Oct 22 HK/CHINA Close higher but off highs volumes remain light

22 Oct

HSI +109pts (+0.4%) 26,127 HSCEI +83pts (+0.9%) 9,357 T/O HK$124.33bn (-16% DoD)  

HK/CHINA Connect Flows
Northbound Rmb 50,159m Sell 21,474m vs 28,685m Buy
Southbound HK$ 12,861m Sell 6,783m vs 6,079m Buy
Northbound Rmb 55,789m Sell 24,910m vs 30,879m Buy
Southbound HK$ 11,908m Sell 5,551m vs 6,357m Buy

Market opened higher and saw some initial choppy but upward trending moves with some relief over the Evergrande payment but caution ahead of earnings with Renault, Banco Sabadell, the London Stock Exchange and InterContinental among those reporting.
Eurozone PMI was at a 6 month low.
L’Oreal strong mid-morning after announcing better-than-expected third-quarter growth.
Flash PMI
Composite Oct 54.3 vs 56.2 Sept (F/cast was 55.4)
Manufacturing Oct 58.5 vs 58.6 Sept (F/cast was 57.5)
Services Oct 54.7 vs Sept 56.4 (F/cast was 55.5)
Flash PMI
Composite Oct 54.7 vs 55.5 Sept (F/cast was 54.7)
Manufacturing Oct 53.5 vs 58.4 Sept (F/cast was 57.1)
Services Oct 56.6 vs 56.2 Sept (F/cast was 55.1)
Flash PMI
Composite Oct 54.7 vs 55.3 Sept (F/cast was 54.9)
Manufacturing Oct 53,5 vs 55 Sept (F/cast was 54.4)
Services Oct 56.6 vs 56.2 Sept (F/cast was 55.5)
Gfk Consumer Confidence Oct -17 vs -13 Sept (F/cast was -14)
Retail Sales Sept -0.2% MoM vs -0.9% Aug (F/cast was +0.5%)
Retail Sales Sept -1.3% YoY vs 0% Aug (F/cast was -0.4%)
Retail Sales ex Fuel Sept -0.6% MoM vs -1.2% Aug (F/cast was +0.5%)
Retail Sales ex Fuel Sept -2.6% YoY vs -0.9% Aug (F/cast was -1.6%)
Flash PMI
Composite Oct 56.8 vs 54.9 Sept (F/cast was 54.2)
Manufacturing Oct 57.7 vs 57.1 Sept (F/cast was 55.9)
Services Oct 58 vs Sept 55.4 (F/cast was 54.7)
US Futures
Opened Dow -26 points. S&P 500 futures -0.3% and Nasdaq 100 futures - 0.5% but improved to Dow +18pts but S&P and NDX still slightly -VE
Ahead Flash PMI, Baker Hughes Oil Rig Count
Earnings: Honeywell, American Express, Schlumberger, Regions Financial, Roper, VF Corp, HCA Holdings, Seagate Technology

CHINA CSI 300 closed +32pts (+0.6%) @ 4,960
CSI 300 opened higher and traded mostly 4,940/50 before spiking into lunch at +43pts (+0.9%) @ 4,971. PM tested to 4,990 but lacked momentum and eased back to trade around 4,960 for the last hour.
Offshore investors bargain hunting; especially in tech as policymakers indicate a timeline for wrapping up the regulatory tightening. Property strong as CIBRC says Evergrande situation will not impact the wider sector. F&B and Home Appliance names seeing interest too. Huawei and SMIC strong as Reuters reported them getting $100bn of technology licences.
PBoC injects another 90b yuan into the system. But Coal weak as NDRC meets with Miners and tells them to set reasonable prices as it seeks to address the power shortage. Travel weak on reports of more covid cases.

Shanghai Comp -12pts (-0.3%) @ 3,583 T/O US$66,131m (unch DoD)
Shenzhen Comp +48pts (+0.3%) @ 14,493 T/O US$86,888m (+3% DoD)
ChiNext Comp -2pts (-0.1%) @ 3,479

China's National Health Commission reported 28 local infections of COVID-19 yesterday (21st),
with 11 of them being recorded in Inner Mongolia.

