Oct 18 HK rallies into the close, China closes lower along with much of Asia. T/O light

18 Oct

This and previous notes can be found at  Substack ( Asian Market Sense )
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HSI +79pts (-1.5%) 25,331 HSCEI +117pts (-1.7%) 8,966 T/O HK$126.93bn (-29.3% DoD)  

Markets opened slightly weaker and  trading sideways following the weak China data and with caution ahead of more US earnings this week

US Futures
Opened slightly lower Dow -23pts, S&P -0.1% and NDX -0.2%. They eased back to flat around lunchtime but now Dow -105pts with S&P -0.3% and NDX -0.4% after the weak China data and ahead of a big week for earnings which include Netflix, Johnson & Johnson, United Airlines and Procter & Gamble on Tuesday. Tesla, Verizon and IBM are among the other names on deck for the week.

CHINA CSI 300 closed -57pts (-1.2%) @ 4,875
CSI 300 opened slightly lower and sold down initially to 4,860 level and then traded sideways around there into lunch. PM drifted slightly lower but found support at 4,850 and then worked slightly better into the close.
PBoC drained a further 10b Rmb this morning. The data was weaker than expected and whilst that means that policy may ease investors are not expecting any immediate changes as Govt seems set on re-orientating the economy. F&B weak as Baijiu sector weak as US reduces investment.
Property weak as PBoC says Evergrande containable. Wider sector risk also said to be containable but pre completion buyers are holding back. There is also the widening of Property Tax trial to more areas.
Interesting to note the Northbound net outflows were over US$1bn; the highest for two months
MSCI China A50 MMA Connect Future start trading today. The Top Ten Weighted Stocks: CATL (300750) MOUTAI (600519) LONGI (601012), WANHUA (600309) WLY (000858) LUXSHARE (002475), CMB (600036) BYD (002594) BOE (000725) CTG (601888).

Shanghai Comp -4pts (-0.1%) @ 3,568 T/O US$66,319m (+8% DoD)
Shenzhen Comp +1pts (flat) @ 14,402 T/O US$85,474m (-3% DoD)
ChiNext Comp +21pts (+0.6%) @ 3,482

GDP Growth Rate Q3 4.9% YoY vs 7.9% Q2 (F/cast was 5.1%)
GDP Growth Rate Q3 +0.2% vs +1.3% Q2 (F/cast was 0.4%)
Industrial Production Sept +3.1% vs +5.3% Aug (F/cast was 4.4%)
Retail Sales Sept +4.4% vs +2.5% Aug (F/cast was 2.3%)
Fixed Asset Investment (YTD) Sept +7.3% vs 8.9% Aug (F/cast was 8.1%) Industrial Capacity Utilisation Q3 77.1% vs 78.4% Q2 (F/cast was 78.1%)
Yunnan Province's Health Commission reported that, on 17 October, 6 confirmed COVID-19 cases were recorded, 
all being imported ones; while 3 asymptomatic cases were added, with 2 of them being local asymptomatic infections.
China's National Health Commission reported 24 confirmed cases of COVID-19 yesterday (17th), with 2 of them being local infections, which were both recorded in Xi'an.

Pre market opened @ 25,425 +94pts vs +98pts ADR’s with some Chinese Developers +VE after the containment comments from the PBoC. Tencent, AIA and HSBC +VE but Meituan weak. Ecommerce names turned weaker on news that China said it would strengthen supervision of the internet industry.
PM the market sold down to the day low (25,123) just after 2pm but then rebounded strongly for the rest of the afternoon to close at the day highs but that may have been because volumes were light.
Macau names +VE as mass testing completed and also news that govt rescheduled public consultations on new casino law.
Banks in Focus as PBOC identifies 19 Banks as ‘systematically important’ and have met the additional capital requirements; but still slight -VE.
Zijin +4.2% as earnings beat forecasts.

Hong Kong reported 5 imported covid cases
Data after market
Further to the external merchandise trade statistics in value terms for August 2021 released earlier on, the Census and Statistics Department (C&SD) released today (October 18) the volume and price statistics of external merchandise trade for that month.
In August 2021, the volume of Hong Kong's total exports of goods and imports of goods increased by 18.6% and 21% respectively over August 2020.

