This and previous notes can be found at Substack ( Asian Market Sense )
Check out ERI-C.com for your research needs. There is a webinar by PRC Macro Advisors today outlining their Top 5 Economic Predictions for 2022; let me know if you are interested.
HSI -300pts (-1.2%) 24,651 HSCEI -102pts (-1.1%) 8,827 T/O HK$129.86bn (unch DoD)
HK/CHINA Connect Flows
Northbound Rmb 46,717m Sell 22,060m vs 24,657m Buy
Southbound HK$ 13,020m Sell 6,912m vs 6,108m Buy
Northbound Rmb 60,053m Sell 28,713m vs 31,339m Buy
Southbound HK$ 14,868m Sell 7,815m vs 7,053m Buy
Markets opened lower and trending lower following a weak Asia as inflation concerns prevail.
Flash PMI data slightly better than expected but concerns about the resurgence in covid cases -VE for sentiment.
Thyssenkrupp weak after a report that Swedish activist fund Cevian will place a 6.9% stake in the company. Belgian real estate company Cofinimmo opened higher.
Earnings come from Severn Trent, Compass and Kingfisher.
Manufacturing PMI Nov 58.6 vs 58.3 Oct (F/cast was 57.5)
Services PMI Nov 56.6 vs 54.6 Oct (F/cast was 54)
Composite PMI Nov 55.8 vs 54.2 Oct (F/cast was 53.7)
Manufacturing PMI Nov 57.6 vs 57.8 Oct (F/cast was 56.9)
Services PMI Nov 53.4 vs 52.4 Oct (F/cast was 52)
Composite PMI Nov 52.8 vs 52 Oct (F/cast was 51)
Manufacturing PMI Nov 54.6 vs 53.6 Oct (F/cast was 53)
Services PMI Nov 58.2 vs 56.6 Oct (F/cast was 55.7)
Composite PMI Nov 56.3 vs 54.7 Oct (F/cast was 54)
UK Flash PMI data to come later
Opened flat Dow +40pts, S&P and NDX +0.1% but now Dow -33pts with S&P and NDX flat.
AHEAD Redbook, Flash PMI’s (Manufacturing, Services & Composite), Richmond Fed Manufacturing Index, Manufacturing Shipments Index and Services Index.
Earnings HP, Dell Technologies, Abercrombie & Fitch, Best Buy, Nordstrom, Gap, VMWare, Cracker Barrel, American Eagle Outfitters, Dick’s Sporting Goods, Pure Storage, AutoDesk, Dollar Tree, JM Smucker.
CHINA CSI 300 closed +1pts (flat) @ 4,913
CSI 300 opened higher and tested 4,930 in early traded then dipped to flat before working better to 4,922 at lunch. PM opened lower and initially traded sideways but sold off mid afternoon to 4,907 before working better to close flat. Individual indexes displayed different traits today with no clear themes except that new energy and energy saving stocks were favoured.
Leaders Steel and Miners
Laggards Leisure and Agri
Shanghai Comp +7pts (+0.2%) @ 3,589 T/O US$72,699m (-1% DoD)
Shenzhen Comp -56pts (-0.4%) @ 14,905 T/O US$112,885m (-4% DoD)
ChiNext Comp -8pt (-0.2%) @ 3,786
Pre market opened @ 24,689 -262pts vs -106pts ADR’s with early margin selling too. Ecommerce leading the declines on fears of more regulation but Developers and Consumer Discretionary weak also weak on higher interest rates ahead. Energy names +VE; coal +VE as govt says prices and output to remain stable at a reasonable level but -VE for IPP’s. China Property and Steel +VE as banks told to make more loans available to the sector.
Kuaishou (1024) weak ahead of earnings but Xpeng (9868) +VE
Market effectively trading sideways around 24,700 although it did spike to test 24,800 ahead of lunch but sold back down. PM opened lower and traded sideways around 24,645 with a small uptick into the close.