Pre market opened @ 26,115 +97pts vs +13pts ADR’s with some relief as Evergrande reported to have paid $83.5m on bond interest that fell due Sept 23. But market initially sold down to 26,000 before rebounding in choppy trading before working better to 26,195 late morning but eased back to +115pts (+0.4%) @ 26,133 at lunch.
Ecommerce +VE as sentiment believes the crackdown is now complete. Tech, Apparel and Auto +VE Property sector rebounding on the Evergrande news and comments that the Chinese government will steadfastly uphold the principle of "housing is for living, not for speculating" and help first time buyers. But Coal weak on government intervention and Oil names weak as oil price eases.

Hong Kong reported 2 imported covid cases
After market
The Census and Statistics Department (C&SD) announced that overall consumer prices rose by 1.4% in September 2021 over the same month a year earlier, against 3% in street consensus and smaller than the corresponding increase (1.6%) in August 2021.

Netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying
inflation rate) in September 2021 was 1%, also smaller than that in August 2021 (1.2%), mainly due to dissipation of the effect of upward adjustment in public housing rentals in September 2020 as well as the smaller increases in the costs for meals out and takeaway food.
A Government spokesman said that the underlying consumer price inflation rate eased to 1% in September, as the effect of the upward adjustment in public housing rentals in the same month last year dissipated and the year-on-year increase in prices of meals out and takeaway food narrowed due to base effect. Meanwhile, pressures on many other CPI components remained modest, though prices of electricity and clothing and footwear posted accelerated increases amid surging energy cost and improved local consumption demand.

The Census and Statistics Department (C&SD) released the results of the Quarterly Business Tendency Survey for the fourth quarter (Q4) of 2021.  For all surveyed sectors taken together, the proportion of respondents expecting their business situation to be better (14%) in the fourth quarter of 2021 over the preceding quarter is slightly higher than that expecting it to be worse (13%). When compared with the results of the Q3 2021 survey round, the proportion of respondents expecting a better business situation in Q4 2021 is 14%, lower than the corresponding proportion of 17% in Q3 2021. On the other hand, the proportion of respondents expecting a worse business situation has increased from 11% in Q3 2021 to 13% in Q4 2021.

SHORT SELLING HSI  Friday 22.8% vs 20.7% Thursday
Top shorts 
Country Garden (2007) 52%, Hengan (1044) 47%, BoC HK (2388) 47%,  HSBC (5) 47%, Haidilao (6862) 45%, CM Bank (3968) 36%,
Baba (9988) 36%, Techtronic (669) 35%, Wharf REIC (1997) 35%, Hang Lung Ppty (101) 34%, Hang Seng Bank (11) 33%, CKI (1038) 32%, China Res Land (1109) 32%, Ali Health (241) 32%, Sunny Optical (2382) 30%, Geely (175) 30%, Shenzhou (2313) 30%, Bank of China (3988) 27%, HK & China Gas (3) 27%, Ping An (2318) 26%


CM BANK 3Q NP RMB32.47B, Up 21.07% YoY

BYD COMPANY (01211.HK) (002594.SZ)  announced that it entered into a partnership agreement today (22nd). As one of the limited partners, the company participated in the initiation of the establishment of the GBA Technology Innovation Industry Investment Fund (Limited Partnership),
with a proposed capital contribution of RMB100 million.  Currently in the fundraising stage, the fund has a total target size estimated to be RMB20 billion.

The Financial Reporting Council (Amendment) Bill 2021 passed its third reading at LegCo today (22nd), wrote Christopher Hui, Secretary for Financial Services and the Treasury, in a blog. Meanwhile, the authority will continue to actively join hands with sectors to look into and propel future development directions, while seizing market opportunities in Mainland. One of the key points is to explore facilitative pilot measures for professional accounting services in the Greater Bay Area.  Upon implementation of a full reform, the FRC will be responsible for issuing practising certificates and the registration of practising accountancies and corporate practices.

