June 21 Asian Macro Initial Thoughts market to open lower.

21 Jun

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

Asia expect markets to open lower as investors look for more clarity on Feds position.
Iran elects a hardline president Ebrahim Rai
China continues to crackdown on crypto mining -VE Bitcoin.

Australia Futures indicate market to open significantly lower; -111pts coming off the recent highs.  Oil +VE but Gold &  Resources weak.  
Retail sales data due this morning (Apr was +1.1% F/Cast +0.5%)
Japan Nikkei local futures opened-12.5pts, Chicago futures -5pts.  Expect markets to consolidate ahead of BoJ and PMI’s Wednesday.
S Korea Expect markets to open lower with increased local concerns over inflation and Fed tightening.  PPI out tomorrow will be watched closely
Taiwan Market to open lower following the US  
China Expect market to open lower as concerns remain about PBoC policy/tightening, international relationships and the current wave of covid cases. The wild card as ever remains, Team China.
HK ADR’s closed Friday -247pts @ 28,554 with only CLP and Unicom in the green.
Europe No major data due today
US Futures 
Opened Dow -66pts, S&P -0.2% and Nasdaq -0.1%.
Data Chicago Fed National Activity data due.
More Fed speakers this week; likely to give more insight into the Fed’s tilt and reassure the markets about tightening.

Nikkei local futures opened-12.5pts, Chicago futures -5pts. Expect markets to consolidate ahead of BoJ and PMI’s Wednesday.
Yen close 110.19
No data due
Toyota reported 376 new covid cases Sunday (-12 DoD).  Nationally the total was 714 (-26 DoD).
Coronavirus measures set to be relaxed in Tokyo, 8 prefectures. Measures against the novel coronavirus were relaxed Monday in Tokyo and eight other prefectures as the state of emergency issued in those areas ended Sunday.
Seven of the nine prefectures — Hokkaido, Tokyo, Aichi, Kyoto, Osaka, Hyogo and Fukuoka — transitioned to priority measures, under which eating establishments will continue to be asked to shorten their business hours until July 11. However, the ban on serving alcohol was partially lifted. The state of emergency remains in place for Okinawa Prefecture.
A member of Uganda’s Olympic team has tested positive for the coronavirus and was barred entry into Japan, in the first detected infection among arriving athletes for the Tokyo Games opening in five weeks.  The eight other members of the team left early Sunday by chartered bus for host city Izumisano in Osaka Prefecture.
Japanese medical experts said on Friday that banning spectators at the Olympics was the least risky option for holding the Games, even as they appeared resigned to the possibility of fans in venues during the COVID-19 pandemic. Olympic committee expected to make a decision on Monday regarding spectator numbers. One recent poll showed only 31% of Japanese against the games down from around 80%.   But another poll by the Kyodo News on Sunday showed 40.3%  think they should go ahead without spectators, 30.8% concelled.
Japan's government pledged on Friday to keep its goal of achieving a primary budget surplus by fiscal 2025, with a caveat that the target will be reassessed this fiscal year due to COVID-19 pandemic, leaving room for a possible delay in fiscal reform.
The Bank of Japan surprised markets on Friday by unveiling a plan to boost funding for fighting climate change, joining a growing number of central banks stepping up efforts to address its economic and financial fallout.
Global chip sales are expected to rise 19.7% to $527.22 billion (¥58.1 trillion) in 2021, as demand has been far outstripping supply in the consumer electronics and auto sectors, and the world economy is rebounding from the coronavirus pandemic slump, according to estimates by World Semiconductor Trade Statistics Inc.  Semiconductor sales are projected to continue growing into 2022, with an 8.8% increase to $573.44 billion,  it said in its latest forecast. +VE
Toshiba in focus with the Chairman Nagayama, under pressure to resign although the former U.S. Ambassador to Japan John Roos on Saturday endorsed Nagayama’s continued leadership. I think they need a clean sweep as he endorsed the internal whitewash report.
U.S. automotive component maker Joyson Safety Systems' (JSS) Japan unit said on Friday that it has found 1,000 cases of data falsification in seatbelt tests at two plants it acquired from former airbag maker Takata Corp. -VE
Tokyo residents are about to get a bit of a break just as the summer heat arrives with authorities in the Japanese capital preparing to relax a ban on alcohol in restaurants and bars when it lifts a coronavirus state of emergency. Tokyo will soon allow “solitary drinkers” to order alcohol between 5 p.m. and 7 p.m., but keep an 8 p.m. closing time for bars and restaurants, while limiting to 90 minutes the time each customer spends on the premises, local media said, quoting city government sources. +VE brewers but likely to promote binge drinking.
U.S. automotive component maker Joyson Safety Systems' (JSS) Japan unit says that it has found 1,000 cases of data falsification in seatbelt tests at two plants it acquired from former airbag maker Takata Corp.
The government plans to encourage firms to let their employees choose to work four days a week instead of five, aiming to improve the balance between work and life for people who have family-care responsibilities or need more time off to acquire new skills. The government included the promotion of an optional four-day workweek in its annual economic policy guideline finalized Friday by Prime Minister Yoshihide Suga’s Cabinet.
Sumitomo Corp shareholders on Friday defeated a resolution requiring the Japanese trading house to align its business with international targets on climate change, in a vote at their annual general meeting. -VE

