Nov 10 HK afternoon rebound, China weak after inflation & PPI data.


10 Nov

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

HSI +183pts (+0.7%) 24,996 HSCEI +105pts (+1.2%) 8,911 T/O HK$136.24bn (+38% DoD)  

HK/CHINA Connect Flows
Shanghai
Northbound Rmb 49,970m Sell 27,516m vs 22,454m Buy
Southbound HK$ 12,724m Sell 6,391m vs 6,333m Buy
Shenzhen
Northbound Rmb 61,128m Sell 33,938m vs 27,190m Buy
Southbound HK$ 13,904m Sell 6,145m vs 7,758m Buy


Europe
Opened flat after the weakness in Asia and ahead of the US inflation data. FTSE trending slightly higher as Oil and Gas stocks rise but Travel & Leisure weak. DAX and CAC trending lower.  Earnings still in focus with Credit Agricole, Engie, Alstom, EDF, Allianz, Continental, Dialog, E.On, Infineon, Siemens Energy, ABN Amro, Thomas Cook among others due to report.
Marks & Spencer surged on strong third-quarter earnings but S4 Capital slid more than 11% after its trading update.
Adidas weak after trimming its full-year forecast due to supply chain constraints.
Data
Eurozone Non Monetary Policy Meeting
Germany 
Inflation Rate Oct 4.5% YoY vs 4.1% Sept (F/cast was 4.5%)
Inflation Rate Oct 0.5% MoM vs 0% Sept (F/cast was 0.5%)
US Futures
Opened lower but now Dow -5pts, S&P and NDX flat
MBA Mortgage data, Inflation data, Initial Jobless claims data, Wholesale Inventories, EIA oil and Gas data and the Monthly Budget Statement.

CHINA CSI 300 closed -26pts (-0.5%) @ 4,821
CSRC orders influencers from advising on stocks and wearing strange clothing. Sixth plenum ends tomorrow but a briefing will be held on Friday at 10am.
CSI 300 opened lower and trended lower for most of the morning to 4,754 before bouncing into lunch. With investors worried about the higher inflation figure and surging PPI which is likely to limit the scope for the PBoC to help. PM opened 4,777 and worked higher but saw resistance appraoching 4,825. Foreigners net sellers. Solar weak as Changdu suspended solar project registrations to prevent aggressive investments. Commodities weak but Metaverse in focus. Property slight +VE on news conditions for new bonds may be eased. Defence stocks +VE as US lawmakers visit Taiwan raising China’s ire.

Shanghai Comp -15pts (-0.4%) @ 3,493 T/O US$64,467m (+6% DoD)
Shenzhen Comp -56pts (-0.4%) @ 14,516 T/O US$100,030m (+8% DoD)
ChiNext Comp +0.5pt (flat) @ 3,636

CHINA DATA
Inflation Rate Oct +1.5% YoY vs +0.7% Sept (F/cast was +1.2%)
Inflation Rate Oct +0.7% MoM vs 0% Sept (F/cast was +0.4%)
PPI Oct 13.5% vs 10.7% Sept (F/cast was +11.5%)
After Market 
New loans CNY Oct 826.2b vs 1660b Sept (F/cast was 750b)
Outstanding Loan Growth Oct 11.9% YoY vs 11.9% Sept (F/cast was 11.9%)
M2 Money Supply Oct 8.7% YoY vs 8.3% Sept (F/cast was 8.3%)
Vehicle Sales Oct -9.4% YoY vs -19.6% Sept (F/cast was -18%)
Total Social Financing CNY Oct 1590b vs 2900b Sept (F/cast was 1700b
New loans higher than expected especially considering its towards the end of year. Total Social a small miss but data overall +VE

