Sept 30 HK closes lower, China higher along with much of Asia despite mixed data.


30 Sep

This and previous notes can be found at  Substack ( Asian Market Sense )
Check out ERI-C.com  for your research needs

HSI -88pts (-0.4%) 24,576 HSCEI -34pts (-0.4%) 8,726 T/O HK$115.12bn (-6.8% DoD no Southbound connect)  

Europe
Markets opened higher but dipping; DAX in the red  CAC & FTSE flat.
UK economy grew more than expected as did French consumer spending. Eurozone unemployment fell as expected.
Basic Resources leading the gains and Utilities weak
Data 
Eurozone
Unemployment Rate  Aug 7.5% vs 7.6% Jul (F/cast was 7.6%)
Germany 
Unemployment Rate Aug 5.5% vs 5.5% Jul (F/cast was 5.5%)
France
Inflation Rate Prelim Sept 2.1% YoY vs 1.9%Aug (F/cast was 2.1%)
Inflation Rate Prelim Sept -0.2% MoM vs 0.6% Aug (F/cast was -0.3%)
Household Consumption Aug 1% MoM vs -2.4% Jul revised (F/cast was 1.5%)
PPI Aug 1% MoM vs 1.5% Jul (F/cast was 0.7%)
PPI Aug 10% YoY vs 9% Jul revised (F/cast was 9.3%)
UK 
Nationwide House Prices Sept 10% YoY vs 11% Aug (F/cast was 11.6%)
Nationwide House Prices Sept 0.1% MoM vs 2% Aug revised (F/cast was 1.4% )
Current Account Q2 £-8.605B vs £-8.88B Q1 revised (F/cast was £-18B
GDP Growth Rate Q2 5.5% QoQ vs -1.4% Q1 revised (F/cast was 4.8%)
GDP Growth Rate Q2 23.6% YoY vs -5.8% Q1 (F/cast was 22.2%)
Business Investment Q2 4.5% QoQ vs -10.7% Q1 revised (F/cast was 2.4%)
Business Investment Q2 12.9% YoY vs -16.9% Q1 revised (F/cast was 9.7%)
Car Production Aug -27% YoY vs -37.6% Jul (F/cast was -22.3%)

US Futures
Currently Dow +167pts, S&P +0.4% and NDX +0.5%
Ahead MBA Mortgage Applications, 30 yr Mortgage Rate, Pending Home Sales, EIA Oil change report. Powell’s speech


CHINA
Closed +33pts (+0.7%) @ 4,866
Pre market data was weak but it seems ‘Team China’ at work
CSI 300 opened higher despite the weak PMI data and market traded sideways around 4,860 level in choppy trading. PM opened higher and traded sideways for most of the afternoon to closed +33pts (+0.7%) @ 4,867 Sentiment +VE ahead of Golden Week with hope that domestic consumption will see a rebound. Overhangs remain; power shortages, Evergrande/Property concerns and slowing manufacturing.

After market Li Keqiang says that China will keep growth in a reasonable range and vows to keep electricity and energy supply’s running. China will focus on technological innovation to boost domestic demand and rural revitalisation to keep reasonable growth. He says they will look to strengthen cross-cyclical adjustments. They will also promote the development of Hong Kong and Macau along with mainland China.

China markets closed for Golden Week

Shanghai Composite +32pts (+0.9%) @ 3,568 T/O US$64,706m -11% DoD
Shenzhen Composite +230pts (+1.6%) @ 14,309 T/O US$78,534m -9% DoD
ChiNext Composite +93pts (+2.8%) @ 3,446

CHINA DATA
China's National Health Commission reported 22 confirmed COVID-19 cases yesterday (29th), with 16 of them being imported cases and 6 of them being local infections (all recorded in Harbin, Heilongjiang).

Market Manufacturing PMI Sept 49.6 vs 50.1 Aug (F/cast was 50.4)
Non Manufacturing PMI Sept 53.2 vs 47.5 Aug (F/cast was 50)
Caixin Manufacturing PMI Sept 50.0 vs 49.2 Aug (F/cast was 49.9)

HONG KONG 
Pre market opened @ 24,494 -169pt vs -205ptsADR’s
Weakness in Tech as Beijing delays new game licences as new rules come into effect; its unclear if existing games will need to reapply for a licence. Market traded sideways around 24,435 level through the morning. PM opened at 24,500 level and worked back to yesterday’s closing level but hit resistance and pulled to trade around the 24,555 but saw a spike in the closing auction.
Macau +VE on hopes quaratine free travel can resume after the mass testing; note Gaming Revenue data due out tomorrow.