Expect markets to open lower with increased local concerns over inflation (after US Fed’s Bullards comments Friday) and Fed tightening.  PPI out tomorrow will be watched closely  
Data due
20 day Exports
KDCA reported 429 new covid cases Sunday (vs 482 cases on Saturday) ahead of the government announcing new 4 tier social distancing measures on Sunday.  It will relax social distancing rules and allow private  gatherings of up to six people in the greater Seoul area from the current four starting July 1.  Firms are rolling out incentives to encourage people to get inoculated.
A North Korean hacking group known as Kimsuky broke into the network of South Korea’s state-run nuclear think tank last month, the latest in a series of cyberattacks by the North, a South Korean lawmaker said on Friday. -VE
South Korea's industry ministry said Saturday it will spare no efforts to win a nuclear plant project from the Czech Republic as the European country is open to have Asia's No. 4 economy as a potential partner. +VE
Hyundai Motor’s sedan Avante has sold over 100,000 units nearly one year after its release, the company +VE
Naver and CJ Logistics said on Sunday its “all-round” fulfillment center in Gunpo, Gyeonggi Province, had begun operation in a further push for next day delivery.
The five-story warehouse, boasting a floor space of 38,400 square meters -- an equivalent of five soccer stadiums -- can store, manage, pack and ship items using the latest logistics technology including MPS and eFLEXS. +VE
Kakao Group, which started off as a mobile messenger app operator and  has aggressively expanded into new business territories, is now the  country’s fifth-largest business group in terms of market cap, data  shows.+VE
LG Electronics, the world’s leading manufacturer of organic light-emitting diode TVs, is rolling out new size choices; in Korea and the US this month 83-inch OLED TVs, which it said will be the biggest 4K OLED TV in the world. In Korea, the new model will be available for 10.9 million won ($9,600). +VE
Celltrion’s monoclonal antibody treatment Regkirona, or CT-P59, has shown initial promise in treating patients infected with COVID-19 variants, the company said Friday, quoting preclinical results from its recent animal test. +VE
Hanwha Solutions said Friday that its wholly-owned subsidiary Hanwha Compound has signed an agreement with SPC Pack to co-develop a biodegradable plastic material and use it for packaging SPC’s products. +VE
South Korea, which aims to go carbon neutral by 2050, will expand its smart water management by installing floating solar farms near dams and applying hydrothermal energy technologies to data centers. +VE
South Korea’s No. 2 carrier Asiana Airlines and its two affiliated companies face possibilities of being delisted from the nation’s main bourse Kospi, according to industry sources Friday.
The country’s bourse operator Korea Exchange announced Thursday that it has decided to examine the air carrier’s listing eligibility in line with the former Kumho Asiana Group chief’s arrest over allegedly unfair interaffiliate deals -VE.
South Korea’s government has officially approved three major taxi-hailing service brands as platform operators, in a gesture to diversity transportation means, the Ministry of Land, Infrastructure, and Transport said Friday. The three brands are Kakao T, run by Kakao Mobility; Banban Taxi by Kornatus; and i.M. Taxi by Jin Mobility.