CHINA GAS HOLD (00384.HK) announced that it repurchased 3.7 million shares today (22nd) at a repurchase price between $19.2-19.7 per share, involving approximately $71.7614 million.

The Ministry of Finance (MOF) announced that China's size of stamp duty reached RMB348.5 billion in the first nine months of 2021, up 34.4% YoY. Of which, stamp duty on stock transactions burgeoned 40% YoY to RMB230.2 billion.

CK ASSET (01113.HK) announced that Li Ka Shing Foundation Limited acquired a total of 140,000 shares in CK Asset at the average price of HK$46.475 per share on Monday (18 October). In addition, a wholly-owned subsidiary of Li Ka Shing (Global) Foundation acquired a total of 100,000 shares in CK Asset at the average price of HK$46.6 per share on Tuesday (19 October).  As a result, the deemed interests of Li Ka-shing, Victor T K Li and Li Ka Shing Foundation Limited in CK Asset under the Securities and Futures Ordinance increased from 46.24% to 46.25%; increased from 46.31% to 46.32%; and increased from 11.531% to 11.534%.

China's National Development and Reform Commission (NDRC) announced that, in light of the recent change of oil prices in the international market, the domestic prices of gasoline and diesel (standard) will be lifted by RMB300 and RMB290 per ton respectively, starting from 24:00 today. NDRC remarked that, the three major oil companies, namely PetroChina, Sinopec and CNOOC, are required to cooperate for the production and transport of refined oil products, so as to ensure stable supply for the market.

MTR CORPORATION (00066.HK)  mentioned the smooth progress in the Cross Harbour Section of the East Rail Line (EAL), expecting the section to be put into service as soon as June or July 2022. This will be the fourth cross-harbour train route upon commissioning.

ZHAOJIN MINING (01818.HK) announced the result for the first three quarters ended 30 September 2021. The net profit amounted to RMB34.9207 million in accordance with PRC GAAP, down 96.1% yearly. EPS was RMB0.01.

CHINARES CEMENT (01313.HK)  announced the results for the first three quarters ended 31 September 2021. The turnover amounted to HK$30.816 billion, up 13.3% YoY. The net profit, on the other hand, plunged 28.1% YoY to HK$5.314 billion. EPS was HK$0.761.

According to the KPMG report "2021 China CEO Outlook", almost 80% China's CEO voiced confidence in the country's economic growth outlook for the coming three years, with the percentage surpassing the pre-epidemic level.  The survey was conducted on more than 1,300 CEOs across 11 major global markets, including 125 China's senior executives. It found that although the epidemic has wreaked uncertainty in the recovery of the global economy, Chinese CEOs' confidence in local economic growth and corporate development prospects has bounced back sharply.

Shenzhen Municipal Cyber Administration, along with Shenzhen Public Security Bureau, Shenzhen Administration for Market Regulation and Shenzhen Communications Administration, held the Shenzhen city APP person data protection conference, during which over 20 major APP operating companies, including TENCENT, Huawei, ZTE and Ping An Insurance, pledged not to invade the personal privacy of the users through illegal surveillance.

The four major overall indices of CCL broadly weakened as the U.S. announced the impending taper on the bond-buying program, remarked the research department of Centaline Property.
Centa-City Leading Index (CCL) last posted at 186.51, -0.34% WoW.
CCL Mass -0.47% WoW to post at 188.91.
CCL (small-and-medium units) -0.37% WoW at 186.97
CCL (large units) -0.18% WoW, to post at 184.09.

