HSI +5pts (+0.4%) 26,132 HSCEI -35pts (-0.4%) 9,322 T/O HK$111.21bn (-10.6% DoD)
HK/CHINA Connect Flows
Northbound Rmb 49,534m Sell 23,992m vs 25,541m Buy
Southbound HK$ 11,350m Sell 5,457m vs 5,893m Buy
Northbound Rmb 58,648m Sell 29,651m vs 28,997m Buy
Southbound HK$ 12,846m Sell 5,036m vs 7,810m Buy
Markets working cautiously higher, German Ifo survey showed slowing and earnings in focus; HSBC good headline numbers and a buyback. But covid and inflation overhang the markets.
The Italian government on Sunday ended talks with UniCredit over the rescue of bank Monte dei Paschi di Siena -VE
Exor +4.6% after a report that the holding group had restarted discussions with French insurer Covea over the possible sale of reinsurer PartnerRe.
German Ifo data
Business Climate Oct 97.7 vs 98.9 Sept revised (F/cast was 98.4)
Current Conditions Oct 100.1 vs 100.4 Sept (F/cast was 99.9)
Expectations Oct 95.4 vs 97.4 Sept revised (F/cast was 96.5)
Opened Dow -50pts, S&P and NDX dipped about -0.1% by lunchtime that had eased to Dow -24pts with the S&P and NDX slightly -VE. Currently Dow +16pts with the S&P +0.1% and NDX +0.3% ahead of earnings.
Powell says inflation may be ‘longer term’ and run higher than the 2% target; so now is the time to taper.
AHEAD Chicago Fed National Activity Index, Dallas Fed Manufacturing Index
Earnings Facebook, Restaurant Brands, Otis Worldwide, Kimberly-Clark, Owens-Illinois, TrueBlue
CHINA CSI 300 closed +20pts (+0.4%) @ 4,980
PBoC inject 200b yuan in open market operations pre market
CSI 300 opened opened lower with news of the Property Tax Trial to be widened, On-Line Insurance sector to see more scrutiny and a resurgence in covid cases. Market worked better in choppy trading to -2pts (unch) @ 4,958. PM opened lower but continued to work higher to close around the day high. ‘Team China’ supporting the market
Moutai -1.5% after a four days rally. Property remains weak on the extension of the Property Tax trial but the street chatter is that it is unlikely to implemented as the current main beneficiaries resist. Reflects the pressure that President Xi is under.
Shanghai Comp +27pts (+0.8%) @ 3,610 T/O US$65,108m (+1.6 DoD)
Shenzhen Comp +104pts (+0.7%) @ 14,597 T/O US$90,006m (+3.6% DoD)
ChiNext Comp +56pts (+1.6%) @ 3,535
China's National Health Commission reported 39 confirmed cases of COVID-19 yesterday (24th), with 35 of them being local infections (19 recorded in Inner Mongolia. China announced that it expected the outbreak to get worse. It will be interesting to see whether that results in a change in policy.
Pre market opened 26,021 -106pts vs -90pts ADR’s
Tightening rules re On-line Insurance regulations to be tightened, China property weak on news of widening Property Taxation Trials. HSBC was flat ahead of results. But market worked saw an initial bounce then tested down to 25,930 before spiking higher to 26,200 in the next 30 minutes. It retested the 26,200 twice more before closing for lunch +23pts (+0.1%) @ 16,150. PM trended lower in choppy trading to close +5pts (+0.02%) @ 26,132.
Healthcare +VE but Property weak although Evergrande +4%.
At lunch HSBC +0.2% after earnings which showed strong headline numbers and a @ $2bn share buyback but much from unwinding provisions.
Leaders Healthcare, Auto, Energy, IP’s and Shippers
Laggards China Property, Consumer, Cement, Macau names.
Earnings due 26 Oct include WH Group (288), Maanshan Iron & Steel (323), ASM Pacific Tech (522), Skyworth (751), Huaneng Power (902), Huadian Power (1071), Xinjiang Goldwind (2208), Chalco (2600), Yitai Coal (3948).