HONG KONG 
Pre market opened @ 24,87 -25pts vs -40pts ADR’s
Fantasia opened -50% on resumption of trading but HK Electric and CLP rallied having announced new tariffs. Market initially dipped to 24,700 before retesting 24,800 but failed to break above and trended lower before finding support at 24,500. PM saw a strong rebound on rumours China may relax the developers 3 red lines to make refinancing easier. +VE for the Chinese Developers Shimao (813 HK, +16.93%) Sunac (1918 HK, +14.91%), CIFI (884 HK, +11.65%), Greentown (3900 HK, +9.06%).
Wuxi Bio weak after management call but saw other the drug names +VE (Akeso, Shanghai Junshi Bio, Innovent Bio and Jiangsu Hengrui Med) on talk off potential of being added to National Medical Insurance list.
ECommerce names +VE ahead of Tencent’s earnings due after market. Tencent (was +4.2%) announced its first revenue miss in two years, and adjusted net income first drop in 10 years. Q3 Rev. 142.37B Yuan, vs 145.41B Yuan estimate. Q3 Adj Net 31.8B Yuan, Est. 32.35B Yuan. Quick take Gaming revenue weak (but it has largest exposure to kids), Ad revenue missed and under pressure as it opens up. Expect stock to trade lower. Prosus dipped when the news hit.

Developers 3 red lines are:-
1. 70% ceiling on liabilities to assets, excluding advance proceeds from projects sold on contract.
2. 100% cap on net debt to equity.
3. Cash to short-term borrowing ratio of at least one.

HONG KONG DATA
Reported 5 imported cases of covid today 
(3 involve aircrew)

SHORT SELLING HSI Wednesday 18.5% vs 18% Tuesday
Top shorts 
CM Bank (3938) 53%, Hang Seng Bank (11) 49%, Country Garden (2007) 42%, Xinyi Glass (868) 41%, PingAn (2318) 39%, HSBC (5) 36%, BoC HK (2388) 36%, Baba-SW (9988) 34%, Techtronics (669) 32%, Longfor (960) 31%, Haidilao (6862) 31%, BoC (3988) 31%, Bud Apac (1876) 31%, Wharf REIC (1997) 30%, Shenzhou (2313) 29%, Hengan (1044) 29%, Galaxy Ent (27) 29%,  ICBC (1398) 28%, Sands China (1928) 28%, Sunny Optical (2382) 27%, Power Assets (6) 27%, Petrochina (857) 26%, HK & China Gas (3) 26%, China Overseas (688) 26%, Mengniu Dairy (2319) 26%,  Geely (175) 25%.


AFTER MARKET NEWS

PING AN (02318.HK) announced that it has repurchased 2.884 million A-shares 
of the company through Shanghai Stock Exchange on 10 November, at a price ranging between RMB48.34 and RMB49.1, involving RMB141 million.

EVERGRANDE (03333.HK)'s chairman Hui Ka Yan has pledged a second luxury house at Black's Link of The Peak to the financial firm "Orix", reported HK01. The property has a market value of approximately $800 million. Sources remarked the relevant luxury house has been a personal residence of Hui, implying that he may be pledging personal assets to rescue the beleaguered property developer.

Wang Wenbin, a spokesperson of China's Ministry of Foreign Affairs (MoFA), expressed during a regular press conference that the Chinese President Xi Jinping has held phone conference with the U.S. President Joe Biden twice within this year and both of them have agreed to maintain constant communication through various means.  China and the U.S. are currently communicating closely to cooperate on the detailed arrangement of the upcoming meeting between the two leaders, Wang added.