HONG KONG DATA
CHP reported 6 additional confirmed cases of covid, all imported with 5 involving mutant strains
SHORT SELLING HSI Tuesday 19.5% vs 19.5% Monday
Top shorts Country Garden (2007) 58%, PingAn (2318) 49%, HSBC (5) 46%, China Res Land (1109) 40%, SHKP (16) 40%, BoC Hong Kong (2388) 39%, Bud APAC (1876) 38%, Hang Seng Bank (11) 37%, Galaxy Ent (27) 33%, Mengniu Dairy (2319) 32%, Henderson Land (12) 30%, Ali Health (241) 30%, Shenzhou (2313) 29%, Anta (2020) 28%, CG Services (6098) 28%, Hengan (1044) 27%, Petrochina (857) 27%, CM Bank (3968) 26%, China Life (2628) 25%, Longfor (960) 25%, CKI (1038) 25%,China Overseas (688) 25%, Sunny Optical (2382) 25%.
AFTER MARKET NEWS
LONGFOR GROUP (00960.HK) is looking at a spin-off listing for its property management business in Hong Kong to raise a maximum of US$1 billion, Bloomberg cited people with the knowledge of the matter. In talks with CICC, HSBC and JP Morgan, LONGFOR GROUP will conduct the IPO as early as the first half of next year. As discussion is still ongoing, the specific time and raising scale may change.
XIAOMI-W 3Q Non-IFRS Adjusted NP Up 25.4% to RMB5.176B, In Line. It also announced that its operating system MIUI registered over 500 million monthly active users (MAUs) in the world. While China added 18.65 million MAUs year to date, the world added 100 million.MTR CORPORATION (00066.HK) announced the extension of a special fare concession for another six months until end June 2022. The Corporation will bear over $200 million out of additional resources for this extension of special fare concession. MTR fares have been reduced by 1.85% since 27 June 2021, coupled with the Corporation’s topping up the committed rebate for every trip under the Fare Adjustment Mechanism (FAM) to 3.8% for six months from the same day, the announcement added.
Binance is in talks with sovereign wealth funds about them buying into the cryptocurrency exchange, in addition to fundraising for its U.S. affiliate before listing, as Binance chief executive Zhao Changpeng told Financial Times. The exchange is facing increasing pressure from the watchdog this year, claimed Zhao, who found such investment from sovereign wealth funds conducive to improving relationships with governments from various countries.
As of the week ended 19 November, cryptocurrency products and related funds have recorded a capital inflow of USD154 million, according to data from the digital asset management company CoinShares. The aggregate capital inflow into the crypto sector YTD has amounted to USD9.2 billion, surpassing the total amount of capital inflow of last year at USD6.7 billion. Bitcoin reclined after posting the record new high of USD69,000 on 10 November, according to data from coindesk. The cryptocurrency last posted at USD55,977.56, down 2.7%.
CHOW TAI FOOK (01929.HK) announced that the Group’s revenue rose by 79.1% yearly to HK$44.186 billion for the six months ended 30 September 2021. Net profit grew by 60.4% annually to HK$3.581 billion, while earnings per share was HK$0.36. An interim dividend per share of HK$0.22 was declared, against HK$0.16 in the same period last year.
KUAISHOU-W (01024.HK) announced the results for the third quarter ended September 30, 2021. The loss narrowed to RMB7.087 billion from RMB29.28 billion in the same period last year. Based on non-IFRS measures, adjusted net loss amounted to RMB4.822 billion, against loss of RMB962 million a year ago. Adjusted EBITDA was negative RMB3.38 billion, against positive RMB326 million a year ago.
BABA-SW (09988.HK)'s Taocaicai announced that it will provide 20 million catties of pork at an affordable price for the market through 130 pig-breeding bases. Taocaicai further expressed that it will endeavor to alleviate the volatile prices in the pork market through introducing a "pork futures" model. The pork sales volume in China has stretched by 80% MoM in China in November.
XIAOMI-W (01810.HK) will open 51 Mi-Home stores simultaneously in Henan on the coming Saturday (27th), announced Thomas Wang, Redmi's product director. As of October 2021, the number of Mi-Home stores has reached 10,000. Lu Weibing, partner and president of the China region for the Xiaomi group, revealed that the group is targeting to expand the number of Mi-Home stores to 20,000 over the next two to three years.
