Asian Futures Nikkei Futures +22pts after mixed Tokyo CPI data, there is more pre market dat to come I expect the market to open lower. HK ADR’s -440pts and Australia opened flat but sold down in early trades. Expect investors to be cautious ahead of the weekend.
US Futures opened Dow -100pts but eased back to flat in the first few minutes, S&P unch and NDX -0.1%
DOW -1.75%, NDX -3.52%, S&P -2.45%, Russel 2K -3.69% markets opened lower and trended lower to close just off the day lows as strong data caused the T10 to spike to 1.6% which spooked markets further about the inflation threat and equities lost their premium over bonds. Tech continued to see selling pressure along with consumer discretionary. Energy, Financials and Industrial seeing interest.
GameStop +18.6% after another Reddit-fueled surge Wednesday in the video game retailer’s shares. AMC initially rose 12.9% but closed -8.8%, BlackBerry also initially gained 4.3% but closed -6.5% and Koss initially soared 81.3% but closed +17%
Best Buy -9.3% after its revenue and comparable-store sales missed but quarterly earnings beat estimates
Moderna +2.5% as its quarterly revenue vastly exceeded estimates and it forecast $18.4 billion in Covid-19 vaccine sales this year but reported a bigger quarterly loss than expected
Wayfair flat off initial highs after earning beat but revenue missed
Norwegian Cruise Line -8% off initial +VE highs as revenue beat but its loss was slightly wider than the consensus
Anheuser-Busch InBev -7.9% Q4 profit and revenue beat. It also forecast higher earnings for 2021, but said its profit margins would be hurt by higher commodity costs
ViacomCBS -4.7% despite earnings beat, revenue essentially was in line
Nvidia -8.2 despite earnings and revenue beat it also predicted strong revenue for the current quarter.L Brands +1.4% earnings beat but revenue missed but it gave strong current-quarter earnings guidance.
Fisker -4.4% despite strucking a deal with contract manufacturer Foxconn Technology to assemble cars for the electric vehicle startup. The agreement calls for the companies to jointly produce more than 250,000 vehicles annually.
Pfizer +0.2% works equally well across all age groups, according to an Israeli study. It provided 94% protection against developing coronavirus symptoms a week after the second dose of the vaccine, and 92% effective in preventing severe disease.
Verizon -1% was the top bidder in a government auction of 5G airwaves, spending $45.5 billion, while AT&T -2.6% bid $23.4 billion and T-Mobile US +1.3% bid $9.3 billion.Boeing -5.6% on reports it had been planning to replace the engine covers on its 777 jets before the one that fell off.
Banks JPMorgan Chase -1.3%, Citigroup -1.8%, Wells Fargo -1.9%, Amex -2%
Work from home names: Facebook -3.6%, Apple -3.5%, Amazon -3.2%, Netflix -1.2%, Disney -3.3% Zoom Video -5.3%, Alphabet -3.3% and Microsoft -2.4%,
Tech NXP Semi -4.1%, Nvidia -8.2% despite reporting good earnings & forecast, Micron -4.8%, AMD -5.2%, Skyworks -7.5%
Re-opening stocks Boeing -5.6%, Caterpillar -0.3%, Simon Property -3.5%, Kohl’s -2.3%, Nordstrom -1.2%, Gap -2.8%, United Airlines -5.8%, Carnival -5.7%, Wynn Resorts -4.1%, Chevron -0.9%, Exxon Mobil -1.7%,
Lock down names Campbell Soup -1.3% General Mills -0.6%, JM Smucker +1.6%
Durable Goods orders Jan +3.4% vs +1.2% Dec revised (F/cast was +1.2%)
Durable Goods orders Ex Transport Jan +1.4% vs +1.7% Dec revised (F/cast was +0.5%)
Durable Goods orders Ex Defence Jan +2.3% vs +1.4% Dec revised (F/cast was +0.3%)
GDP Price Index 2nd East Q4 +1.8% QoQ vs +3.3% Q3 (F/cast was +2%)
GDP Growth Rate 2nd East Q4 +4.1% QoQ vs +33.4% Q3 (F/cast was +4.1%)
Initial Claims 730k vs 841k prior revised (F/cast was 810k)
4 week Average Claims 807.75k vs 828.25k revised (F/cast was 832.75k)
Continuing Claims 4.419m vs 4.52m prior revised (F/cast was 4.4m)
PCE Prices 2nd East Q4 +1.6% QoQ vs +3.7% Q3 (F/cast was +1.5%)
Core PCE Prices 2nd East Q4 +2.3% QoQ vs +3.4% Q3 (F/cast was +1.4%)
Pending Home Sales Jan +13% YoY vs +20.8% Dec revised from +21.4% (F/cast was +18%)
Pending Home Sales Jan -2.8% MoM vs +0.5% Dec revised from -0.3% (F/cast was -0.4%)
EIA Natural Gas Report -338Bcf vs -237Bcf prior (Consensus was +18%)
Kansas Fed Manufacturing Index Feb 26 vs 22 Jan (F/cast was 17)
USD was weaker vs Yen & Euro. Bitcoin -2.6% @ 47,658.66, VIX +35% @ 28.89, US T10 @ 1.53% but hit 1.6% intraday.