Expect market to open lower following the US

Data due after market
Export Orders May (Apr was +42.6% F/cast is +44%)
Taiwan on Saturday reported 128 new cases of COVID-19, all but one of which were domestically transmitted, as well as 20 deaths from the disease, according to the Central Epidemic Command Center.
Taiwan recalls 7 representatives from Hong Kong due to unreasonable political pressure; Key was the visa condition imposed since July 2018, that they were required to sign a statement that there is only “one China”. China says Taiwan should stop interferring in Hong Kong affairs.  I remains but their visa expires next month. -VE
Three Chinese People's Liberation Army (PLA) vessels sailed through the Pacific Ocean off the coast of eastern Taiwan's outlying Green Island on Friday, Taiwan's military personnel said Saturday. -VE
The US’ top general on Thursday downplayed concern that China would attempt a military takeover of Taiwan in the near term, saying Beijing does not have the capability to do so. He’s comments are at odds with the US Navy’s view which attributed a higher probability. Slight +VE
The Canadian House of Commons on Thursday unanimously passed the first reading of a proposal to create a legal framework for efforts to strengthen relations with Taiwan. It was introduced by Canadian Member of Parliament Michael Cooper, who said that not having a formal diplomatic relationship with Taiwan has complicated interactions between the two nations.
The Mainland Affairs Council (MAC) yesterday slammed the Hong Kong government for arresting media executives, describing it as an attack on press freedom.  “The Hong Kong government’s repeated use of an infamous law against the media is beyond belief for a democratic country,” the council said in a statement.
Medigen Vaccine Biologics Corp’s phase 3 clinical trials for an enterovirus 71 (EV71) vaccine completed the multi-regional, multi-central data “unblinding” yesterday, with the results, including safety, immunogenicity and efficacy, meeting its expectations. The company would compile a final analysis report as soon as possible, and apply for the new drug certificate from domestic and foreign drug authorities in the third quarter, Medigen said in a Taiwan Stock Exchange filing yesterday  +VE
Cathay Life Insurance Co and China Life Insurance Co have launched virtual platforms that use digital signatures to enable their sales agents to meet with clients and sell products online. Cathay Life said that it has sold about 8,000 insurance policies by videoconference over the past three weeks, but some sales agents had trouble uploading the conference records, while clients were not sure whether they needed to print their documents. China Life also launched a new platform that authenticates a client’s  identity based on facial recognition technology and their digital  signature to reduce the risk of fraud, the company said last week.  Overall +VE
Powertech Technology Inc plans to invest more than NT$20 billion (US$719.17 million) to build a second production facility at the Hsinchu Science Park as part of the government’s Invest in Taiwan initiative, the Ministry of Economic Affairs said yesterday.  Powertech was prompted to “reshore,” or shift its manufacturing facilities from China back to Taiwan, by a US-China trade dispute, InvesTaiwan Service Center interim spokeswoman Nicole Chen said +VE.
China Steel Corp posted NT$7.63 billion (US$274.36 million) in profit before tax for last month, a 24 percent month-on-month increase, thanks to strong demand worldwide as global economies reopen. In May last year, the steelmaker lost NT$3.60 billion before tax. The reversal is tied to global demand for steel, CSC executive vice president Hwang Chien-chih said +VE.
Taiwan allows Foxconn boss Terry Gou and semiconductor giant TSMC to seek Covid-19 vaccines from BioNTech +VE
HSBC Bank (Taiwan) Ltd on Thursday announced that it has approved a two-year sustainability-linked loan (SLL) totaling US$70 million to Uni-President Enterprises Corp which would use the proceeds to achieve four environmental objectives +VE.
CPC Corp, Taiwan and Formosa Petrochemical Corp  Sunday announced that they would increase gasoline and diesel prices by NT$0.1 per liter this week, after raising them by NT$0.3 per liter last week.  The price hikes reflect higher global crude oil prices, which rose last week as progress on the Iran nuclear deal stalled, causing uncertainty about whether Iran would resume its crude oil exports, state-run CPC said in a statement.

Expect market to open lower as concerns remain about PBoC policy/tightening, international relationships and the current wave of covid cases. The wild card as ever remains, Team China. 

