Oct 28 Asian Wrap Markets weak on earnings and China concerns

28 Oct

This and previous notes can be found at Substack ( Asian Market Sense )
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HSI -73pts (-0.3%) 25,556 HSCEI -41pts (-0.5%) 9,053 T/O HK$129.31bn (+7.2% DoD)  

HK/CHINA Connect Flows
Northbound Rmb 56,363m Sell 25,900m vs 30,463m Buy
Southbound HK$ 11,842m Sell 6,026m vs 5,816m Buy
Northbound Rmb 66,159m Sell 31,775m vs 34,384m Buy
Southbound HK$ 11,814m Sell 6,198m vs 5,616m Buy

Markets opened flat FTSE and Dax trending lower, CAC trading sideways around flat.  Another busy day for earnings (with Shell -1.7% missed, Airbus beat, Stellantis +1% despite poor Q3 #’s Total and Volkswagen -2.3% just some of those reporting before the bell) and caution ahead of the ECB rate announcement.
Zur Rose Group +7.5% after announcing a collaboration with Roche.
Sentiment Data
Economic Oct 118.6 vs 117.8 Sept (F/cast was 117.1)
Industrial Oct 14.2 vs 14.1 Sept (F/cast was 13.2)
Services Oct 18.2 vs 15.1 Sept (F/cast was 14)
Consumer Confidence Oct -4.8 vs -4 Sept (F/cast was -4.8)
Consumer Inflation Expectations Oct 40.0 vs 33.1 Sept (F/cast was 34)
Later ECB interest rate decision.
Unemployment Rate harmonised Sept +3.4% vs +3.4% Aug (F/cast was +3.6%)
Unemployment Change Oct -39k vs -30k Sept (F/cast was -22k)
Unemployment Rate Oct 5.4% vs 5.5% Sept (F/cast was 5.5%)
Later Inflation Rate Prelim Oct
Car Production Sept -41.4% vs -27% Aug (F/cast was -17%)
US  Futures
Opened slightly higher Dow +50pts, S&P and NDX +0.1% but have eased to Dow +21pts S&P and NDX both slightly +VE
AHEAD GDP Growth Rate, Initial, Average and Continuing Claims, Core PCE and PCE Prices, Pending Home Sales, EIA Natural Gas Report, Kansas Fed Manufacturing Index.
Earnings: Apple, Amazon, Caterpillar, Comcast, Merck, Northrop Grumman, Altria, Intercontinental Exchange, Sirius XM, Yum Brands, American Tower, Gilead Sciences, Starbucks, Molson Coors, T. Rowe Price, Airbus, Anheuser-Busch InBev, Sanofi, STMicroelectronics, Volkswagen, Royal Dutch Shell, Stanley Black & Decker, AllianceBernstein, Check Point Software, Brunswick, Oshkosh.

CHINA CSI 300 closed -34pts (-0.7%) @ 4,864
CSI 300 opened lower and tested down to 4,875 in early trades. Spiked to test 4,890 at 10:15 but sold back down again. Worked back to 4,890 before easing back into lunch. PM saw the market trend lower to 4,846 but then rallied for the last 20 minutes to close -34pts.
Continued concerns over the property sector with Kaisa being flagged as the latest risk with downgrades from S&P and Fitch.
Comes as Beijing says it will extend the preferable tax treatment for overseas investors in its bond market. PBoC continues to inject liquidity with another 100bn yuan today.
Cyclicals weak as Beijing’s blue sky policy ahead of the Olympics expected to hurt Iron ore prices other metal stocks weak too. Coal futures weak as Government intervenes; press mentions increased imports from Russia and Indonesia with Australia still banned.

Shanghai Comp -44pts (-1.2%) @ 3,518 T/O US$71,738m (+6.5% DoD)
Shenzhen Comp -149pts (-1%) @ 14,245 T/O US$93,580m (-1.2% DoD)
ChiNext Comp -52pts (-1.5%) @ 3,442