OIL Brent +0.15%, WTI +0.44% to highest levels in a year.
Gold -1.67%, Silver -1.59%, Copper -1.94% Platinum -2.8% Palladium -1% Intraday gold fell 2.2% to a week low as Treasuries surges on strong economic data.
AHEAD Personal Income and Spending, PCE Price Index,Wholesale Inventories, Goods Trade Balance, Core PCE Price Index, Chicago PMI, Michigan Data Final (Consumer Sentiment, Consumer Expectations, Current Conditions, 5 year Inflation Expectations, Inflation Expectations), Baker Hughes Rigs Count, US Budget Plan.
Earnings: Fluor, Cinemark, Draft Kings, Foot Locker, AMC Networks, Berkshire Hathaway (Saturday).
DAX -0.69%, CAC -0.24%, FTSE -0.11% Markets opened higher but Dax eased back to trade around flat on weak confidence data but trended slightly lower. FTSE and CAC both initially trading sideways in the green but also dipping lower into the close. Eurozone data was mixed. Positive sentiment from Powells comments wearing off as FT reports signs of inflation in Europe and US and yields rose; putting pressure on high growth tech names.
Most sectors closed in the red.
Earnings out pre market from Standard Chartered -6% its results NP -69% YoY announced intention to continue share buyback but results were at the lower end of consensus.
AB InBev -06% despite forecasting higher revenues in 2021, but also projected inflated costs and a possible hit to margins, stock was trading lower
Tenaris +13% after an initial delay in the start of trading but bumper Q4 earnings +VE
Genus -5% after highlighting short-term challenges in its efforts to restock China’s pig farming industry. -VE cross read to WH Group (288 HK)
Earnings out from Veolia unch, AXA +4.1%, Bayer -6.4% as earnings inline out pipeline update disappointed, Aston Martin +6.8% missed but +VE forecast, Telefonica +0.8% and Adecco Group -1.7%
Loans to Household Jan +3% YoY vs +3.1% Dec (F/cast was +3.2%)
Loans to Companies Jan +7% vs +7% Dec (F/cast was +6.7%)
M3 Money Supply Jan +12.5% vs +12.3% Dec (F/cast was +12.4%)
Economic Sentiment Feb 93.4 vs 91.5 Jan (F/cast was 92.5)
Consumer Confidence Feb -14.8 vs -15.5 Jan (F/cast was -14.8)
Consumer Inflation Expectations Feb +15.7 vs +15.4 Jan (F/cast was +14.7)
Industrial Sentiment Feb -3.3 vs -6.1 Jan revised (F/cast was -4.8)
Services Sentiments Feb -17.1 vs -17.7 Jan revised (F/cast was -18.7)
Consumer Confidence Mar -12.9 vs -15.5 Feb revised (F/cast was -12)
Consumer Confidence Feb 91 vs 92 Jan (F/cast was 94)
EUROZONE No data due
GERMANY Import Prices
FRANCE GDP Growth Rate, Inflation Rate, Household Consumption, PPI, Unemployment Benefit claims, Jobseekers Total.
UK Nationwide Housing Prices, Car Production
Nikkei futures opened slightly +VE and rose after Tokyo CPI data was released currently +22pts but I expect market to trade lower ahead of the weekend with investors remaining cautious over the inflation threat. Yen currently 106.18
Tokyo CPI Feb -0.3% vs -0.5% Jan (F/cast was -0.2% )
Tokyo Core CPI Feb -0.3% vs -0.4% Jan (F/cast was -0.6%)
Due Pre market
Retail Sales Jan (Dec was -0.3% YoY F/cast -2.5%),I
ndustrial Production Prelim Jan (Dec was -1% MoM (-2.6% YoY) F/cast is +3% MoM (-2% YoY),
Foreign Bond and Stock investment,
Later Housing Starts and Construction Data.
