjiang region.   “The international community, in our view, should oppose China’s weaponizing of private companies’ dependence on its markets to stifle free expression and inhibit ethical business practices,” White House spokeswoman Jen Psaki told reporters.
UK Foreign Secretary Dominic Raab said “If Beijing want to credibly rebut claims of human rights abuses in Xinjiang, it should allow the UN High Commissioner for Human Rights full access to verify the truth.”
Chinese Foreign Minister Wang Yi arrived in Iran on Friday for a visit that Iranian state media said would see the signing of a 25-year cooperation agreement between the two countries, which are both under U.S sanctions.
The Philippine military is sending light fighter aircraft to fly over hundreds of Chinese vessels in disputed waters in the South China Sea, its defence minister said, as he repeated his demand the flotilla be withdrawn immediately.
China’s Sinopharm vaccines will start being being commercial produced in April by Gulf Pharmaceutical Industries PSC with Abu Dhabi-based artificial intelligence and cloud computing company Group 42 (G42), which handled Phase III late-stage clinical trials of a Sinopharm vaccine in the UAE and the wider region.  The deal was announced on Sunday.
China National Pharmaceutical Group (Sinopharm) will need to assess results from overseas Phase III clinical trials to decide whether its two-shot COVID-19 vaccine should be followed by a booster shot, a company executive said on Sunday. Regulators and vaccine developers are looking at whether booster doses are necessary amid concerns that emerging variants of the new coronavirus might weaken protection of vaccines designed against older strains.
China piles on pressure to get vaccinated as country targets 10 million injections a day. The goal of getting 40 per cent of the population inoculated by June will require a major increase in the number of doses administered. Some public servants have been warned they will face disciplinary action if they refuse to receive the injections
The Chinese mainland reported 8 new covid cases all imported on Saturday, including two each in Shanghai and Sichuan, and one each in Tianjin, Henan, Guangdong and Shaanxi, authorities said, state media Xinhua reports.  There were no new local infections, the National Health Commission said Sunday.
China's central bank is seeking public feedback on a policy document to overhaul the country's credit rating industry, following a series of defaults by state-backed firms.  The People's Bank of China, posted a draft of the new regulation on its website Sunday, said the public has until April 12 to provide their feedback on the policy aimed at strengthening supervision of domestic credit rating firms and improving their independence and quality control.  The policy document, jointly issued with the National Development and Reform Commission, Ministry of Finance, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission, calls for setting up unified standards for domestic rating agencies and punishing violators. +VE for investors -VE for the Chinese Ratings Agencies.
In U.S. dollars, China's current account surplus amounted to USD123.8 billion in the fourth quarter of 2020, announced State Administration for Foreign Exchange (SAFE).
China's Ministry of Commerce (MOC) announced the decision to impose anti-dumping duty on wine made in and imported from Australia beginning Sunday (28 March) for five years, with the consent by the Customs Tariff Commission of the State Council.
Widely watched airfares in China are recovering to pre-pandemic levels as domestic tourists lead a patchy air travel recovery, scattering crumbs of hope to a shattered global travel sector.  Now, with temporary testing and quarantine restrictions once again lifted, average prices for an economy seat during the April 3-5 Qingming festival, or tomb-sweeping holiday, have rebounded to 96% of 2019 levels, according to data from Ctrip.  Economy-class airfares for trips over the Labour Day holiday in early May have risen 11% compared with 2019 levels. +VE Airlines
ByteDance, which has taken on established players across a wide range of online products and services, has identified education as a strategic new business. China’s K-12 off-campus education market is forecast to reach US$112 billion this year, almost double last year which was adversely impacted by the coronavirus +VE
Chinese officials briefed diplomats on Friday on the ongoing research into the origin of Covid-19, ahead of the expected release of a long-awaited report from the World Health Organization. The briefing appeared to be an attempt by China to get out its view on the report, which has become enmeshed in a diplomatic row. The US and others have raised questions about Chinese influence and the independence of the findings, and China has accused critics of politicising a scientific study.
