HSI +62pts (+0.2%) 26,090 HSCEI +70pts (+0.8%) 9,341 T/O HK$171.07bn (-5.9% DoD)
Markets opened flat following a weak Asia and ahead of US Initial Claims today and Payrolls tomorrow.
PPI Jul +2.3% MoM vs +1.4% Jun (F/cast was +1.4%)
PPI Jul +12.1% YoY vs +10.2% Jun (F/cast was +11%)
Opened in Asian time Dow flat,S&P +0.03% and NDX +0.04% but as Europe got underway Dow +12pts, but S&P and NDX flat.
Challenger Job Cuts, Balance of Trade, Unit Labour Costs, Non Farm Productivity, Initial Jobless Claims Jobless Claims 4 week Ave, Continuing Claims, Exports, Imports, Factory Orders, EIA Natural Gas Stocks, LMI Logistics Managers Index.
CHINA CSI 300 closed flat @ 4,869
Market opened higher and rallied to 4,890 in the first 20 minutes but then reversed back and trended lower to 4,850 before a small uptick into lunch. PM the market worked better to close flat as investors for more Govt stimulus.
Sentiment remains subdued despite PBOC supplying cheap funding to banks for lending to SME’s. IPP’s +VE on news of a new power system for carbon neutrality.
Shanghai Composite +30pts (+0.8%) @ 3,597 T/O US$99.935bn -17.5% DoD
Shenzhen Composite -37pts (-0.3%) @ 14,277 T/O US$115.851bn -13% DoD
ChiNext Composite Index -10pts (-0.3%) @ 3,447
Pre market opened @ 26,204 +175pts vs +50pts ADR’s With continued interest in Ecommerce but Financials & Energy remains weak. Market tested higher to 26,300 but then news China was accusing 11 ride hailing companies of unfair competition and they were given to December to rectify their actions. Rumours that Property will be the next sector as China sets out rental increase limits.
Kuaishou strong on being added to the connect flows.
Leaders Renewables and Macau
Laggards Consumer and Financials
HONG KONG DATA
HK reported 0 new covid cases; no imported cases too.
The Land Registry released its statistics for August 2021.
The number of sale and purchase agreements for all building units received for registration in August was 7,875, -20.9% MoM
The total consideration for sale and purchase agreements in August was $70.4 billion, -25% MoM.
After Market News
HKEX (00388.HK) announced that it has signed a memorandum of understanding (MOU) with Hong Kong Science and Technology Parks Corporation (HKSTP), to explore new biotech and fintech initiatives, so as to propel the long-term growth of Hong Kong and the region as a global centre of excellence for biotech and new economy enterprises.
SHORT SELLING Thursday 14.7% vs 15% Wednesday
Top shorts Bank Comm (3328) 70%,MTRC (66) 38%, CLP (2) 38%, Bank of China (3988) 34%, Country Garden (2007) 34%, ICBC (1398) 33%, Haidilao (6862) 33%, CCB (939) 31%, Henderson Land (12) 31%, Bud Apac (1876) 30%, AAC Tech (2018) 29%, Galaxy (27) 29%, Hengan (1044) 28%, Techtronics (669) 28%, Shenzhou (2313) 27%, Sunny Optical (2382) 27%, CKH (1) 27%, SHKP (16) 26%, Hang Seng Bank (11) 26%, Power Assets (6) 26%, China Res Land (1109) 26%, Wharf REIC (1997) 25%, New World Dev (17) 24%,
Market opened lower and sold down to 7,440 in the first hour with BNP going ExDiv the biggest contributor to the decline and weak commodity prices. But then worked slowly higher on good data to close -41pts (-0.6%) @ 7,486.
Balance of Trade Jul A$12.117b vs 11.11b Jun (F/cast was 10.0b)
Exports Jul +5% MoM vs +4.1% Jun revised (F/cast was +2.3%)
Imports Jul +3% MoM vs +1% Jun (F/cast was +0.7%)
Home Loans Jul -0.4% MoM vs -2.5% Jun (F/cast was -1.2%)
Investment Lending for Homes Jul +1.8% MoM vs +0.7% Jun (F/cast was +0.2%)
Nikkei opened higher and initially tested to 28,600, but then reversed and trended down to 28,410 level before bouncing and was 28,478 at lunch. PM opened higher but saw resistance at 28,550 and drifted lower but then saw a spike at the end to close +93pts (+0.3%) @ 28,544
Topix traded in a similar pattern; to close +3pts (+0.1%) @ 1,984
Rail names weak on news of the JR West -15.7% on share sale. Pharma weak as Astellas cancels trial. Tech saw good interest
Foreign Stock Investment ¥25.3B vs -550.2b prior revised
Foreign Bond Investment ¥-545.5B vs -182.5b prior revised
KDCA reported 1,961 new covid cases (-64 DoD)
Kospi opened lower following largely in line data and trended lower to 3,172 then a small bounce before trading sideways to close; -31pts (-1%) @ 3,176.