Tokyo reported 340 new covid cases Thursday (+127 vs Wednesday) with the national number 1,065 new well below a peak of almost 8,000 on Jan. 8.
The Japanese government will end a state of emergency in five prefectures west of Tokyo at the end of this month, a week earlier than scheduled, Kyodo news agency reported on Thursday.
Government will consider resuming its subsidy program aimed at promoting domestic tourism only in some parts of the country even if the current state of emergency is completely lifted, tourism minister Kazuyoshi Akaba said Thursday.
Japan is finalising plans to halt new development aid to Myanmar, the Asahi Shimbun daily reported on Thursday, as Western allies impose sanctions and threaten further action over the Southeast nation's military coup.
The Japan Coast Guard could directly fire a weapon against foreign official vessels aiming to land on the Senkaku Islands in the East China Sea, ruling party members said Thursday, citing government officials.
Auto Total global output by eight major Japanese automakers fell 4.5% from a year earlier to 2.12 million vehicles in January due largely to a semiconductor shortage worldwide, the manufacturers’ data showed Thursday. Among them, only Toyota Motor Corp. and Nissan Motor Co. saw their production in the month climb from the previous year. +VE Toyota
Japan Airlines Co. said Thursday it will slash its hiring of new graduates in fiscal 2022 by 90% from the number that joined JAL group companies last spring, as the coronavirus pandemic is expected to continue putting pressure on travel demand. The group will hire only 200 new graduates and forgo the recruitment of cabin attendants for its main carrier Japan Airlines in fiscal 2022 starting in April next year, while it will maintain employment of candidates for pilots and people with disabilities. -VE
Japan’s department store sales in January fell 29.7% on a same-store basis from a year earlier, as the number of customers decreased due to another state of emergency in Tokyo and nearby prefectures over the coronavirus, an industry body said Thursday. Sales of 196 stores run by 73 operators totaled ¥326.51 billion ($3 billion) in the 16th consecutive monthly fall, the Japan Department Stores Association said. The rate of decline in the reporting month widened from 13.7% in December, with duty-free sales falling 87.4%. -VE for Retail names
Expect markets to open lower as inflation worries prompt further selling from foreigners ahead of the weekend.
No data due today but on Monday we get Balance of Trade, Exports and Imports
KDCA reported 396 new covid cases, remaining below 400 again but creeping higher prompting the government is to announce whether to restore tighter social distancing regulations Friday or Saturday, less than two weeks since they were eased on Feb. 15.
BoK on Thursday decided to maintain its previous 3 percent growth outlook for the nation’s gross domestic product this year, with its chief suggesting that vaccination will determine its economic development.
Mercedes-Benz Korea, Hyundai Motor. Honda Motor, Audi-Volkswagen Korea and Kia, and four other companies will voluntarily recall over 470,000 vehicles to fix faulty components, the transport ministry said Thursday. This is the latest in a series of recalls by carmakers operating in South Korea and vehicle importers due to problems with vehicle components. The nine companies, including are recalling a combined 478,371 units due to faulty components in 171 models, slight -VE
T'way Air, a South Korean low-cost carrier, on Thursday reported widened losses last year due to the coronavirus' impact on the airline industry. -VE
Krafton said Thursday it has raised the salary of new and existing employees by as much as 20 million won ($18,000), becoming the best-paying gaming firm in South Korea. According to the publisher of globally popular shooting game PlayerUnknown’s Battlegrounds, entry-level game developers and other staff members joining the company this year will earn 60 million won and 50 million won a year, respectively. For existing employees, the company granted a raise of 20 million won to developers and 15 million won to non-developing employees.
South Korean battery giants’ strategy for the electric vehicle market has been to go for premium, high-performance batteries, but the recent strides of Chinese makers with cheaper and less powerful batteries have brought that into question. According to a report released Adamas Intelligence on Monday, shipments of lithium iron phosphate batteries for EVs has increased more than sixfold on year in the second half of 2020, signaling the advance of entry-level, low-cost batteries churned out by Chinese makers including CATL and BYD. LFP batteries are bulkier and less powerful than high-nickel lithium-ion batteries, making them inadequate for third-generation EVs that need to travel more than 500 kilometers. However, they are more than 50 percent cheaper and safer from fire concerns.