Beijing on Sunday morning was shrouded in thick dust carrying extremely high levels of hazardous particles, as a second sandstorm in two weeks hit the city due to winds from drought-hit Mongolia and northwestern China, Reuters reports. -VE

HONG KONG  
ADR’s +288pts at 28,624 with a broad bounce in stocks but expect Xiaomi (1810) to see weakness as GreatWall Motor denies talks about EV’s.  Tencent may see weakness on news that Tencent Music was amongst the stocks being sold by Archegos Capital on Friday.  Concerns about China’s international relations also likely to curb the upside.
No data due but Friday after market
Residential units to be completed this year will drop by about 13 percent to 18,230, the Rating and Valuation Department predicted.  The department said in its Hong Kong Property Review 2021 that vacancies at 2020 year-end increased to 4.3 percent of the total stock, equivalent to 52,370 units. The number of vacant units was also the largest over the past five years.  The report said property prices fell 0.5%YoY
The Centre for Health Protection reported 1 new imported covid cases on Sunday vs 6 on  Saturday; the lowest for 5 months
Short Selling  Friday 14.3% vs 13.4% Thursday
Top Shorts Bud Apac (1876) 52%, Ping An (2318) 44%, AAC Tech (2018) 40%, Sands China (1928) 38%, HSBC (5) 38%, Mengniu Dairy (2319) 36%, China Life (2628) 35%, BankComm (3328) 33%, Country Garden (2007) 32%, Ali Health (241) 30%, Anta (2020) 28%, Henderson Land (12) 27%,
IPO
BILIBILI-SW (09626.HK), debut  Monday, opened at $753.5 in gray market, down 6.7% against the listing price of $808.  It closed at $755 in the gray market, down 6.6% or $53 against the listing price of $808, PhillipMart data showed. Excluding handling fee, the book loss is $1,060 per board lot size of 20 shares.
EARNINGS remain busy into the end of month; due include
Monday First Tractor (38), Crocodile Garments (122), BYD Int (285), PAX Tech (327), Jiangxi Copper (358), China Tontine Wines (389), Bank of Jinzhou (416), Midland IC&I (459), Dongfeng Motor (489), Guangshen Rail (525),  China Comm Services Corp (552), China Conch Venture (586), China Ovrseas Land (688), Hopefluent Group (733), Dynasty Fine Wines (828), LianHua Supermarket (980), C Banner (1028), Mainland Headwear (1100), China Res Land (1109), China Rail Construction (1186), BDY Co (1211), Guangzhou Rural Commercial Bank (1551), Postal Savings Bank of China (1658), GF Securities (1776), West China Cement (2233), Tongda Hong Tai Holdings (2363), Cosco Shippng Dev (2866), Beijing Capital Land (2868), Qinhuangdao Port (3369), Fuyao Glass Industry (3606), Aoyuan Healthy Life (3662), GCL-Poly Energy (3800), China Aoyuan (3883), China Galaxy Securities (6881)
Tuesday  Hop Hing (47), Sichuan Expressway (107), HengTen Networks (136), First Pacific (142), China Merchants Port (144),  IDT (167), AVIC Joy Holdings (260), Citic (267), WH Group (288), Wing On Company (289), Sinofert (297), China Travel International Investment (308), Angang Steel (347), Beijing Enterprises Water (371), China Railway (390), Founder (418), Inspur (596), Sinotrans (598), Fosun (656), China Eastern Air (670), Truly (732), Asia Cement (743), Air China (753), China Rare Earth (769), Shimao (813), China Longyuan Power (916), Hisense Home Appliances (921), Lees Pharm (950), China Southern Air (1055), Huadian Power International (1071), Dongfang Electric (1072), i-CABLE (1097), Cosco Shipping Energy (1138), Zoomlion Heavy (1157),  Cosco Shipping Ports (1199), Midland  (1200), Agricultural Bank of China (1288), PW Medtech (1358), 3SBio (1530), China Datang Corporation Renewable (1798), China Communications Construction (1800),  SouthGobi Resources (1878),  Cosco Shipping Holdings (1919), Bank of Chongqing (1963), China Minsheng Banking (1988), China Vanke (2202), Yantai North Andre (2218), Cosmo Lady (2298), GreatWall Motor (2333), Weichai Power (2338), AVI China (2357), WuXi (2359), BOC HK (2388), China Shineway Pharmaceutical (2877), Jutal Offshore Oil Services (3303),Bestway Global (3358), Waison (3393), Chongqing Rural Commercial Bank (3618),Zhuzhou CRRC Times Electric (3898), China International Capital Corporation (3908), Inner Mongolia Yitai Coal (3948), Bank of China (3988).