Kosdaq choppy trading; opened higher but sold down to 1,042 around 10am. Rebounded to 1,048 and then traded around flat to close +1pt (+0.1%) @ 1,047
Foreign and Insto selling Financials, Tech and Chemicals. Kakao Bank -6.5% following block sale by Korean Post. Auto’s weak on poor sales data.
GDP Growth Rate Q2 +6% YoY vs +1.9% Q1 (F/cast was +5.9%)
GDP Growth Rate Q2 +0.8% QoQ vs +1.7% Q1 (F/cast was +0.7%)
Inflation Rate Aug +2.6% YoY vs +2.6% Jul (F/cast was +2.3%)
Inflation Rate Aug +0.6% MoM vs +0.2% Jul (F/cast was +0.2%)
Taiex opened flat and initially trended up to 17,523 but then trended lower down to 17,350 and bounced back to 17,400 for 40 minutes before resuming its downward trend to close at the day low; -154pts (-0.9%) @ 17,320
T/O wasUS$12.54bn vs US$13b Wednesday
CECC reported 5 new covid cases (4 imported).
Northbound RMB 76,730m Sell 36,132m vs 40,598m Buy
Southbound HK$ 19,384m Sell 10,745m vs 8,639m Buy
Northbound RMB 80,975m Sell 40,152m vs 40,823m Buy
Southbound HK$ 21,048m Sell 9,784m vs 11,264m Buy
BABA (09988.HK) +5.800 (+3.511%) Short selling $1.13B; Ratio 20.606% closed at $171, up 3.5%
TENCENT (00700.HK) +7.600 (+1.556%) Short selling $911.02M; Ratio 4.487% closed at $496, up 1.6%
PING AN (02318.HK) -0.950 (-1.542%) Short selling $320.10M; Ratio 8.776% closed at $60.65, down 1.5%
HKEX (00388.HK) +4.200 (+0.850%) Short selling $578.60M; Ratio 22.524% closed at $498.4, up 0.8%
AIA (01299.HK) -0.770 (-0.824%) Short selling $366.16M; Ratio 18.554% closed at $92.65, down 0.8%
CCB (00939.HK) -0.010 (-0.176%) Short selling $400.61M; Ratio 31.036% closed at $5.66, down 0.2%
MEITUAN (03690.HK) +0.200 (+0.079%) Short selling $1.73B; Ratio 15.301% closed at $253.6, up 0.1%
HSI & HSCEI Constituents on Move:
HAIDILAO (06862.HK) -2.000 (-5.935%) Short selling $167.62M; Ratio 32.486% closed at $31.7, down 5.9%
BIDU-SW (09888.HK) +8.600 (+5.563%) Short selling $272.71M; Ratio 28.098% closed at $163.2, up 5.6%
KUAISHOU-W (01024.HK) +4.400 (+5.241%) Short selling $704.21M; Ratio 19.190% closed at $88.35, up 5.2%
WH GROUP (00288.HK) -0.310 (-4.662%) Short selling $64.88M; Ratio 12.848% closed at $6.34, down 4.7%
XINYI SOLAR (00968.HK) +0.640 (+3.583%) Short selling $80.86M; Ratio 11.355% closed at $18.5, up 3.6%
EVERGRANDE (03333.HK) -0.150 (-3.555%) Short selling $91.22M; Ratio 23.262% closed at $4.07, down 3.6%
CHINA FEIHE (06186.HK) +0.500 (+3.501%) Short selling $24.30M; Ratio 8.570% closed at $14.78, up 3.5%
JD HEALTH (06618.HK) +2.400 (+3.158%) Short selling $127.83M; Ratio 9.883% closed at $78.4, up 3.2%
ALI HEALTH (00241.HK) +0.400 (+3.096%) Short selling $146.80M; Ratio 16.811% closed at $13.32, up 3.1%
HSMI & HSSI Constituents on Move:
C TRANSMISSION (00658.HK) +1.240 (+22.143%) Short selling $6.25M; Ratio 4.090% closed at $6.84, up 22.1%
GOLDWIND (02208.HK) +2.640 (+18.697%) Short selling $28.29M; Ratio 5.743% closed at $16.76, up 18.7%
KOOLEARN (01797.HK) +0.720 (+15.451%) Short selling $5.54M; Ratio 2.495% closed at $5.38, up 15.5%
CATHAY EDU (01981.HK) +0.400 (+12.780%) Short selling $1.88M; Ratio 9% closed at $3.53, up 12.8%
CHINA RES POWER (00836.HK) +1.670 (+9.151%) Short selling $72.04M; Ratio 10.3% closed at $19.92, up 9.2%, hitting new high
CIMC ENRIC (03899.HK) +1.020 (+9.091%) Short selling $12.25M; Ratio 8.004% closed at $12.24, up 9.1%, hitting new high