Regional Markets
Australia
Market dipped lower on the open but then rallied to 7,460 by noon after good Consumer Confidence data at noon but with choppy trading. Building Permits dropped inline with expectations. From there it trended lower to test 7,410 before ticking higher to close -10pts (-0.1%) @ 7,424
Miners weak as Iron Ore prices fell again. Energy names +VE
Chalice Mining hit another high and ASX Ltd hit a new high. Sims +VE after strong guidance. Pushpay weak disappointing earnings.
Consumer Confidence Index Nov 105.3 vs 104.6 Oct (F/cast 104)
Consumer Confidence Change Nov +0.6% vs -1.5% Oct (F/cast -0.6%)
Building Permits Sept -4.3% MoM vs 7.6% Aug (F/cast was -4.3%)Japan
Nikkei opened lower following the weakness in the US and a poor Tankan reading. Initially rangebound trading 29,200/250 but ticked higher to test yesterday’s close around 10.30 but then dipped back to 29,200 at lunch. PM opened lower and dipped to 29,080 before a small rebound and traded 29,100/140 but sold down to close -179pts (-0.6%) @ 29,107.
Topix followed a similar pattern and closed -11pts (-0.5%) @ 2,008.
Earnings still in focus but inflation concerns rising but T/O was lighter. Nissan, Japex and Nexon strong post earnings. But Softbank weak along with DeNA as ‘one offs’ drove its profits
Leaders Shipping, Miners, Pulp, Banks
Laggards Rubber, Airlines, Non Ferous Metals, Iron/Steel
Data
Tankan Index Nov 13 vs 16 Oct (F/cast was 15)
Out after market
Machine Tool Orders +81.5% YoY vs 71.9% Sept (F/cast was 68%)
LDP decides to exclude higher income households from the cash & voucher scheme for children.
S Korea 
Local Institutions and Foreigners broad net selling (third day) but quite small.
Celltrion strong as EU approval for its covid antibody expected soon. Steel weak as Iron Ore futures drop. T/O was light. Earnings still in focus; tomorrow we get Samsung Life, LG, Krafton and NCSoft.
Dear U strong on IPO debut.
Kospi opened lower at 2,948 but resistance approaching yesterday’s close and then trended lower to 2,924 around 1.45pm then worked sideways to close -33pts (-1.1%) @ 2,930
Kosdaq opened lower and trended lower to 984 before working better currently -21pts (-2.1%) @ 988
Data
Unemployment Rate Oct 3.2% vs 3% Sept (F/cast 3%)
Taiwan 
Taiex opened flat and choppy trading, resistance above 17,565 level. Did dip to 17,490 but rebounded and closed +18pts (+0.1%) @ 17,522
TSMC the main driver.
Leaders Energy, Communication and Property.
Laggards Industrial’s and Healthcare
T/O was US$12.65bn vs US$14.16bn Tuesday
CECC reported 5 new covid cases all imported.
After market TSMC posted NT$134.54 billion (US$4.86 billion) in consolidated sales in October, -11.9% MoM. (+12.8% YoY)

Movers
Active Heavyweights

TENCENT (00700.HK) +19.600 (+4.224%) Short selling $364.60M; Ratio 5.459% closed at $483.6, up 4.2%
AIA (01299.HK) -3.050 (-3.563%) Short selling $185.62M; Ratio 13.866% closed at $82.55, down 3.6%
BABA (09988.HK) +4.100 (+2.610%) Short selling $283.53M; Ratio 29.090% closed at $161.2, up 2.6%
MEITUAN (03690.HK) +7.000 (+2.589%) Short selling $260.20M; Ratio 18.529% closed at $277.4, up 2.6%
PING AN (02318.HK) +0.500 (+0.890%) Short selling $215.17M; Ratio 37.590% closed at $56.7, up 0.9%
CCB (00939.HK) -0.030 (-0.575%) Short selling $112.40M; Ratio 20.234% closed at $5.19, down 0.6%
HKEX (00388.HK) -1.000 (-0.215%) Short selling $81.13M; Ratio 15.246% closed at $464, down 0.2%