Wednesday Beijing Enterprises Environment (154), Melco (200), Ping An Securities (231), AVIC Int (232), Esprit (330), Hainan Meilan International Airport (357), Luks Group (366), Cogobuy Group (400), GOME (493), China High Speed Transmission (658), Genting HK (678), Travelsky (696), Global Bio-chem (809), China Qinfa (866), Trinity (891), SMIC (981),Brilliance China (1114), Tibet Water (1115), Wynn Macau (1128),China LotSynergy (1371), China 21st Century Education (1598), Best Pacific Int (2111), Ronshine China (3301), China Evergrande (3333), Legend (3396), Sinotruk (3308), Global Sweeteners (3889), YTO Express (6123), Sino-Life Group (8296)
ELECTION LAW
The National People's Congress standing committee is expected to pass details for electoral changes in Hong Kong tomorrow, according to Hong Kong's sole delegate to the committee, Tam Yiu-chung.
PROFIT ALERT 
SINOPEC CORP (00386.HK) issued a Positive Profit Alert; expecting the net profit for the first quarter of 2021 to be between RMB16.0 billion and RMB18.0 billion. The net profit excluding extraordinary gains and losses for the first quarter of 2021 is estimated to be between RMB15.9 billion and RMB17.9 billion.
WATCH
SINOPEC CORP (00386.HK) Splashes RMB6.79B to Buy Assets from Parent announced that Overseas Investment Company, a subsidiary and Century Bright Company (a wholly-owned subsidiary of Sinopec Group, the controlling shareholder of the company), entered into an agreement, pursuant to which Overseas Investment Company proposed to purchase the 25% equity interest in Hainan Refining and Chemical held by Century Bright Company at a consideration of RMB5.769 billion.
The company and Assets Company (a wholly-owned subsidiary of Sinopec Group) entered into another agreement, pursuant to which the company proposed to purchase the 40% equity interest in Cangzhou Toray held by Assets Company at a consideration of RMB19.9922 million. The company and Assets Company also proposed to purchase the non-equity assets held by Assets Company, including the polypropylene and utility business assets of Cangzhou branch, at a consideration of RMB138 million.The company and Orient Petrochemical, on the other hand, entered into an agreement, proposing to purchase the non-equity assets held by Orient Petrochemical, including inventory and equipment, at a consideration of RMB715 million.
Separately, Beihai Refining and Chemical, a subsidiary of the company, and Beihai Petrochemical entered into an agreement, pursuant to which Beihai Refining and Chemical proposed to purchase the non-equity assets held by Beihai Petrochemical, including the pier operation platform, at a consideration of RMB149 million.
Centaline Property Agency reported 13 secondary transactions at 10 blue-chip housing estates over the past weekend, -45.8% WoW
Swire Properties (1972) collected HK$155.56 million after selling seven out of 30 flats on offer at Eight Star Street in Wan Chai, as of Saturday.
Hong Kong Ferry (0050) and Empire Group will offer 92 units at Starfront Royale in Tuen Mun for sale on Thursday.