SHORT SELLING HSI Monday 20.9% vs 17.8% Friday
Top shorts 
Country Garden (2007) 57%, Ali Health (241) 38%, Hang Seng Bank (11) 37%, Sunny Optical (2382) 35%, Baba (9988) 32%, BoC (HK) 2388) 32%, China Life (2628) 31%, Sands China (1928) 31%, Shenzhou (2313) 31%,  HSBC (5) 30%, BYD (1211) 30%, HK & China Gas (3) 30%, Sino BioPharm (1177) 29%, Hengan (1044) 28%,  CK Asset (1113) 26%, Petrochina (857) 26%, HKEX (388) 25%, BoC (3988) 25%, Xinyi Solar (968) 25%, Haidilao (6862) 25%, Bud Apac (1876) 25%.

EARNINGS at lunchtime 
CHINA STATE CON (03311.HK)  announced that the unaudited group revenue and share of revenue of joint ventures of the group for the nine months ended 30 September 2021 were approximately HK$52.836 billion and HK$935 million respectively while the aggregate amount of unaudited operating profit and the share of profits of joint ventures was approximately HK$8.372 billion, up 18.21% YoY.

The Hong Kong Monetary Authority (HKMA) announced today (18 October) 19 eligible banks in Hong Kong which can launch Cross-boundary Wealth Management Connect (WMC) services. 
These banks, together with their respective Mainland partner banks whose eligibility for providing pilot Cross-boundary WMC services have been confirmed by the relevant Mainland regulatory authorities (to be announced separately by the Mainland authorities today), can start providing Cross-boundary WMC services together tomorrow (19 October) the earliest.
Eligible Mainland banks include (in Alphabetical order):
Agricultural Bank of China Limited,
Bank of China (Hong Kong) Limited,
Bank of Communications (Hong Kong) Limited,
Bank of East Asia (The), Limited,
China CITIC Bank International Limited,
China Construction Bank (Asia) Corporation Limited,
China Minsheng Banking Corp., Ltd.,
Citibank (Hong Kong) Limited,
CMB Wing Lung Bank Limited,
Dah Sing Bank, Limited,
DBS Bank (Hong Kong) Limited, Hang Seng Bank, Limited,
Hongkong and Shanghai Banking Corporation Limited (The),
Industrial and Commercial Bank of China (Asia) Limited,
Industrial Bank Co., Ltd.,
Nanyang Commercial Bank, Limited,
OCBC Wing Hang Bank Limited,
Shanghai Pudong Development Bank Co., Ltd.,
Standard Chartered Bank (Hong Kong) Limited.

Moody's downgraded R&F PROPERTIES (02777.HK)'s corporate family rating (CFR) from "B2" to "B3", with a negative outlook.  
The rating reflected R&F PROPERTIES' liquidity weakness and high refinancing risks due to sizable debt maturing in the coming 6-12 months, as well as weaker access to offshore funds amid tight financing conditions.

The Monetary Authority of Macao announced the list of the relevant Macau banks which have completed the declaration procedures for the "Cross-boundary Wealth Management Connect", remarking that said banks are allowed to officially initiate relevant business from tomorrow (19th). The participating banks of the scheme include Bank of China, Macau Branch; Bank of Communications, Macau Branch; China Construction Bank, Macau Branch; China Guangfa Bank, Macau Branch; CMB Wing Lung Bank, Macau Branch; Industrial and Commercial Bank of China (Macau); and Luso International Banking.

CCB (00939.HK)  announced that on 25 June, the 2020 annual general meeting of the Bank considered and approved the resolution regarding the election of Leung Kam Chung, Antony as independent non-executive director of the Bank. The China Banking and Insurance Regulatory Commission has approved the appointment qualifications of Leung Kam Chung, Antony. Mr. Leung officially takes office as independent nonexecutive director of the Bank and member of each of the Strategy Development Committee, the Risk Management Committee and the Nomination and Remuneration Committee of the board of directors of the Bank.

SMIC (00981.HK)(688981.SH)  expressed on an interactive investor platform that the company is planning to expand the capacity of mature 12-inch wafer by 10,000 units and that of 8-inch wafer by 45,000 units this year, in order to meet the increasing demand from its customers.

