markets opened flat FTSE and DAX trading flat but CAC trending lower following the weakness in Asia and the China data which could hurt the global growth outlook. UK data showed inflation soaring. Retail weak but Oil/Gas strong.
Industrial Production Jul 7.7% YoY vs 10.1% Jun revised (F/cast was 6.2%)
Industrial Production Jul 1.5% MoM vs -0.1% Jun revised (F/cast was 0.5%)
Labour Cost Index Q2 -0.1% YoY vs 1.3% Q1 revised (F/cast was 3.8%)
Wage Growth Q2 -0.4% YoY vs 2.1% Q1 revised (F/cast was 3.6%)
Inflation Rate Aug 1.9% YoY vs 1.2% Jul (F/cast was 1.9%)
Inflation Rate Aug +0.6% MoM vs 0.1% Jul (F/cast was +0.6%)
Inflation Rate Aug 3.2% YoY vs 2% Jul (F/cast was 2.9%)
Inflation Rate Aug +0.7% MoM vs 0.0% Jul (F/cast was +0.4%)
Core Inflation Aug 3.1% YoY vs 1.8% Jul revised (F/cast was 2.8%)
Core Inflation Aug 0.7% MoM vs 0.0% Jul (F/cast was 0.3%)
PPI Core Output Aug 1% MoM vs 1% Jul revised (F/cast was 0.3%)
PPI Core Output Aug 5.3% YoY vs 4.1% Jul revised (F/cast was 4.3%)
PPI Input Aug 11% YoY vs 10.4% Jul revised (consensus was 10.3%)
PPI Input Aug 0.4% MoM vs 1.3% Jul revised (consensus was 0.2%)
PPI Output Aug 0.7% MoM vs 0.8% Jul revised (F/cast was 0.4%)
PPI Output Aug 5.9% YoY vs 5.1% Jul revised (F/cast was 5.4%)
Retail Price Index Aug 4.8% YoY vs 3.8% Jul (F/cast was 4.5%)
Retail Price Index Aug 0.6% MoM vs 0.5% Jul (F/cast was 0.3%)
Opened Dow +20pts, S&P +0.08% and NDX +0.11% but pre opened Dow flat, S&P +0.1% and NDX +0.2%
MBA Mortgage Applications +3.03% vs 3.03% prior
MBA30 yr rate +0.3% vs -1.9% prior
Export Prices Aug 16.8% YoY vs 17.2% Jul (F/cast was 17.5%)
Export Prices Aug 0.4% MoM vs 1.1% Jul revised (F/cast was 0.9%)
Import Prices Aug 9% YoY vs 10.2% Jul (F/cast was 9.7%)
Import Prices Aug -0.3% vs 0.4% Jul revised (F/cast was 0.3%)
NY Empire State Manufacturing Index Sept 34.2 vs 18.3 Aug (F/cast was 19)
Industrial & Manufacturing Production, Capacity Utilisation, EIA Oil Stock Change Report.
CHINA CSI 300 closed -50pts (-1%) @ 4,867
CSI 300 opened lower at 4,903 but sold down to 4,870 in early trades before rebounding after the weak China data and especially weak Retail Sales data. Market then worked back to 4,900 level in choppy trading. PM saw a big sell down to 4,860 initially, which held for about 30 minutes but then sold down to 4,840 level before rebounding into the close. Still no clarification from Beijing about policy support. I still think that the implementation of Dual Circulation is going to hurt the economy but the ideology is now paramount.
