Nov 18 HK & China close lower on increased T/O. Asia lower, except Taiwan stays +VE


18 Nov

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

Concerns over inflation impacted the region.
Alibaba earnings tonight and conference call tomorrow.   JD.com headline beats small

HSI -330pts (-1.3%) 25,320 HSCEI -157pts (-1.7%) 9,036 T/O HK$116.52bn (+6.1% DoD)  

HK/CHINA Connect Flows
Shanghai
Northbound Rmb 38,687m Sell 21,003m vs 17,684m Buy
Southbound HK$ 8,365m Sell 4,325m vs 4,040m Buy
Shenzhen
Northbound Rmb 53,532m Sell 27,333m vs 26,199m Buy
Southbound HK$ 9,687m Sell 4,935m vs 4,752m Buy

Europe
Markets opened mixed UK lower with miners weak. DAX and CAC higher but inflation concerns and a resurgence of covid cases overhanging the markets. Little European data/earnings but US data will be watched carefully.
Data  Eurozone New Car Registrations
Earnings come from Thyssenkrupp, Royal Mail and the National Grid.
US Futures
Opened -20pts S&P +0.05% and NDX +0.14%
Data due 
Initial Claims, 4 week Average Claims, Continuing Claims, EIA Natural Gas Report, Philly Fed Data (Manufacturing Index, Prices Paid, Business Conditions, Capex Index, Employment, New Orders), Kansas Fed Composite Index & Manufacturing Index.
Earnings Alibaba, Applied Materials, Macy’s, Kohl’s, BJ’s Wholesale, Ross Stores, Intuit, Palo Alto Networks, Nuance Communications, JD.com, Vipshop, Workday, Williams-Sonoma
Fed Speaker Chicago Fed’s Evans


CHINA CSI 300 closed -48pts (-1%) @ 4,838
CSI 300 opened lower and trended lower for the first 90 minutes to 4,830 before working better into lunch. PM opened higher but seeing resistance at 4,860 level and then drifted lower into the close. Concerns over slowing growth, Property sectors debts and how covid outbreaks are hurting the economy. Interest continues in Green Power names but Metaverse names closed lower.
Leaders Military, Steel, Non-Ferrous
Laggards Media, Leisure, Home Appliances

Shanghai Comp -17pts (-0.5%) @ 3,521 T/O US$60,918m (+6% DoD)
Shenzhen Comp -132pts (-0.9%) @ 14,579 T/O US$108,161m (+7.9% DoD)
ChiNext Comp -37pt (-1%) @ 3,667

CHINA DATA
None


HONG KONG 
Pre market opened @ 25,370 -280pts vs -196pts ADR’s
Country Garden Services halted pre market for a placement. Ecommerce names weak and Baidu weak after earnings which is a -VE cross read for Alibaba and JD.com due to report after market today. Market initially sold down to 25,222 and then traded sideways around 25,300 level. PM opened slightly higher but drifting lower before an uptick into the close.
Only sectors in the green are Industrials and Utilities. Techtronic continues higher along with BYD, Hengan, Mobile, HKEX and a few others.

Results at lunchtime 
SA SA INT'L(00178.HK) announced interim result ended September 2021. The turnover rose 24.2% year on year to HK$1.597 billion. The loss narrowed from HK$242 million in the corresponding period of previous year to HK$182 million. LPS was HK5.9 cents. No interim dividend was declared.   The substantial decline in tourist arrivals brought a drastic impact to the retail stores in tourist districts, hence the group continued to streamline its store network. Five to eight retail stores are expected to be closed in the second half of the year as the group continues to close down stores with excessively high rental costs or with less contributions, the announcement added.

CSPC PHARMA (01093.HK) announced first three quarters result ended September 2021. The total revenue rose 7.4% year on year to RMB20.642 billion. The net profit amounted to RMB4.335 billion, up 23.2%.  EPS was RMB36.26 fen.

HONG KONG DATA
CHP reported 4 additional confirmed cases of coronavirus disease 2019 (COVID-19), taking the number of cases to 12,395 in Hong Kong so far.

The newly reported cases are imported cases which involved mutant strains.