LEGEND HOLDING (03396.HK) announced that on March 26, 2021, the Company acquired on the open market through a series of transactions on the Stock Exchange a total of 22.526 million LENOVO GROUP (00992.HK)’s Shares (representing 0.19% of the issued share capital of LENOVO GROUP) at an aggregate cash consideration of approximately HKD225 million.  Upon completion, LEGENDHOLDING' shares in LENOVO GROUP will increase from 29.99% to 30.18%.
GREATWALL MOTOR (02333.HK) made clarification after press articles claimed XIAOMI-W (01810.HK)   is negotiating with the Company to use the Company's factories to produce electric vehicles.  Upon verification, it was found that the above press articles were untrue. Also, the Company has not negotiated with XIAOMI-W on the matters in the above press articles.  -VE for Xiaomi which rallied Friday.
An HK Association of Banks spokesperson predicted asset prices in the capital market to remain volatile, in wake of uncertainties in the macro economy.  The association expected the local economy to pick up growth momentum in 2H21.
EVERG VEHICLE (00708.HK) announced the signing of the subscription agreements with six investors respectively. The Company has received HK$21 billion from relevant investors and has issued (or will issue) new shares to each of them.
Centa-City Leading Index (CCL) last printed at 180.93, up 1.31% weekly to a 34-week high. The uptick was the sharpest in the past 34 weeks, driving the index up aloft 180 for the first time since August 2020.  Centaline is expected second-hand home deals to stay vibrant as backed by users, seeing property prices to keep shooting up. CCL is set to attempt 190, likely hitting the goal before or after mid-2021.
GAC GROUP (02238.HK)'s Secretary of the Board of Directors Sui Li said it is unlikely for massive price war in the auto market, although it may experience brief price cut wave.  While the company forecast the auto market scale to resume to 2019's level this year, the competition shifting to inventory from stock-increase will intensify, and the "good outcompetes bad" process will expedite, with pandemic adding fuel to fire, the Secretary opined. As a result, the auto market is severely differentiated, especially among self-developed brands.  She also  said graphene-based super fast charging batteries and silicon anode batteries are expected to be installed on AION V and AION LX respectively within this year, adding further announcement will be made according to the project progress.
After Market Results
CHINA SHENHUA (01088.HK) released the annual report for 2020. The net profit fell 14% yearly to RMB35.849 billion. EPS was RMB1.803. The Board proposed the payment of a final dividend in cash of RMB1.81 per share for the year 2020.
YANZHOU COAL (01171.HK) unveiled the announcement of annual results for the year ended 31 December 2020. The net profit sank 32.7% yearly to RMB6.318 billion. EPS. was RMB1.29. The Board proposed to declare a cash dividend payable of RMB0.6 per share and additionally special cash dividend of RMB0.4 per share, totaling cash dividend of RMB1 per share.
CPIC (02601.HK) released the announcement of audited annual results for the year ended 31 December 2020. The net profit dropped 11.4% yearly to RMB24.584 billion. EPS was RMB2.63.  The Board recommended annual cash dividend of RMB1.2 per share and 30th Anniversary Special Dividend of RMB0.1 per share, totaling RMB1.3.
CMSC (06099.HK) released the results announcement for the year ended December 31, 2020. The net profit added 30.3% yearly to RMB9.491 billion. EPS equaled RMB1.06. The total revenue, gains and other income gained 26.5% yearly to RMB32.447 billion. The Company proposed cash dividends of RMB4.37 per 10 shares.
SINOPEC CORP (00386.HK) unveiled the annual results for the year ended 31 December 2020. The turnover and other operating revenues reached RMB2.11 trillion, down 28.8% yearly. Net profit amounted to RMB33.096 billion, down 42.4% yearly. EPS was 27.3 fen. A final dividend of 13 fen was declared. A total dividend of 20 fen was declared for the year. The dividend payout was 73.2%.