EARNINGS at lunchtime
HSBC HOLDINGS (00005.HK) unveiled the 3Q results. The reported profit before tax grew 75.8% YoY to US$5.403 billion, ahead of the brokers' forecast of between US$4.118-4.217 billion. The net profit soared 1.61 times YoY to US$3.543 billion. Basic EPS equaled US$0.18. During the quarter, the reported revenue gained 0.7% YoY to US$12.012 bn, in line with market consensus. For 1-3Q, the reported profit before tax leaped 1.2x YoY to US$16.242 billion. The net profit soared 2.24 times YoY to US$10.819 billion. Noel Quinn, the Group Chief Executive, expressed that given the group's strong capital position and notwithstanding growth opportunities available, it intends to initiate a share buyback of up to US$2 billion, which is expected to commence shortly. Quinn added that no dividend will be declared for 3Q and that HSBC now expects to move to within its target dividend payout ratio range of 40% to 55% of reported earnings per ordinary share in 2021. Ewen Stevenson, HSBC’s chief financial officer, expressed that the group is very comfortable with its current capital position in the Chinese property sector as well as its exposure to the sector, reported foreign media. Stevenson, in addition, remarked during an interview with Bloomberg TV that, HSBC anticipates no severe impact on the group from the EVERGRANDE (03333.HK) crisis as they have no direct lending to developers that are impacted by any of the three red lines. He elaborated during the analyst meeting that, reigniting the repurchase program is mainly a result of the fact that the group's current capital performance is better than the forecast made in early 2021. HSBC HOLDINGS has likewise marked a lower-than-expected growth in risk-weighted assets compared to the early 2021 estimate, said Stevenson. The additional capital, therefore, if not yet been utilized on business investment, will be used to conduct share repurchase, he added. HSBC has only declared dividends in the interim and annual terms this year, instead of quarterly in the past; the Group CFO Ewen Stevenson said during the teleconference that the bank will consider in the next few months whether it will resume a quarterly dividend for next year or later time, and will weigh the related pros and cons. He furthered that the annual dividend will tend to be set at the lower end of 40%-55% of the reported earnings per ordinary share because this year's earning was primarily supported by callback. In case of excessive capital, he said, the group tends to use it for callback, rather than dividend increase.
HONG KONG DATA
Hong Kong reported 4 imported covid cases.
The Official Receiver's Office of Hong Kong announced that 540 Bankruptcy Petitions were presented at the Office in September, down about 24.6% YoY or 8% MoM. For 9M21, the number dropped about 17.1% YoY to 5,520 cases.
SHORT SELLING HSI Monday 22.7% vs 22.8% Friday
Top shorts Hengan (1044) 61%, BoC HK (2388) 46%, Haidilao (6862) 45%, Country Garden (2007) 43%, Baba (9988) 40%, CKI (1038) 38%, Xinyi Glass (868) 37%, Ali Health (241) 35%, Wharf REIC (1997) 35%, China Res Land (1109) 33%, Hang Seng Bank (11) 33%, HSBC (5) 29%, Citic (267) 28%, AAC Tech (2018) 28%, Techtronic (669) 27%, HKEX (388) 27%, CK Asset (1113) 27%, MTRC (66) 27%, Geely (175) 26%, CM Bank (3968) 26%, Ping An (2318) 26%, China Life (2628) 25%.
AFTER MARKET NEWS
YONGDA AUTO (03669.HK) announced that the net profit attributable to owners of the Company in 3Q rose 31.4% YoY to RMB631 million. Consolidated revenue dropped 4% YoY to RMB18.942 billion.
DATANG POWER (00991.HK) announced that as of 30 September 2021, the total power generation of the Company and its subsidiaries amounted to approximately 206.476 billion kWh according to the Company’s preliminary statistics, representing an increase of approximately 4.35% on a year-on-year basis, and total on-grid power generation amounted to approximately 195.183 billion kWh, representing an increase of approximately 4.37% on a year-on-year basis.
LI NING (02331.HK) announced that, for the third quarter ended 30 September 2021, in respect of LI NING POS (excluding LI-NING YOUNG) which have been in operation since the beginning of the same quarter last year, the same-store-sales (SSS) for the overall platform registered a high-twenties increase on a year-on-year basis. In terms of channels, retail (direct operation) channel registered a low-thirties increase and wholesale (franchised distributors) channel registered a mid-twenties increase; while the e-commerce virtual stores business registered a mid-thirties growth on a year-on-year basis.