SHORT SELLING HSI Thursday 23%  vs 21.3% Wednesday
Top shorts 
Country Garden (2007) 58%, Petrochina (857) 45%, PingAn (2318) 41%, CM Bank (3968) 39%, Bud APAC (1876) 38%, Sino Biopharm (1177) 36%, HSBC (5) 36%, Ali Health (241) 34%, Sands China (1928) 34%,  Wuxi Bio (2269) 34%, China Res Land (1109) 34%, CSPCPharma (1093) 34%, Anta Sports (2020) 31%, Baba-SW (9988) 31%, ICBC (1398) 30%, China Overseas (688) 29%, Hengan (1044) 28%, Galaxy Ent (27) 28%, Haidilao (6862) 28%, Xinyi Solar (968) 27%, Li Ning (2331) 26%, Xiomi (1810) 26%, Sunny Optical (2382) 26%, CKI (1038) 25%, Tencent (700) 24%


AFTER MARKET NEWS

CK ASSET (01113.HK) announced that a wholly-owned subsidiary of Li Ka Shing (Global) Foundation acquired a total of 280,000 shares in CK Asset at the average price of HK$46.6315 per share on 12 November 2021.  As a result, the deemed interests of Li Ka-shing and Victor T K Li in CK Asset have increased from 46.26% to 46.27% and increased from 46.33% to 46.34%, respectively.

CATHAY PAC AIR (00293.HK)  issued a statement, remarking that the airline recognises the concerns that have arisen following the recent confirmed COVID-19 cases involving three of its freighter pilots returning from Frankfurt.   After investigation into these cases, regrettably, the findings indicate a serious breach of requirements during crew overseas layovers. The individuals concerned are no longer employed by Cathay Pacific, the statement added.

Hong Kong Disneyland Park will open tomorrow (November 19) with health and safety measures. All guests entering the park are required to undergo temperature screening, wear face masks and scan the “LeaveHomeSafe” QR code or register contact details as required by the regulations.

The Hong Kong Monetary Authority (HKMA) announced the composite interest rate at the end of October 2021. The composite interest rate remained unchanged at 0.19% at the end of October 2021 as the weighted funding cost for deposits was steady during the month.

The U.S. trade representative Katherine Tai told Financial Times that the U.S. is in need of a course correction in the the Asia-Pacific region. 
Tai, however, contended that the U.S. will be able to devise alternative methods to better address challenges and strengthen ties with its allies without rejoining the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).

China is expediting her plan to substitute the technologies from the U.S. and other foreign countries, as Bloomberg had previously reported. Chinese Foreign Ministry Spokesperson Zhao Lijian yet responded that the related report was untrue, and that it was an absolute misinformation.
Zhao claimed that China had not formulated any plans for technology substitution, let alone authorization to local governments on investigating local suppliers and formation of white list. China has always been welcoming foreign enterprises to provide on-par technological products and services.

According to the Anti-monopoly Guideline for Active Pharmaceutical Ingredients (API) published by the State Council's Anti-Monopoly Committee (AMC), the dominant market position of accredited API operators shall be determined based on the Anti Monopoly Law, or by analyzing market-dominant factors and situations concerning these operators.  The AMC will make considerations after incorporating API sector features, including operators' market share, relevant market competition, actual output capacity and volume, as well as their ability to control the API sales or procurement markets.

A screenshot saying "Zhengzhou Evergrande Is Dissolved" has been spiraling online swiftly, Sina Finance reported. However, the related personnel of Zhengzhou Evergrande clarified that they have not received any notice in this regard, saying hence it should be deemed as rumor.
The personnel did not illustrate further on the issue.

China's Ministry of Commerce has joined hands with relevant authorities year-to-date to actively guide the solid offshore trade development in local regions, said  MOC spokeswoman Shu Yuting. In the next step, MOC aims to support offshore trade buildout in local regions in three ways, including financial service optimization. Equally, it will encourage banks to boost their complex business review ability with the People's Bank of China, the State Administration of Foreign Exchange and other units.
On another note, Shu projected a double-digit growth in foreign investment absorbed by China this year should there be no special circumstances. The country could hence achieve its full-year foreign capital target.