Xiao Yaqing, Minister of Industry and Information Technology, met with a delegation led by Tom Linebarger, Chairman of the U.S.-China Business Council, virtually today (18th).  Xiao mentioned the codependency of both Chinese and American companies in the global industrial chain, adding Beijing welcomes U.S. firms to scale up investment in China for deeper and mutually-beneficial cooperation. He anticipated stronger partnership among U.S. firms and the Chinese sectors in NEV, biomedicine as well as next-generation information and communications. Both sides could achieve win-win development if they jointly push for green and low-carbon industrial transformation.

CK ASSET (01113.HK) announced that Li Ka Shing Foundation Limited acquired a total of 527,500 shares 
in CK Asset at the average price of HK$45.1424 and HK$46.2851 per share on 11 October and 15 October 2021 respectively.  As a result, the deemed interests of Li Ka-shing, Victor T K Li and Li Ka Shing Foundation Limited in CK Asset increased from 46.23% to 46.24%; increased from 46.3% to 46.31%; and increased from 11.51% to 11.53%.

ANTA SPORTS-200 (02020.HK) announced that retail sales (in terms of retail value) of ANTA branded products for the third quarter of 2021 recorded low-teens positive growth as compared to the same period of 2020 and mid-teens positive growth as compared to the same period of 2019.

CLP HOLDINGS (00002.HK)  announced that electricity sales in Hong Kong increased to 27,506GWh in the first nine months of 2021, 4.1% higher than the same period a year ago. 
The Board of Directors of the Company declared today (18th) the third interim dividend for 2021 of HK$0.63 per share, flattish YoY.

Chinese authorities are considering asking TENCENT (00700.HK), ByteDance, etc. to let competitors access and display their content in search results, Bloomberg reported.  
China's Ministry of Industry and Information Technology is discussing rules to make articles on Tencent's WeChat app available via Baidu and other search engines, according to sources. The MIIT is also weighing up making short videos from ByteDance's Douyin appear in search results.

Regional Markets
Market opened higher but then sold down into the red for about an hour before rebounding back to 7,380 and then to 7,395 level which was tested a number of times before drifting lower from about 1:30pm into the close; to finish +19pts (+0.3%) @ 7,381
Banks and Energy were strong but weakness in Healthcare
Nikkei opened slightly higher but quickly sold down with 28,950 being a support level and prompted a rebound to 29,144 but shortlived and market sold back down as the weak Chinese data worried investors.   Also of concern will be the election at the end of the month.
But it did then see a small rebound into lunch. PM opened higher but drifted lower before trading sideways to close -43pts (-0.2%) @ 29,025.
Topix similar trading pattern but failed to regain the green. PM traded sideways and closed -5pts (-0.2%) @ 2,019
Auto’s firm as Toyota sets out its new production schedule and Yen continues to weaken.
Energy names and Resources strong.
S Korea 
Foreigners initially sold futres but turned net buyers, Local Institutions sellers and retail buying.
Shipping weak as FT and Bberg run storys on port conjestion
Battery names +VE as SDI reported in talks with Stellantis
Kospi opened slightly +VE but sold down to 2,990 before working better to 3,021 by 1pm but then drifting lower currently -8pts (-0.3%) @ 3,007
Kosdaq initially sold down to 985 and then worked better before easing back to close +3pts (+0.3%) @ 994
Taiex opened higher and tested 16,862 in early trades but then drifted lower in choppy trading bounced off 16,695 to close -76pts (-0.5%) @ 16,706. Old economy names helped by rising oil prices +VE petrochems and textiles. TSMC and other large cap tech saw selling pressure, locking in recent gains. TSMC failed to break above NT$600 and hence many think now in consolidation mode. UMC was -1.2%
T/O Monday was US$9.61bn vs US$10.13bn Friday
CECC reported no new covid cases and no deaths the first time in 193 days.