Regional Markets
Market tested lower in early trades to 7,390 after the RBA defended its bond target with market intervention but rebounded to test 7,430 around mid day after the good PMI data. But then sold down but found support approaching 7,400 level. Bounced back to flat around 2pm and traded sideways to close flat @ 7,415.
Weakness in BHP & Rio Tinto as Iron Ore prices continue to fall. Energy names weak. Interest in the re-opening names as lockdown restrictions are eased and in gold as inflation concerns grow.
Data out
Flash PMI data
Manufacturing Oct 57.3 vs 56.8 Sept (F/cast was 56)
Services Oct 52 vs 45.5 Sept (F/cast was 48)
Composite Oct 52.2 vs 46 Sept (F/cast was 48.5)
Tech leading the market higher despite the weak Intel numbers.
Energy and Finance weak along with re-opening stocks despite news that Tokyo and Osaka to ease restrictions. Pre Market data was also encouraging. The easing back in the PM to be expected as investors turn cautious ahead of next weeks earnings.
Intel supply chain rallied despite the weak guidance; Precision and SPE’s traded higher. Softbank +VE as WeWork lists via a Spac.
Leaders Precision, Machinery, Tech, Shippers
Laggards NonFerros Metals, Mining, Steel, Financials
Nikkei opened lower around 28,600 level but worked better through the morning to test 29,000 late morning before easing back into lunch at 28,900. Re-opened higher but dipped down to 28,800 and traded sideways to close +96pts (+0.3%) @ 28,805  
Topix traded in a similar fashion morning high was 2,013 eased back to 2,007 at lunch. Dipped in the PM session and closed +1pt (+0.1) @ 2,002
Data out
Inflation Rate Sept +0.2% YoY vs -0.4% Aug (F/cast was -0.3%)
Inflation Rate Sept +0.4% MoM vs -0.2% Aug (F/cast was -0.1%)
Inflation Rate Ex Food & Energy Sept -0.5% YoY vs -0.5% Aug (F/cast was -0.4%)
Core Inflation Rate Sept YoY vs 0% Aug (F/cast was +0.1%)
Later Flash PMI data
Manufacturing Oct 53.0 vs 51.5 Sept (F/cast was 51.3)
Services Oct 50.7 vs 47.8 Sept (F/cast was 49)
Composite Oct 50.7 vs 47.9 Sept (F/cast was 49)
S Korea 
Foreigners net sellers of Internet names. Local Insts small net buyers across most sectors. Volumes remain light, still below the 20 day averages.
Leaders: Paper, Telco, Phama, Tech
Laggards: Steel, Utilities, Shipping, Insurers, Transport.
Mixed: EV Battery plays, Apparel and Entertainment
SEC unch despite weak Intel but Hynix higher
Kospi opened lower but trended higher in choppy trading through the morning to flat and then worked better to 3,019 around 1pm but then sold down 3,000 (a key support level) which had been the morning support level too and then saw a small bounce into the close -1pt (unch) @ 3,006
Kosdaq opened lower but worked better to 1000 and then sold down to 922 before the bounce into the close +1pt (+0.1%) @ 995
Taiex opened flat and trended lower through the morning to 16,800 mid morning before rebounding back to flat before easing back and trading sideways around flat to close -1pt (unch) @ 16,889
Biden confirmed that the US would defend Taiwan if China attacked, comes as 43 countries denounce China over human rights (+4 YoY) and the EU says it will form closer ties with Taiwan. There was also a report saying that China blocking Taiwan’s admittance to the UN was not helping.
T/O Friday US$10.09bn vs US$10.5bn Thursday
CECC reported 8 new cases; 2 domestic and 6 imported
After Market
Unemployment Rate Sept 3.92% vs 4.08% Aug (F/cast was 3.9%)

Active Heavyweights
TENCENT (00700.HK)  +4.000 (+0.791%)    Short selling $597.38M; Ratio 9.211%    closed at $509.5, up 0.8%
CCB (00939.HK) -0.030 (-0.549%) Short selling $77.17M; Ratio 5.438% closed at $5.43, down 0.5%
AIA (01299.HK) -0.300 (-0.334%) Short selling $172.61M; Ratio 15.030% closed at $89.4, down 0.3%
HKEX (00388.HK) -1.400 (-0.291%) Short selling $327.26M; Ratio 16.697% closed at $480, down 0.3%
BABA (09988.HK) +0.500 (+0.288%) Short selling $677.06M; Ratio 16.054% closed at $174.4, up 0.3%
MEITUAN (03690.HK) +0.800 (+0.277%) Short selling $355.24M; Ratio 10.149% closed at $289.2, up 0.3%
PING AN (02318.HK) -0.100 (-0.159%) Short selling $262.34M; Ratio 11.091% closed at $62.65, down 0.2%