BUYBACKS
HANG LUNG GROUP (00010.HK)  Vice Chair Adriel Chan increased 90,000 shares of the Company from September 23 to 27, involving about $1.6104 million, 
according to HKEX's data. His shareholding rose to 39.27% afterwards.  Adriel Chan, also the Vice Chair of HANG LUNG PPT (00101.HK)  -0.200 (-1.114%)    Short selling $18.73M; Ratio 17.980%   , boosted 827,000 shares of the Company from September 23 to 27, involving about $14.3807 million and raising his shareholding to 58.89%.

SHK PPT (00016.HK)'s major shareholder, Kwong Siu Hing, purchased 100,000 shares of the company 
on Tuesday (28th), at an average price of $95 per share, involving $9.5 million, further boosting her stake in the company to 27.06%, according to data from the Stock Exchange.

K. WAH INT'L (00173.HK) 's chairman, Lui Che Woo, on last Thursday and Friday (23rd and 24th), purchased 1.469 million shares of the company in total,
at respective average prices of $3.1735 and $3.1337 per share, involving approximately $4.63 million, according to data from the Stock Exchange.  After the purchase, Lui's stake in the company has been expanded to 65%.

TENCENT (00700.HK)'s statement disclosed that, on 29 September, it has repurchased 230,000 shares of the company on the Stock Exchange, at a price between $452.4-464.8 per share, involving approximately $106 million.

HONG KONG DATA
HK reported 3 new covid case; all imported 
Now 44 days without a local case.

SHORT SELLING HSI Thursday 20.5% vs 21.9% Wednesday
Top shorts 
Country Garden (2007) 54%, Haidilao (6862) 42%,  Bud Apac (1876) 42%, China Res Land (1109) 38%,  CM Bank (3968) 38%, MTRC (66) 37%, AIA (1299) 37%, Wuxi Bio (2269) 36%, Shenzhou (2313) 36%, Mengniu Dairy (2319) 33%, HK & China Gas (3) 32%, Xiaomi (1810) 32%, BDY (1211) 30%, HSBC (5) 29%,  Sunny Optical (2382) 27%, Wharf REIC (1997) 27%, Power Assets (6) 27%.

AFTER MARKET NEWS

LENOVO GROUP (00992.HK)’s application for listing on the Sci-tech Innovation Board has been approved, revealed by Shanghai Stock Exchange on its website. The group proposes to offer no more than 1.337 billion ordinary shares to the depositary for conversion into Chinese Depository Receipts (CDR).The State Administration for Foreign Exchange (SAFE) announced that China's current account surplus amounted to RMB344.7 billion for the second quarter of this year. Reserve assets burgeoned by RMB322.4 billion.

EVERGRANDE (03333.HK)  announced that its Evergrande Financial Wealth Management (Shenzhen) had today (30th) paid 10% of the first instalment of investment products due September according to the Evergrande Wealth Investment Product Redemption Plan. The payments have been disbursed to investors' corresponding accounts.

The Hong Kong government announced that the Minimum Allowable Wage (MAW) for foreign domestic helpers (FDHs) in Hong Kong would remain at $4,630 per month. The food allowance will be increased by $52 from not less than $1,121 to not less than $1,173 per month.

NWS HOLDINGS(00659.HK) announced annual result ended June 2021. The revenue rose 24.7% year on year to HK$28.197 billion. The net profit amounted to HK$1.146 billion, up 352.8% year on year. EPS  was HK$0.29. A final dividend of HK$0.3 was declared, up 3.4% YoY. The total dividend for the entire year amounted to HK$0.59.
NEW WORLD DEV's underlying profit for the period amounted to HK$6.978 billion, up 5.9% YoY, in line with the estimated range of HK$6.723-7.665 billion suggested by five brokers.
While Chinese officials are purportedly keeping an eye on Hong Kong's housing problem, NEW WORLD DEV (00017.HK) Executive Vice-chairman and CEO Adrian Cheng said at the results conference that the company has not received any of such notice, adding it will continue to pay heed to any appropriate land parcels in China, Hong Kong and the GBA, and make ambitious investment.

The Hong Kong Monetary Authority announced the results of the residential mortgage survey for August 2021. The number of mortgage applications in August decreased month-on-month by 8.2 per cent to 13,927. Mortgage loans approved in August decreased by 0.2 per cent compared with July to HK$54.3 billion.

The Hong Kong Monetary Authority (HKMA) announced that the total assets of the Exchange Fund amounted to HK$4.6566 trillion as at August 31, 2021, HK$103.5 billion higher than that at the end of July 2021. Hong Kong dollar assets increased by HK$68 billion and foreign currency assets increased by HK$35.5 billion.