Concerns remain regarding the covid outbreak especially ahead of Mid Autumn festival and Golden Week.Shanghai Composite -6pts (-0.2%) @ 3,656 T/O US$88,068bn -12% DoD
Shenzhen Composite -90pts (-0.6%) @ 14,536 T/O US$117,040bn -7.5% DoD
ChiNext Composite Index -11pts (-0.3%) @ 3,536
Home Price Index Aug 4.2%YoY vs 4.6% Jul (F/cast was +4.6%)
Home Price Index Aug +0.16% MoM vs 0.3% Jul
NBS Press Conference
Fixed Asset Investment (YTD) Aug 8.9% YoY vs 10.3% Jul (F/cast was 9.5%)
Industrial Production Aug 5.3% vs 6.4% Jul (F/cast was 6%)
Retail Sales Aug 2.5% vs 8.5% Jul (F/cast was 7.5%)
Unemployment Rate Aug 5.1% vs 5.1% Jul (F/cast was 5.1%)
China's National Health Commission reported 73 COVID-19 confirmed cases yesterday (14th), with 23 of them being imported cases and 50 of them being local cases (all recorded in Fujian).
Pre market opened @ 25,310 -192pts vs -193pts ADR’s but sold down to 25,131 in early trades with Macua names hit down on news of more control of the sector. Market rebounded after the weak data back to 25,400 but then trended lower into lunch. PM opened slightly lower and trended lower as Evergrade told its Banks it will not pay interest due in Sept. HSI found support at 25,000 saw a small bounce but then retested 25k going into the close but it held with an uptick in the closing auction.
Southbound Connect closes tomorrow and resumes Sept 23 after the long weekend in China.
Just announced that Evergrade tells Banks it will not pay interest due in Sept.
Share Buybacks Tuesday
Xiaomi 8.49m shars for $198m
Yongda YTD 1m shares for $11,9m
Tencent 220k shares for $105m
S-Enjoy Service 137k shares for $2.31m
HONG KONG DATA
HK reported 1 new covid cases; imported.
SHORT SELLING HSI Wednesday 15% vs 20.4% Tuesday
Top shorts China Overseas (688) 30%, CCB (939) 47%, Country Garden (2007) 45%, Bank of China (3988) 43%, Henderson Land (12) 41%, Haidilao (6862) 40%, CK Asset (1113) 40%, Wharf REIC (1997) 38%, Ali Health (241) 37%, SHKP (16) 36%, MTR (66) 34%, BYD (1211) 31%, CM Bank (3968) 31%, HKEX (388) 30%, Mengniu Dairy (2319) 29%, Sino Biopharm (1177) 27%, Geely (175) 25%
After Market News
HENDERSON LAND (00012.HK)'s THE HOLBORN, a residential project in Hong Kong East, has its first sales arrangement uploaded today (15th), rolling out 128 flats for sales this Sunday (19th), said Mark Hahn, General Manager of Sales (2) Department. With saleable area of 220-260 sq.ft., the related flats are discounted at $5.8083-8.0342 million.
CHINA RES POWER (00836.HK) announced that total net generation of subsidiary power plants for the first eight months of 2021 increased by 19.1% year on year to 118 million MWh, among which, subsidiary wind farms increased by 51.9% year on year to 20.4661 million MWh, subsidiary photovoltaic plants increased by 61.7% year on year to 796,100 MWh.
The People's Bank of China and the Hong Kong Monetary Authority issued a joint announcement that Southbound Trading under Bond Connect will be launched on September 24. The Hong Kong Special Administrative Region Government welcomes this initiative which further expands mutual access between the two capital markets, and expresses deep gratitude to the Central Government for its support.
CK ASSET (01113.HK) announced that Li Ka Shing Foundation Limited acquired a total of 1.5245 million shares in CK Asset at the average price of HK$47.6714, HK$48.4489, HK$48.5642 and HK$49.2970 per share on 9 September, 10 September, 13 September and 14 September 2021 respectively. As a result, the deemed interests of Li Ka-shing, Victor T K Li and Li Ka Shing Foundation Limited in CK Asset increased from 45.98% to 46.02%; increased from 46.05% to 46.09%; and increased from 11.27% to 11.31%.
S&P Global Ratings lowered the long-term issue rating on EVERGRANDE (03333.HK) and its subsidiaries Hengda Real Estate Group and Tianji Holding from "CCC" to "CC".
Equally, the long-term issue rating on USD notes issued by EVERGRANDE and guaranteed by Tianji Holding was lowered from "CCC-" to "C". EVERGRANDE's negative outlook reflected a higher default risk and a higher chance of debt restructuring as its liquidity seems to have depleted.