YANZHOU COAL (01171.HK) +1.040 (+7.867%) Short selling $41.52M; Ratio 9.567% closed at $14.26, up 7.9%, hitting new high
GF SEC (01776.HK) +0.780 (+5.447%) Short selling $8.09M; Ratio 2.564% closed at $15.1, up 5.4%, hitting new high
CHINA WATER (00855.HK) +0.420 (+5.412%) Short selling $1.92M; Ratio 3.135% closed at $8.18, up 5.4%, hitting new high
NTES-S (09999.HK)'s Netease Cloud Music has stopped displaying the "exclusive" label on their exclusive albums and songs recently, reported Chinese media. The company, in reply, said that it is actively complying with relevant policy introduced by the government and has already removed all exclusivity labels.
HENDERSON LAND (00012.HK)'s residential project located in Kai Tak "THE HENLEY III", as at 3 pm today (2nd), has received 850 checks during its first round of sales, oversubscribed by 7.5x, based on the initial offer of 100 units to be released this Saturday (4th), said Thomas Lam, general manager of sales department of Henderson Property Agency. Lam expressed that the company is confident that the project would be able to amass 1,000 checks by September 5.
Tesla (TSLA.US) had temporarily halted part of the operations at its Shanghai factory in August due to the global semiconductor shortage, reported Bloomberg News, citing people familiar with the matter.
Sources suggested that, as a result of a lack of key chips, part of a production line at the EV marker's factory in China have ceased operation for around 4 days in August, inducing certain output delays for Model Y.
HENDERSON LAND (00012.HK) today (2 September) uploaded the sales brochure of "The Holborn", a residential project in 1 Shau Kei Wan Road, Eastern District, Hong Kong Island, said Mark Hahn, General Manager of Sales (2) Department of Henderson Property Agency. The developer will unveil the price list as soon as next week and release the model flats next weekend. The project may go on sale in late September.
China State Railway Group strives for an annual rail freight
volume growth of above 15% in new land and marine routes for the Western region. Infrastructure A/H-shares rallied today. H-shares of CHINA RAILWAY (00390.HK), CHINA RAIL CONS (01186.HK) and CHINA COMM CONS (01800.HK) along with CRCC (601186.SH) and CHINA RAILWAY (601390.SH).
AAC TECH (02018.HK) +0.050 (+0.115%) Short selling $32.33M; Ratio 20.653% is set to partner with BYD COMPANY (01211.HK) +5.000 (+1.950%) Short selling $287.95M; Ratio 25.512% by supplying the in-vehicle acoustic system module for the latter's concept vehicle X-DREAM as well as providing the overall solution on building the intelligent in-car sound system, reported Chinese media.
CATHAY PAC AIR (00293.HK) has started disciplinary proceedings against 60 to 80 aircrew failing to take a Covid-19 jab by the end of August, South China Morning Post citing sources. The airline will follow up the cases one after another to see if the aircrew concerned is fit for retaining.
TOWN HEALTH (03886.HK) issued a statement, suggesting that the company is aware of the fact that "About Beauty", "Dr. Protalk" and "Top Comfort" under Bonjour Beauty Ltd. have suspended operations temporarily yesterday. TOWN HEALTH expressed that the company's subsidiary is a creditor of Bonjour Beauty's owner and that it will monitor the situation closely and take appropriate measures to protect its own rights.