Regional Markets
Australia
Market opened lower and dipped to 7,348 before reversing and working higher to 7,396 after about a 90 minutes of trading. Drifted lower to 7,375 but then worked better to close +9pts (+0.1%) @ 7,379.
Energy (weak as oil fell), Financials (Commonwealth Bank remains weak as brokers downgrade the stock) and Utilities weak. Miners mixed, Iron Ore futures +VE and Evolution rallying having announced acquiring Ernest Henry gold mine from Glencore Consumer Staples and Healthcare +VE too after Sonic Healthcare earnings and Medibank Healthcare raised its outlook but Aristocrat weak after disappointing earnings. Property +VE after Goodman group gave upbeat guidance.
Japan
PM news that the fiscal stimulus package could be 55.7tn Yen which would be bigger than expected (talk was around 40tn Yen) prompting a spike in the market as shorts covered but then sold off into the close.
Nikkei opened lower as expected and traded sideways for the first hour before selling down to test 29,400 before a bounce into lunch. PM opened lower but working slowly higher before spiking and then eased back  Closed  -90pts (-0.3%) @ 29,599
Topix followed a similar pattern; tested 2,025 in the am. Hit 2,024 on the PM open but worked higher then spiked and eased back to close -3pts (-0.1%) @ 2,036
Softbank weak as PAYTM IPO traded lower.
NEG strong on new all solid state sodium ion secondary battery
Leaders Glass/Ceramics, Services, Other Products, Machinery
Laggards Miners, Shippers, Oil/Coal and Rubber
S Korea 
Foreigners and Local Institutions across the board small net sellers. Foreigner buying some Tech and continue buying gaming/NFT names.
Insurers weak as Kyobo Life to IPO. NCSoft +5%
Market opened 1 hour later than normal
Kospi opened flat but sold down to test 2,940 before rebounding and working higher to test Wednesday’s closing level but unable to break above and eased back to close -15pts (-0.5%) @ 2,947
Kosdaq similar trading pattern but did break above Wednesday’s closing level before easing back to trade around flat and closed +2pts (+0.2%) @ 1,033
Taiwan 
Taiex opened flat traded sideways in a tight range; 17,748 - 17,839 and closed test of the day high +64pts (+0.4%) @ 17,828. Tech initially lead but then eased back as Financial attracted attention lead by Cathay Financial and Fubon Financial on hopes of rate rises. Shipping eased again prompting some retail margin calls
Leaders Healthcare, Financials and most sectors +VE
Laggards Energy and Consumer Discretionary
T/O was US$14.2bn vs US$14.2bn Wednesday
CECC reported 3 new covid cases all imported

Movers
Active Heavyweights

BABA (09988.HK) -7.300 (-4.430%) Short selling $968.81M; Ratio 32.448% closed at $156, down 5.3%
MEITUAN (03690.HK) -2.600 (-0.889%) Short selling $224.66M; Ratio 8.938% closed at $285.4, down 2.5%
TENCENT (00700.HK) -3.000 (-0.589%) Short selling $823.08M; Ratio 16.811% closed at $496.8, down 2.4%
PING AN (02318.HK) -1.000 (-1.706%) Short selling $227.41M; Ratio 37.902% closed at $57.5, down 1.9%
HKEX (00388.HK) +4.400 (+0.953%) Short selling $110.43M; Ratio 14.093% closed at $464.8, up 0.7%
AIA (01299.HK) -0.300 (-0.352%) Short selling $77.03M; Ratio 7.483% closed at $84.95, down 0.4%
CCB (00939.HK) -0.020 (-0.382%) Short selling $108.99M; Ratio 26.720% closed at $5.22, down 0.4%