Data due Loan Prime Rate; no change expected
China reported 30 new confirmed COVID-19 cases on the mainland for June 18, up from 23 infections a day earlier, the country's health authority said on Saturday.  SCMP reported that there were no new local cases reported in Guangdong on Sunday as preventative measures are increased in the  Chinese province of Guangdong but preventive measures have been stepped up in the Pearl River Delta cities of Zhaoqing, Shenzhen and Dongguan. Slight +VE
Vaccinations hit the 1 billion mark in China +VE
People who are vaccinated against COVID-19 with BioNTech's (22UAy.DE) vaccine were found to have "substantially higher" levels of antibodies than those who received Sinovac's jab, the South China Morning Post reported on Saturday, citing a Hong Kong study. Some who received the Sinovac vaccine might need a third booster shot as well, the newspaper said, citing lead researcher Professor Benjamin Cowling, an epidemiologist with the University of Hong Kong (HKU). Slight -VE Sinovac.
Automakers in China may recover faster than expected this year amid measures by the government to stabilize vehicle demand.  Vehicle sales in the world's largest car market could rise 6.5 percent this year from 2020, larger than the 4 percent increase projected in January, said Xu Haidong, deputy chief engineer at the China Association of Automobile Manufacturers.  A formal revision on the 2021 vehicle sales target will be published in July, he said. +VE
PBOC-Backed Paper Warns of ‘Baseless’ Predictions on Liquidity;  which could mislead investor expectations and artificially create fluctuations, the central bank-backed Financial News said in an editorial.   PBOC is keen to try and calm the market
A World Bank-led project declined to award a contract to lay sensitive undersea communications cables after Pacific island governments heeded U.S. warnings that participation of a Chinese company posed a security threat, two sources told Reuters. The former Huawei Marine Networks, now called HMN Technologies and majority owned by Shanghai-listed Hengtong Optic-Electric Co Ltd, submitted a bid for the $72.6 million project priced at more than 20% below rivals Alcatel Submarine Networks (ASN), part of Finland’s Nokia, and Japan’s NEC, the sources said.

ADR’s closed Friday -247pts @ 28,554 with only CLP and Unicom in the green. Autos+VE on comments from CAAM
No data due

The government reported 1 imported new covid case Sunday and no local cases (vs 1 imported case Saturday).
Authorities will review whether there is room to relax social  distancing measures when they expire this Wednesday, Chief Secretary  Matthew Cheung Kin-chung said.  Three factors will be taken into consideration – 1. development of the outbreak,  2. vaccination rates and 3. the implementation of “vaccine bubble” at restaurants and premises, Cheung said.
Closed premises including bars, nightclubs and karaoke lounges were also allowed to reopen but they can only cater to vaccinated patrons.
Announcing more relaxed measures under the "vaccine bubble" on May 31, authorities said it will allow up to 12 customers sharing a restaurant table, if two-thirds of them have been vaccinated while the rest are unfit for the jab due to their age and health conditions.

ANGANG STEEL (00347.HK) issued a Positive Profit Alert.
For the six months ended 30 June 2021, the net profit is estimated to be approximately RMB4.8 billion, up RMB4.3 billion or approximately 8.6 times yearly.

CARRIANNA (00126.HK) issued a positive profit alert. The Group expects to record an increase of not less than HK$60 million in the profit attributable to owners of the Company for the year ended 31 March 2021 as compared to that of last year.

CENTURY ENT INT (00959.HK) Profit Warning. For the year ended 31 March 2021, the Group is expected to record a loss of not less than HK$40 million, as compared to a loss of HK$39.2 million in the corresponding period in 2020.

WANG ON GROUP (01222.HK) issued a Profit Warning. For the financial year ended 31 March 2021, the profit attributable to owners of the parent is expected to decrease by not more than 80% as compared to the profit attributable to the owners of the parent recorded in the last published annual report for the year ended 31 March 2020.

FDG KINETIC (00378.HK)  issued a Profit Warning based on the sales revenue in connection with the Dubious Contracts and/or the Purported Customer (Dubious Sales) represents 46% of the Group’s total revenue for the year ended 31 March 2021 (Current Year).
Dividend History. If the Dubious Sales are not accounted for in the Group’s total revenue under the Current Year, the Group is expected to record a significant decrease in its revenue for the Current Year of approximately 56% comparing with the financial year ended 31 March 2020.

National Security Law
Sunday Apple Daily said today the freezing of its assets in a national security  probe had left the newspaper with cash for "only a few weeks" of normal  operations and it may struggle to pay staff wages. 
Apple Daily plans to ask the government's Security Bureau to unfreeze  the assets tomorrow and failing that attempt, it may look to challenge  the decision in court, the newspaper reported  
Apple Daily staff will "fight till the end" despite the government's crackdown, the newspaper wrote in a letter to readers.