Pre market opened @ 25,648 +20pts vs -159pts ADR’s with strength in Ecommerce names. Li Ning -7% after placement. PingAn -3.8% on disappointing earnings. HSBC also pulled back. Initial margin call selling but then rallied to 27,735 but unable to hold sold down to test flat, retested 25,700 but again failed and sold down to 25,550; traded around there before working better into lunch. +14pts (+0.1%) @ 25,651. PM started slightly higher and traded sideways but sold down following the market in China. Support at 25,470 level and then rebounded to trade around the 25,540 into the close. T/O increased but mainly due to futures expiry.
Small manufacturers slight +VE to be allowed to delay tax payments.
Kaisa -18% after S&P and Fitch downgraded its rating which hurt other mainland developers. Commodities also weak as Beijing intervenes.
Li Ning -8% after placement; speculation that it might engage in M&A which could be fraught as they do not have a good track record in that field.
Ping An -2.4% after disappointing results
Leaders: Beer, Aviation, IPP’s and HK Property
Laggards: Coal, Materials, Steel, Auto, Education

HK Earnings due 29 Oct include Crocodile Garments (122),  Jiangsu Exp (177), Guangdong Inv (270), Angang Steel (347), Ch Rail (390), Shenzhen Exp (548),  Sany Heavy (631), Ch Eastern Air  (670), Asia Cement (743), Air China (753), CCB (939), Chongqing Iron & Steel (1053), Ch Southern Air (1055), Dongfang Elec (1072), Cosco Ship (1138), Yanzhou Coal (1171) Ch Rail Const Corp (1186), Cosco Ship Ports (1199), ICBC (1398), Metallurgical Corp (1618), CRRC (1766), Ch Comms Construct (1800), Shangdong Chenming Paper (1812),  Cosco Ship Holdings (1919), Bank of Chingqing (1988) China Minsheng Bank (1988), Guangzhou Auto (2238), Great Wall Auto (2333), Weichai Power (2338), WuXi AppTec (2359), BoC (2388) Ch Pac Insurance (2601), Guotai Junan Sec (2611), Cosco Ship Devel (2866), Ch National Building Materials (3323), BoComm (3866), BoC (3988), Haier Smart Home (6690)

Hong Kong reported 2 imported covid cases.

SHORT SELLING HSI Thursday 18.6% vs 19.4%Wednesday
Top shorts 
Longfor (960) 43%, Country Garden (2007) 41%, Baba (9988) 41%, Henderson Land (12) 36%, China Overseas (688) 35%, Shenzhou (2313) 34%, Hang Seng Bank (11) 33%, Citic (267) 32%, Petrochina (857) 32%, Sunny Optical (2382) 31%, Wharf REIC (1997) 30%, Techtronic (669) 29%, HSBC (5) 29%, Ping An (2318) 28%, Geely (175) 27%, Wuxi Bio (2269) 27%, CKI (1038) 27%, BoC HK (2388) 26%, Haidilao (6862) 25%, Xinyi Glass (868) 25%, Hengan (1044) 25%,  CKAsset (1113) 25%, China Res Land (1109) 25%, Meituan (3690) 25%, China Life (2628) 25%.

BYD COMPANY (01211.HK) announced that the operating income of the company for the first three quarters of this year amounted to RMB145.19 billion, up 38.25% YoY. 
Net profit for the period plunged 28.43% YoY to RMB2.44 billion. Basic  EPS was RMB0.85.  For 3Q, the operating income stretched 21.98% YoY to RMB54.307 billion. Net profit amounted to RMB1.27 billion, down 27.5% YoY. Basic EPS was RMB0.44.

CNOOC (00883.HK) announced that the Company achieved a total net production of 144 million barrels of oil equivalent (BOE) for the third quarter of 2021, representing an increase of 9.9% year over year.  The unaudited oil and gas sales revenue of the Company reached approximately RMB58.03 billion for the third quarter of 2021, representing an increase of 63.3% YoY, mainly due to combined effects of the increase in international oil and gas prices, and the increased oil and gas sales volume.

FUYAO GLASS (03606.HK) announced the result for the first three quarters ended September 30, 2021. The net profit amounted to RMB2.596 billion, up 50.7% yearly.  EPS  was RMB1.02.

CHINA LIFE (02628.HK) announced that for 1-3Q21, operating income added 5.2% YoY to RMB727.711 billion; net profit grew 3% YoY to RMB48.502 billion.  EPS was RMB1.72.  For 3Q21 alone, operating income fell 1.5% YoY to RMB175.11 billion; net profit fell 54.5% YoY to RMB7.527 billion. EPS was RMB0.27.  In the first three quarters of 2021, the Company achieved revenues from insurance business of RMB553.437 billion, an increase of 1.8% year on year.  The value of new business for the first three quarters of 2021 decreased by 19.6% year on year.