HSI & HSCEI Constituents on Move:
BIDU-SW (09888.HK) -13.300 (-7.837%) Short selling $431.57M; Ratio 57.965% closed at $156.4, down 7.8%
ALI HEALTH (00241.HK) -0.610 (-6.106%) Short selling $17.88M; Ratio 17.288% closed at $9.38, down 6.1%
EVERGRANDE (03333.HK) -0.160 (-5.714%) Short selling $8.44M; Ratio 10.843% closed at $2.64, down 5.7%
COUNTRY GARDEN (02007.HK) -0.370 (-5.075%) Short selling $68.20M; Ratio 51.852% closed at $6.92, down 5.1%
EVERG SERVICES (06666.HK) -0.190 (-4.578%) Short selling $788.99K; Ratio 1.575% closed at $3.98, down 4.1%
JD (09618.HK) -11.800 (-3.522%) Short selling $86.38M; Ratio 25.084% closed at $323, down 3.6%
JD HEALTH (06618.HK) -2.250 (-2.937%) Short selling $25.96M; Ratio 20.553% closed at $73.9, down 3.5%
SUNAC (01918.HK) -0.440 (-3.005%) Short selling $32.29M; Ratio 9.779% closed at $14.14, down 3.4%
PSBC (01658.HK) -0.190 (-3.411%) Short selling $56.55M; Ratio 17.968% closed at $5.38, down 3.4%

HSMI & HSSI Constituents on Move:

SHINSUN HOLD GP (02599.HK) -1.900 (-55.072%) Short selling $5.74K; Ratio 0.005% closed at $1.59, down 53.9%
HENGTEN NET (00136.HK) +0.420 (+24.852%) Short selling $25.67M; Ratio 2.267% closed at $2.11, up 24.9%
SIMCERE PHARMA (02096.HK) +1.150 (+13.626%) Short selling $2.76M; Ratio 3.744% closed at $9.66, up 14.5%
A-LIVING (03319.HK) -2.900 (-12.664%) Short selling $44.05M; Ratio 37.317% closed at $19.98, down 12.8%
JINKE SERVICES (09666.HK) -3.600 (-10.112%) Short selling $12.37M; Ratio 18.635% closed at $31.85, down 10.5%
KERRY LOG NET (00636.HK) +1.370 (+6.926%) Short selling $5.16M; Ratio 10.536% closed at $21.05, up 6.4%, hitting new high


Market News 

The HKSAR Government announced the successful offering of US$3 billion worth of green bonds, denominated in US dollars (USD) and euro (EUR), under the Government Green Bond Programme.  The offering comprises three tranches of US$1 billion 10-year, EUR1.25 billion 5-year, and EUR500 million 20-year. The 20-year tranche is the longest euro-denominated green bond issued by an Asian government to date, as well as the HKSAR Government’s inaugural offering of euro-denominated bonds, setting an important new benchmark for potential issuers in Hong Kong and the region.

Sino Group is glad to join hands with Walt Disney Company (DIS.US) for the Christmas holiday, with its malls splashing a total of $30 million in promotion expenses, said Bella Chhoa, Director of Asset Management at the group. She projected the overall mall footfall and turnover to each burgeon by 20% YoY in November and in the Christmas holiday in December, driven by a range of activities and a festive atmosphere.  Equally, Sino Group will take the lead to work with different institutions not only to provide customers with more special offers, but also to expand its clientele.

As of 10 November 2021, the average daily turnover of northbound trading under the Stock Connect schemes of Shanghai-Hong Kong and Shenzhen-Hong Kong reached RMB122.26 billion, representing an increase of 35% compared to the corresponding period of the previous year. Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, expressed that the figures illustrated that there is a keen demand for investing in the Chinese market via Hong Kong. Besides, demand for talents is also an issue that needs to be addressed by the world, hence, Hui hoped Hong Kong could reopen border with China as soon as possible.

HANG LUNG PPT (00101.HK) unveiled the name of its residential project at 11 Ngau Tau Kok Road, Kowloon East — “THE APERTURE”, which will be launched in the near term. Teresa Pang, Senior Manager – Property Sales of Hang Lung Properties, said the group will upload the sales brochure later today (18 November). The show flats are in the final stage of preparation and will be made public as soon as possible.   The project offers a total of 294 units. Typical units are in one- to three-bedroom layout designs with a saleable area between 320 square feet and 771 square feet.

Paytm, an Indian payment platform backed by Ant Group and Japan's SoftBank, has its shares plummeted as it debuted on the National Stock Exchange of India (NSE). The stock last posted at INR1,657.6, down 23% against the listing price of INR2,150. The company's latest market value stood at INR1.07 trillion, translating into approximately USD14.4 billion.