HSI & HSCEI Constituents on Move:
SUNAC (01918.HK) +2.060 (+14.906%) Short selling $95.49M; Ratio 35.142% closed at $15.88, up 14.9%
CHINA RES LAND (01109.HK) +2.550 (+8.793%) Short selling $31.93M; Ratio 13.043% closed at $31.55, up 8.8%
COUNTRY GARDEN (02007.HK) +0.530 (+7.899%) Short selling $38.31M; Ratio 44.626% closed at $7.24, up 7.9%
LONGFOR (00960.HK) +2.350 (+6.871%) Short selling $22.87M; Ratio 34.736% closed at $36.55, up 6.9%
CHINA OVERSEAS (00688.HK) +1.120 (+6.715%) Short selling $33.55M; Ratio 39.307% closed at $17.8, up 6.7%
HANSOH PHARMA (03692.HK) +0.960 (+5.568%) Short selling $627.96K; Ratio 1.891% closed at $18.2, up 5.6%
CHINA GAS HOLD (00384.HK) -1.020 (-5.556%) Short selling $35.14M; Ratio 21.691% closed at $17.34, down 5.6%
MENGNIU DAIRY (02319.HK) -2.550 (-5.220%) Short selling $185.57M; Ratio 22.964% closed at $46.3, down 5.2%
CSPC PHARMA (01093.HK) +0.370 (+4.619%) Short selling $21.78M; Ratio 19.567% closed at $8.38, up 4.6%
CG SERVICES (06098.HK) +2.500 (+4.513%) Short selling $13.07M; Ratio 7.869% closed at $57.9, up 4.5%
NTES (09999.HK) +6.900 (+4.313%) Short selling $49.87M; Ratio 21.966% closed at $166.9, up 4.3%
TECHTRONIC IND (00669.HK) +6.800 (+4.218%) Short selling $105.78M; Ratio 26.879% closed at $168, up 4.2%
BYD COMPANY (01211.HK) -11.200 (-3.606%) Short selling $234.17M; Ratio 13.299% closed at $299.4, down 3.6%
ALI HEALTH (00241.HK) +0.320 (+3.467%) Short selling $12.06M; Ratio 14.108% closed at $9.55, up 3.5%
EVERGRANDE (03333.HK) +0.070 (+3.043%) Short selling $1.67M; Ratio 6.168% closed at $2.37, up 3%

HSMI & HSSI Constituents on Move:
FANTASIA (01777.HK)  -0.205 (-36.607%)    closed at $0.355, down 36.6%
SHIMAO SERVICES (00873.HK) +1.640 (+15.769%) Short selling $15.08M; Ratio 13.111% closed at $12.04, up 15.8%
CHINA AOYUAN (03883.HK) +0.330 (+15.714%) Short selling $1.33M; Ratio 3.707% closed at $2.43, up 15.7%
JUNSHI BIO (01877.HK) +5.350 (+13.325%) Short selling $3.82M; Ratio 23.123% closed at $45.5, up 13.3%
AKESO (09926.HK) +4.750 (+11.845%) Short selling $17.99M; Ratio 22.385% closed at $44.85, up 11.8%
CIFI HOLD GP (00884.HK) +0.460 (+11.646%) Short selling $7.39M; Ratio 10.065% closed at $4.41, up 11.6%
CIFI ES SERVICE (01995.HK) +1.460 (+11.335%) Short selling $5.62M; Ratio 26.887% closed at $14.34, up 11.3%
KWG GROUP (01813.HK) +0.680 (+11.003%) Short selling $3.32M; Ratio 29.418% closed at $6.86, up 11%
JINKE SERVICES (09666.HK) +3.750 (+10.901%) Short selling $862.55K; Ratio 7.251% closed at $38.15, up 10.9%
AGILE GROUP (03383.HK) +0.570 (+10.899%) Short selling $1.12M; Ratio 10.529% closed at $5.8, up 10.9%
SHINSUN HOLD GP (02599.HK) +0.450 (+10.514%) closed at $4.73, up 10.5%
POLY PPT DEV (06049.HK) +4.250 (+10.481%) Short selling $4.13M; Ratio 15.036% closed at $44.8, up 10.5%
A-LIVING (03319.HK) +2.200 (+10.377%) Short selling $5.77M; Ratio 21.223% closed at $23.4, up 10.4%
SUNAC SERVICES (01516.HK) +1.440 (+10.345%) Short selling $4.85M; Ratio 8.191% closed at $15.36, up 10.3%
SEAZEN (01030.HK) +0.560 (+10.036%) Short selling $4.30M; Ratio 20.870% closed at $6.14, up 10%