The Buildings Department approved 17 building plans in September, with six on Hong Kong Island, one in Kowloon and 10 in the New Territories. Of the approved plans, nine were for apartment and apartment/commercial developments, one was for commercial development, five were for factory and industrial developments, and two were for community services developments.
ByteDance, the parent company of Douyin, achieved an advertising revenue of about RMB115 billion in 1H21, realizing a double-digit growth, close to meet the original target, 36kr.com cited sources.
In terms of input from e-commerce industry, BABA-SW (09988.HK) -4.100 (-2.991%), JD-SW (09618.HK) and Pinduoduo (PDD.US) exhausted about RMB19-20 billion of annual ad fee in ByteDance in 1H21. However, stepping into 3Q21, ByteDance registered freefall in advertising revenue. ByteDance's full-year advertising revenue was next to zero growth YoY, if deducting the boost from e-commerce businesses, sources said.
CLOUD VILLAGE (09899.HK), a spin-off from NTES-S (09999.HK), has already secured sufficient amount of subscriptions on the first day of the IPO period, reported foreign media. CLOUD VILLAGE is offering 16 million shares globally, with 10% being the Hong Kong public offer section and the remaining 90% being the international offer section. The offer price ranges $190-220. The company is expected to go public on 2 December.Regional Markets
Market tested higher in early trades with Energy names and Miners +VE (Fortescue closed +9.8%) but Gold names weak. Worked better for most of the day to close just off the day high +58pts (+0.8%) @ 7,411
Powell’s re-nominated seen as good for Financials but Tech and Comms in the red; on the expectation of a higher interest rate environment ahead. PMI data inline with expectations +VE.
Woodside +3.3% & BHP +3.9% on news of the Scarborough field LNG project, with Woodside to absorb BHP’s petroleum assets.
Afterpay -5.4%, Xero -3.5%, WiseTech -5.6%, and EML Payments -5.6%. Bapcor -9.6% after its founder and chief executive announced his departure. Telstra hit a four-year high of $4.09 before closing at $4.07.
For interest Macquarie Group’s market capitalisation is now $2 billion bigger than ANZ Banking Group suggesting there is now a Big Five banks except that ANZ and Westpac are seeing their market cap dropping; raising a question over the ‘Big’
Manufacturing PMI Nov 58.5 vs 58.2 Oct (F/cast was 58.5)
Services PMI Nov 55 vs 51.8 Oct (F/cast was 54)
Composite PMI Nov 55 vs 52.1 Oct (F/cast was 55)
Markets closed, Labour Thanksgiving Day re-open Wednesday.
The USD is getting stronger on the expectation of the Fed's earlier-than-anticipated rate hike, after Jerome Powell was re-nominated as the Fed chairman. As a result, USD/JPY surged to 115 for the first time since March 2017. JPY has depreciated over 10% YTD, becoming the worst-performing one among the G-10 currencies.
Foreigner still net buying with focus on Tech. Local Institutions net sellers. Pharma weak with selling by both.
Kospi futures were indicating higher but it opened flat and sold down despite good Consumer Confidence and the rally in Semicons. Initial support at 3,005 but then dipped lower below the important 3,000 level to find solid support at 2,995 level, retested 3,000 but closed -15pts (-0.5%) @ 2,997
Kosdaq opened lower saw an early bounce but then sold down to traded around 1,017 before selling down into the close -19pts (-1.8%) @ 1,014
Laggards Pharma, Autos, Games/NFT’s (rumours they’ll be taxed)
Leader Steel (China Property sector hopes), Insurance
Samsung expected to choose Taylor Texas for new plant.
Celltrion weak Financial watchdog to investigate alleged fraud.
Hanssem strong on share buyback news and dividend news.
Taiex opened lower and tested down to 17,700 before finding support. Bounced and traded 17,680/740 but then sold down at the end to close -137pts (-0.8%) @ 17,666.
Broad weakness as China fines Foxconn for supporting Taiwanese independence.
Laggards Semiconductors, Electronic parts, Optoelectronics
Leaders Materials, Shipping, Chemicals
T/O was US$11.29bn vs US$11.26bn Monday
CECC reported 7 new covid cases all imported
A U.S. warship sailed through the Taiwan Strait on Tuesday, marking the 10th time an American military vessel has transited through the narrow waterway separating Taiwan and China after President Joe Biden took office in January.