SK Holdings said on Thursday that it is teaming up with US hydrogen company Plug Power to branch out into the hydrogen market in Asia. The partnership comes after the South Korean conglomerate invested 1.85 trillion won and acquired some 10 percent of shares in Plug Power, becoming the largest shareholder of the hydrogen giant.
LG Group unveiled its first achievement in artificial intelligence research conducted by the group’s AI research arm. The South Korean conglomerate announced two academic papers on explainable AI and continual learning in collaboration with University of Toronto, through the Association for the Advancement of Artificial Intelligence.
Government said Thursday it plans to suspend the operations of more coal-powered plants during spring time in line with its efforts to cut the emissions of fine dust. Under the plan, the country plans to halt the operation of 19 to 28 coal plants in March depending on the electricity demand, according to the Ministry of Trade, Industry and Energy. It will mark a sharp rise from nine to 17 plants suspended over the December-January period.
Expect market to open lower following the sell off in the US and despite good local earnings and data out after market Thursday.
Data due after market Current Account and M2 Money Supply
After market data Thursday
Unemployment Jan 3.75% vs 3.76% Dec (F/cast +3.8%)
Retail Sales Jan +3.56% YoY vs +1.39% Dec (F/cast was +3.8%)
Industrial Production Jan +18.81% YoY vs 10.3% Dec revised (F/cast was +8.8%) Unemployment fell for the sixth straight month.
Retail sales “defied expectations” to rise to last month, the Ministry of Economic Affairs yesterday. “We actually expected negative growth, but strong auto sales, online shopping and demand for cold-weather related items drove growth,” Department of Statistics Deputy Director-General Huang Wei-jie said he added that internal demand is “on a steady upward trend” in general +VE.
Taiwan reported five new imported cases of COVID-19 yesterday, all of them female migrant workers from the Philippines, bringing the total to 951 since the pandemic began, the Central Epidemic Command Center (CECC) said. Asymptomatic: Five women provided a negative test at the airport, tested negative after quarantine, but tested positive seven days later, according to the CECC.
Hon Hai Precision Industry is to develop an electric vehicle (EV) with Fisker Inc, as part of the electronics manufacturer’s efforts to boost its automotive capabilities at a time when technology companies including its main customer, Apple Inc, are looking to expand into vehicles. +VE
TPK Holding, a supplier of touch panels and sensors, Net profit more than quadrupled to NT$1.03 billion (US$36.45 million) last year from NT$209 million in 2019, as the COVID-19 pandemic boosted demand for equipment for tablets and notebook computers, the firm said yesterday. Work-from-home and online-learning trends were the main drivers, with tablets and notebook computer equipment surging to 46 percent of total revenue last year from 34 percent in 2019, replacing smartphone touch products as the biggest revenue source, it said. The pandemic-driven demand also helped bring TPK back to the black last quarter, the firm said.
IBF Financial Holdings Co Ltd’s board of directors on Wednesday approved a plan to enter acquisition negotiations with another company, despite two independent directors’ objection, the firm said in a filing to the Taiwan Stock Exchange.
Lite-On Technology has approved a cash dividend distribution of NT$3.4 per share, a record dividend translating into a cash yield rate of 6 percent, the company said yesterday. Its net profit hit a record at NT$10.02 billion (US$354.6 million) last year, up 7 percent year-on-year, which translates to earnings per share of NT$4.31. COVID-19 pandemic-related demand for technology products, including notebooks and gaming devices, helped boost sales, Lite-On director of investor and public relations Julia Wang said. While COVID-19 shutdowns of vehicle plants affected the sale of the firm’s automotive electronics for the first half of last year, demand has come roaring back, Wang said. “Our tier-one customers, auto manufacturers, were locked down for the first half of 2020, but demand came back strongly,” Wang said. For its automotive business, Lite-On forecasts that revenue growth would be in the double digits year-on-year this quarter.
Expect market to open lower following the global sell off.
No data due but official PMI data due out Sunday and on Monday the Caixin Manufacturing PMI
China's medical products regulator said on Thursday that it had approved two more COVID-19 vaccines for public use, raising the number of domestically produced vaccines that can be used in China to four. +VE for sentiment
Xi Jinping declares ‘extreme' poverty has been wiped out in China; says 850 million people have been lifted out of destitution in an ‘unprecedented accomplishment’. He took personal credit and linked Beijing’s success in fighting poverty to the country’s ambitious economic reform. A good achievement but China uses a different benchmark from the rest of the world; the line being US$620 annual income or $2.60 per day vs the World Bank definition of $3.20 per day (US$763 pa). It is also worth remembering that it was communism that put so many people into poverty in the first place. It the first major appearance on Xi for a while and may indicate the pressure that he is currently under in seeking to delivery goodness to the people.