CHINA TAIPING (00966.HK) announced that the gross premium income of Taiping Life Insurance (TPL), Taiping General Insurance, and Taiping Pension, being subsidiaries of the Company, for the first eight months of 2021 were RMB109.265 billion (up 3.3% YoY), RMB18.527 billion (down 1.7% YoY), and RMB4.597 billion (up 18.4% YoY).
The Centa-Salesman Index (CSI) (for residential selling prices) last posted at 67, down 0.15 pts from last week. The index softened on thinner second-hand deals, said the research department of Centaline Property. However, the fall was too mild to be a sign of home price downturn. They believed CSI will continue to hover between 60 and 70, foretelling a prolonged tread at the historical high.
The CSI (for residential rent) dipped 0.63 pts weekly to 64.84. With the rent zooming past the 2020 peak, the index was struggling amid higher market resistance. This forecast an unchanged rent uptick although the growth may decelerate.
MCC (01618.HK) -0.060 (-2.034%) Short selling $4.01M; Ratio 4.208% announced that the value of newly signed contracts of the company amounted to RMB785.72 billion from January to August in 2021, representing an increase of 30.9% from the same period of last year.
SoftBank Group's CEO Masayoshi Son expressed that the group's vision fund has been jointly developing AI machines with 18 different companies, with the conviction that smart robots will be able to revitalize the Japanese economy and the country's competitiveness. Son further remarked that smart robots can replace not merely manufacture and industrial workers, but potentially the entire working population in the future.
Market trended lower for the first hour finding support at 7,380 before rebounding. Initially to the 7,400 level before working higher to 7,420 level only to deep to close -20pts (-0.3%) @ 7,417
Weakness in Financials and Materials (Iron ore weak although Lithium miners are rallying after Pilbara sells spodumene concentrate at a higher than expected spot price.)
Leaders Healthcare and IT
WiseTech +VE on broker upgrade following good results.
Consumer Confidence Index Sept 106.2 vs 104.1 Aug (F/cast was 102)
Consumer Confidence Change Sept +2% vs -4.4% Aug (F/cast was -2%)
Consumer Inflation Expectations Sept vs +3.3% Aug (F/cast was +3.2%)
New Home Sales Aug MoM vs -20.5% Jul (F/cast was -9%)
Nikkei opened lower at 30,464 and trended lower for the first two hours after weak initial data and poor data out of China but then rallied back to the opening levels going into lunch. PM traded sideways around 30,500 to close -158pts ( (-0.5%) @ 30,512
Topix traded in the morning in a similar fashion. PM traded sideways to close -23pts (-1.1%) @ 2,096
Shippers (Bulk especially) +VE but Laggards: Property, materials and energy . Tech weakness after the disappointing Apple launch. Data
Tankan Index Sept 18 vs 33 Aug (F/cast was 39)
Machinery Orders Jul 11.1% YoY vs 18.6% Aug was (F/cast was 16%) Machinery Orders Jul 0.9% MoM vs -1.5% Aug (F/cast was +2.9%)
Tertiary Industry Index Jul -0.6% vs +2.3% Jun (F/cast was +1.4%)
Kospi opened slightly lower but rallied to test 3,160 in the first hour but choppy trading. Sold down to 3,140 level on news of N Korean missile launch but then rebounded back to trade around 3,160 level.
Kosdaq traded in a similar way, seeing resistance at 1,044; currently +6pts (+0.6%) @ 1,044
Foreigners small net buyers mainly Tech. Weakness in Internet, Steel and Chem (LG Chem -3%)
Leaders Phama and Utilities
Unemployment Aug 2.8% vs 3.3% Jul (F/cast was +3.7%)
Taiex opened flat but sold down to 17,315 in first hour but then worked slightly better to trade sideways around 17,380 level. Small rally around 1pm but sold down to close -81pts (-0.5%) @ 17,354
T/O was US$9.55 vs US$9.29bn Tuesday second day of a slight rise after 6 days of falling but with long weekend approaching.