FTSE Russell announced that FTSE 50 Index will include BIDU-SW (09888.HK), GANFENGLITHIUM (01772.HK), GEELY AUTO (00175.HK) and SUNNY OPTICAL (02382.HK), while excluding CMSC (06099.HK), ALI HEALTH (00241.HK), HAIDILAO (06862.HK) and HANSOH PHARMA (03692.HK) .
The changes will take effect after the close of market on September 17.
FTSE China A50 Index will include GREAT WALL M (601633.SH)'s A-share and COSCO SHIP H (601919.SH)'s A-share, while excluding CNCB (601998.SH)'s A-share and CSC (601066.SH)'s A-share.
The changes will take effect after the close of market on September 16.
Ministry of Transport (MOT), along with Cyber Administration of China (CAC), Ministry of Industry and Information Technology (MIIT), Ministry of Public Security (MPS) and State Administration for Market Regulation (SAMR), has arranged a meeting yesterday (1st) with 11 online ride-hailing platforms including T3 Go, Meituan Chuxing and Didi Chuxing, etc.. The regulatory departments highlighted during the meeting that certain platforms have been engaged in malicious competition by various marketing tactics as well as illegal operation that involves employing drivers without driving licenses. The regulators stressed that such acts disturb the market order of fair competition, affects the overall safety and stability of the entire industry and will ultimately harm the legitimate rights of both the drivers and passengers. All platforms participated in the meeting have been asked to strictly adhere to the normal market order and operate with relevant licenses while protecting the rights of the drivers.
The smartphone sales over 2Q stretched 10.2% YoY, despite the impact from the tightened supply chain and component shortage, according to a report published by Gartner. Over 2Q, Samsung led the global market with a share of 17.6%, shipping 57.7484 million units, up 5.46% YoY. XIAOMI-W (01810.HK) edged out Apple (AAPL.US) to take second place with a 15.5% market share, shipping 51.073 million units, up 80.54%. Apple trailed closely in the third with a market share of 15%, while its shipment rose 28.32% to 49.2582 million units.
HKEX (00388.HK)'s chairman Laura Cha expressed at the Biotech Summit 2021 that Hong Kong has become the largest listing market for biotechnology companies in Asia and the second largest in the world, tracking the highest growth rate in IPO number, fundraising scale and sector market value. Cha, however, believed that the Hong Kong biotech industry is merely starting out. She is confident that biotechnology and medical care will continue to serve as the major drivers for the market in the coming few years and will further solidify Hong Kong's position as an international financial center. The HKEX chairman remarked that over 250 biotechnology companies have been listed in Hong Kong so far with substantial support from the government, while the general public's awareness on medical care has likewise been heightened due to the COVID-19 pandemic.
Tesla's CEO Elon Musk revealed on social platform Twitter that Tesla's sports car model Roadster will be ready for delivery by 2023. Tesla announced the project of the second-generation sports car model -- Roadster -- back in November 2017, when it had projected to commence production by 2020. Musk expressed in January this year that the production of the sports car model will begin next year.
The full-year traditional PC shipment (including desktops, notebooks and workstations) for 2021 in the EMEA market is forecast to stretch 13.2% YoY to 95.8 million units, among which the 3Q shipment is projected to hike 11.4% YoY to 24.1 million units, according to a report published by IDC.
The Hong Kong chief executive Carrie Lam expressed during a recent interview with CCTV that the Hong Kong government will strive to launch the "Come2hk" scheme as soon as possible, so as to facilitate Mainland visitors' travel to Hong Kong. Lam added that, in hope to resume cross-border travel as early as possible, the government will continue to monitor the pandemic situation closely and expedite the vaccination for the general public, while maintaining close communication with relevant authorities in China and Macau.
PRE MARKET NEWS
FOSUN PHARMA (02196.HK) has secured loans from Asian Infrastructure Investment Bank (AIIB) and International Finance Corporation (IFC) totaling US$300 million (about RMB1.94 billion) for boosting supply chain and production capacity of COVID-19 vaccine, and capacity upgrade of COVID-19 reagents, reported Chinese media.
JINKE SERVICES (09666.HK) announced that the company applied to the Stock Exchange for approval of the listing of and for permission to deal in 500 million overseas listed shares as converted H shares and the listing approval was granted by the Stock Exchange on 31 August 2021. It is expected that the listing of the converted H shares on the Stock Exchange will commence at 9:00 a.m. on 10 September 2021.