The U.S.-China Economic and Security Review Commission (USCC), in its annual report, called on the U.S. to adopt more aggressive measures to reduce business interactions with China, and to impose restrictions on the U.S. investment in China, for example confining investors to buy Chinese concept stocks listed in the U.S., due to escalated national security risks in the U.S..  The U.S.-China trade is recouping to the level before the U.S. slapped additional tariffs on Chinese imports in 2018; meanwhile, the flow of U.S. capital to China is also increasing, the report mentioned, warning that the two countries’ economic dependence is excruciating.

Overnight HIBOR last posted at 0.05196%, logging a 1-month high, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.08714%, marking a 1-month high.

Andrew Fennell, Senior Director and Lead China Analyst of Fitch Ratings, expressed that the Chinese economy has been facing immense challenges over the past few months, including the small-scaled outbreak of mutated COVID-19 and continued slowdown of the property market. Fitch Ratings forecast that more macro policy easing measures will be rolled out by the Chinese government by the end of the year, including lowering the RRR.
Should the policy adjustment fail to stimulate the market's confidence, the current difficulty in terms of re-financing condition and property sales may persist for a substantial period of time, which would in turn weigh on Fitch's forecast of the growth outlook for 2022, Fennell said. Fitch Ratings contended that the Chinese government is predicted to maintain the broadly active fiscal policy over next year, indicating that the government's liabilities will continue to increase. However, the rating agency remarked that it is not an immediate factor to consider when determining the rating, as the country is merely relaxing the fiscal policy to deal with temporary difficulties induced by the pandemic.

Goldman Sachs (GS.US) Chief Executive David Solomon said in Singapore that the stringent border controls in Hong Kong and China are creating staffing challenges, which are headwinds to retain talents.  Having not been to Hong Kong and China recently, Solomon said he can hardly foresee himself any chances to visit these places in a long time in the future.

HSBC HOLDINGS (00005.HK) Group Chief Executive Noel Quinn has no plan to visit Hong Kong for now, adding he does not wish to put the budding China-Hong Kong border reboot at risk. It is pivotal for the city to resume travel with China, Quinn furthered.  After a 2-week quarantine during his 2020 visit to Hong Kong, Quinn said he would love to return to the city as soon as possible. On another note, JPMorgan CEO Jamie Dimon, who had been exempted from quarantine, claimed the city's entry policy had complicated the group's talent retainment.

Former U.S. Treasury Secretary Hank Paulson said decoupling between American and Chinese economies is impossible, adding a partial decoupling could make the United States, China and the world more prone to financial crises, reported Bloomberg. He suggested mechanisms be established to avoid crises resulted from a partial decoupling.  Separating from China would undermine the U.S. position as a global leader and do harm to American firms' competitiveness, Paulson added.

EVERGRANDE (03333.HK)'s default and the crisis of the Chinese property sector have induced losses of approximately USD10 billion at the ten largest pension and investment funds specializing in Asia, with the largest EVERGRANDE bond exposure among them being about USD1.2 billion, expressed the market information research company DMSA. DMSA believed that, in case of EVERGRANDE's bankruptcy, the abovementioned funds will lose USD9 billion in total year-to-date, without even taking into account the property developers with high valuations which can also be on the verge of insolvency.

The Chinese government expressed that relevant bureau is currently working on the release of the country's crude oil reserves, and that details will soon be announced online, reported Reuters.  The related bureau, however, declined to comment on the reports of the U.S. asking countries such as China and Japan to release their oil reserves to tackle the soaring global energy prices.

Standard Chartered and Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) (TSM.US)  completed the signature of an agreement for a Sustainability-linked Loan facility worth USD2 billion (approximately TWD55.3 billion), under which the bank would offer the Loan to the latter. It is the largest commitment by Standard Chartered to a Sustainability-linked Loan facility across its global network.  The Sustainability-linked Loan facility to TSMC is jointly extended by Standard Chartered in Taiwan, Hong Kong, and Singapore. Standard Chartered will track the related sustainability performance of TSMC in the next two years.