HSI & HSCEI Constituents on Move:
SUNAC (01918.HK)  +1.520 (+8.370%)    Short selling $330.70M; Ratio 14.773%    closed at $19.68, up 8.4%
LONGFOR (00960.HK) +2.500 (+6.693%) Short selling $86.12M; Ratio 7.729% closed at $39.85, up 6.7%
KUAISHOU-W (01024.HK) +5.550 (+5.742%) Short selling $360.27M; Ratio 11.046% closed at $102.2, up 5.7%
BYD COMPANY (01211.HK) +13.400 (+4.752%) Short selling $239.21M; Ratio 6.888% closed at $295.4, up 4.8%, hitting new high
SMIC (00981.HK) +1.050 (+4.751%) Short selling $46.43M; Ratio 2.164% closed at $23.15, up 4.8%
EVERGRANDE (03333.HK) +0.110 (+4.264%) Short selling $11.26M; Ratio 2.425% closed at $2.69, up 4.3%
CHINA RES LAND (01109.HK) +1.250 (+3.846%) Short selling $157.13M; Ratio 16.813% closed at $33.75, up 3.8%
XINYI GLASS (00868.HK) +0.850 (+3.820%) Short selling $19.26M; Ratio 5.302% closed at $23.1, up 3.8%
AAC TECH (02018.HK) +1.250 (+3.776%) Short selling $30.57M; Ratio 8.491% closed at $34.35, up 3.8%
PETROCHINA (00857.HK) -0.150 (-3.704%) Short selling $81.22M; Ratio 11.568% closed at $3.9, down 3.7%
CHINA FEIHE (06186.HK) +0.460 (+3.438%) Short selling $4.83M; Ratio 2.382% closed at $13.84, up 3.4%
LI NING (02331.HK) +3.050 (+3.393%) Short selling $86.34M; Ratio 8.270% closed at $92.95, up 3.4%

HSMI & HSSI Constituents on Move:

E-HOUSE ENT (02048.HK) +0.290 (+19.863%) Short selling $978.43K; Ratio 1.213% closed at $1.75, up 19.9%
Q TECH (01478.HK) +1.180 (+10.555%) Short selling $2.97M; Ratio 4.102% closed at $12.36, up 10.6%
ZHONGYU GAS (03633.HK) +0.050 (+0.671%) Short selling $179.70K; Ratio 1.243% closed at $7.5, up 0.7%, hitting new high

Market News
Andrew Ng, Global Head of Treasury and Markets at DBS Group, expressed that the group's treasury business has been setting record new highs in the past two years, with the relevant revenue stretching 20% YoY YTD.  
The DBS Group is committed to expanding its fintech investment, hoping to enlarge its market share through technology, Ng said, adding the group has recently set up a bond trading platform in Singapore, which is now in the testing phase, and is also making a foray into the virtual asset segment.

KOWLOON DEV (00034.HK) today released the first price list of Manor Hill, 
the group's new residential project in Tseung Kwan O, offering 312 units in total. The salable area ranges between 203-428 square feet for the batch. Calculating with the maximum discount of 3%, the discounted selling price ranges between $3.888-8.871 million.

PA GOODDOCTOR (01833.HK)  Conceding that the cost of seizing new users kept amplifying, Fang Weihao, Chairman and CEO  said, therefore, the company will scout development opportunities  beyond consumer level, which may include the corporate market.   Apart  from reducing high-cost methods of recruiting new members and online  marketing, the company will also resort to enhance service quality and  user experience, which will in turn capture more positive flow.