CECC reported 5 new covid cases; 4 imported
The lower house of Switzerland's parliament, the National Council, has passed a motion calling for deeper relations with Taiwan, which in turn expressed its gratitude for the support.
Northbound RMB 61,772m Sell 29,624m vs 32,149m Buy
Southbound HK$ 13,722m Sell 7,126m vs 6,596m Buy
Northbound RMB 70,258m Sell 35,322m vs 34,936m Buy
Southbound HK$ 16,395m Sell 8,318m vs 8,078m Buy
MEITUAN (03690.HK) -11.000 (-4.490%) Short selling $471.01M; Ratio 18.287% closed at $234, down 4.5%
TENCENT (00700.HK) -19.400 (-4.103%) Short selling $409.86M; Ratio 5.250% closed at $453.4, down 4.1%
AIA (01299.HK) -3.650 (-3.897%) Short selling $192.09M; Ratio 13.198% closed at $90, down 3.9%
BABA (09988.HK) -4.300 (-2.716%) Short selling $301.34M; Ratio 16.888% closed at $154, down 2.7%
PING AN (02318.HK) -0.900 (-1.563%) Short selling $156.53M; Ratio 15.605% closed at $56.7, down 1.6%
CCB (00939.HK) +0.020 (+0.353%) Short selling $73.52M; Ratio 12.488% closed at $5.68, up 0.4%
HKEX (00388.HK) 0.000 (0.000%) Short selling $257.71M; Ratio 34.593% closed at $504.5, unchanged
HSI & HSCEI Constituents on Move:
SANDS CHINA LTD (01928.HK) -8.110 (-32.505%) Short selling $404.67M; Ratio 19.783% closed at $16.84, down 32.5%
GALAXY ENT (00027.HK) -9.800 (-20.020%) Short selling $497.97M; Ratio 12.505% closed at $39.15, down 20%
COUNTRY GARDEN (02007.HK) -0.690 (-8.756%) Short selling $63.47M; Ratio 35.095% closed at $7.19, down 8.8%
JD HEALTH (06618.HK) -5.100 (-6.632%) Short selling $65.02M; Ratio 19.231% closed at $71.8, down 6.6%
JD (09618.HK) -18.600 (-5.931%) Short selling $330.18M; Ratio 37.634% closed at $295, down 5.9%
EVERG SERVICES (06666.HK) +0.220 (+5.459%) Short selling $2.17M; Ratio 0.803% closed at $4.25, up 5.5%
EVERGRANDE (03333.HK) -0.160 (-5.387%) Short selling $12.83M; Ratio 3.424% closed at $2.81, down 5.4%
HANSOH PHARMA (03692.HK) -1.080 (-5.167%) Short selling $2.16M; Ratio 8.009% closed at $19.82, down 5.2%
SUNAC (01918.HK) -0.840 (-5.153%) Short selling $150.90M; Ratio 28.254% closed at $15.46, down 5.2%
KUAISHOU-W (01024.HK) -4.600 (-4.708%) Short selling $204.38M; Ratio 21.638% closed at $93.1, down 4.7%
ALI HEALTH (00241.HK) -0.540 (-4.592%) Short selling $59.00M; Ratio 25.485% closed at $11.22, down 4.6%
XINYI GLASS (00868.HK) -1.100 (-3.826%) Short selling $29.78M; Ratio 14.339% closed at $27.65, down 3.8%
NTES (09999.HK) -5.000 (-3.737%) Short selling $10.78M; Ratio 2.482% closed at $128.8, down 3.7%
SINO BIOPHARM (01177.HK) -0.240 (-3.598%) Short selling $31.82M; Ratio 22.818% closed at $6.43, down 3.6%
LI NING (02331.HK) +3.550 (+3.588%) Short selling $40.91M; Ratio 6.458% closed at $102.5, up 3.6%
CHINA FEIHE (06186.HK) -0.480 (-3.556%) Short selling $1.77M; Ratio 2.024% closed at $13.02, down 3.6%
CG SERVICES (06098.HK) -1.950 (-3.473%) Short selling $59.10M; Ratio 16.853% closed at $54.2, down 3.5%
HSMI & HSSI Constituents on Move:
MGM CHINA (02282.HK) -2.110 (-26.811%) Short selling $27.79M; Ratio 30.937% closed at $5.76, down 26.8%
SJM HOLDINGS (00880.HK) -1.690 (-24.006%) Short selling $115.59M; Ratio 24.538% closed at $5.35, down 24%
MELCO INT'L DEV (00200.HK) -2.310 (-20.122%) Short selling $15.27M; Ratio 16.063% closed at $9.17, down 20.1%
C TRANSMISSION (00658.HK) +0.960 (+14.747%) Short selling $7.64M; Ratio 11.605% closed at $7.47, up 14.7%