Aras Poon, Associate Director, Corporate Ratings, S&P Global Ratings predicted Macau's 2022 gross gaming revenue (GGR) to hit only 60-70% of the 2019 level, and reach such level as soon as 2023. S&P have made five rating downgrades and revised casinos' outlook to negative YTD. The negative outlook on MGM CHINA (02282.HK), whose owner is facing liquidity risks on this year's acquisition, was the only one tied to a parent company.  Casino firms are actively scaling up non-gambling projects to align with the Government's goal to develop Macau as a tourist hotspot. Therefore, Poon saw no gaming license advantage from local operators over foreign ones, adding these licenses will not put companies at risk.  He also expressed that the cash flows of the gaming companies are stable at the moment and are sufficient to support operation of 18-20 months even in the case of "zero income". Poon, therefore, remarked that there is no immediate liquidity risk for the casinos, even with new project completions.

Synapsor had earlier added Hanxing Venture Capital, the affiliate of Xiaomi, as a shareholder, with a registered capital of approximately RMB1.4276 million, increased from RMB1.1765 million, as Chinese media cited Tianyancha App.  According to the official website of Synapsor, the company was founded by the technical team of the University of Oxford, dedicated in the R&D and manufacturing of AI-powered wearable devices for medical intelligence.  In September this year, Synapsor had received nearly RMB100 million investment from domestic top-tier strategic investment funds.

South Korea's SK Hynix may have to shelve plans to upgrade its China facility for higher memory chip production efficiency, as the U.S. does not want to introduce advanced equipment into China, Reuters citing people familiar with the matter.   SK Hynix antiticaptes to overhaul a Wuxi plant in China with the latest extreme ultraviolet lithography (EUV) machines made by ASML Holding N.V. An American official declined to comment directly on the matter, yet claiming Washington would deter Beijing from utilizing U.S. and allied technologies to develop state-of-the-art chip manufacturing.

China’s Anti-Monopoly Bureau has been formally established in Beijing this morning, located at the same building as the State Administration for Market Regulation (SAMR), The Paper reported.  Prior to this, the State Council had announced the appointment of Gan Lin as the Governor of the Anti-Monopoly Bureau, according to the Ministry of Human Resources and Social Security of the PRC.

EVERGRANDE (03333.HK) intends to lure real estate agencies in Hong Kong to promote sales of "Emerald Bay" in Tuen Mun more quickly with a new commission scheme, as local media cited market sources.  At a recent meeting with local real estate industry, the company reportedly propounded that it will settle a commission for two units with similar prices in previous outstanding payment whenever an agency can sell one unit of "Emerald Bay". The company also promised to settle the related commission within three days.

The Algorithm Application Guidance for Online Marketing Activities by Shanghai Online Trading Platforms (For Trial Implementation) was formulated and published earlier to draw the line for platform operators' compliance, the Shanghai Municipal Administration for Market Regulation revealed.  Under the Guidance, platform operators shall neither practice improper pricing behavior nor provide consumers with unreasonable differential treatments using algorithms.

KAISA GROUP (01638.HK), whose shares are suspended from trading, has sold a residential government land lot in Castle Peak Road, Tuen Mun won last year at $3.5 billion to Francis Choi, the "King of Toys" in HK, for approximately $3.77 billion, reported local media, citing reports of foreign media.  After deducting the amount owed by KAISA GROUP, the group is estimated to realize a net cash inflow of about $1.12 billion through the land disposal, the report added.

HSBC HOLDINGS (00005.HK)  announced that it had repurchased 1.8937 million shares in the London market yesterday (17th), at a price ranging between GBP4.3815 to GBP4.4295, with a volume weighted average price of GBP4.4069, involving GBP8.3452 million (about HKD87.673 million).

Lithium Americas announced the agreement to buy the Vancouver-based Millennial Lithium at a total consideration of US$400 million, representing CAD4.7 per share (payable in stock and CAD0.001 in cash), reported Bloomberg. The takeover is predicted to close in January 2022 pending regulatory approval. In other words, CATL (300750.SZ)  +0.12 (+0.019%)   was defeated in the bidding war for Millennial Lithium.

Kennedy 38, a residential project at 38 Belcher's Street, Hong Kong Island West developed by SHK PPT (00016.HK), Wheelock and HENDERSON LAND (00012.HK), will launch the first log of 130 units this Saturday (20th). Almost 1,100 subscriptions have been received so far, representing an over-subscription of nearly 7.5 times.  The average discounted price was $27,522 per sq.ft. for the first log.