BABA-SW (09988.HK)  's innovative global research institution DAMO Academy launched a cloud AI smart weather forecast platform, 
which is capable of providing highly accurate and precise forecast on the weather conditions for the coming six hours.  The service platform can be used to track rainfall volume, wind speed and other extreme weather conditions, which would subsequently realize actual value for weather-sensitive sectors such as agriculture, logistics, transports and renewable energies.

The tender for the land parcel at Broadcast Drive, Kowloon Tong closed at noon today.

According to on-site witness, 15 tenders have been received so far, including those from K&K Property, EMPEROR INT'L (00163.HK), CK ASSET (01113.HK), Chinachem, FE CONSORT INTL (00035.HK), CHINA OVERSEAS (00688.HK), GRAND MING (01271.HK), LAI SUN DEV (00488.HK), SINO LAND (00083.HK), K. WAH INT'L (00173.HK), REGAL INT'L (00078.HK) and PALIBURG HOLD (00617.HK), as well as Tai Hung Fai.

Huawei Cloud Computing Technology Co. Ltd. registered capital was enlarged to RMB5 billion from RMB50 million, 
reported Chinese media, citing data from Tianyancha.

In light of the latest jobless rate falling to 4.5%, Law Chi-kwong, Secretary for Labour and Welfare, told a radio program that the related figure indicated an improvement in the overall employment, but individual sectors still fared poorly.  
Besides, he also spotted difficulties in recruitment in certain industries because labor flow differed from the past where employees preferred not to switch to other industries now, therefore, the jobless rate remained in downtrend.

The Lands Department (LandsD) announced that three pieces of government land in Ping Che of North District and Tuen Mun will be let by way of short-term tenancy through tender to eligible brownfield operators affected by the land resumption and clearance exercises before or within next year under relevant government development projects.  
The tender commenced today and will close at noon on November 18. The three pieces of land to be let through tender are suitable for storage and workshop uses.  The relevant government projects include First Phase Development of Kwu Tung North/Fanling North New Development Areas, First Phase Development of Hung Shui Kiu/Ha Tsuen New Development Area, Public Housing Developments at Kam Tin South, First Phase of Public Housing Development at Wang Chau, Public Housing Developments at Long Bin and Development of Lok Ma Chau Loop - Main Works Package 1.

Looking at the market performance since 20 October, Wang Chunying, Deputy Director of the State Administration of Foreign Exchange (SAFE), found the exchange rate of RMB remained volatile within narrow range.  
In future, the exchange rate will be contingent on the changes in the landscape of domestic and foreign economy, balance of payments status and international foreign exchange market, Wang forecast, who also viewed the rate will neither appreciate nor depreciate persistently, instead it should continue to maintain stability in reasonably balanced interval.

Hong Kong Housing Authority (HA) released today (22nd) the price list of the latest batch of Green Form Subsidised Home Ownership Scheme (GSH) Flats.
Kai Chuen Court in Diamond Hill offers around 2,000 units, sized 184-481 square feet, with selling prices ranging between approximately $1.179 million to approximately $3.85 million.

The World Bank released the latest Commodity Markets Outlook, 
projecting energy prices to ramp up further next year and exacerbate the global inflation risks over the near term.

XINYI GLASS (00868.HK)  announced that CEO and Executive Director - TUNG Ching Sai, and Non-executive Director - LI Ching Wai, have purchased a total of 3.921 million shares of the Group on 15-20 October.
The share purchases have reflected the management's great confidence in the prospect of the Group's development.

Fitch Ratings downgraded the Long-Term Foreign-Currency Issuer Default Rating (IDR) of SINIC HOLDINGS (02103.HK) to "RD" (Restricted Default) from "C", 
as the company failed to repay the USD250 million senior notes due 18 October 2021. Fitch Ratings, in addition, is withdrawing the credit ratings of the company, as the latter opted to not participate in the rating process. Fitch Ratings, therefore, will no longer provide ratings and analytical coverage for SINIC HOLDINGS.