CHINA LESSO (02128.HK) -2.040 (-13.456%) Short selling $4.63M; Ratio 10.494% closed at $13.12, down 13.5%
JW THERAP-B (02126.HK) -2.280 (-10.755%) Short selling $2.74M; Ratio 4.063% closed at $18.92, down 10.8%
The CEO of Huawei, Ren Zhengfei, expressed that the company is currently expanding its scientist team and that it has not altered its human resource policies over the last two years, despite the U.S. sanctions, reported CNBC. Ren remarked that instead of descending into internal chaos, the company has become even more united in the face of the U.S. sanctions and has attracted more talents than before.
CHALIECO (02068.HK)'s H-share has surged 19.2% at one point, notching a new high in over a year and a half. Its A-share likewise stretched 10% and hit the day limit; last stood at RMB5.9. CHALIECO had previously announced that its subsidiary Changsha Engineering & Research Institute for Nonferrous Metallurgy will be directing the designs of the two lithium carbonate projects under Qinghai Lithium Co. Ltd and Qinghai East Taiji Nai'er Lithium Resources Co. Ltd, which involve an annual lithium carbonate output of 10,000 tonnes.
Sun Hung Kai Real Estate Agency's executive director, Maureen Fung, expressed that, with epidemic in Hong Kong tapering off, the consumption voucher scheme continued to stimulate the retail market. The company forecast the consumption sentiment to stay vibrant and that the footfall and sales of its shopping mall apm could hike 20-30％ YoY during the peak period of Mid-autumn festival. Sun Hung Kai expressed that the company has seen uplifting market reactions after the distribution of the first instalment of the consumption vouchers. Along with the synergy effect brought by the Olympic Games live streaming, apm's footfall has stretched 50% YoY during the peak season.
Chinese authorities have informed certain banks that EVERGRANDE (03333.HK) will temporarily stop the interest payment for bank loans maturing on 20 September, reported Bloomberg News, citing people familiar with the matter. The report added that EVERGRANDE is still in talks with creditors regarding the arrangement of loan extension.
The senior fund manager at Value Partners Group, Kelly Chung, expressed that, given the Chinese government's resolution to rectify the real estate sector and to combat property speculation, the government is believed to allow defaults from certain troubled real estate developers, while aiding others with a solid and healthy business foundation to expand market shares. Chung contended that reform on the sector is forecast to be large-scaled but now is not yet the optimal timing for bottom-fishing. Chung further predicted that the Chinese real estate sector will lose the past momentum for rapid increase and maintain low teens growth in foreseeable future.
SEMI released the latest forecast report on global wafer plants, expecting the total semiconductor facility investment amount in front end wafer fabs around the globe to edge near a new high at USD100 billion next year, which would break the latest record of USD90 billion which was just set this year. South Korea will be leading the world in terms of wafer fab expenditure next year, which is expected to reach USD30 billion, with Taiwan trailing behind with an projected expenditure of USD26 billion, the report added. China, on other hand, is predicted to invest nearly USD17 billion on wafer plant facilities.