MEITUAN (03690.HK) -7.000 (-2.555%) Short selling $234.36M; Ratio 11.387% closed at $265.4, down 3.1%
BABA (09988.HK) -3.800 (-2.772%) Short selling $594.33M; Ratio 19.467% closed at $133, down 3%
TENCENT (00700.HK) -12.200 (-2.468%) Short selling $990.55M; Ratio 19.619% closed at $481.2, down 2.7%
HKEX (00388.HK) -5.200 (-1.123%) Short selling $175.81M; Ratio 25.755% closed at $457.8, down 1.2%
PING AN (02318.HK) +0.100 (+0.174%) Short selling $270.15M; Ratio 54.939% closed at $57.6, up 0.2%
HSI & HSCEI Constituents on Move:
EVERG SERVICES (06666.HK) +0.340 (+8.374%) Short selling $2.05M; Ratio 1.558% closed at $4.4, up 8.4%
EVERGRANDE (03333.HK) +0.180 (+6.545%) Short selling $10.28M; Ratio 9.318% closed at $2.93, up 6.5%
LI NING (02331.HK) -4.950 (-5.308%) Short selling $115.94M; Ratio 17.621% closed at $88.2, down 5.4%
JD LOGISTICS (02618.HK) -1.650 (-5.518%) Short selling $59.90M; Ratio 34.360% closed at $28.3, down 5.4%
ANTA SPORTS (02020.HK) -6.800 (-4.982%) Short selling $169.94M; Ratio 34.154% closed at $130, down 4.8%
HENGAN INT'L (01044.HK) +1.650 (+4.302%) Short selling $21.50M; Ratio 30.851% closed at $40, up 4.3%
ALI HEALTH (00241.HK) -0.380 (-4.274%) Short selling $41.76M; Ratio 36.418% closed at $8.51, down 4.3%
WUXI BIO (02269.HK) -4.400 (-4.163%) Short selling $132.13M; Ratio 11.189% closed at $101.3, down 4.2%
CHINA FEIHE (06186.HK) -0.440 (-3.774%) Short selling $6.67M; Ratio 7.070% closed at $11.24, down 3.6%
HAIDILAO (06862.HK) +0.660 (+3.599%) Short selling $31.18M; Ratio 8.948% closed at $19, up 3.6%
CK ASSET (01113.HK) +1.650 (+3.595%) Short selling $12.22M; Ratio 6.898% closed at $47.45, up 3.4%
TECHTRONIC IND (00669.HK) -5.800 (-3.372%) Short selling $60.20M; Ratio 30.123% closed at $166.2, down 3.4%
HSMI & HSSI Constituents on Move:
SCHOLAR EDU (01769.HK) +0.350 (+24.306%) Short selling $14.60K; Ratio 0.165% closed at $1.81, up 25.7%
HENGTEN NET (00136.HK) +0.680 (+23.448%) Short selling $51.86M; Ratio 2.447% closed at $3.63, up 25.2%
HUABAO INTL (00336.HK) +3.150 (+15.750%) Short selling $27.27M; Ratio 7.730% closed at $23, up 15%, hitting new high
ZAI LAB (09688.HK) -82.000 (-12.557%) Short selling $1.73M; Ratio 14.265% closed at $568.5, down 12.9%
WISDOM EDU INTL (06068.HK) +0.140 (+11.667%) Short selling $25.00K; Ratio 1.108% closed at $1.33, up 10.8%
SKYWORTH (00751.HK) -0.660 (-11.661%) Short selling $29.81M; Ratio 6.768% closed at $5.05, down 10.8%
OPPO plans to roll out electric vehicles in India roughly between late 2023 and early 2024, without concrete information so far. It is unclear whether the Chinese company will team up with third-party carmakers or outsource the components and assemble the EVs in-house.
Barclays held an optimistic view on the outlook of RMB while anticipating USD/RMB to reach 6.3 by 1H22, stated the bank's chief China economist, Chang Jian. Chang also added that the People's Bank of China (PBOC) may step in to regulate the recently arising issue of the one-sided speculative capital inflow into RMB in the next few days or weeks. Given the normally relatively cautious outlook on China's economic activity during the winter season, continued deceleration of the property market, pressures on achieving carbon reduction goals and the government's "zero case" policy, Barclays ramped down China's 4Q21E economic growth to 2.8% and the 2022E economic growth to 4.7%, which were below the market consensus, Chang remarked.