ABC (01288.HK) announced a net profit of RMB64.431 billion for the third quarter ended 30 September 2021, up 14.04% YoY.  EPS  equaled RMB0.16. Operating income gained 12.66% YoY to RMB179.627 billion.  For the first three quarters of this year, the net profit rose 12.93% YoY to RMB186.709 billion.

Hong Kong Chief Executive Carrie Lam remarked that mapping out relevant policies to address the issue of climate change is an urgent task for the government, and that the government will actively explore feasible policies, including developing waste-to-energy technology and the potential of marine space. Lam added that, although Hong Kong has managed to maintain reliable and stable power supply amid the increase of energy prices and power shortage, the government hopes that different parties of the society, corporates and citizens would cooperate and adjust their lifestyle in a responsible manner, so as to minimize the cost of carbon-reduction.

CK ASSET (01113.HK) released the first price list for "#LYOS", the group's low-density residential project at 2 Hung Yuen Road, Hung Shui Kiu, launching a total of 88 units, with area ranging 205-462 square feet.  Calculating with the maximum discount of 13%, the discounted selling prices range between $3.458 million and $7.501 million.

CLP HOLDINGS (00002.HK)  is scheduled to add two gas-fired generation units at the Black Point Power Station, with the first unit D1 already commenced operation in 2020, expressed Chiang Tung Keung, Managing Director of CLP Power Hong Kong. Including the new unit D1, there is a total of nine gas-fired generation units currently in service at the Black Point Power Station.  Chiang added that the construction works of the second gas-fired generation unit -- D2 is ongoing and the unit is expected to come into services before 2023.  He also said s stepping up its offshore wind farm project, with initial feasibility research and design underway, said Managing Director Chiang Tung Keung. The electricity company anticipates to make an accurate estimation of the project to include it in the 2024-28 Development Plan. It also said it’s stepping up its offshore wind farm project, with initial feasibility research and design underway. The electricity company anticipates to make an accurate estimation of the project to include it in the 2024-28 Development Plan.  Meanwhile, CLP will study on how to upgrade existing equipment, while developing hydrogen energy and introducing clean energies to maintain generating facilities and power supply.

The U.S. FCC revoked the permit for CHINA TELECOM (00728.HK) (601728.SH)'s subsidiary to operate in America.  The move implies the U.S. side's generalization of national security concept and abuse of national power, says Chinese Commerce Ministry spokeswoman Shu Yuting. Beijing expressed grave concern about Washington's malicious suppression of Chinese companies and violation of market principles without factual basis.