BABA-SW (09988.HK)'s online O2O life service platform Ele.me issued a statement, announcing that the act of inducing or forcing labor workers to register as individually owned businesses, with the aim to evade responsibility as an employer, is strictly forbidden, and that the platform will operate in full compliance to relevant laws and regulations introduced by the Chinese government. Ele.me further illustrated that it has been implementing various measures to protect the personal health, income and development of its riders.
Zhejiang KH Automotive Technologies Co., Ltd. has included Hubei Xiaomi Yangtze River Industrial Fund Partnership Enterprise as a new shareholder, with its registered capital expanded from approximately RMB13.2995 million to approximately RMB13.9995 million, reported Chinese media.
Zhejiang KH Automotive Technologies is a developer and supplier of electronic modulated suspension (EMS) system for passenger vehicles.
Kwai Hung Group's residential project located in Hung Hom -- "Mangrove" will launch 130 units on 18 September (Saturday), which is the total number of units available for the project. The discounted selling prices range between $3.318 million to $9.082 million.
The EV partnership project between Foxconn Technology Group and Chinese EV start-up company Byton has been halted due to the deteriorating financial situation of the latter, reported Nikkei Asia, citing people familiar with the matter.
In response to questions regarding EVERGRANDE (03333.HK) , NBS spokesperson Fu Linghui said some large-cap real estate companies are having difficulties in the course of operation. Further observation will be needed to see such impact on the overall sector development, he added.
BABA-SW (09988.HK)'s Tmall announced to have officially commenced the merchant registration for the Double-11 shopping spree today (15th), along with 10 specialized measures to aid businesses during the shopping festival. For instance, Tmall will offer Alimama promotion red envelopes worth RMB1 billion in total to registered merchants which have achieved a corresponding consumption level on specific products, with individual merchant eligible to potentially receive a subsidy of as much as RMB10 million.
Tmall held a home decoration ecosystem summit earlier. En Zhong, general manager of Tmall's home decoration business group, mentioned four strategic advancements surrounding localization, content orientation, service upgrade and supply upgrade. Specifically, Tmall aims to boost its home decoration online share from 10% to 20% by the end of 2022, with GMV exceeding RMB1 trillion.
China's coal output edged up, producing 340 million tonnes in August, up 0.8% YoY, compared to a decrease of 3.3% of last month, according to data from the National Bureau of Statistics (NBS). Crude oil output continued to be steady, producing 17.03 million tonnes in August, up 2.3% YoY, representing a 0.2 ppts decline in the growth pace compared to last month.
China's electricity generation edged up by 0.2% yearly to 738.3 billion kWh in August 2021 amid a sharply descending growth, according to National Bureau of Statistics (NBS) data.
Numerous industries may be exposed to higher credit risks in case of EVERGRANDE (03333.HK)'s default, Fitch Ratings predicted, viewing a default will deteriorate credit polarization among homebuilders and result in adversities for some smaller banks. However, the rating agency assumed the overall impact on the banking sector will be controllable. Last week, Fitch downgraded EVERGRANDE by three notches to CC from CCC+, stating a default of some kind is probable. The brooding concern of investors over EVERGRANDE's debt aggravated credit polarization among developers.
Chinese Foreign Minister Wang Yi voiced hope during a meeting with the Singaporean Foreign Minister Vivian Balakrishnan that the U.S. could view China's development rationally like many other countries, including Singapore. As the two largest economies in the world, the U.S. and China have the responsibility to seek mutually beneficial partnership and collaboration, which will in turn propel the growth of global economy, Wang remarked.
The Macao Chamber of Commerce expressed its full support for the Macau government's proposed revision on the gaming law and that it believes the revision could further perfect the gaming system with more effective regulation, expressed Ma Iao Lai, president of the association. Ma remarked that determining the number of gaming concessions would be a major topic for the revision and that the government should dictate the most appropriate number of concessionaries to ensure stable and healthy development for the overall gaming industry.
JD-SW (09618.HK) announced yesterday that the first JD shopping mall has landed in Xi'an, set to commence business on 30 September. The five-storey mall has an operating floor area of 42,000 sq.m., providing goods of some 150 brands including Apple, Huawei, Intel, Midea and Haier.