Biden’s nominee for trade representative speaks of US-China competition in her confirmation hearing. Katherine Tai told senators it is ‘critically important’ to ‘have a strategic and coherent plan for holding China accountable to its promises’. She also calls Beijing ‘a rival, a trade partner, and an outsized player whose cooperation we’ll also need to address certain global challenges’. -VE for sentiment
The White House has not made a final decision on whether the United States will take part in the 2022 Winter Olympics in China, President Biden's spokeswoman said on Thursday, even as some Republicans call for a boycott. -VE for sentiment
Europe seeking alternatives to China’s rare earth dominance. They though is not just sourcing the raw product but refining it. At present China does most of that because of its tolerance to accept the pollutants involved. -VE
The Dutch parliament on Thursday passed a non-binding motion saying that the treatment of the Uighur Muslim minority in China amounts to genocide, the first such move by a European country. -VE
New variants of the African swine fever virus circulating in China appear to cause a milder form of the disease, making it less deadly but harder to detect and to bring under control, a study published this week showed. -VE also overnight Genus -5% after highlighting short-term challenges in its efforts to restock China’s pig farming industry. Also a -VE cross read to WH Group (288 HK)
Companies in south China have no appetite for decoupling, but expect tensions to grow, says AmCham. Firms surveyed by AmCham in south China are more positive about US-China ties in 2021 than previous years, although most think frictions will grow. But 95 per cent say they have no intention to decouple from China, with more than 60 per cent saying the country is still their No 1 investment destination.
Covid hunt for source; WHO confirmed supply chains were identified for animals sold in Wuhan, based on the view that the virus may have first infected traded wildlife. But these routes were seemingly not traced back to farms and breeders, and team members say it’s the ‘next step’ is to run comprehensive, targeted tests of animals and people involved to try and trace the path of the virus before the outbreak more than 12 months ago. To the puzzlement of some overseas experts, China’s authorities seemingly failed to follow up with this testing in supply routes leading back to farms and animal breeders in certain regions of the country.
Chinese bombers take part in strike exercises after US escalation in South China Sea which came immediately after an escalation of US military presence in the area. As China aims to demonstrate its capability of countering recent US activities, which included dual carrier operations in February. -VE for sentiment
China can extend Hambantota port lease to 198 years, Sri Lankan minister says about the deal agreed by the previous government. Beijing denies the deal is being renegotiated after reports that Colombo is revisiting the agreement. The port deal was signed in 2017 by the previous Sri Lankan government to cover its debts to China and has been the subject of intense international scrutiny amid accusations Beijing is using “debt trap diplomacy” for geopolitical clout. -VE for sentiment.
ADR’s -440pts at 29,635 giving up yesterday’s rebound and could prompt further selling ahead of the weekend.
No data due but after market Thursday
Balance of Trade Jan HK$-25.2bn vs -45.7bn Dec (F/cast was -35bn)
Exports Jan +44% vs +11.7% Dec
Imports Jan +37.7% vs +14.1% Dec
JOINN (06127.HK), debut today, closed at $145 in gray market, down 4% or $6 against the listing price of $151, PhillipMart data showed. Excluding handling fee, the book loss is $600 per board lot size of 100 shares. That was an improvement on where it opened and remember it was priced at the top end of the indicated range.
SHORT SELLING Thursday 13.6% vs 11.2% Wednesday
Top Shorts: Ping An (2318) 45%, Bud Apac (1876) 35% after earnings Wednesday. Sands China (1928) 31%, CCB (939) 29%, AAC Tech (2018) 26%, BoC (3988) 26%, Hengan (1044) 25%, HK & China Gas (3) 25%, SHKP (16) 24% reported Thursday.
Earnings due Friday include: NWD (17), Great Eagle (41) Asian Citrus (73), Hutch Tel (215), China High Precision Automation (591), NWS (659), Chaoda Modern (682), Sitoy (1023), China Environmental Resources (1130), Solartech (1166), MGM China (2282), Yancoal (3668), Xinyi Electric Storage (8328)
Financial Secretary Paul Chan Mo-po came under fire from radio listeners on Thursday, accused of being "out of touch" with the public by refusing to offer cash handouts in his latest budget to relieve people's financial burdens during the economic recession, RTHK reports. With people say e-coupons would not help buy food from street markets. Similar to the incident in 2017 when Carrie Lam took a taxi to her former official residence on the Peak because Government house and the local conveniences store was out of toilet paper.