Regional Markets
Market tested lower in early trades with weakness in Energy and Iron Ore names but Gold slightly higher. ANZ reported bumper numbers on home loan boom but outlook less clear but that helped the market rebound. Market worked better through the morning to 7,450 level but then sold down in the PM to test 7,400 level before bouncing and working higher to close -18pts (-0.3%) @ 7,430
Concerns at the Aussie 3 year bond yield rose to 1.1% as the RBA held back from buying April 2024 debt.
Fortecue released a Q1 update showing record iron ore exports but it kept its FY export forecast unchanged.
Data out
Export Prices Q3 +6.2% QoQ vs +13.2% Q2 (F/cast was +10%)
Import Prices Q3 +5.4% QoQ vs +1.9% Q2 (F/cast was +2.3%)
Pre market data
Retail Sales Sept -0.6% YoY vs -3.2% Aug (F/cast was -2%)
Retail Sales Sept +2.7% MoM vs -4% Aug revised from -4.1% (F/cast was 1%)
Department Store/Supermaket Sales Sept -1.3% vs -4.7% Aug (Consensus -3.3%)
Yen slight strengthening. Volumes increased due to the Topix rebalance on the close.
Nikkei opened lower at 28,871 and traded in a tight range. Initially dipped to test 27,740 and bounced, tested again and then trended better to test 28,900 but sold down into lunch. PM opened around 28,800 and traded in a tight range to close -278pts (-1%) @ 28,820
Topix opened lower tested 1,990 in early trades then worked better to 2,003 before easing into lunch. PM traded around 2,000 level then worked up to 2,005 but sold down into the close with the rebalance on the close. Finished -14pts (-0.7%) @ 2,000
Focus was on earnings with weakness in stocks with poor results; like Fanuc, Fujitsu, and Dainippon Sumitomo Pharma whilst Screen leading the gains. Retail data a slight +VE but overwhelmed by the earnings data.
BoJ out at the start of the lunch break; no real changes but lowered their CPI forecast for FY 2021 to zero from +0.6%.
Leaders Other, Airlines, Agri and Chem.
Laggards Miners, Oil/Coal, Iron/Steel and Insurers.
S Korea 
Samsung Electronics announced that, for 3Q ended 30 Sep 2021, the net profit +31% to KRW12.3 trillion, notching a new high in three years. The revenue grew 10% to a record-breaking KRW74 trillion. It said the component shortage is expected to impact on the chip demand from some of its customers over this quarter.
Foreigners & Local Insts small net sellers.
Insurers weak as US treasury yields ease to a 2 week low with the T2ys under pressure. Banks firm on solid earnings. Tech firm as SK Hynix rallied after the good Samsung numbers. Recent leader Entertainment taking a breather. KIA +VE on share buyback (buying by Foreigners and Local Insts).
Kospi opened lower but trended higher in the first hour in choppy trading to test 3,035 but then eased back and around over the next hour with support at 3,030 but then just after 11am sold down to 3,020 only to then work back and trade around the 3,030 level but sold down at the end to close -16pts (-0.5%) @ 3,010
Kosdaq choppy trading during the morning between 1,011 and 1,006. Worked slightly better until 1.45pm and then sold down to close -9pts (-0.9%) @ 1,000
Taiex opened flat tested lower to 17,050 in early trades then rebounded to test 17,100 but failed to break out and trended lower some brief support at 17,020 but then tested 17,000 and found support and rallied with signs of bargain hunting to close -33pts (-0.2%) @ 17,042
Cross straight tension hightened as President Tsai confirmed the presence of US troops in Taiwan and China saying it will punuish the Czech Republic for recognising Taiwan but Taiwan is seeing more international support and the US has pushed for more countries to support its admission into the UN.
Earnings in focus along with concerns about the slowdown in China. Weakness in Energy, Materials and Tech.
T/O Thursday vs US$10.07bn Wednesday
CECC reported 6 new cases (all imported).

Active Heavyweights

PING AN (02318.HK) -1.950 (-3.261%) Short selling $234.89M; Ratio 19.520% closed at $58.35, down 2.4%
HKEX (00388.HK) -7.000 (-1.474%) Short selling $190.65M; Ratio 24.329% closed at $467.6, down 1.5%
MEITUAN (03690.HK) +4.400 (+1.638%) Short selling $324.02M; Ratio 18.945% closed at $272.2, up 1.3%
AIA (01299.HK) +0.650 (+0.732%) Short selling $99.42M; Ratio 16.253% closed at $89.55, up 0.8%
BABA (09988.HK) +0.500 (+0.304%) Short selling $898.26M; Ratio 48.819% closed at $165.2, up 0.4%
CCB (00939.HK) 0.000 (0.000%) Short selling $114.87M; Ratio 17.939% closed at $5.33, down 0.4%
TENCENT (00700.HK) +5.400 (+1.109%) Short selling $408.23M; Ratio 13.094% closed at $488.2, up 0.2%

HSI & HSCEI Constituents on Move:
BUD APAC (01876.HK) +1.730 (+9.096%) Short selling $24.44M; Ratio 15.501% closed at $20.65, up 8.6%
LI NING (02331.HK) -7.800 (-8.193%) Short selling $443.64M; Ratio 3.498% closed at $87.4, down 8.2%
EVERGRANDE (03333.HK) -0.120 (-4.724%) Short selling $5.00M; Ratio 5.451% closed at $2.41, down 5.1%
EVERG SERVICES (06666.HK) -0.150 (-3.488%) Short selling $1.52M; Ratio 2.192% closed at $4.14, down 3.7%
PETROCHINA (00857.HK) -0.110 (-2.835%) Short selling $78.80M; Ratio 22.564% closed at $3.74, down 3.6%
HAIDILAO (06862.HK) -0.700 (-2.998%) Short selling $94.95M; Ratio 40.015% closed at $22.55, down 3.4%
CHINA RES BEER (00291.HK) +2.650 (+4.348%) Short selling $10.82M; Ratio 10.672% closed at $63, up 3.4%
XINYI SOLAR (00968.HK) +0.520 (+3.359%) Short selling $30.95M; Ratio 10.198% closed at $16, up 3.4%

HSMI & HSSI Constituents on Move:

KAISA GROUP (01638.HK) -0.270 (-18.493%) Short selling $3.45M; Ratio 2.612% closed at $1.19, down 18.5%

Market News 

MTR CORPORATION (00066.HK) has ceased the tender of Tung Chung Traction Substation Property Development at 2 pm today (28th). According to on-site witness, at least five tenders have been submitted. Chinachem, CK ASSET (01113.HK), SHK PPT (00016.HK) and SINO LAND (00083.HK)  have joined the tussle. HENDERSON LAND (00012.HK) said their bid is on sole basis.