TOWNGAS CHINA (01083.HK) announced that it has reached an agreement with its investor Affinity Asia Pacific Fund V, pursuant to which the investor conditionally agreed to subscribe for, and the company conditionally agreed to issue approximately 117 million subscription shares, representing approximately 3.7% of the total number of issued shares as enlarged by the allotment and issue of the subscription shares. The subscription price of HK$5 per share represents a discount of approximately 2.91% to the closing price before the trading halt. In addition, the group announced to issue convertible bonds in the aggregate principal amount of RMB1.84 billion (equivalent to HK$2.22 billion at the agreed exchange rate). The aggregate gross proceeds from the share Issue and the convertible bonds issue will be about HK$2.802 billion. The company intends to apply the net proceeds for its general corporate purposes, including investing in its Smart Energy Business.
The company applied for a trading resumption with effect from 9 am tomorrow (26th).
Peter Wong, TOWNGAS CHINA's CEO, expressed at the press conference that, the city gas operation is vital to the company's business and therefore will not be sold to its parent company HK & CHINA GAS. Wong added that the company is targeting to expand the number of its carbon-free smart parks to 200 by 2025.
CHINA MOBILE (00941.HK) and Nokia extended the strategic alliance agreement through video signing. The two parties will, based on the satisfactory cooperative relationship, jointly explore the development opportunities in emerging segments and implement in-depth cooperation on aspects such as fundamental business, 6G, cloud network integration implementation and international operation, etc., with the aim to propel sustainable development for the sector.
Laura Cha, chairman of HKEX (00388.HK) expressed that, as China quickened its pace of developing green finance in recent years, Hong Kong is hopeful to become the green financial center in Asia. HKEX has changed ESG information disclosure requirement from voluntary to mandatory and has required companies to assess relevant risks and opportunities, Cha added. Also, the chairman noted that, as the largest offshore RMB center in the world, Hong Kong issued $27.3 billion worth of green bonds over the past three years, and is planning to further issue $175.5-billion green bonds in the next five years, including HKD-denominated ones and retail ones.
Zhejiang Geely Holding's Volvo Cars will go public in Stockholm this Friday (29 October), as the Company intends to fix its offer price at the low end, i.e. SEK53 each, and shrink the size of new class B common share issue to raise around SEK20 billion, below SEK25 billion in prior expectation.
Market opened higher and hit 7,460 in early trades before dipping back to flat and then testing to 7,472 before easing back to 7,440 and trading sideways to close +26pts (+0.34%) @ 7441; a six week high.
Energy and Mining names +VE but Tech weak following the US. Telstra buying Digital for $2.1bn but with most of the finance coming from the Govt. Woodside considering a $1b hydrogen plant south of Perth. S&P add’s it voice to those calling for cooling measures on the housing market. As Blackstone reported to be looking to buy a stake in the Dexus Logistics Fund, whilst raising funds for its Real Estate Fund and also money for its infrastructure fund.
Afterpay -2.7% following the performance of Square in US; Nanosonic -4.1%, Nearmap -3.6%, EML Payments -3.2%
Concerns about the number of seats the LDP will win in the election having only secured one of the two available seats at the weekend by-election as opposition parties agree a co-ordinated single opposition candidate approach. Inflation concerns after Powell’s comments and Covid as China sees a surge in cases. T/O remains light.
Nikkei opened lower but initially worked better to 28,670 level before trending lower into lunch -221pts @ 28,584. PM opened higher but traded sideways for most of the PM before a small rally to close -204pts (-0.7%) @ 28,600 giving back much of Friday’s gains.
Topix traded in a similar pattern; opened 1,990 rose to 2,004 then eased back; at lunch -3pts @ 1,999. PM opened higher trended lower until 2.15pm and then worked better to close -7pts (-0.3%) @ 1,995
Remember there is a Topix re balence on Thursday which may influence trading this week.
Leaders Iron/Steel, Miners, Shippers, Logistics
Laggards Info/Comm, Rubber, Food.
Fast Retail -3.8% and Softbank -3.4%
Panasonic +4.5% on news Apple considering it for EV batteries; comes as Panasonic unveiled an even larger 4680 lithium-ion battery which will be supplied to Tesla (TSLA.US). It is planning to commence test production of the new battery product in Japan by March 2022.
Chugai +10.2 % as Operating Profit beats estimates.