Market News 

EVERG VEHICLE (00708.HK) has initiated trial production of the "Hengchi 5 LX" NEVs, which will be produced by Evergrande New Energy Automobile (Tianjin), formerly known as Guoneng New Energy Automobile Co., Ltd., China Business Network citing internal sources. The Company owns the newly-built BEV production qualification license approved by the National Development and Reform Commission.

Chinese President Xi Jinping and U.S. President Joe Biden respectively sent congratulatory letters to the 2021 Gala Dinner of the National Committee on U.S.-China Relations in New York yesterday, announced by Chinese Embassy in the U.S.
Sino-U.S. relations is one of the most significant bilateral relationships around the world at the moment, pointed out Xi.
Equally, Xi emphasized China's willingness to bolster cooperation with the U.S. on all fronts under the principles of mutual respect, peaceful coexistence and win-win cooperation. Both sides should jointly address huge international and regional issues as well as challenges worldwide. Meanwhile, they shall properly manage their differences to bring Sino-U.S. ties back on the right track of healthy and solid development.

Richard Li's insurance company FWD is weighing up switching the location of its IPO from the U.S. to Hong Kong, reported Reuters, citing people familiar with the matter.  FWD confidentially filed an application for U.S. listing in June, targeting to raise approximately USD2-3 billion. However, as the U.S. regulatory department pushed back the listing review, the company is now considering to switch the IPO location to Hong Kong, the sources suggested.

The Hong Kong Deposit Protection Board (HKDPB) announced the results of its “Hongkongers’ Sense of Security on Savings” survey, conducted by the Hong Kong Public Opinion Research Institute (PORI) under commission. Sixty-two percent (62%) of respondents indicated that they have built a habit of saving.
The median monthly savings remains at HK$5,000, while the average monthly savings hits HK$6,600. The ratio of people with saving habits and their average monthly savings size declined to a four-year low. From September 1 to September 21 this year, PORI polled a total of 1,006 Cantonese-speaking Hongkongers aged 18 or above, and a total of 301 respondents married for 15 years or below by telephone.

LINK REIT (00823.HK) announced that the profit for the six months ended 30 September 2021, before transactions with Unitholders, was HK$6.342 billion as compared with loss for the same period of 2020 of HK$4.325 billion.  Total distributable amount, after adjustments and a discretionary distribution of HK$146 million, burgeoned by 14.2% YoY to HK$3.336 billion. Interim distribution per unit increased by 12.7% or HK17.94 cents YoY to HK159.59 cents.   It also announced the acquisition of the godown building located at No. 60 Ka  Yip Street, Chai Wan, and the mixed use car park building located at No.  50 Po Loi Street, Hung Hom from members of the Jardine Matheson Group  at the consideration of HK$2.7 billion and HK$3.12 billion respectively.

Overnight HIBOR last posted at 0.03946%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.06982%, marking a 1-month high.

Guangdong Consumer Council held a meeting with the seven major e-commerce platforms yesterday (9th), namely Taobao, KUAISHOU-W (01024.HK), Pinduoduo Inc, Douyin, JD-SW (09618.HK), Tmall and Vipshop Holdings Limited, Chinese media citing sources.  During the meeting, the council illustrated various issues of the e-commerce platforms, including "three-no products", lack of vital information, false and non-compliant labelling, etc.. The e-commerce companies were urged to strengthen platform governance and quality control of the products.

China Academy of Information and Communications Technology (CAICT), along with BABA-SW (09988.HK), Ant Group, KUAISHOU-W (01024.HK), Ele.me, TENCENT (00700.HK), BILIBILI-SW (09626.HK) and 360 Group, jointly formed the "Barrier-free Information Technology and Intellectual Property Liberalization Working Group" on 9 November. The above mentioned representatives inked a joint statement to open up 28 patents of aids for elderly and disabled people for free.