The 15 residential sites in the 2021-2022 land sale program will only offer some 6,000 units, which is lower than last year. +VE for Developers
Chinese internet giants Baidu, Alibaba Group Holding and Tencent Holdings rank among the lowest in terms of ensuring user privacy and freedom of expression on their platforms, according to a new survey by the Washington think tank New America; comparing such policies of the 26 leading Big Tech companies. The report said ‘China’s system of authoritarian internet control has inescapable consequences’ for domestic companies in the ranking. Overall they cam in the middle of the pack but still -VE
NTES-S (09999.HK) announced unaudited results ended 31 December 2020. Non-GAAP operating profit was RMB14.706 billion, down 6.1% yearly. EPS equaled RMB3.65. 4Q20 DPS was US$0.012.
SINO LAND (00083.HK) announced interim results ended December 2020. Net profit amounted to $1.287 billion, -53.7% yearly. EPS equaled 18 cents. Interim DPS was 14 cents. During the period, underlying profit was $2.143 billion, -21.32%.
GALAXY ENT (00027.HK) Results conference; chairman Lui Che Woo made assumption that the company could distribute dividend in 2H21 when the government reopens Macau's tourism market as soon as possible with Covid vaccine taking effect.Deputy Chairman Francis Lui Yiu Tung said the darkest time of Macau gaming industry was over last year. Since the reopening of IVS in last September, the market has experienced sharp rebound. Hence, the company delivered commendable 4Q20 results. He mentioned about the launch of phase three and four projects in 2-3 years from 2H21, providing about 3,000 family rooms and vacation homes for the high-end market and family customers; and 400,000 square feet of convention, etc..
SHK PPT (00016.HK) announced interim results ended December 2020. Revenue +19% YoY to HK$46.07 billion. Net profit amounted to HK$13.578 billion, -11.9% yearly.
EPS equaled HK$4.69. Interim DPS was HK$1.25, flattish yearly. During the period, underlying profit was HK$17.482 billion, +30.25%. Management said the stable performance was recorded from its overall businesses despite the challenging environment.The developer disclosed it will go on identifying investment opportunities in Hong Kong and China and focus on various landmarks.
Michael Wong, Secretary for Development, measured that private housing land for the next year (2021/2022) may supply 16,500 flats, consolidating all land sources. He said the Government plans to roll out 15 residential sites in the next year (2021/2022), potentially providing 6,000 units. Among the 15 parcels of land, four are from Hong Kong Island, including Kennedy Town, Repulse Bay, Mid-levels West and Wan Chai; one from Broadcast Drive in Kowloon; and 10 from the New Territories, which are located in Tai Po, Lantau, Yuen Long, Tuen Mun, Kwu Tung North New Development Area, Fanling, Tsuen Wan and Kwai Chung. He said 13,020 private residential units may be completed this year, beyond the target of 12,900.He also said the Government will tender two residential sites in the first quarter of next year (April-June 2021), which are separately located in Kwu Tung and Fanling, providing 980 units. Taking into account different sources, it is expected that the land for private housing in the first quarter of next year will supply 1,530 units.
The Fosun-BioNTech Covid vaccine ordered by the Government will arrive in Hong Kong as quick as Saturday (27 February), as local media cited sources. The vaccine had been expected arrival today.
Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, said the government target is crystal clear, regarding the proposed hike of stock stamp duty to 0.13% from 0.1%, with a plan to enforce the new duty on 1 August, yet without a "Plan B”. Hui underscored that the competitiveness of Hong Kong's financial market is not about "striving for cheapest", but about "striving for best”. In reply to whether higher stock stamp duty will prompt investors to rotate to US stocks and eventually erode Hong Kong's gains, he said stamp duty only forms part of the transaction cost, besides Hong Kong does not implement dividend tax and value added tax. He was unworried about higher duty at the expense of less Hong Kong's share gains, Hui voiced confidence in ongoing market vibrancy of Hong Kong.He also commented that HKEX (00388.HK) will review its secondary listing regime, including whether only allows new economy stocks for having WVR share structure and market consultation will be unfolded later. He said the government intended to establish a central electronic registration platform for the $5,000 e-consumption vouchers distribution, while also offering written registration method.