Data at 1pm HK time
Coincident Index Final Aug 91.3 vs 94.4 July (F/cast was 91.5)
Leading Economic Index Aug 101.3 vs 104.1 July (F/cast was 101.8)
Nationwide Department Store Sales Sept -4.3% YoY vs -11.7% Aug
Tokyo Department Store Sales Sept +0.7% vs -9.1% Aug
Foreigners and Local Institutions net buyers. Buying Financials, Oil related and Transport but rotating out of Pharma. Tech flat. Posco +1% as earnings beat. Doosan Heavy +14.5%, Samsung Heavy +1.9%. But SKT -0.3% but off mid day lows, ahead of trading halt.
Re-opening stocks in focus as Govt to implement ‘living with covid-19’
Kospi opened lower and dipped to 2,980 level before bouncing back to the opening level and working better. Resistance around 3,020 for most of the afternoon but broke above in the last 30 minutes to close +14pts (+0.5%) @ 3,021
Kosdaq traded in a similar pattern and but closed flat -1pt (-0.1%) @ 994
Taiex opened lower and trended lower to 16,780 level around 10am before working better to 16,930 and then trended to flat to close +6pts (+0.03%) @ 16,894.
T/O Monday US$9.57bn vs US$10.09bn Friday
CECC reported 8 new cases (2 local, 6 imported) and 1 death.
Retail Sales Sept +1.26% YoY vs -4.3% Aug (F/cast was -0.3%)
Industrial Production Sept 12.24% YoY vs 13.69% Aug (F/cast was 11%)
M2 Money Supply Sept 8.69% YoY vs 8.44% Aug
AIA (01299.HK) +1.550 (+1.734%) Short selling $332.17M; Ratio 21.449% closed at $90.95, up 1.7%
PING AN (02318.HK) -1.000 (-1.596%) Short selling $379.35M; Ratio 25.722% closed at $61.65, down 1.6%
TENCENT (00700.HK) -4.500 (-0.883%) Short selling $1.28B; Ratio 20.763% closed at $505, down 0.9%
HKEX (00388.HK) +4.200 (+0.875%) Short selling $399.45M; Ratio 27.363% closed at $484.2, up 0.9%
MEITUAN (03690.HK) -2.400 (-0.830%) Short selling $916.47M; Ratio 19.878% closed at $286.8, down 0.8%
BABA (09988.HK) -0.400 (-0.229%) Short selling $1.61B; Ratio 40.034% closed at $174, down 0.2%
HSI & HSCEI Constituents on Move:
HAIDILAO (06862.HK) -2.650 (-9.075%) Short selling $391.84M; Ratio 45.238% closed at $26.55, down 9.1%
KUAISHOU-W (01024.HK) +5.800 (+5.675%) Short selling $764.39M; Ratio 17.121% closed at $108, up 5.7%
EVERG SERVICES (06666.HK) -0.270 (-5.637%) Short selling $11.96M; Ratio 4.381% closed at $4.52, down 5.6%
SUNAC (01918.HK) -0.800 (-4.065%) Short selling $317.68M; Ratio 26.821% closed at $18.88, down 4.1%
WUXI BIO (02269.HK) +4.400 (+3.883%) Short selling $242.06M; Ratio 13.857% closed at $117.7, up 3.9%
BUD APAC (01876.HK) -0.720 (-3.731%) Short selling $31.68M; Ratio 13.515% closed at $18.58, down 3.7%
ANTA SPORTS-200 (02020.HK) -4.900 (-3.651%) Short selling $157.75M; Ratio 11.948% closed at $129.3, down 3.7%
ENN ENERGY (02688.HK) +3.800 (+3.256%) Short selling $9.62M; Ratio 4.461% closed at $120.5, up 3.3%
COUNTRY GARDEN (02007.HK) -0.250 (-3.064%) Short selling $56.02M; Ratio 43.269% closed at $7.91, down 3.1%
BIDU-SW (09888.HK) -5.400 (-3.041%) Short selling $130.66M; Ratio 26.941% closed at $172.2, down 3%
BYD COMPANY (01211.HK) +7.400 (+2.505%) Short selling $532.03M; Ratio 21.447% closed at $302.8, up 2.5%, hitting new high
HSMI & HSSI Constituents on Move:
TOWNGAS CHINA (01083.HK) +0.640 (+14.191%) Short selling $5.57M; Ratio 5.813% closed at $5.15, up 14.2%
KAISA GROUP (01638.HK) -0.190 (-11.446%) Short selling $3.70M; Ratio 1.909% closed at $1.47, down 11.4%
REALORD GROUP (01196.HK) +0.500 (+4.013%) Short selling $2.27M; Ratio 2.943% closed at $12.96, up 4%, hitting new high
Hong Kong has basically achieved "zero infection" since no untraceable local cases were found in most of the past few months, said Sophia Chan, Secretary for Food and Health. Yet in view of the viral mutant virus strains across the globe, the HKSAR Government will continue to stand ready for the next wave of epidemic, added Chan.