GHPC (01847.HK)  announced annual result ended December 2020. The net profit amounted to RMB206 million, up 1.4% yearly.  EPS. was 46 fen. A final dividend of 12.31 fen was declared.
KIMOU ENVIRON (06805.HK) announced annual result ended December 2020. The net profit amounted to RMB103 million, up 86.1% yearly.  EPS. was 9 fen. No final dividend was declared.
SUNSHINE PAPER (02002.HK)   announced annual result ended December 2020. The net profit amounted to RMB498 million, up 42.2% yearly. EPS was 61 fen. No final dividend was declared.
HUIXIN CREDIT (01577.HK)  announced annual result ended December 2020. The net profit amounted to RMB41.1 million, down 36.2% yearly.  EPS was 6 fen. A final dividend of 5 fen was declared.
GOLDWIND (02208.HK) announced annual result ended December 2020. The net profit amounted to RMB2.964 billion, up 34.1% yearly. EPS was RMB0.67. The board of Directors proposed to distribute cash dividends of RMB2.5 per each 10 shares.
CCB (00939.HK) unveiled the annual results 2020. The net profit climbed 1.6% yearly to RMB271.05 billion, in line with brokers' forecast.  EPS was RMB1.06. The board of directors recommended a cash dividend for 2020 of RMB0.326 per share. Net interest income increased by 7.2% yearly, and net fee and commission income rose by 3.3%. Operating income increased by 5.3% over the prior year to RMB714.224 billion.
CNBM (03323.HK) announced annual result ended December 2020. The net profit amounted to RMB12.553 billion, up 14.4% yearly. EPS was RMB1.488. A final dividend of RMB0.47 was declared against a dividend of RMB0.35 in the corresponding period of the previous year.
GENSCRIPT BIO (01548.HK) announced annual result ended December 2020. The loss widened to US$205 million from US$96.912 million in the corresponding period of the previous year. LPS was US10.78 cents. No dividend was declared.
DATANG POWER (00991.HK) announced annual result ended December 2020. The operating revenue rose 0.2% year on year to RMB95.614 billion. The net profit amounted to RMB2.989 billion, up 203.2%. EPS was RMB9.89 cents. The Directors recommended to declare the final dividends of RMB0.091 per share.
E-HOUSE ENT (02048.HK) announced annual result ended December 2020. The net profit amounted to RMB304 million, down 64.6% yearly.  EPS was RMB21.11 cents. The Board recommended payment of a final dividend of RMB5.22 cents per share for the year ended 31 December 2020 (2019: RMB15.48 cents).
CEB BANK (06818.HK) announced annual result ended December 2020. The net profit amounted to RMB37.824 billion, up 1.26% yearly.  EPS was RMB0.68. A final dividend of RMB0.21 was declared.
MINTH GROUP (00425.HK) announced annual result ended December 2020. The net profit amounted to RMB1.396 billion, down 17.4% yearly. EPS was RMB1.213. A final dividend of HK$0.572 was declared.
FIH (02038.HK) announced annual result ended December 2020. The loss widened to US$174 million from US$12.293 million in the corresponding period of the previous year. LPS was US2.13 cents. No dividend was declared.
SHANGRI-LA ASIA (00069.HK) announced annual result ended December 2020. The profit swung into loss of US$460 million. LPS was US12.89 cents. No dividend was declared.
ICBC (01398.HK) announced the result for the year ended 31 December 2020. Net profit burgeoned 1.2% yearly to RMB315.906 billion, above RMB289.412-315.768 billion in brokers' forecast as compiled by our reporters. EPS equaled RMB0.86.It maintained a sturdy asset quality overall, with decline in overdue loans and special-mentioned loans, said its management in a conference call. While the NPL size amplified last year given faster disposal, the lender had made ample provisions under the economic environment. On another note, ICBC will boost the loan balance for micro and small enterprises by 200% to RMB100 billion.