The trading in the shares of CG SERVICES (06098.HK) has been halted from this morning, pending the announcement on the placing of new shares.  It is planning to place 150 million shares, at a placing price of $53.35 per share, representing a discount of 9.5% to its closing price of $58.95 recorded yesterday (17th), reported foreign media, citing sales document. The total proceeds from the placing are estimated to be over $8 billion, the report added.Pre Market News

Chinese exporters of core broadband equipment for 5G networks will face EU duties according to a legal document published on the EU website on Wednesday, reported Bloomberg. The levies will come into force the day after the document is issued in the EU's Official Journal.
The tariffs comprise a 44% duty on imports to the EU from Chinese state-controlled firms like Fiberhome Telecom Tech and Nanjing Wasin Fujikura.

AGILE GROUP (03383.HK) announced that Farsail Goldman, a wholly-owned subsidiary of the Company, would offer convertible bonds in an aggregate principal amount of HK$2.418 billion. The Bonds will be exchanged into as many as 87.9913 million A-LIVING (03319.HK) H shares, representing 6.2% of the issued share capital of A-LIVING upon full exchange of the Bonds.  The Exchange Price of HK$27.48 per Share represents a premium of 20% over the closing price of HK$22.9 per A-Living Share yesterday (17 November), being the date of the Agreement.   The net proceeds to be received by Farsail Goldman from the offering are estimated to be HK$2.37 billion, which will be used for the refinancing of certain existing medium to long term offshore indebtedness which will become due within one year.

TENCENT (00700.HK) reduced 72.16 million shares of HENGTEN NET (00136.HK) at an average price of $1.6368 per share on market yesterday (17th), cashing in approximately $118 million, according to the Stock Exchange's disclosure. TENCENT's shareholding in HENGTEN NET, therefore, dropped to 19.7% from 20.48%. Since November, TENCENT has unloaded HENGTEN NET's stake for the fourth time, grossing cash of over $555 million.

The U.S. government has appealed to the world's largest oil consuming nations including China, India and Japan for releasing their crude oil reserves to curb the soaring global energy prices, reported Reuters, citing sources.

The trading in the shares of CG SERVICES (06098.HK) will be halted from this morning, pending the release by the company of an announcement containing inside information in relation to, among other things, the placing of new shares under the general mandate.

The Financial Secretary, Paul Chan, attended a webinar yesterday (November 17) to update the American business community on Hong Kong's core strengths as an international financial centre, its active role in national development and the ample opportunities for American businesses.  Chan highlighted the long-established relations between Hong Kong and the United States in terms of trade and investment. Through the first three quarters of this year, bilateral trade has grown resoundingly. Exports to the US are up more than 17 per cent, year on year, while imports from the US soared nearly 21 per cent. The US was the sixth-largest source of Hong Kong's foreign direct investment at the end of 2019, and at last count almost 1,300 US companies called Hong Kong home, ranking third behind only the Mainland and Japan.

KAISA GROUP (01638.HK)'s Kaisa Securities clarified that the Company is a licensed institution (CE number: AQD216), strictly regulated by the Securities and Futures  Commission. It places clients' funds in custody in Hong Kong licensed banks' independent accounts according to the Securities and Futures Ordinance. All client assets are thus self-standing and safe without connection to the financial position of Kaisa Securities' parent company.  The Company's securities business is operating normally in Hong Kong without any capital deficiencies.

Certain participants of the "2021 MGS Summit" have expressed during the conference that Macau's border will likely remain open next year to regions where no infection of COVID-19 is found, reported Macao Daily News.  The gaming industry insiders further remarked that, if the travel between Hong Kong and Macau can be fully resumed by March 2022 and the online visa registration for Mainland visitors and operation of travel tours can be resumed by 3Q, Macau's GGR of 2022 could potentially recover to 60% of the 2019 level.

EVERGRANDE (03333.HK) announced that a subsidiary of the company has agreed to sell 1.662 billion shares of HENGTEN NET (00136.HK) held by it to Li Shao Yu, which represent 18% of the issued shares of HENGTEN NET, at a purchase price of HK$1.28 per share (representing a discount of approximately 24.3% to the closing price of HENGTEN NET on 17 November 2021 of HK$1.69 per share).  The total consideration will be HK$2.128 billion. Upon completion of the transaction, EVERGRANDE will cease to hold any shares of HENGTEN NET.