Alibaba Cloud Internet of Things (IoT) Solutions, at a summit, launched Link Visual, a cloud-chip integrated intelligent vision solution, announcing that Link Visual will upgrade from a single video cloud service platform to a cloud-chip integrated intelligent vision solution, Stcn.com reported.
OLED display driver chip developer, OLED IC Microelectronics (Beijing), has recently registered business change, where Hubei Xiaomi Yangtze River Industry Investment Fund Partner became the new shareholder of the company with a 5% shareholding, Tianyancha.com revealed. Data showed that the partner of Hubei Xiaomi Yangtze River Industry Investment Fund Partner includes Xiaomi Technology. OLED IC Microelectronics (Beijing), founded in June 2019, is engaged in technology development, transfer, promotion, service and consulting; import and export of goods, agents and technologies.
Trading in the shares of TOWNGAS CHINA (01083.HK) will be halted at 1:00 p.m. today, pending the publication of an announcement in relation to inside information of the Company. The stock spiked 14.2% to close at $5.15 midday, with volume rising to 19.486 million shares.
Chief Executive Carrie Lam, attending a forum, said the government is eager to resolve land and housing issues in Hong Kong thoroughly by propounding the Northern Metropolis Development Strategy. Yet, Lam emphasized, citizens should be patient as the project needs to undergo an organic development process. Projecting the basic infrastructure expenditure in the next few years, Lam said the annual cost may tower $100 billion, so as to propel livelihood construction of various types and improve residence environment.
Some EVERGRANDE (03333.HK) bondholders have received coupon payments for a USD bond due on 23 September, Reuters citing insiders. A 30-day grace period has been granted for this batch of USD bond on 23 September
Shuimu BioSciences Ltd. (Beijing), a company specializing in medical research and experimental development, included Beijing Quantum Dance Technology, which is a connected company of ByteDance, as a new shareholder, reported Tianyancha App. Shuimu BioSciences' registered capital was expanded to approximately RMB945,600.
The Democratic Republic of Congo (DR Congo) has ordered to run an audit of all logging contracts and pause all dubious concessions before the UN Climate Change Conference (COP26) next month. Such action was necessary to make it easier for DR Congo to secure international funding support, said President Felix Tshisekedi last week. Such re-consideration may deal a blow for Chinese companies although they are not the direct targets, according to analysis. Statistics show two-thirds of DR Congo's rough wood export goes to China.
IMAX CHINA (01970.HK) announced that it set a new record for its best ever month of October with RMB250 million at the box office in mainland China - surpassing the previous record of RMB196 million set in 2020 with one week left on the calendar. The record-breaking results were driven by “The Battle at Lake Changjin” and the stellar debut of Denis Villeneuve’s “Dune”, which captured over RMB33 million in box office across 700 IMAX theaters - representing a remarkable 23% of the film’s total despite IMAX accounting for less than 1% of screens. The strong indexing was IMAX’s highest among all new-released titles after the pandemic. 9 out of 10 top locations are IMAX theaters.
Overnight HIBOR last posted at 0.03875%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.06679%, marking a 1-month high.
BYD COMPANY (01211.HK) announced that Guangzhou GAC BYD New Energy Passenger Vehicle delivered the first batch of 40 pure electric smart slag trucks T31 to Guangzhou Public Transport Group Second Transport Company on 22 October to promote the electrification of slag trucks in Guangzhou, further improve the urban atmospheric environment, and assist the city's green construction and development.
China National Petroleum Corporation (CNPC) and BANKCOMM (03328.HK) inked agreements on a strategic alliance and cash management service. Dai Houliang, chairman of CNPC, expressed that, through the partnership, both parties will utilize respective competitive edges to explore the integration between industry capital and financial capital, so as to realize development of higher quality.