CHINA RES GAS (01193.HK) announced annual results ended December 2020. Net profit amounted to HK$5.151 billion, up 2.1% yearly.  EPS equaled HK$2.31. Final DPS was HK78 cents, as compared with HK72 cents in the previous year. Full-year DPS was HK93 cents.
MEITUAN-W (03690.HK) announced results for the year ended December 31, 2020. Net profit was RMB4.708 billion, up 110.3% yearly.  EPS equaled RMB0.81. No dividend was declared.  During the year, non-IFRS adjusted EBITDA slipped 34.7% to RMB4.738 billion; adjusted net profit sagged 33% to RMB3.121 billion, in-line.It mentioned in its results report that it believed community e-commerce is one of such big opportunities, and it will allocate sufficient resources to accelerate its development in 2021 while continuously improving its operating efficiency. Increasing investments in new  initiatives may continue to cause significant negative impacts on the company's overall financial results, and it may continue to record operating losses in the next few quarters as it ramps up its community e-commerce business.
BANKCOMM (03328.HK) announced results for the year ended 31 December 2020. Net operating income was RMB246.724 billion, up almost 6% yearly. Net profit amounted to RMB78.274 billion, up 1.3%.  EPS equaled RMB0.99. Final. DPS was 31.7 fen (inclusive of tax), as compared with 31.5 fen in the previous year.President Liu Jun, in appearance at the results conference, viewed that the PBOC's establishment of a centralized management system for real estate loans of banking financial institutions did not impose much impact on the bank. Meanwhile, the bank will implement control measures of regulatory authority, observing principle of "houses are for living, not for speculating", looking ahead.  Vice President Yin Jiuyong estimated that the asset quality of 2021 will improve steadily, hoping the provision coverage ratio to remain basically stable at the end of the year.

DOW +1.39%, NDX +1.24%, S&P +1.66% (new high), Russel 2K +1.76% Markets close at highs thanks to a rally in the last hour.  Dow and S&P opened higher and until the last hour traded sideways.  NDX opened flat and traded around flat until around 2pm when it sold down to test 12,900 level but then rallied back to close at the day high.  Recently beaten up stocks saw bargain hunting, Banks, Energy and Materials saw good interest in the final minutes of trading.
Biden announced the aim of having 200m covid doses distributed within his first 100days in office, so far 100 have been administered.
Financial +VE as Fed says they can resume buybacks and raise dividends.
Inflation fears eased as the Core Personal Consumption Expenditure (Core PCE) index was inline with estimates.
The United States has invited the leaders of China and Russia to participate in a global summit on climate change April 22-23, U.S. President Joe Biden said on Friday.
President Biden said he suggested to British PM Johnson in a phone call on Friday that democratic countries should have an infrastructure plan to rival China’s Belt and Road initiative.
BowX Acquisition +20% (a SPAC) rallied on news it was merging with WeWork, the office provider. The transaction valued WeWork at an initial enterprise value of about $9bn.
LBrands +3.7% after lifting its Q1 guidance driven by “unusual shifts in consumer spending patterns”.
Nio -4.8% on news its suspended production in China due to chip shortages.