Suggesting it is now "the worst of times in Hong Kong," the newspaper said its staff will continue to carry out their duties faithfully and "press on till the end to see the arrival of dawn."
It added: "The law enforcers have labeled journalistic materials that were openly gathered as evidence of crime; the regime has publicly called on journalists to keep a distance from fellow media workers who are merely doing their jobs."
Comes as Next Digital's CEO Cheung Kim-hung and editor-in-chief of Apple Daily Ryan Law Wai-kwong saw their bail application denied by the court on Saturday morning.
The Hong Kong police raid at pro-democracy tabloid Apple Daily "sends a further chilling message for media freedom", the chief U.N. human rights spokesperson told Reuters on Friday.
"We call on Hong Kong authorities to respect their obligations under the International Covenant on Civil and Political Rights, in line with the Basic Law, in particular freedom of expression, freedom of peaceful assembly and association and the right to participate in public affairs," Rupert Colville said by email.
The organizer of the annual July 1 protests says it will not apply for a rally this year - or next year - as it has "completed" its historical mission.  Civil Human Rights Front, which is being investigated for allegedly breaching the Societies Ordinance, said it will be impossible to get permission for a rally. But League of Social Democrats head Raphael Wong Ho-ming said other groups may apply for permission to march, though he also expects it to be turned down by police, citing the social gathering ban.

Short Selling Friday 22.14% vs 16.92% Thursday
Top Shorts  
Xiaomi (1810) 43%, Henderson Land (12) 41%, Bank of China (3988) 37%, Hengan (1044) 33%, Baba (9988) 32%, Petrochina (857) 29%, CKAsset (1113) 29%, Country Garden (2007) 28%, Mengniu Dairy (2319) 26%, HSBC (5) 25%, Hang Seng Bank (11) 25%, Ping An (2318) 25%.

Hong Kong's strategy to strengthen the city's global financial hub  status is through greater integration with mainland China, now that  Beijing has helped restore "stability" in the city, Chief Executive Carrie Lam said on Sunday. 
Contributing to China's financial reform and opening will inject fresh  vigour into Hong Kong's economy, Lam told a financial forum in Beijing.  But many non-Chinese investors in Hong Kong over what they see as vanishing  rights and freedoms in the city after Beijing's imposition of a sweeping  national security law in response to mass 2019 protests.

The Pavilia Farm phase three in Tai Wai sold 169 out of 173 flats on offer yesterday. 
New World Development (0017) collected about HK$2.7 billion, with one buyer forking out HK$54 million for three flats.  It had received about 30,500 registrations of intent from potential buyers for the 173 flats, making them 175 times oversubscribed, and the highest number of registrations since 1997.  The 173 flats include 170 flats in the fourth price list and three flats that were given up by previous buyers. +VE

In the secondary market, Centaline Property Agency reported 16 secondary deals at 10 blue-chip housing estates over the past weekend, down by 20 percent week-on-week. -VE

GreatWall said to be in talks to buy a manufacturing plant in Brazil from Damiler.   
Slight +VE

HUTCHMED (00013.HK) announced that surufatinib has been granted approval for drug registration by the National Medical Products Administration of China (NMPA)
for the treatment of advanced pancreatic neuroendocrine tumors (pNETs). This follows the approval of surufatinib in China in December 2020 for the treatment of advanced extra-pancreatic (non-pancreatic) neuroendocrine tumors (epNETs).

ORIENTAL PRESS (00018.HK) released the annual results for the year ended 31 March 2021. It swung to net profit of $211 million, versus loss of $10.99 million over a year ago.  EPS  was 8.81 cents. A final dividend of 2 cents was declared, plus a special dividend of 5 cents.

GRAND MING (01271.HK) released the annual results announcement for the year ended 31 March 2021. The net profit surged 3.4 times yearly to $149 million.  EPS  was 10.5 cents. A final dividend was kept at 4 cents.CKH HOLDINGS (00001.HK)'s statement disclosed that it repurchased 1.105 million shares on the Stock Exchange on 18 June at $59.15-59.50 each, involving approximately $65.69 million. Year to date, the company bought back 4.811 million shares, representing 0.1248% of the share capital of the company.