The Consumer Council published the "Purchase of Properties Outside Hong Kong - A Study on Enhancing Consumer Protection" report, opining the current legislation and licensing requirements cannot comprehensively regulate POH (properties situated outside Hong Kong) sales. The complaint figures relating to POH sales soared. Some POH advertisements placed by developers or estate agents were exaggerated and misleading with confusing exemption disclaimers. The Council suggested to strengthen regulation through referencing other jurisdictions.
From 2017 to August 2021, the Council received a total of 261 consumer complaints, with an average loss of HK$368,000 and the average value of the property affected was close to HK$1.8 million. It can also be observed from the Council’s complaint figures that 75% of the complainants learnt about the POH developments through local newspaper advertisements; nearly 70% of them attended the sales exhibition or talks organised by agents; while 93% of the transactions took place in Hong Kong. Furthermore, close to 90% of the cases involved estate agents, amongst which 60% involved unlicensed agents. Complaint types included the provision of inaccurate or misleading information, absence or omission of material information, and difficulties in obtaining a refund of the reservation fee or deposits paid by purchasers.

In September 2021, the average occupancy rate of guest rooms in Macau rose by 33.5 percentage points year-on-year to 50.6%; moreover, it represented a month-on-month growth of 12.2 percentage points in consequence of the relaxation of entry and exit requirements during most of September as compared to August, according to data from Macau's Statistics and Census Service.

YUZHOU GROUP (01628.HK) announced that the Company was informed by Lam Lung On, an executive Director, the chairman of the Board and a controlling shareholder of the Company, that on 27 October, Lam has acquired 2.222 million shares of the Company on the market for an aggregate consideration of approximately HK$1.9431 million (representing an average price of approximately HK$0.8745 per Share).  Following the Acquisitions, Lam Lung On is interested in an aggregate of 3.723 billion Shares, representing approximately 59.05% of the total issued share capital of the Company.

Overnight HIBOR last posted at 0.04018%, logging a 1-month high, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.06786%, up for 5 days, marking a 1-month high.

Within the last six trading days as of 27 October, the PBOC's overall  reverse repo whopped RMB900 billion, with net investment of RMB750 billion, Shanghai Securities News reported. In the industry participants' view, there is a high probability that RRR cut will not be on the "menu" for November's operation, given less capital pressure, abundant tools in front of the PBOC, and so on.

HUTCHMED (00013.HK)  announced that it has initiated a Phase III trial in China of HMPL-523, a novel, investigational spleen tyrosine kinase (Syk) inhibitor, in adult patients with primary immune thrombocytopenia (ITP).  The rationale for this Phase III study is based on encouraging data from the Phase Ib study of HMPL-523 in adult patients with ITP. The safety, pharmacokinetics and preliminary efficacy data for the Phase Ib study are expected to be presented at the 63rd American Society of Hematology (ASH) Annual Meeting in December 2021.

Fitch Ratings downgraded KAISA GROUP (01638.HK)'s Long-Term Foreign-Currency Issuer Default Rating (IDR) to "CCC+", from "B", and lowered the senior unsecured rating and the rating on KAISA GROUP's outstanding  USD senior notes to "CCC+" from "B". The Recovery Rating, on the other hand, was kept unchanged at "RR4".  Fitch expressed that the downgrading decision was made to reflect the limited funding access of KAISA GROUP and uncertainties over the refinancing of the substantial amount of the company's USD bonds and coupon payment through to 2022, in light of the ongoing volatility of the capital market.

MEITUAN-W (03690.HK) set up a special team for retail-related business discussion and decision-making, comprising Founder and CEO Wang Xing, Senior Vice President Wang Puzhong, Senior Vice President Chen Liang, Fast Donkey Business Division General Manager Guo Wanhuai, and Vice President Li Shubin, reported LatePost. At the September strategy meeting, Wang Xing announced to upgrade Meituan's strategy to "Retail + Technology" from "Food + Platform".