Tmall Hong Kong announced that over 5,000 brands have participated in this year's Tmall Double 11 Global Shopping Festival, with the number of DAUs, number of merchants, transaction value and transaction volume all recording respective new highs.
In particular, the average daily consumption power during the period was over 10x higher than that of the normal period, the announcement added.
China is toughening up the approvals for quant hedge funds, Bloomberg cited sources. Such move indicated that such funds have worried the Chinese authority in the potential market impact of trading led by algorithms after a year of brisk asset expansion.
The Asset Management Association of China, responsible for the approvals of the related funds, has been closing fast track approvals for at least some fund companies in recent weeks, the report said.
The Chinese government may impose data tax on big internet companies and other platform developers to meet the "common prosperity" target, reported Nikkei. Platforms possessing tons of user information should give back 20%-30% of their revenue obtained through data to society, said former Chongqing Mayor Huang Qifan at the annual Bund Summit.
Greenland stripped General Nice of its license to an iron ore deposit near the country's capital Nuuk, given inactivity at the project site. Greenland will issue licenses to other companies once the Chinese coal and iron ore importer hands back the permit.
Back in 2015, General Nice took control of the Isua mine project and replaced London Mining, previous owner of the project who went bankrupt.
BIDU-SW (09888.HK) announced that it has authorized the French biopharmaceutical company Sanofi to leverage its mRNA sequence algorithm to develop and design vaccines and other therapeutics, marking the first time which BIDU-SW has formed a business alliance of such nature with a major international pharmaceutical company.
CHINA HUARONG (02799.HK) has reached a share subscription agreement with five state-owned strategic investors led by CITIC Group, so as to raise no more than RMB42 billion to replenish the capital of the group, reported S&P Global Ratings. The company has likewise announced on the same day that it is mulling to sell its stakes in Huarong Xiangjiang Bank and China Huarong Financial Leasing, which was viewed as a move that is beneficial to improving CHINA HUARONG's capital adequacy level and leverage ratio, expressed the rating agency. Taking into account the capital injection and asset disposal plan, S&P forecast that the gearing ratio of CHINA HUARONG's non-banking business will be maintained at within 12x, while its capital adequacy rate will reach 12.5% after the capital injection, which would meet the lowest regulatory requirement.
Deloitte China announced that it will invest HKD1 billion over the next three years into the transformation of its Hong Kong practice, as part of the firm's new strategic initiative – Inspire HK – to sharpen its strategic focus, strengthen its multidisciplinary capabilities, and enhance talent development to capture growing opportunities locally and in the Greater Bay Area (GBA).
Beijing Xiaomi Mobile Software Co.,Ltd. has obtained the patent for its "unscrewed camera module and terminal" today (23rd), according to Chinese media. The unscrewed camera module is geared within the terminal, and hence does not occupy the terminal display space, realizing a full-screen design, the report said.
Overnight HIBOR last posted at 0.0525%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.09741%, up for 6 days, marking a 1-month high.
KAISA GROUP (01638.HK) has yet to settle at least part of the USD88.4 million interest payments which were due on 11 and 12 November, reported Bloomberg News. Sources suggested that some of the offshore bondholders are already trying to seek advice from bankers at Moelis & Co and lawyers at Kirkland & Ellis, in relation to the relevant matter.
An RMB78-million trust loan was issued by CHINA AOYUAN (03883.HK)'s Zhuhai Trade Zone Qiheng Logistics and guaranteed by Aoyuan's onshore subsidiary, REDD citing sources. However, Aoyuan and its arms merely transferred RMB12 million to the trustee, having defaulted on the remaining RMB66-million amount on 12 November.
SWS MU Fund Management (as the trustee) sent a letter to Aoyuan and its wings to push repayment, while kicking off legal process to retrieve the unpaid amount, sources said.