ZTO EXPRESS-SW (02057.HK) (ZTO.US)  announced that, for 3Q21, the revenue amounted to approximately RMB7.39 billion, up 11.3% YoY. Net income, on the other hand, dropped 2.9% YoY to about RMB1.17 billion. The adjusted net income amounted to approximately RMB1.15 billion, down 5.2% YoY. Basic net EPS was RMB1.43  

Li Keqiang, Premier of China's State Council, expressed when attending the World Economic Forum on 16 November that, with the joint efforts of different parties on pandemic-control and prevention and in economic development, the macro economy has managed to retain the growing momentum amid the emerging downside pressures.   China will continue to devise and implement macro economic policies that are tailored to the market's needs and will roll out even more aggressive measures on tax and fee reduction at an appropriate timing to aid SMEs navigate through stormy weather, Li remarked.  As for the issue of energy supply, Li stated that China has adopted a series of measures to strengthen the energy supply security, and that the energy shortages in China have already been alleviated effectively

Trendzone (603030.SH) announced that the Company and its wholly-owned subsidiary Trendzone Decoration together as the plaintiffs, brought lawsuits against China Evergrande Group (as the defendant) and its related member companies across several district courts from 8 October 2021 to 16 November 2021. The plaintiffs asked the courts to order the defendant to pay off construction costs and overdue interests totaling nearly RMB238 million.

DZUG (600635.SH)   announced that, in order to further promote existing and prospective business development, its Dazhong Chuxing intended to introduce BABA-SW (09988.HK) as an investor through capital increase and share expansion.  Accordingly, BABA-SW will invest an aggregate of RMB40 million in Dazhong Chuxing in two phases. Upon capital increase, BABA-SW will hold 10% shares of Dazhong Chuxing.

CHINA CINDA (01359.HK)  announced that the Company shall contribute not more than RMB4 billion to subscribe for not more than 3.921 billion domestic shares of CHINA HUARONG (02799.HK)  in cash. Upon completion, the Company will hold 4.89% of the total share capital of China Huarong.

CHINA HUARONG (02799.HK)  announced the Company considered and approved the proposed non-public issuance of no more than 39.215 billion Domestic Shares and the non-public issuance of no more than 1.96 billion H Shares. The price of the Issuance will be RMB1.02/Share. The total proceeds are no more than RMB42 billion, the net amount of which will be used to replenish the Company’s core tier-1 capital.
Trading in the Shares of the Company has been suspended with effect from 1 April pending the satisfaction of resumption conditions and will remain suspended until further notice.

LOGAN GROUP (03380.HK) announced that it repurchased the 5.75% senior notes due 2022 in the principal amount of US$18.05 million pursuant to the Offer. 
At present, the aggregate principal amount of the 2022 Notes which remain outstanding is US$61.789 million.

SUNAC (01918.HK)  announced that it has completed a top-up placing of 335 million shares of the company 
and the placing of 158 million existing shares of SUNAC SERVICES (01516.HK).  The aggregate net proceeds from the Placing and the Sunac Services Shares Placing amounted to approx HK$7.343 billion (equivalent to approx US$942 million), the announcement added.

HUABAO INTL (00336.HK) announced that it is considering the feasibility of a proposed spin-off and listing of New Generation Global Limited on the
Main Board of The Stock Exchange of Hong Kong Limited. 
The businesses now being considered as the subject matter of the Proposed Spin-off are the production, sales, marketing and distribution of condiment products targeted at customers in the foodservice industry.  The Proposed Spin-off is at a preliminary stage. As of the date of this announcement, particulars of the Proposed Spin-off have not been finalised and no application for the listing has been made to the Stock Exchange.

HKR INT'L (00480.HK) announced the interim result for the six months ended 30 September  2021. The revenue of the period amounted to HK$1.967 billion, down 20.7%  YoY. The net profit likewise slumped 14.4% to HK$508 million. EPS  was HK34.2 cents. An interim dividend of HK3 cents was declared,  against a dividend of HK4 cents for the corresponding period of the  previous year.

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