HK/CHINA Connect Flows
Northbound Rmb 52,698m Sell 29454m vs 23,244m Buy
Southbound HK$ 13,018m Sell 6,865m vs 6,154m Buy
Northbound Rmb 60,844m Sell 31,326m vs 29,518m Buy
Southbound HK$  12,816m Sell   6,001m vs  6,814m Buy

Active Heavyweights
PING AN (02318.HK)  -0.700 (-1.218%)    Short selling $130.39M; Ratio 17.397%    closed at $56.8, down 1.1%
CCB (00939.HK) -0.050 (-0.914%) Short selling $116.85M; Ratio 30.019% closed at $5.43, down 0.7%
BABA (09988.HK) +1.000 (+0.618%) Short selling $557.09M; Ratio 33.531% closed at $162.9, up 0.7%
AIA (01299.HK) -0.350 (-0.399%) Short selling $178.99M; Ratio 19.221% closed at $87.45, down 0.4%
TENCENT (00700.HK) +1.600 (+0.323%) Short selling $880.59M; Ratio 16.411% closed at $497, up 0.3%
MEITUAN (03690.HK) -0.800 (-0.285%) Short selling $542.68M; Ratio 17.909% closed at $280.4, down 0.1%

HSI & HSCEI Constituents on Move:
SUNAC (01918.HK)  +0.840 (+5.290%)    Short selling $137.27M; Ratio 17.878%    closed at $16.72, up 5.3%
WUXI BIO (02269.HK) +5.500 (+5.027%) Short selling $134.62M; Ratio 17.194% closed at $114.9, up 5%
ANTA SPORTS-200 (02020.HK) +5.300 (+4.366%) Short selling $144.53M; Ratio 14.377% closed at $126.8, up 4.4%
BIDU-SW (09888.HK) +6.700 (+4.161%) Short selling $92.21M; Ratio 47.588% closed at $167.7, up 4.2%
SANDS CHINA LTD (01928.HK) +0.560 (+3.353%) Short selling $66.40M; Ratio 31.674% closed at $17.3, up 3.6%
GALAXY ENT (00027.HK) +1.500 (+3.764%) Short selling $33.52M; Ratio 11.160% closed at $41.2, up 3.4%
KUAISHOU-W (01024.HK) -2.550 (-3.009%) Short selling $189.27M; Ratio 20.898% closed at $82.2, down 3%
HENGAN INT'L (01044.HK) -1.350 (-3.121%) Short selling $15.51M; Ratio 28.662% closed at $41.95, down 3%

HSMI & HSSI Constituents on Move:
YUHUA EDU (06169.HK)  +0.790 (+19.128%)    Short selling $41.21M; Ratio 31.576%    closed at $4.91, up 18.9%
YANZHOU COAL (01171.HK) +1.680 (+11.781%) Short selling $52.33M; Ratio 11.505% closed at $15.9, up 11.5%
PACIFIC BASIN (02343.HK) +0.360 (+10.778%) Short selling $7.66M; Ratio 6.480% closed at $3.7, up 10.8%
MOBVISTA (01860.HK) +0.820 (+10.677%) Short selling $251.32K; Ratio 2.611% closed at $8.5, up 10.7%
CANVEST ENV (01381.HK)  +0.350 (+7.830%)    Short selling $197.24K; Ratio 4.452%    closed at $4.82, up 7.8%, hitting new high

Market News
BABA-SW (09988.HK)'s Taobao APP launched a new "senior mode", along with an upgraded medication search function. 
The new "senior mode" offers simplified information, larger fonts and an audio assistant, so as to provide a smoother and more convenient shopping experience for senior users.

The Hong Kong Institute of Human Resource Management (HKIHRM) unveiled the 2021 Pay Trend Survey today (18 October). Hong Kong employees have received an average salary increment of 1% in 2021, narrowing from last year's 1.4%.  
After deducting the inflation rate of 1.4% from January to August, the real base pay adjustment amounted to -0.4%, showing the first negative growth over the decade.   The survey was conducted from January to September 2021. The survey covered 115 institutions from 16 sectors, including some 163,000 staff.  Among those companies that provided data, the projected pay hike for 2022 is 3% on average.