KOOLEARN (01797.HK) Chairman Michael Yu purchased the shares of the company three times over the past week, according to disclosure information from the Stock Exchange. Yu purchased 6 million shares on 15 November; 1.429 million shares on 17 November, for $9.927 million, with an average price of $6.947 per share; and 2.143 million shares on 18 November, for $15.067 million, with an average price of $7.031. After the transactions, Yu's stake in the company increased from 4.03% to 4.98%. As a result, the share price of KOOLEARN surged over 10%; last posted at $9.36.
The group of mainland Chinese experts inspecting Hong Kong's pandemic control efforts suggested that Hong Kong may need to scale up the pandemic control and prevention measures at its international airport, including reviewing the quarantine-exemption arrangements for aircrew, so as to facilitate the quarantine-free travel resumption between China and Hong Kong, reported South China Morning Post, citing people familiar with the matter.
JD-SW (09618.HK) and GREATWALL MOTOR (02333.HK)'s Saloon high-end sub-brand entered into a strategic cooperation agreement at Auto Guangzhou, pursuant to which both sides will provide their own technologies, products, and services and warranty with competitive edges, based on the principles of "market-led, technologically-leading, innovation-driven with mutual benefit and win-win cooperation".
Accordingly, they shall reach multi-dimensional and thorough team-up in vehicle customization, auto ecosystem co-building, procurement and sales services and other fields to shape a new "Auto + Internet" ecology.
Travel Industry Council of Macau laid out their optimistic forecast that the daily footfall in Macau may maintain at over 20,000 in November, and even shatter above 30,000 in December, Macao Daily News reported. The travel association attributed their optimism to numerous large events to be held at the end of the year, for example Macau Grand Prix, Macao Light Festival, and more. Besides, the relaxed requirement on NAT proof to seven-day validity for Zhuhai tourists entering via Zhuhai-Macau ports will certainly help boost tourists.
Hong Kong's Chief Executive Carrie Lam told media that the Hong Kong government has been notified by the Hong Kong and Macau Affairs Office (HMO) yesterday (22nd) that a second meeting with the Chinese experts will be held this Thursday (25th) to discuss the border reboot between China and Hong Kong. Lam, however, expressed that Hong Kong still needs to lift the vaccination rate by a substantial extent and that the potential travel resumption between China and Hong Kong will be carried out under the circuit breaker mechanism and limited quota system.
The U.S. private equity firm, Warburg Pincus, is in talks for a potential acquisition of a minority stake in CEB BANK (06818.HK)'s wealth management unit, reported Bloomberg News, citing sources. The value of the shares involved in the deal may worth USD300-400 million, indicating that the related unit of CEB BANK could be valued at approximately USD1.5-2 billion.
Moody's lowered CHINA AOYUAN (03883.HK)’s corporate family rating (CFR) from "B2" to "Caa2", while downgrading the senior unsecured rating on bonds issued by the group from "B3" to "Caa3". The developer's outlook was brought down from "ratings under review" to "negative". The downgrade indicated China Aoyuan's increasing liquidity and refinancing risks given weaker funding access and massive maturing debt in the coming 6-12 months. The negative outlook implied uncertainties from China Aoyuan's ability to pay off all debt maturities in the next 6-12 months.
NEW WORLD DEV (00017.HK) is exploring plans to offer subsidized homes to eligible buyers at prices below the market level, reported Bloomberg. The project is expected to be led by "New World Build for Good", a non-profit organization under the group. However, it is unclear how much cost will be borne by the social housing enterprise, and whether the government or other developers would play a part.
Pre Market News
Chinese watchdog has recently notified some banks and asked them to issue more loans to real estate developers for project development, in a bid to ease liquidity pressure in the sector and ensure positive growth in outstanding project development for November from that in October, Reuters citing sources. China has yet to publicly announce the relaxation of the "three red lines" requirements, sources said. However, lenders have recently tweaked their lending practices to indicate the latest PBoC guidance of "meeting normal financing needs in the industry", while sticking to the "homes are for living in, not for speculation" principle.
Macau's Novel Coronavirus Response and Coordination Center announced that, for the purpose of pandemic control and prevention, all persons coming to Macao from Hong Kong must, upon boarding a mode transport bound for Macao, present a proof of negative result for COVID-19 nucleic acid test that complies with the requirements of the health authorities and valid for 72 hours from the day after the day of sampling. The new measure will take effect from 1:00 am today (23rd).