On the first day of public offering of Nayuki (02150.HK), brokers granted almost $72.86 billion margin to the IPO as at around 6 pm.
The IPO was thus over-subscribed by more than 142 times based on the fundraising amount of $509 million from the public offering.  

HUTCHMED (00013.HK) (HCM.US) , on its first day of public offering as well, recorded almost $277 million margin. The subscription was only 47.3% based on the public fundraising amount of $585 million.

SWIRE PACIFIC A (00019.HK) announced that CATHAY PAC AIR (00293.HK), of which 45% stake is held by SWIRE PACIFIC A, expected to incur a substantial loss in the first half of 2021, but the loss should be lower than that reported in both the first and second halves of 2020.

The company continues to face significant challenges and uncertainties in 2021 as a result of COVID-19. The effect on the Aviation Division, particularly Cathay Pacific, is severe. However, the performances of Swire Pacific’s businesses in the first half of 2021 are now expected to be somewhat better than was the case when the 2020 results were announced. As a result, Swire Pacific no longer expects to incur a recurring loss in the first half of 2021.

The Lands Department (LandsD) announced that a site, Fanling Sheung Shui Town Lot No. 278 at Area 24, Kwu Tung, New Territories, in the 2021-22 Land Sale Programme will be disposed of by public tender. 
The tender invitation for the lot will commence on June 25 and close on July 23. Fanling Sheung Shui Town Lot No. 278 has a site area of about 7,624 square metres and is designated for non-industrial (excluding godown, hotel and petrol filling station) purposes. The minimum gross floor area and the maximum gross floor area are 27,447 sq m and 45,744 sq m respectively.

CATHAY PAC AIR (00293.HK) announced that it carried a total of over 24,000 passengers last month,
an increase of 30% compared to May 2020, but a 99.2% decrease compared to the pre-pandemic level in May 2019. The month’s revenue passenger kilometres (RPKs) rose 24.5% year-on-year, but were down 98.9% versus May 2019.  
It said the first half of 2021 has seen the tightening of travel restrictions and quarantine requirements as Hong Kong and the company's major markets continued the fight against COVID-19. These measures and the resulting increased quarantine for its aircrew have restricted its ability to operate passenger services beyond a single-digit percentage of its passenger capacity and have reduced its effective freighter capacity.
However, with the cost-saving measures implemented in 2020 (which are continuing) and a strong underlying cargo performance, its losses in the first half of 2021, while still very substantial, are expected to be somewhat lower than the losses reported in both the first and second halves of 2020. It said it is continuing to add more passenger flights to the Chinese mainland, UK and US in June.
London frequencies will be increased to serve students returning to Hong Kong.

The Lands Department said it had received six tenders for the commercial site at New Central Harbourfront, the tender of which had closed today (18 June). 
CK ASSET (01113.HK), SHK PPT (00016.HK), HENDERSON LAND (00012.HK) and a consortium formed by SINO LAND (00083.HK), CHI MER LAND (00978.HK) and GREAT EAGLE H (00041.HK) were among the bidders.  
JLL expressed that the commercial site at New Central Harbourfront received better-than-expected bidding reactions from the market. As this is first harbor-front site in the district to be up for sale in 25 years, with no other similar sites pending for sale in near-terms, JLL expects relatively aggressive bids from developers due to the scarcity of sites of this nature.  

The Hong Kong Monetary Authority announced that the composite interest rate, which is a measure of the average cost of funds of banks, decreased by 1 basis point to 0.20% at the end of May 2021
, from 0.21% at the end of April 2021.
The decrease in composite interest rate mainly reflected a decrease in the weighted funding cost for deposits during the month.

GREATWALL MOTOR (02333.HK) is weighing up acquiring a Daimler factory in Brazil 
in hopes of furthering its overseas expansion, Bloomberg citing insiders.

JD-SW (09618.HK) announced that the order value for JD's 618 Festival had accumulated to RMB305.6 billion
from 12am on June 1st to 2:04pm today (June 18th).

Thailand decided to go ahead with its Phuket pilot project from July 1st by exempting fully vaccinated tourists from the 14-day hotel isolation. 
The Asian country is gearing up for a nationwide reopening slated as early as October.

HK & CHINA GAS (00003.HK) and China's State Power Investment Corporation (SPIC) held the smart energy innovation TERRA Award in global pursuit of future-oriented smart energy innovative technology and solutions through competition. 
HK & CHINA GAS and SPIC are already partners in PV, wind power and other new energy projects in Mainland.