H&M's pre-tax profit for 3Q ended by August amounted to SEK6.1 billion (approximately USD690 million), ahead of the market's estimate. The 3Q pre-tax profit was nearly 3x that of the corresponding period of the previous year, and was 20% higher than the 2019 pre-COVID levels.
H&M's board of directors is proposing to distribute a dividend of SEK6.5 per share which will be paid in November.

NEW WORLD DEV (00017.HK)  announced that a financial institution has purchased three storeys of the Group's Grade A commercial building at 888 Lai Chi Kok Road, Cheung Sha Wan for its own use at nearly $1.2 billion. The average selling price is around $17,500 per sq.ft., logging a new high for the project. Each of the said storeys has a GFA of 20,800 sq.ft. to 24,600 sq.ft., contributing to a total GFA of almost 68,000 sq.ft.

Centa-City Leading Index (CCL) dropped 0.49% WoW to post at 189.6.
CCL Mass last stood at 192.46, down 0.45% WoW.
CCL (small-and-medium units) likewise lost 0.43% WoW to post at 190.
CCL (large units) last posted 187.53, down 0.84% WoW.

Regional Markets

Australia
Market worked higher from the open to 7,332 the day high but then eased to close +136pts (+1.9%) @ 7,332. Iron Ore futures +10% helping the miners as China mills seek to restock ahead of the Chinese Golden week holiday. All sectors were in the green with banking stocks and biotech heavyweight CSL leading the pack; Westpac Banking Group +3.3%, CBA +1.5% and BHP +2.6%
Laggards Afterpay -0.6%, Whitehaven Coal -2.5% and Alumina -1.4%
Data
Building Permits Prelim Aug +6.8% vs -8.6% Jul (F/Cast was -7%)
Private Sector Credit Aug +0.6% MoM vs +0.7% Jul (F/cast was -0.2%)
Private Sector Credit Aug +4.7% vs 4% Jul (F/cast was +3.5%)
Japan
Disappointing data but with State of Emergency rules to be eased the re-opening names seeing interest. Laggards Shippers seeing some profit taking, Softbank weak as HK tech index weak, Toyota production cuts and safety certifications issues.
Market on close Nikkei re-balance
Nikkei opened slightly higher but initially sold down to 29,310 by 11am after disappointing data but then saw a rebound into lunch. PM has seen the market continue to rebound to 29,600 level but then dipped at the end -92pts (-0.3%) @ 29,453
Topix traded in a similar fashion; currently -8pts (-0.4%) @ 2,030
Data
Retail Sales Aug -3.2% YoY vs +2.4% Jul (F/cast was +1%)
Retail Sales Aug -4.1% MoM vs +1% Jul (F/cast was -0.3%)
Industrial Production Prelim Aug -3.2% MoM vs -1.5% Jul (F/cast was -0.4%)
Industrial Production Prelim Aug +9.3% YoY vs 11.6% Jul (F/cast was +9.5%)
Just out
Housing Starts Aug +7.5% vs +9.9% Jul (F/cast was 8%)
Construction Orders Aug -2% vs -3.4% Jul (F/cast was -10%)
S Korea 
Pre market data was mixed. Foreigners turned net buyers which suggests end of quarter window dressing. Leaders Game names, Laggards Energy
Kospi opened lower but worked higher to 3,080 around 1pm and then traded sideways to close +9pts (+0.3%) @ 3,069
Kosdaq traded in a similar fashion until 1pm when the market sold down to close +2pts (+0.2%) @ 1,003
Data
Business Confidence Sept 90 vs 95 Aug (F/cast was 94)
Industrial Production Aug 9.6% YoY vs 7.7% Jul revised (F/cast was 8.5% )
Industrial Production Aug -0.7% MoM vs +0.2% Jul revised (F/cast was +0.3%)
Manufacturing Production Aug vs Jul (F/cast was )
Retail Sales Aug -0.8% MoM vs -0.5% Jul revised (F/cast was -1%)
Retail Sales Aug +3.8% YoY vs 7.9% Jul (F/cast was +6.6%)
Construction Output Aug +0.3% YoY vs -8% Jul revised (F/cast was-1.2% )
Taiwan 
Taiex opened slightly +VE, dipped in early trades but from 9.45am the market trended higher and rallied strongly around 12:30pm; but closed +79pts (+0.5%) @ 16,935
Tech mixed,
Leaders Pulp&Paper, Shippers & Transport
T/O Thursday US$9.67bn  vs US$11.55bn Wednesday
CECC reported 7 new covid cases
(all imported)