Vanke Hong Kong applied for compulsory sale of old buildings at 45-63 Ting Fu Street, Kwun Tong with a total site area of 7,595 sq.ft., comprising three 6-storey commercial and residential buildings exceeding 60 years of age, according to the Lands Tribunal's document. The developer holds 91.67% to 93.75% of the land ownership, failing to acquire the remaining five units valued at over $359 million. The maximum buildable GFA will be around 68,400 sq.ft. should the old buildings be redeveloped into commercial and residential properties.
TENCENT (00700.HK) made public its minor protection plan, having organized the first themed day on this year's Charity Day. In the first phase, Tencent will provide children in urban and rural areas with 100 "future classrooms" and 100 "happy sportsgrounds". In addition to hardware, the giant will also equip these facilities with synchronized courses, teacher training, sports competitions and other software services.
Shenzhen Stock Exchange announced that it added KUAISHOU-W (01024.HK) +4.450 (+5.301%) Short selling $500.87M; Ratio 19.591% to the list of Southbound Trading of Shenzhen-Hong Kong Stock Connect, with effect from today (2nd).
About Beauty and other wings under Bonjour Beauty Limited have reportedly ceased operation. BONJOUR HOLD (00653.HK) replied that Bonjour Beauty Limited, About Beauty and Top Comfort are no longer subsidiaries under the Company since 1 January 2015. Their business conditions are hence unconcerned with BONJOUR HOLD.
INNOVENT BIO (01801.HK) announced that the Company and GenFleet, a clinical-stage biotechnology company developing cutting-edge therapies in oncology and immunology, have entered into an exclusive global license agreement for the development and commercialization rights of GenFleet’s lead KRAS G12C inhibitor candidate, GFH925 in China, including mainland China, Hong Kong, Macau and Taiwan with additional option-in rights for global development and commercialization.
Morningstar's data showed that the public fund with the largest shareholding interest in CATL (300750.SZ) +4.79 (+0.980%) in the world has dumped the company's shares for two months in a row, with the share reduction per month exceeding 10% of its total shareholding, reported Chnfund.com.
China's passenger vehicle retail sales receded by 13% year-on-year in August 2021, indicating a muted consumption trend, according to preliminary estimate by China Passenger Car Association (CPCA).
ByteDance will purportedly sell its securities business at an overall valuation of around RMB500 million to RMB1 billion. The Beijing-based company confirmed such plan as part of the financial-related business shrinking, cited by 21st Century Business Herald. Rumor has it that the sale started in the first half of 2021 amid ByteDance's talks with CICC, CITIC, Fosun Group, East Money, etc.
Shenzhen Stock Exchange (SZSE) ChiNext Board disclosed that BYD Semiconductor's listing application is being re-evaluated, with its review status changed to "inquired". BYD COMPANY (01211.HK) +4.800 (+1.872%) Short selling $287.95M; Ratio 25.512% 's proposed spin-off listing of its semiconductor unit had been halted previously due to a regulatory probe into the law firm on behalf of the company.
CHINASOFT INT'L (00354.HK) announced that Chen Yuhong, the controlling shareholder and chairman of the Company, acquired a total of 1 million shares of the Company at the average price of HK$13.09 per Share on the open market on 1 September, with a total amount of approximately HK$13.09 million.
YUEXIU PROPERTY (00123.HK) announced that the company successfully won the bid for the land parcel at Shatian Town, Dongguan for a consideration of approximately RMB1.875 billion by way of open tender, through its 95.48%-owned subsidiary, Guangzhou City Construction & Development Group Nansha Co., Ltd.. The Dongguan Shatian land parcel has a site area of approximately 66,135 sq.m and is designated for residential use.
CKH HOLDINGS (00001.HK) -0.050 (-0.088%) Short selling $33.21M; Ratio 32.267% 's statement disclosed that it has repurchased 250,000 shares of the company on the Stock Exchange on 1 September, at a price ranging between $56.75-57 per share, involving a total amount of approximately $14.23 million. Year to date, the company has repurchased a total of 15.8685 million shares, accounting for 0.4115% of the company's share capital.
TENCENT (00700.HK)'s statement disclosed that it has repurchased 210,000 shares of the company on the Stock Exchange on 1 September, at a price ranging between $477.8-494.4 per share, involving approximately $102 million. Year to date, the company has repurchased a total of 1.5426 million shares, accounting for 0.01608% of the company's share capital.