Banks JPMorgan Chase +1.7%, Citigroup +1.8%, Wells Fargo +1.2%, Amex +1%
Work from home names: Facebook +1.5%, Apple +0.5%, Amazon +0.2%, Netflix +1%,  Disney -0.5%, Zoom Video +1.6%, Alphabet -0.4% and Microsoft +1.8%,
Tech NXP Semi +4%, Nvidia +2.4%, Micron +4.6%, AMD +1.6%, Skyworks +5.8%
Re-opening stocks  Boeing -0.9%, Caterpillar +2.3%, Simon Property +1%, Kohl’s +3%, Nordstrom +3.4%, Gap +2.7%, United Airlines +1.4%, Carnival +0.8%, Wynn Resorts -0.5%, Chevron +2.3%, Exxon Mobil +2.7%,  
Lock down names Campbell Soup +3% General Mills +2.4%, JM Smucker +1.4%
DATA
Personal Income Feb -7.1% MoM vs +10.1% Mar revised (F/cast was -8%)
Personal Spending Feb 1% MoM vs +3.4% Mar revised (F/cast was -0.7%)
Goods Trade Balance Adv Feb $-86.72b vs-84.58b Jan (F/cast was -83b)
Wholesale Inventories Adv Feb +0.5% vs +1.4% Jan revised (F/cast was +0.8%)
PCE Price Index Feb +0.2% MoM vs +0.3% Jan (F/cast was +0.4%)
PCE Price Index Feb +1.6% YoY vs +1.4% Jan revised (F/cast was +1.7%)
Core PCE Price Index Feb +0.1% MoM vs +0.2% Jan revised (F/cast was +0.2%)
Core PCE Price Index Feb +1.4% YoY vs +1.5% Jan revised (F/cast was +1.4%)
Michigan Data Final
Current Conditions Mar 93 vs 86.2 Feb (F/cast was 91.5)
Consumer Expectations Mar 79.7 vs 70.7 Feb (F/cast was 77.5)
5year Inflation Expectations Mar 2.8% vs 2.7% Feb (F/cast was 2.7%) Consumer Sentiment Mar 84.9 vs 76.8 Feb (F/cast was 83)
Inflation Expectations Mar 3.1% vs 3.3% Feb (F/cast was 3.1%)
Baker Hughes Oil Rig Count 324 vs 318 prior
Baker Hughes Total Rig Count 427 vs 411 prior
USD was slightly stronger vs Yen & Euro. Bitcoin +5.3% @ 54,796.85, VIX -4.8% @18.9,
US T10 @ 1.674% concerns after the treasury struggled to sell $62bn worth of seven-year securities on Thursday
OIL Brent +4.2%, WTI +4.1%
Gold +0.38%, Silver +0.25%, Copper +2.55%, Platinum +3.2%, Palladium +2.47%
AHEAD Dallas Fed Manufacturing Index

DAX +0.87%, CAC +0.61%, FTSE +0.99%  Markets opened higher and largely traded sideways.  Oil, shipping and supply chains in focus due the the blocked Suez Canal which could take up to two weeks to clear.  German Ifo data beat estimates +VE for sentiment. All sectors closed +VE with mining stocks leading. Concerns remain about the third wave of covid in German after it reported 21,573 new cases on Friday.
Oxford Instruments +11.6% after forecasting that its revenue would be “marginally ahead” of last year. For its fiscal 2020 year, adjusted operating profit would be between £55m to £57m, driven by “good order growth, particularly across Asia . . . with the strongest growth across semiconductor applications”.
Renishaw +3.9% on an upbeat trading update.
DATA
GERMANY 
Ifo Business Climate Mar 96.6 vs 92.7 Feb revised (F/cast was 94)
Ifo Expectations Mar 100.4 vs 95.0 Feb (F/cast was 95.9)
Ifo Current Conditions Mar 93 vs 90.6 Feb (F/cast was 91.5)
UK 
Retail Sales Feb +2.1% MoM vs -8.2% Jan (F/cast was +2.5%)
Retail Sales Feb -3.7% YoY vs -5.9% Jan (F/cast was -3.8%)
Retail Sales Ex Fuel Feb +2.4% MoM vs -8.7% Jan revised (F/cast was +5.1%)
Retail Sales Ex Fuel Feb -1.1% vs -3.7% Jan revised (F/cast was -2%)
Car Production Feb -14% YoY vs -27.3% Jan (F/cast was -34%)
AHEAD
EUROZONE No data due
GERMANY No data due
FRANCE No data due
UK Nationwide Housing Prices, BoE Consumer Credit, Mortgage Lending, Mortgage Approvals, Net Lending to Individuals


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