EVERGRANDE (03333.HK) must make an overdue US$148-million bond payment today (10 November), foreign media reported. The debt-laden developer has to settle on 28 December coupon payments for its June 2023 and June 2025 bonds totaling more than US$255 million.

Bay Area Semiconductor Industry Group was founded in early November, with HENDERSON LAND (00012.HK)'s co-chairman Peter Lee being a joint investor. The group was established with the aim to facilitate the integrated circuit (IC) sector layout and development in the Greater Bay Area (GBA).  Lee expressed that, in response to Guangdong's initiative on developing a powerful chip industry, the group will endeavor to resolve the problem of insufficient chip production capacity in the domestic market.

KUAISHOU-W (01024.HK) announced that it has punished 556,200 accounts over the month of October, which were involved in various types of fraud.  It reminded its users to heighten their awareness of cyber security protection and pledged that it will continue to raise the community governance level and combat crimes through cross-platform cooperation in the future.

With quarantine-free travel between China and Hong Kong looking hopeful to be implemented by the end of this year, Hong Kong's Secretary for Food and Health Sophia Chan expressed during an interview with HK01 that, the Hong Kong government needs to map out the criteria for a "circuit breaker" mechanism with China, which will determine the timing at which the cross-border travel will have to be suspended again.  Chan remarked that, in order to avoid triggering the "circuit breaker" mechanism after travel resumption, Hong Kong will have to endeavor to control the pandemic and strive to maintain zero infection.
On another note, Chan added that the Food and Environmental Hygiene Department has been discussing with restaurants in relation to making LeaveHomeSafe mandatory for all eateries in Hong Kong by the end of this month. Should there be any new arrangements, the government will announce them as soon as possible, she said

Wheelock Properties has received nearly 3,500 checks for "MONACO ONE" -- the group's residential project located in Kai Tak, representing an oversubscription of 15x. The developer released the third price list, further launching 170 units. The salable area of the batch ranges 319-671 square feet. Calculating with the 12% discount, the discounted selling prices range between $7.572 million and $17.333 million.  Wheelock Properties also announced the arrangement of the first round of sales, confirming that a total of 341 units listed in the first three price lists will be open for sale this Saturday (13th).
Pre Market News

The Development Research Center of China's State Council previously held a meeting with multiple property developers such as KAISA GROUP (01638.HK) and financial institutions in Shenzhen, during which KAISA GROUP pleaded for assistance to repay its investors, workers and suppliers, reported Reuters, citing sources. The embattled KAISA GROUP urged the SOEs to acquire the group's projects or to introduce strategic investors, so as to aid private enterprises to replenish their cash flow, the report added. The group expressed that it is suffering from an extremely tight cash flow as banks further withdrew loans due to the group's worsening credit rating profile.

HSBC HOLDINGS (00005.HK) announced that it repurchased 3.5124 million shares of the company in the London market yesterday (9th), at a price ranging between GBP4.285 and GBP4.3285, with a volume  weighted average price of GBP4.3082, involving a total of GBP15.1323 million.

WYNN MACAU (01128.HK) announced the result for 3Q21. The quarterly loss narrowed to USD180 million, from the loss of USD281 million for the corresponding period of the previous year. The total operating revenues leaped 3.7x YoY to USD312 million. The adjusted property EBITDA amounted to USD10.173 million, compared to a loss of USD112 million for the corresponding period of the previous year.

The Civil Service Bureau (CSB) announced yesterday (November 9) that government employees eligible for receiving the third dose of COVID-19 vaccine will be offered a day of vaccination leave for their third dose.  At the same time, with the emergence of variant strains with high transmissibility, the Government will tighten the vaccination in lieu of regular testing (VRT) arrangement for all government employees. The testing requirements for government employees who have not received the first dose of a vaccine will be tightened from once every two weeks to once a week.