CHINA POWER (02380.HK) announced that the company will stay committed to green, innovative and high quality development with a focus on promoting sustainable and rapid development of clean and low-carbon energy such as photovoltaic power, wind power, hydropower, geothermal energy and biomass energy. The group predicted that, by the end of 2023, its proportion of clean energy in terms of installed capacity and revenue will exceed 70% and 50%, respectively.
HSBC HOLDINGS (00005.HK) CEO Noel Quinn, at the Bund Summit earlier on, expressed his view that China will benefit from a more open capital market, which will attract foreign investment and professional technologies more effortlessly and in turn support her sustainable development, Chinese media reported. The classification method of the green bonds recently issued by China is closely linked with that of the EU, representing an incredibly proactive trend, observed the CEO, who opined the national green finance policy framework formulated by China is also a good news, which will drill innovation and international cooperation.
CK ASSET (01113.HK) made available the sales brochure of "#LYOS", a residential project in Hung Shui Kiu, Yuen Long, offering 341 units measuring 202-806 sq.ft. each. The flats vary from studio units to three-bedrooms with suite, where 290 of them are either standard flats or those with front yards, and 51 are garden duplex apartments.
China's major hog futures hit the day's limit by surging 7.97% to last at RMB17,470/ ton. The hog- and pork-related stocks in Hong Kong rallied in the morning session +VE. YURUN FOOD (01068.HK) and COFCO JOYCOME (1610.HK) and WH GROUP (00288.HK).
XIAOMI-W (01810.HK)'s subsidiary splashed RMB1.55 billion for land in Xuhui District, Shanghai, Chinese media had earlier reported. The market estimated that the land will be used as the base of the company's automobile research center. The responsible person of XIAOMI-W replied that the commercial land had been planned back in 2018 to be the company's Shanghai headquarters, furthering the headquarters should engage in smartphone R&D, finance and Internet businesses and so on.
He Xiaopeng, CEO of XPENG-W (09868.HK), expressed during the 1024 Xpeng Tech Day that the development layout of the company largely resembles that of Tesla, with upcoming ventures into areas such as smart assistive driving, robotics and flying vehicles, etc.. The group will likewise launch "Zhijiafen", a safety score system for smart assistive driving, which will conduct safety training and tests for the drivers and assess the driving behavior, He added. In addition, the CEO predicted that NEV penetration rate will reach 50% by 2025.
Pre Market News
Energy Bureau of Guangdong Province and National Energy Administration (NEA) released a notice to encourage power suppliers and electricity users to sign fuel price-coupling contracts during the sales and purchase of electricity power, so as to guard against the relevant fluctuation risk of market prices.
Macao Government Tourism Office indicated that, with tapering COVID-19 outbreak in Macau and the relaxing pandemic measures at Zhuhai-Macau control points, the inbound arrivals have been showing signs of rebound, reported Macao Daily News. The number of inbound visitors have risen for four consecutive day. In particular, the inbound arrival figure reached 25,250 last Friday (22nd), marking a new high since the city entered the state of immediate prevention on 25 September.
Macau held the public consultation session for the gaming law reform yesterday (24th), with the participants raising concerns over issues such as the protection of the rights of employees and social responsibilities of the gaming corporates, Macao Daily News. Macau Gaming Management Association (MGMA), on the other hand, suggested that an interim review for the gaming concession should be established and that the withdrawal mechanism of the gaming corporates should be clarified.
Paul Chan, Financial Secretary of Hong Kong, expressed that, although Hong Kong economy has been seeing constant development, the issue of economic structural imbalance persists. Despite the flourishment of the financial sector, which in turn boosted the demand for other sectors such as retail, dining, tourism and transports, etc., there still remains a visible imbalance in the fruits of economic prosperity which wage earners were able to share, Chan added. With the projected demand and opportunities in the Greater Bay Area, along with the government support, many other industries and sectors will have the chance for further development, thus creating more employment opportunities and room for career growth for Hong Kong citizens, especially for younger generations, Chan remarked.
Xinhua said in a commentary the default of certain Chinese property firms is merely individual risk, adding the spillover of such impact to financial industry is overall manageable. Relevant departments and local governments are working to tackle and resolve the risks according to law and regulation. Meanwhile, Xinhua mentioned China's enthusiasm for promoting real estate tax legislation and reform as well as doing well on pilot programs.