PETROCHINA (00857.HK)  announced that, as of 21 October, Changqing oil field produced 20.4012 million tons of crude oil and 37.263 billion cubic meters of natural gas, 
with the oil-gas valent weight reaching 50.0930 million tons, busting the 50 million tons threshold 11 days earlier than last year. The company has likewise achieved to operate the oil-gas valent weight at the level of above 50 million tons for nine consecutive years.

China's Ministry of Commerce (MOC) issued the 14th Five-year Plan on Utilization of Foreign Investments, proposing the orderly opening-up of telecoms, internet, education, culture and healthcare business fields. 
China shall relax the requirements for Foreign Investment Law, business scope of transportation and other sectors, as well as staff qualification.

EVERGRANDE (03333.HK) wired yesterday (21st) an interest payment of USD83.5 million to the account of its trustee, Citibank, for a batch of USD bonds which matured on 23 September, 
reported Chinese media, citing sources. The interest payment will be made to the bond holders before the end of the 30-day grace period (23 October), the report added.

The Chinese government will steadfastly uphold the principle of "housing is for living, not for speculating", and adhere to the targets of "stabilizing land and home prices as well as expectations", 
said Liu Zhongrui, Head of Statistics and Risk Monitoring Department of China Banking and Insurance Regulatory Commission (CBIRC), at the news conference.  Liu also underscored that the CBIRC should support first-time home buyers in terms of loan down payment ratio and interest rate. At present, more than 90% of personal bank loans for housing are borrowed by first-time buyers.

PA GOODDOCTOR (01833.HK)'s chairman and CEO, Fang Weihao, expressed during the investor day event that, the company has initiated the strategy 2.0 from 1H20, with the aim to deepen the vertical development of its medical and healthcare services and expand the "medical care + health" concept, while also exploring to integrate the online and offline O2O service.  
PA GOODDOCTOR is planning to raise the revenue contribution of its medical service operation from approximately 28% at the moment to over 50% as a mid-term target, Fang added.

Trump Media & Technology (TMTG) owned by the Former U.S. President Donald Trump has reached a merger agreement with the SPAC Digital World Acquisition (DWAC.US) . 
The latter's share price rocketed 356% over last night and further hiked 44% in after-hour trading session.  Upon the completion of the merger, TMTG will set up a social media application named TRUTH Social. The
beta version of the application is expected to be released next month and the official launch is scheduled to be 1Q22.

HKEX (00388.HK)  Chief China Economist Ba Shusong said at a forum that Hong Kong should strive to be an offshore RMB funding pool rather than just a channel.  
On another note, he mentioned the meaningful RMB internationalization progress. However, it is far too insufficient to match in the next 10-15 years with China's GDP size, which may top the global chart based on market estimates.

Pre Market News
The MPF has so far rolled over approximately $1.4 trillion, revealed Christopher Hui, Secretary for Financial Services and the Treasury, at a forum. After unwinding curbs on the MPF's investment in China's A shares last year, the government is now studying on relaxation of MPF to invest in national bonds and policy bank bonds, which is projected to be completed at the end of the year.

GALAXY ENT (00027.HK) expressed that, in response to the Macau government's COVID-19 vaccination scheme, the group has organized multiple vaccination promotion activities for its team members and that nearly 82% of the group's members have been vaccinated, reported Macao   Melco Resorts & Entertainment likewise expressed that, the vaccination rate of its Macau and Hong Kong staff has reached 75%. The group is planning to hold the second round of MOP3 million lucky draw next month to incentivize its employees to receive vaccination.VINDA INT'L (03331.HK) announced that for the first three quarters of 2021, operating profit dropped by 13.1% yearly to HK$1.565 billion with a corresponding operating margin of 11.9%, decreased by 3.8 ppts annually.

The Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBoC) yesterday (October 21) jointly announced that the two authorities have signed the "Memorandum of Understanding on Fintech Innovation Supervisory Cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)".  By signing the Memorandum of Understanding, the two authorities have agreed to link up the PBoC's Fintech Innovation Regulatory Facility with the HKMA's Fintech Supervisory Sandbox in the form of a "network".
The Chief Executive of the HKMA, Eddie Yue remarked that the Fintech Innovation Supervisory Cooperation, in the form of a 'network link-up', will allow the GBA to reinforce its leading fintech position and facilitate innovation in the region and that HKMA will work closely with the PBoC to implement the "network link-up".