Following the 19.7% annual decline in August, the residential sales of China fell further by 16.9% in September, according to the statistical data prepared by Bloomberg. 
Real estate investment in China has been sliding for the first time amid lockdown of most economies since the pandemic begins early last year, marking a 3.5% annual drop. In analysis, slowdown of real estate market was one of the many resistances in face of China's economic growth. Coupled with the government's containment on developers' leveraging, the liquidity crisis of EVERGRANDE (03333.HK)  was aggravated. The crisis was even spilling over to other companies, prompting buyers to hesitate in home buying.  Qiao Hong, Bank of America's chief economist for Greater China, said that no one is buying a new property now due to fear, foreseeing further downturn in China's economy.

During the "Double 11" shopping festival, users may be able to share their Taobao shopping carts directly on WeChat Moments, reported chinastarmarket.cn.  
Adhering to China's Ministry of Industry and Information Technology (MIIT)'s previous requirement on interconnection between internet platforms, the partnership between Taobao and WeChat is expected to render a shopping experience that is more convenient for the consumers during the first "Double 11" festival after the introduction of the new policy.

HKEX (00388.HK) launched the new A-share derivatives contract, the MSCI China A 50 Connect Index Futures. 
This represents a significant step in the further expansion of HKEX’s derivatives product suite and reinforces HKEX’s role as the go-to marketplace for China trading and investments.
HKEX is now home to the world’s most complete and competitive offshore A-share equity and derivatives trading venue, offering global investors and risk managers a convenient and cost-effective solution to trade and manage their China exposure. To further support the development of the contract, HKEX is also offering a trading fee holiday for the first 6 months of launch.

Zhejiang Geely Holding has expanded its operation to include the manufacture of batteries, motors, IC chips and relevant products, reported Chinese media.  The company was founded in March 2003 with a registered capital of RMB930 million.

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), expressed after attending a Legislative Council meeting that, the HKMA will later release the list of banks participating in the Wealth Management Connect Scheme (WMC), and that scheme will be ready for launch once the relevant preparations for banking system and risk management are completed.  
Responding to recent reports suggesting that the southbound scheme will be initiated earlier than its northbound counterpart, Yue stated the two directions of trading should theoretically be launched simultaneously. However, he added that, as the cross-border travel between Hong Kong and China has not yet been resumed, Hong Kong investors have been unable to set up investment accounts in China in person, thus preventing the launch of northbound investment scheme under the WMC.

The world's top-grossing mobile game in September was miHoYo's Genshin Impact, with more than US$341 million in gross revenue. 31.6% of the title's revenue stemmed from China's App Store, followed by 21.7% from the United States and 21% from Japan. 
TENCENT (00700.HK)'s Honor of Kings was ranked second in the grossing chart, garnering US$209 million in player spending. The Chinese giant's PUBG Mobile was ranked third in the chart.

The name list of banking participants of the Wealth Management Connect is now under approval, 
of which announcement is projected to be made in a few days, said Eddie Yue, Chief Executive of Hong Kong Monetary Authority (HKMA), at the LegCo meeting.

China's thermal coal futures were capped for further hike after surging 11% to last at RMB1,829/ ton, 
logging another historical high.  Coke futures hit the daily limit after rising 9% to RMB4,343.5/ ton.  Regarding coal production, National Bureau of Statistics (NBS) spokesperson Fu Linghui mentions the rather tight coal market supply given impact on certain output capacity release in early stage. The central government attaches great attention to this matter, with a series of measures by relevant departments to stabilize and boost coal supply and production. He believes the tightness will gradually be improved in the next phase.

At the Beijing news conference, KUAISHOU-W (01024.HK) and NBA China announced their multi-year strategic partnership with immediate effect, 
reported Chinese media. Accordingly, KUAISHOU-W will be NBA China's first content re-creation and media partner, official short-video platform, as well as video content creation community.

BABA-SW (09988.HK) is set to be another Chinese tech company with home-grown CPU server following Huawei, reported Chinese media.

BABA-SW completed the tape-out of its Arm server chip in mid-2021, with possible release at the upcoming Apsara Conference, insiders were quoted as saying.  The chip is purportedly made by 5-nanometer process technology, far ahead of similar products from Amazon.com (AMZN.US) and Huawei.

China's per capita disposable income of residents hit RMB26,265 in the first three quarters of 2021, 
a nominal increase of 10.4% over the previous year, according to National Bureau of Statistics (NBS) spokesperson Fu Linghui.