GANFENGLITHIUM (01772.HK) announced that, so far, since the approving process of the Mexican government for the offer made by the company's wholly-owned subsidiary Shanghai Ganfeng to acquire Bacanora has not been completed, Shanghai Ganfeng and Bacanora have applied to the British Takeover Panel to suspend the offer process, in accordance with the British offer process and relevant laws and regulations. The offer process will resume after the matter is approved by the Mexican government, the announcement added.
SINOPHARM (01099.HK) announced the result for the first three quarters ended 30 September 2021. The net profit amounted to RMB5.701 billion, up 15% yearly. EPS was RMB1.83.
YUEXIU PROPERTY (00123.HK) announced the disposal of Yuexiu Financial Tower, its office property in Guangzhou, to YUEXIU REIT (00405.HK) (with approximately 38.7% of Units in issue held by the Company). Assuming Disposal Completion took place on 31 August 2021 (being the date of the valuation report prepared by the Independent Property Valuer), the Disposal Consideration was approximately RMB7.79 billion.
It is estimated that YUEXIU PROPERTY will record a gain (after taxation) of RMB1.366 billion.
The U.K. Foreign Secretary, Liz Truss, expressed that the British government hopes to maintain stable economic ties with China. Truss, however, warned that the country must avoid becoming over-reliant on the supply from China and that the U.K. has to forge a network of liberty with nations with similar set of values on democracy and free markets.
The U.S. Treasury Secretary Janet Yellen expressed during an interview with CNN that the U.S. is not losing control over the inflation and that the inflation levels are expected to normalize by 2H22.
Robin Li, founder, chairman and CEO of BIDU-SW (09888.HK) expressed during "Peking University Emerging Engineering International Forum" that, over the coming five years, BIDU-SW will endeavor to cultivate 5 million artificial intelligence talents for the society, so as to provide sustainable contribution to the strengthening of the country's strategic technological power.
China's State Administration for Market Regulation (SAMR) issued the notice on strengthening food safety regulation of food chain operators. Accordingly, the SAMR requires to further step up the food safety oversight of food chain enterprises, striving its best to defend peoples' safety on the tip of their tongues.
The bankruptcy and restructuring proposal of HNA Group and relevant companies was approved and the relevant legal procedures are expected to be completed by November, indicating that, after November, HNA Group will be split into four independent segments with respective independent operations.
The market has been voicing concerns over EVERGRANDE (03333.HK)'s work and production resumption and property delivery. Accordingly, Evergrande Group reported the orderly work and production resumption of more than ten projects in Shenzhen, Dongguan, Jiangmen, Shanwei, Zhuhai and Zhongshan, under a Shenzhen arm with the same location as the headquarters. The group strives to fulfill the government's property delivery requirement and its corporate social responsibility.
The Department of Price under China's National Development and Reform Commissions (NDRC) has recently formed several investigation teams with the price and cost investigation center to conduct on-site inspection of key coal producers and circulators in relevant provinces, on the basis of organizing local cost probes into these players.
Accordingly, NDRC aims to provide a basis for determining a reasonable coal price range and deterring coal firms from making huge profits.
China's National Development and Reform Commission (NDRC) expressed that, in order to guide the rising coal prices back to a rational level and to ensure stable energy supply, the major coal companies have taken concrete measures to actively stabilize the prices, by cooperating to expand the spot supply and transport volume of coal in Qinhuangdao port.
The Standing Committee of the 13th National People's Congress (NPCSC), China's top legislature, passed the Family Education Promotion Law by vote at its 31st session dated 23 October, according to CCTV sources. It is stipulated that parents or other guardians of minors should be responsible for family education, while the country and society shall provide family education guidance, support and services. The new law will take effect from 1 January 2022.
The State Council was authorized to conduct real estate tax reform trial in certain Chinese regions, as decided by the 31st Meeting of the Standing Committee of the 13th National People's Congress (NPC). The real estate tax in the pilot areas targets various types of real estate for both residential and non-residential uses, while legally-owned rural homesteads and residences thereon are exempted from the tax.
The decision authorized the trial period to last for five years, starting from the date of issuance of the State Council's pilot measures. The decision will come into effect on the date of promulgation, and the starting time for the implementation will be determined by the State Council.