Chinese President Xi Jinping and U.S. President Joe Biden are planning to hold a videoconference as soon as next week, Reuters citing a person briefed on the matter.

EVERG VEHICLE (00708.HK)  announced that it has entered into the Placing and Subscription Agreement with the Placing Agent to place 175 million Shares at HK$2.86 per Share through top-up placing. The Placing Price represents a discount of 19.9% to the closing price of HK$3.57 per Share yesterday (9 November).
The gross proceeds and net proceeds from the Placing are expected to be approximately HK$500 million and HK$490 million, respectively. The Company intends to dedicate the proceeds on the research and development and production of the Group’s new energy vehicles, paving the groundwork for putting Hengchi new energy vehicles into production.

The Guangdong Administration for Market Regulation (GDAMR) summoned BABA-SW (09988.HK)'s South China company, Vipshop, MEITUAN-W (03690.HK)'s Meituan Select and 13 other key e-commerce platform players in the province for an administrative guidance meeting last Friday (5 November), so as to guide them through further online promotion regulation, learnt CCTV News. These firms were also notified and warned of their non-compliant behavior.  Equally, GDAMR pointed out the prevailing unfair competition, counterfeit goods, false advertising, etc. in the course of platform companies' operation.

MELCO INT'L DEV (00200.HK) announced the result for its subsidiary Melco Resorts & Entertainment for the third quarter ended 30 September 2021. The total operating revenues were US$446 million, up 110% YoY. The net loss narrowed to US$233 million from the loss of US$332 million for the corresponding period of the previous year.

CIFI HOLD GP (00884.HK) announced that the Company proposes to issue 418 million shares by way of the Rights Issue on the basis of 1 Rights Share for every 20 Existing Shares, at the price of HK$4 per Rights Share, representing a 1.27% premium to the closing price on the last trading day (9 November).  The net proceeds are estimated to be HK$1.665 billion and intended to be used for additional capital reserve to capture business opportunities for property development in PRC and general corporate purposes.

I-CABLE COMM (01097.HK) announced that Cheng Kar-Shun Henry (as the offeror) acquired a stake of 40.5% in Forever Top from David Chiu and Profit Surge, at a total consideration of HK$209 million.  Upon completion, the offeror will hold a 43.2% interest in the Company through Forever Top. The offeror will, therefore, be required to make a mandatory general offer pursuant to the rules. The share offer price will be HK$0.0264 in cash, representing a discount of 61.18% compared to the previous closing price before the trading halt, involving approximately HK$107 million.  An application has been made for the resumption of trading in the shares of the company with effect from 10 November.

KAISA GROUP (01638.HK) announced that Shenzhen Jinheng Wealth Management issued certain wealth management products and did not redeem such products when they become due. Kaisa Group (Shenzhen), a subsidiary of the Company, has provided certain guarantee for the payment. The Group is in the stage of ascertaining the amount involved and exploring remedial measures to address the issue.  Trading in the shares of the Company has been halted since 5 November, and will remain halted until further notice.

FANTASIA (01777.HK)  announced that, other than the 2021 notes, the company does not have any unpaid amount due under its notes and loans of a material nature. The company has received notices from certain lenders requesting repayment for loans that are not due. The company is in discussion with such lenders on settlement arrangements. The group will continue to implement measures to ease its liquidity issue. To address the issue, the company is in active negotiations with relevant creditors, with a view to reaching agreement on the renewal or extension of its borrowings or other alternative arrangements with its creditors, the announcement added. An application has been made by the company for the resumption of trading in the shares of the company on the Stock Exchange with effect from 10 November 2021.

CHINA COMM CONS (01800.HK) announced the proposed spin-off and separate listing of an infrastructure securities investment fund on Shanghai Stock Exchange. The Hong Kong Stock Exchange has confirmed that the Company may proceed with the Proposed Spin-off. The asset of the Infrastructure REITs is the Jiatong Section of Wuhan-Shenzhen Expressway.

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