EVERGRANDE (03333.HK) and some of the offshore bond holders' advisers may conduct debt negotiations, Bloomberg cited people with the knowledge of the matter.  
EVERGRANDE's advisers Houlihan Lokey (HLI.US) and Admiralty Harbour Capital, together with offshore bondholders' advisers Moelis & Co. (MC.US) and Kirkland & Ellis, entered into non-disclosure agreements, poising for negotiations, report said. The above-mentioned advisers are seeking to exchange information with EVERGRANDE, including the status, liquidity and asset valuation of various projects, sources furthered.

Pre Market News
HSBC HOLDINGS (00005.HK) announced the repurchases of 2.648 million shares
by the Company in the London market yesterday (27 October) at GBP4.426-4.48 per share, with a volume weighted average price of GBP4.4545, involving GBP11.7954 million.

Having convened meetings in a row, the Department of Price under China's National Development and Reform Commissions (NDRC) invited economics and law experts, as well as some coal and power sector associations and companies to study standards that define the price gouging and profiteering among coal players.

CHINA POWER (02380.HK)   announced that it has recently signed a strategic cooperation agreement with Tencent Cloud under TENCENT (00700.HK), through which the two parties will engage in in-depth cooperation on various fields, including intelligent cities, rural area revitalization, low-carbon data center and the construction of smart enterprises.

YUM CHINA-S (09987.HK) announced the results for 3Q and the first three quarters of the year. For the first three quarters, the net profit of the company dropped 19% YoY to USD515 million. EPS  was USD1.23.  For 3Q, the total revenues amounted to USD2.55 billion , up 9% YoY. The net profit for the period plunged 76.31% YoY to USD104 million. EPS was USD0.25. A dividend of USD0.12 was declared.

Hong Kong Chief Executive Carrie Lam opined yesterday (27th) when attending a program of RTHK that Hong Kong has immense potential to foster a cultural industry, revealing that the government will focus on relevant development in the future. The chief executive likewise commented that perseverance is essential to enforcing land policies, while criticizing some of the land policies rolled out by former Hong Kong governments were not exactly the correct ones.

LI NING (02331.HK) and VIVA CHINA (08032.HK) announced the top-up placing of 120 million Li Ning shares by Viva China Development, being a substantial shareholder of Li Ning and a wholly owned subsidiary of Viva China. The shares represent 4.59% of the share capital of Li Ning as enlarged.  The placing price of HK$87.5 per share represents a discount of 8.09% to the closing price on the day of agreement. The total gross proceeds and estimated net proceeds are HK$10.5 billion and HK$10.43 billion respectively.

S&P Global Ratings downgraded KAISA GROUP (01638.HK)'s Long-Term Issuer Default Rating (IDR) to "CCC+", from "B", with a Negative outlook, to reflect the company's unsustainable capital structure, reduced liquidity and vast amount of debts which will be due in near-term.   With its weakened liquidity, the company is expected to face immense risks over the refinancing for its USD3.2 billion offshore bonds which will mature over the next 12 months, S&P added.

BUD APAC (01876.HK) announced the results for the first three quarters. The net profit hiked 69.9% YoY to USD851 million. Normalized EBITDA grew 26.8% YoY to USD1.778 billion. Normalized net profit stretched 60.9% YoY to USD872 million. Normalized  EPS  was US6.6 cents.  For 3Q, the revenue reclined 2.2% YoY to USD1.882 billion. The net profit and normalized net profit elevated by 9.8% YoY and 10% YoY, to USD358 million and USD352 million respectively.

SAIC MOTOR (600104.SH) announced that its subsidiaries, Z-ONE and Lianchuang Electronic, have inked a strategic cooperation memorandum of understanding (MoU) with ZTE (00763.HK) to establish a joint innovation center dedicated to propelling the development of "software automobile", so as to capitalize on the new development trend of "electric intelligent connected vehicles" of the auto industry.

The 15th Standing Committee of the Shanghai Municipal People's Congress released the revised draft of "Shanghai Data Regulation" yesterday (27th) during the 36th meeting, which revealed that the Shanghai municipal government will set up a data exchange in the Pudong New Area at the request of the central government, while endeavoring to forge the Lingang Special Area into an international data port, reported Shanghai Observer News.