Bank of England's Chief Economist Huw Pill said Britain's inflation rate may exceed 5%, and the question of whether to hike interest rates will be discussed in the early November meeting.

Chinese authorities have recently met with senior management of ride-hailing giant DiDi Global Inc. (DIDI.US), logistics platform Full Truck Alliance Co. Ltd. (YMM.US), and online recruitment firm KANZHUN LIMITED (BZ.US), suggesting the three US-listed tech companies to explore listings in Hong Kong, The Wall Street Journal citing sources.

HOPSON DEV HOLD (00754.HK)'s deal to acquire a 50.1% stake in EVERG SERVICES (06666.HK) did not take place, as announced by the former earlier.  In a clarification announcement, HOPSON DEV HOLD said soon after the execution of the Agreement, the Vendor Evergrande Group and the Vendor’s Guarantor requested the Purchaser to make substantial changes to the agreed terms, including among others, the terms of payment of the Consideration by paying the Consideration to the Vendor directly instead. Such request was unacceptable because the original terms of payment were negotiated and agreed terms for the protection of the interest of the Target Company and the Purchaser.  The Company was also advised by its financial advisers that such proposed payment arrangement was not in the interest of the Purchaser and hence not acceptable. Despite repeated requests from the Purchaser, the Vendor has failed to perform its obligations in accordance with the Agreement.

The Centre for Health Protection (CHP) of the Department of Health (DH) today (October 21) said that it is investigating a suspected re-positive overseas case of COVID-19 case involving a cruise ship crew member. The case involves 40-year-old male who is a crew member of the cruise ship 'Spectrum of the Seas'.

PBOC Governor Yi Gang said at the 2021 Financial Street Forum that interest income remains a larger portion of China's banking sector revenue at this stage, adding China is maintaining a normal monetary policy and keeping the interest rate spread at a reasonable range. This will help the banking system to serve the real economic growth in a better way and help with financial stability.
Financial institutions may start active research and exploration to fully work off their market roles, conducive to maximizing the carbon emission pricing incentive and restraint, he added.

In order to step up coal market price regulation and explore specific price intervention measures, China's National Development and Reform Commission (NDRC) has swiftly organized local branches, key coal producers, trading firms and coal-consuming companies to mount specific probes into coal production, circulation costs and prices according to relevant rules under the Price Law.

CHINESE EST H (00127.HK)  announced that, on 21 October 2021, the group disposed of the senior notes issued by KAISA GROUP (01638.HK) through a series of transactions in the over-the-counter market with an aggregate principal amount of US$52 million for an aggregate consideration of US$15.42 million.  It is expected that the group will record a realised loss of approximately HK$278 million in profit or loss for the year ending 31 December 2021 as a result of the disposal, the announcement added.

TAK LEE MACH (02102.HK)  announced the annual results for the fiscal year ended 31 July 2021. The revenue amounted to HK$486 million, down 22.7% YoY. The net profit, on the other hand, stretched 2.5% to HK$52.58 million. EPS  was HK5.26 cents. An final dividend of HK2 cents was declared, compared to a final dividend of HK1 cent for the corresponding period of the previous year.

SIHUAN PHARM (00460.HK)  announced that on the previous trading day (21st), it has repurchased a total of 26.277 million shares on market at an average price of $1.703 per share. The aggregate purchase price paid was approximately $44.75 million.

SHENZHEN INT'L (00152.HK)  announced that the Company proposes to dispose of its 35.7% equity interest in United Land through public tender at the SUPX, allowing the Group to realize its earnings upfront.  Based on the Base Price of Transfer of RMB2.788 billion (approximately HK$3.359 billion), the Group expects to record a gain on disposal of approximately RMB2.9 billion (approximately HK$3.494 billion).

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