Fong Ka Chio, the head of the Institute for the Study of Commercial Gaming (ISCG) at the University of Macao, expressed that, when determining the number of gaming concessions, the Macau government has to weigh various factors to map out the optimal combinations for realizing long-term sustainable growth for Macau, reported Macao Daily. Fong added that, according to results from a survey conducted in pre-COVID era, six gaming concessionaires are considered to be an appropriate amount to ensure stable and balanced development of the sector and the city in the general.
EVERGRANDE (03333.HK) Chairman Hui Ka Yan owned a single house mansion at Black's Link of The Peak with $800 million market value through Giant Hill Limited, HK01 reported. Recently, Hui has resigned the company's director, which is succeeded by his "housekeeper" Tan Haijun. Tan meanwhile is the director of Better Vision Limited, which holds another block of house next to Hui's mansion. This company is also owned by EVERGRANDE's related person, renting at $500,000 in recent month.
The People's Bank of China conducted the one-year Medium-term Lending Facility (MLF) operation of RMB600 billion today (15th), with an unchanged interest rate of 2.95%.
Lei Wai Nong, Macao's Secretary for Economy and Finance, said one of the consultation highlights would be the number of gaming licenses, reported Macao Daily News. The gambling sector shall not expand infinitely despite certain economies of scales regarding social development, economic growth, livelihood and welfare, and tax revenue brought by its opening-up. Thus, he suggested considering an appropriate upper cap on the license number. The sub-concession of casino operation rights will be expressly prohibited in the gaming law amendments, Lei stressed. Macao will discourage sub-concession arrangements going ahead as it anticipates to ensure sector stability.
The Hong Kong Monetary Authority (HKMA) released the key analytical accounts of the Exchange Fund at the end of August 2021. Foreign assets, representing the external assets of the Exchange Fund, increased during the month by HK$22.7 billion MoM to HK$4.0616 trillion.
The Macau SAR Government is holding a 45-day public consultation on gaming law system amendments from today (15th), reported Macao Daily News. The administration will listen to public opinions on the duration of new gaming license terms, stressed Macau's Secretary for Economy and Finance Lei Wai Nong. He also raised a rhetorical question of whether casino operators could still be granted licenses for 20 years ahead.
Asked if online gambling will be a thing, Lei said accommodation, retail and catering elements and activities are of paramount importance to the economy of Macau, a tourism and leisure center. Therefore, he believed social issues brought by online gambling introduction without objective evaluation will eventually outweigh the gains.
NTES-S (09999.HK) has been shrinking the operation scale of some of its game studios and projects since early September, involving programmers, designers and content creators, which have been asked to seek new appointment internally or externally, reported South China Morning Post, citing sources As of now, NTES-S has not issued any response to said news, reported Cailian Press.
YUM CHINA-S (09987.HK) announced that based on the current trend, the adjusted operating profit, which excludes special items, may be reduced by approximately 50% to 60% for the third quarter of 2021, compared to the same period last year. This is primarily due to the significant sales deleverage impact from sharply reduced sales, which is especially pronounced in the third quarter, a seasonally strong quarter for sales and margins.
Inspur Group announced to have reached a strategic cooperation framework agreement with TENCENT (00700.HK) . Through the partnership, the two parties will combine respective competitive edges on IT, market advantage in internet technological products, in order to foster joint innovation and product integration in aspects including corporate-grade payment, wealth management, etc. The two parties intend to forge a SME financial service platform focusing on wealth management and tax issues by providing one-stop corporate cloud solutions.
MEITUAN-W (03690.HK) issued a notice to all collaborating partners, underscoring the Chinese government's new policy which forbids platforms to require riders to register as individually owned businesses. MEITUAN-W added that all collaborating partners will be asked to sign a letter of commitment by next week. MEITUAN-W expressed that the company will continue to defend the legitimate rights of its riders, while actively implementing relevant policy requirements.