Also, the center emphasized that persons who have visited Hong Kong within 14 days prior to their entry to Macao will still be subject to quarantine measures and medical observation.
HSBC HOLDINGS (00005.HK) announced that it repurchased 2.1483 million shares of the company in the London market last Friday (22nd), at a price ranging between GBP4.319 and GBP4.3775, with a
volume weighted average price of GBP4.3564, involving GBP9.359 million (around HKD97.72 million).
VANKE OVERSEAS (01036.HK) announced that Vanke Hong Kong Investment Company Limited (an indirect wholly-owned subsidiary of the Company) would acquire the entire equity interests and loans of Enigma Company Limited from Oceanic Jade Limited (a subsidiary of VPHK, which is in turn a controlling shareholder of the Company), at a consideration of HK$853 million. Enigma Company Limited holds the property at No. 221-233 Yee Kuk Street, Sham Shui Po, collectively with a site area of approximately 7,420 square feet for residential or commercial uses. The Group intends to develop the Property into a residential-based project. It is expected that sales of the residential units built on the property would contribute income to the Group from the second half of 2024.
Almost 2.8 billion or 21.13% shares of EVERGRANDE (03333.HK) were transferred into the position of Haitong International last Friday (19th), making the latter's shareholding in the company rise to 3.305 billion or 24.93% shares from about 505 million or 3.8% shares, as revealed by the record of the CCASS. That batch of transferred shares were valued at over $7.8 billion, based on the closing price of $2.8 of each EVERGRANDE share on 17th. So far, only Hui Ka Yan and his wife have been holding over 2.8 billion shares. Market believed that the position rollover into Haitong International was in fact from Hui Ka Yan.
The Hong Kong government announced that the COVID-19 testing arrangement for persons arriving at Hong Kong will be adjusted from today (23rd) onwards. Nucleic acid tests with deep throat saliva specimen will no longer be accepted. Under the new arrangement, the persons who arrive at Hong Kong on or after November 23, 2021 must attend a Community Testing Centre to undergo testing with combined nasal and throat swabs, the announcement added.
China's State Administration for Market Supervision (SAMR) announced the great importance attached to the purchase and sale of counterfeit inspection and test reports on some online trading platforms, hence plotting and launching special rectification campaigns to clamp down on these illegal practices nationwide.
Particularly, online trading platforms were urged to verify the qualification of operators, consolidate deceptive advertising and promotion information, and to strictly probe into such illegal behaviors in order to full protect consumers' rights and interests and safeguard a fair and orderly market environment.
KAISA GROUP (01638.HK) released the repayment plan for the wealth products provided by Kaisa Finance, announcing that the payment of principals and interests for said products will be gradually settled in an installment repayment method. KAISA GROUP expressed that it is currently actively disposing the group's assets for the purpose of repaying the principals and interests of relevant wealth products.
YUEXIUTRANSPORT (01052.HK) announced that the final offer price
of the REIT was determined at RMB7.1 per Unit. Based on the Final Offer Price, the total amount of gross proceeds from the Public Offering was approximately RMB2.13 billion.
CHINA RES LAND (01109.HK) announced that the Company and CHINARES CEMENT (01313.HK) entered into the Agreement of Intent pursuant to which the Company will sell a total of 91 units in the Runqi Technology Mansion located at Luohu District, Shenzhen, with a total planned gross floor area of around 26,726 square metres. The property is intended to be used as office premises of CHINARES CEMENT. The cash consideration will be RMB810 million (equivalent to approximately to HK$988 million).
LUK FOOK HOLD (00590.HK) expects the profit attributable to equity holders to increase significantly by around 120% for the six months ended 30 September 2021 as compared to that of the corresponding period in the last year. This is mainly attributable to a relatively low base, gradually recovering market sentiment, satisfactory expansion of the licensing business in Mainland China together with the favourable gold sales benefiting from the drop in gold prices. The retail business in Hong Kong and Macau market had a turnaround from loss, and all businesses in Mainland China market performed well.