SINOPEC CORP (00386.HK)(600028.SH) plans to fully utilize refining capacity in November, preliminarily working to boost domestic diesel supply by 29% from the same period last year, reported Xinhua News Agency.

DRC's Department of Price yesterday (27 October) summoned China National Coal Association (CNCA) and some key coal companies for a meeting to study concrete measures to intervene in coal prices.  At the meeting, NDRC listened to CNCA and certain key coal producers about prevailing coal market and price conditions. Having incorporated early-stage probe results, the watchdog focused on discussing the scope and means of coal price intervention, price levels, implementation timing, safeguards, and so on.

To ensure stable and reliable coal supply and to facilitate the market price of coal to normalize, Jinneng Holding Group, Shanxi Coking Coal Group, Lu'an Chemical Group and Huayang New Material Technology Group pledged yesterday (27th) to keep the price of the 5,500-NAR grade thermal coal at below RMB1,200 per ton at the pit-head over the period from this winter to next spring, reported Xinhua News Agency.

General Office of the State Council published a notice on the illegal construction of government-funded facilitates assigned to organizations and armies in some areas with heavy debts. The Office made a report on the related situation for regions such as Qinghai, Ningxia, Guizhou and Yunnan.  Investigation found that four regions - Qinghai, Ningxia, Guizhou and Yunnan - which had higher debt risks of local governments, reported eight problematic projects of the above-mentioned facilities in violation of regulations to varying degrees.
The notice highlighted that stringent control of the construction of party and government office buildings and other buildings formed a pivotal part of better party ethics.

China's Ministry of Industry and Information Technology (MIIT) held an administrative guidance meeting on regulating SMS marketing behaviors of e-commerce operators during the "Double 11" Shopping Festival. BABA-SW (09988.HK), JD-SW (09618.HK), Pinduoduo (PDD.US), MEITUAN-W (03690.HK) and other major e-commerce operators partook in the event.  The meeting required that e-commerce operators should unroll blanket self-check immediately on their SMS marketing behaviors on retailing and financial products. Such operators were also forbidden to send marketing text messages without the consents or requests of consumers. Their existing SMS marketing plans should be improved, and reports of the progress of work should be made to the industry heads timely.

CMOC (03993.HK) announced the results for the first three quarters ended 30 September 2021. Under the Accounting Standards for Business Enterprises of the PRC, the operating revenue of the company amounted to RMB126.559 billion, up 57.6% YoY. The net profit for the period rocketed 121.1% to RMB3.558 billion.  EPS  was RMB16.5 fen.

CGN POWER (01816.HK) announced that in accordance with the China Accounting Standards, net profit burgeoned 6.4% YoY to RMB8.711 billion for the first three quarters ended September 30, 2021.
EPS equaled 17.25 fen.

CHINA COAL (01898.HK)  announced the results for the three quarters ended 30 September. Under PRC GAAP, the company's operating revenue amounted to RMB161.739 billion, up 61.3% YoY. Net profit leaped 185.4% to RMB11.856 billion. EPS was RMB89 fen.

CHINA COAL (01898.HK) announced that it shall acquire the 100% equity interest held by China Coal Group, the controlling shareholder of the Company, in Pingshuo Industrial Group at the cash consideration of RMB1.409 billion, for smooth succession of the resources at Antaibao Open Pit Mine as well as the subsequent development and construction of reserves and resources at Pingshuo Mine.

SHANGHAI PECHEM (00338.HK) announced the results for the first three quarters ended 30 September 2021. Under the China Accounting Standards for Business Enterprises, the operating revenue of the company stretched 12.6% YoY to RMB61.863 billion. A net profit of RMB1.965 billion was recorded, compared to a loss of RMB642 million for the corresponding period of the previous year. EPS was RMB18.2 fen.

CKH HOLDINGS (00001.HK)'s statement disclosed that on 27 October, it repurchased 40,000 shares of the company on the Stock Exchange at a price of $52.25-52.3 per share, involving about $2.09 million.  YTD, the company has repurchased a total of 19.643 million shares, accounting for 0.5094% of the company's share capital.

CIMC (02039.HK) announced the results for the first three quarters ended 30 September 2021. Under the China Accounting Standards for Business Enterprises, the operating revenue of the company amounted to RMB118.242 billion, up 85.9% YoY. Net profit leaped 1,161.4% to RMB8.799 billion. EPS was RMB2.4056.

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