AlipayHK expressed that they will be partnering with a vast amount of offline and online businesses to give out rewards and discounts 
of a total worth of over $1 billion to users who choose to collect the consumption vouchers through AlipayHK.

Centa-City Leading Index (CCL) last stood at 186.58, up 0.49% weekly;
CCL Mass last printed at 189.33, up 0.53% weekly;
CCL (small-and-medium flats) last reported at 186.80, up 0.47% weekly, said the research department of Centaline Property. The three key indexes logged 94-week highs altogether, and ascended for three weeks.

The national security unit of the Hong Kong Police Force arrested five executives of NEXT DIGITAL (00282.HK) yesterday morning (17th), on the allegation of infringing The National Security Law,
and froze $18 million of assets belonging to Apple Daily and connected companies.The police has charged the CEO of NEXT DIGITAL Cheung Kim-hung and the chief editor Ryan Law for violating the article 29 of the law, namely colluding with a foreign country or external elements to endanger national security, reported local media. The two will be taken to the West Kowloon Magistrates' Courts for the first appearance to trail tomorrow morning (19th).

DOW -1.58%, NDX -0.92%, S&P -1.31%, Russel 2K -2.17%
Triple Witching Friday; which added to the volatility. Markets open lower after comments from the Fed’s Bullards who expects the first rate rise in 2022. and traded sideways. Signs of the reflation trade being unwound with weakness in the Russell. Energy, Industrials, Commodities and Financials weak

Banks JPMorgan Chase -2.6%, Citigroup -1.8% Wells Fargo -2.4%, Amex -2.4%
Work from home names: Facebook -2%, Apple -1%, Amazon -0.1%, Netflix +0.5%,  Disney -1.3%, Zoom Video +0.4%, Alphabet -1.3% and Microsoft -0.6%,
Tech NXP Semi -2.7%, Nvidia -0.1%, Micron -4.6% second broker downgrade in two days on memory demand concerns, AMD +0.1%, Skyworks -2.4%
Re-opening stocks  Boeing -0.8% despite it's newest version of the 737 Max jetliner completed its first test flight Friday, Caterpillar -0.3%, Simon Property -2.6%, Kohl’s -3%, Nordstrom -4.6%, Gap -3.4%, United Airlines +1.3%, Carnival -0.8%, Wynn Resorts -0.7%, Chevron -3.8%, Exxon Mobil -2.6%,  
Lock down names Campbell Soup -0.9% General Mills -2.2%, JM Smucker -2.4%

Baker Hughes Total Rig Count 470 vs 461 prior
Baker Hughes Oil Rig Count 373 vs 365 prior
USD was stronger vs Yen & Euro. Bitcoin -0.2% @ 35,377.21, VIX +16.6% @ 20.70,
US T10 @ 1.443% after comments from Bullard pre market saying he expected a rate rise in 2020
OIL Brent +0.53%, WTI +0.8%
Gold -0.61%, Silver -0.04%, Copper -1.34% Platinum -1.88%, Palladium -1.6%.

Chicago Fed National Activity Index, NY Fed Treasury Purchases
Fed’s Williams speaks

DAX -1.78%, CAC -1.46%, FTSE -1.9%
Markets opened flat but trended lower all day to close at the lows. UK retail sales were weaker than expected and German PPI was stronger, double the consensus. Commodity prices were weak. Financials were weak but Industrial were +VE Sterling hit a 6 week low.
Aegon -5.5% while compatriot pharmacist Shop Apotheke Europe +5%.Data
Current Account Apr€31.4B vs €31BMar (F/cast was €18.5B)
PPI May +1.5% MoM vs +0.8% Apr (F/cast was +0.5%)
PPI May +7.2% YoY vs +5.2% Apr (F/cast was +6.2%)
Retail Sales May -1.4% MoM vs +9.2% Apr (F/cast was +2.1%)
Retail Sales May +24.6% YoY vs +42.4% Apr (F/cast was +29.7%)
Retail Sales Ex Food & Energy May -2.1% MoM vs +9.1% Apr revised (F/cast was +2.1%)
Retail Sales Ex Food & Energy May +21.7% YoY vs 37.7% Apr (F/cast was 28.1%)
EUROZONE No data due
GERMANY Bundesbank monthly report
FRANCE No data due  
UK  No data due

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