Hong Kong Monetary Authority (HKMA) announced that, over 3Q21, the Exchange Fund has posted an investment loss of $13.2 billion, 
compared to an investment income of $81.2 billion for 3Q20. In particular, the H-share investment loss over 3Q amounted to $26.3 billion, added the announcement.

China's property development investment in the first nine months of this year amounted to approximately RMB11.26 trillion, up 8.8% YoY, 
representing an increase of 14.9% compared to the first nine months of 2019, according to data from the National Bureau of Statistics (NBS).
In particular, the investment on residential properties stretched 10.9% to about RMB8.49 trillion.

David Liao, Co-Chief Executive of HSBC Asia-Pacific, expressed at a forum that the Cross-boundary Wealth Management Connect Scheme in the Greater Bay Area will supply immense opportunities for Hong Kong's development in the coming few decades, 
while also resolving the issue of asset growth bottleneck which China is currently facing. Liao added that Hong Kong's system, such as employing technological means to enhance regulation and cooperation, could likewise serve as a reference for the Greater Bay Area.

Chief Executive Carrie Lam, in a Sing Tao Daily interview, denied the Government's anticipation for public home construction through the land sharing scheme rather than land resumption. She emphasized the Government's multi-pronged measures to build public homes and intention to resume land when necessary.

As an illustration, the Government will build three Wetland Conservation Areas in the Northern Metropolis by exercising statutory power for the first time to resume 2,000 hectares of fishponds and wetlands, involving Nam Sang Wai, Fung Lok Wai, Tai Sang Wai, Hoo Hok Wai, and so on. Lam depicted the move as "thinking outside the box".

Airport Authority Hong Kong (AA) announced that the Hong Kong International Airport (HKIA) handled 227,000 passengers and 13,900 flight movements for September 2021, surging by 127.4% and 32.0%, respectively, from a low base during the same month last year.
During the month, the airport's cargo throughput increased 17.9% to 455,000 tonnes, compared to the same month last year, the announcement added.Hong Kong Chief Executive, Carrie Lam, expressed at a forum that, Hong Kong plays an irreplaceable role in the development of the Greater Bay Area (GBA), and that the GBA will likewise provide immense opportunities for Hong Kong businesses, corporates and citizens.

CLP has been under fuel price surge pressure in the last two months given volatile prices on the global fuel market, mentioned Chong Wai Yan Quince, Chief Corporate Development Officer, at an event. In later time, CLP will discuss with the government the tariff arrangement for next year, and make announcement when appropriate.

Pre Market News 
Hong Kong's Financial Secretary, Paul Chan, attended the China Import and Export Fair in Guangzhou, during which he stated that with the support of China's Ministry of Commerce  (MOC), Hong Kong has reached free trade agreements with 20 economies and is currently striving to join the Regional Comprehensive Economic Partnership (RCEP) as soon as possible, with the aim to open up a larger market space for Hong Kong businesses and investors.

HKEX (00388.HK) CEO Nicolas Aguzin, at the opening ceremony of
Futures Contracts on New MSCI China A 50 Connect Index, remarked that the launch of the first A-share futures contracts in Hong Kong represents a milestone to open up a channel for foreign investors to further tap into China, and also marks the higher degree of internationalization of China.  
The close tie between HKEX and China is pivotal in making HKEX different from other international financial hubs, said Aguzin, who pledged broadening investor base for China market remains the top task of the Exchange.

HAICHANG HLDG (02255.HK) announced that the company applied for its share resumption of trading this morning (18th).  The announcement further added that HAICHANG HLDG has entered into an agreement to sell 100% equity interests in each of the Four Theme Parks Companies and 66% equity interests in the Zhengzhou Project Company to Aquaman Hong Kong Limited, an indirect wholly owned subsidiary of MBK Partners Fund V, L.P., for a consideration of RMB6.53 billion.

Xiao Yaqing, Minister of Industry and Information Technology, said the ministry has put anti-unfair competition efforts into practice by launching a special rectification campaign for the internet sector, aiming to stifle unfair competition, protect users' rights and maintain market order, reported People's Daily.   MIIT will continue to push the special rectification programme, consolidate companies' entity responsibility, and step up oversight and inspection, he added.

Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), previously expressed that the HKMA hopes to launch the Cross-boundary Wealth Management Connect Scheme between October and November. According to industry sources, the project is indeed likely to be launched by late October or early November, reported Hong Kong Economic Journal.  However, the "southbound scheme" and "northbound scheme" may not be initiated at the same time, with the former likely to be launched earlier than the latter, the sources added.

Bank of England Governor Andrew Bailey revealed that, amid the rising
inflation  risk, the bank is prepared for the first interest rate hike since the start of the COVID-19 outbreak.
Bailey contended that he believes the recent inflation to be temporary but the soaring energy prices will likely drive up the inflation rate, thus increasing the risk of higher inflation expectations.
The market forecast that the Bank of England may become the first major central bank in the world to announce an interest rate hike, which is predicted to take place in around late 2021 or early 2022.

The trading in Futures Contracts on New MSCI China A 50 Connect Index (USD) begins today. The spokesperson of China Securities Regulatory Commission voiced support for the launch in Hong Kong, saying such move is conducive in enriching the risk management tools for overseas investors in deploying their A shares, further attracting long-term overseas capital in A-share deployment, as well as cementing Hong Kong's position as an international financial center.

Xiao Yaqing, head of Ministry of Industry and Information Technology (MIIT), has recently expressed that the Chinese government is now laying the groundwork of the "14th Five-Year Plan" for the potential development of the SMEs, 
including perfecting the fair competitive environment, raising the financing accessibility, innovative capability and professionalization levels, etc., reported Xinhuanet.
MIIT will likewise continue to propel the rectification works on the internet industry by further stressing the corporates' social responsibility, so as to forge an internet market environment that is fair, safe and well ordered, Xiao added.

MEITUAN-W (03690.HK) announced that, as of 14 October, the MEITUAN bike ride digital RMB trial point scheme, which was launched a month ago, has attracted over 1 million users to set up personal digital RMB wallets,
and generated 8.8996 million kilometers of green bike riding. This is projected to reduce carbon emission by approximately 2,400 tons compared to driving petrol vehicles.

Recent reports on certain Chinese business activity risks surrounding online brokers like Futu Holdings Limited (FUTU.US) and UP Fintech Holding Limited (TIGR.US) have sparked market concerns.  
Accordingly, China Securities Regulatory Commission (CSRC) and other watchdog are striving to refine relevant regulatory rules and standardize such activities in compliance with the full oversight requirement for all financial activities, as China Securities Journal learnt from those close to regulators.
In addition to information security risks, cross-border online brokers like Futu Holdings and UP Fintech Holding (also known as "Tiger Brokers") are facing other issues such as business commencement without licenses, unfair competition compared with Chinese brokers, and allegedly helping individuals with asset transfer, reported 21st Century Business Herald.
UP Fintech does not mention the acquisition of Chinese financial licenses in its 2021 annual report, despite licenses obtained in the U.S., New Zealand, Australia, Hong Kong, etc., revealed insiders from the Chinese brokerage sector.  On another note, Futu will be required to obtain licenses from relevant regulatory bodies if certain of its activities in China were deemed by regulators as provision of securities brokerage services, investment consulting services and stock options brokerage business in China. This means Futu's long-standing unlicensed operation was because the current regulations do not regard them as a provider of securities investment services in China.

China Securities Regulatory Commission (CSRC) and public prosecutors are plotting special enforcement programmes to strictly clamp down on securities violations and crimes centering on 19 material and typical cases. 
There are eight cases involving illegal disclosure of significant information, such as years of financial fraud by some bond issuers and listed companies.  Equally, there are nine cases tied to malicious market manipulation and two related to insider dealing.

Chinese property developers which have overseas operations are experiencing steeper price slump in their USD bonds, in wake of bond defaults of some of their peers, said Zou Lan, 
Director of the Financial Market Department of the People's Bank of China, at the 3Q21 Financial Statistics Conference, who viewed the USD bond price slump is a natural results of defaults.  Zou stressed that the Chinese authority will prompt companies and their shareholders to strictly follow the market discipline and regulations, and resolve their debts properly pursuant to marketization and legalization principles.

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