HK/CHINA Connect Flows
Shanghai
Northbound RMB 55,066m Sell 27,854m vs 27,212m Buy

Shenzhen
Northbound RMB 57,895m Sell 28,141m vs 29,754m Buy

Movers
Active Heavyweights
BABA (09988.HK)  -6.100 (-4.113%)    Short selling $953.02M; Ratio 17.579%   closed at $142.2, down 4.1%
PING AN (02318.HK) -1.300 (-2.383%) Short selling $332.31M; Ratio 14.306% closed at $53.25, down 2.4%
MEITUAN (03690.HK) -3.400 (-1.360%) Short selling $765.34M; Ratio 24.128% closed at $246.6, down 1.4%
HKEX (00388.HK) +5.000 (+1.053%) Short selling $407.39M; Ratio 21.123% closed at $479.8, up 1.1%
AIA (01299.HK) +0.900 (+1.011%) Short selling $928.48M; Ratio 36.522% closed at $89.95, up 1%
TENCENT (00700.HK) -3.600 (-0.774%) Short selling $616.68M; Ratio 7.751% closed at $461.4, down 0.8%
CCB (00939.HK) +0.010 (+0.180%) Short selling $209.80M; Ratio 21.791% closed at $5.58, up 0.2%

HSI & HSCEI Constituents on Move:
SUNAC (01918.HK)  +1.880 (+12.772%)    Short selling $261.42M; Ratio 17.252%    closed at $16.6, up 12.8%
CG SERVICES (06098.HK) +3.450 (+5.943%) Short selling $203.81M; Ratio 17.822% closed at $61.5, up 5.9%
CHINA RES LAND (01109.HK) +1.400 (+4.452%) Short selling $394.69M; Ratio 38.323% closed at $32.85, up 4.5%
EVERGRANDE (03333.HK) -0.120 (-3.909%) Short selling $18.43M; Ratio 5.388% closed at $2.95, down 3.9%
JD (09618.HK) -10.600 (-3.608%) Short selling $1.03B; Ratio 43.030% closed at $283.2, down 3.6%
WHARF REIC (01997.HK) +1.300 (+3.333%) Short selling $72.64M; Ratio 26.813% closed at $40.3, up 3.3%

HSMI & HSSI Constituents on Move:
JHBP-B (06998.HK) +2.300 (+19.167%) Short selling $4.40M; Ratio 9.828% closed at $14.3, up 19.2%
R&F PROPERTIES (02777.HK) +0.880 (+17.255%) Short selling $38.65M; Ratio 18.149% closed at $5.98, up 17.3%
CGN NEW ENERGY (01811.HK) +1.100 (+15.363%) Short selling $25.35M; Ratio 8.859% closed at $8.26, up 15.4%, hitting new high
JOY SPREADER (06988.HK) +0.280 (+12.844%) Short selling $69.07K; Ratio 0.303% closed at $2.46, up 12.8%
CARSGEN-B (02171.HK) +4.500 (+9.000%) closed at $54.5, up 9%, hitting new high


Market News
Hong Kong Property announced the latest survey on clients' home ownership aspiration. 
42.7% of the respondents said they would consider entering the home market in the next 12 months, down about 3.6 ppts on a quarterly basis and hitting a new low for the year. The real estate agency expected quite a number of citizens to be mindful of the housing policy before decision-making.  Hong Kong Property conducted the survey by means of questionnaires among clients in mid-September, collecting 349 valid questionnaires afterwards.

WeChat said Tencent WeChat Pay is deepening the mutual access with UnionPay QuickPass in terms of payment and services on the foundation of safe and reliable user transactions, in a bid to prompt payment service market growth. 
Currently, WeChat Pay has realized mutual recognition and scanning of offline bar codes with UnionPay QuickPass App, through which users can complete payment by scanning WeChat Pay's codes within UnionPay QuickPass App across China.

TENCENT (00700.HK)'s Tencent Cloud announced the launch of cloud courses aimed at both beginner and advanced practitioners on online learning platform Coursera, 
granting certifications for aspiring cloud personnel. After completing the course, the participants can proceed with their examinations on Kryterion and qualified candidates will be granted certifications by Tencent Cloud via Credly.

Tai Hung Fai today (30th) unveiled the price list for its Sheung Shui residential project, Artique, offering all 30 units in one log. The discounted selling prices range between $2.4288 million and $5.142 million, representing a selling price of $18,454/ sq.ft. on average.

China's Ministry of Industry and Information Technology (MIIT) has released the list of the 47th batch of the NEV models that are exempt from vehicle purchase tax, 
with 48 passenger vehicle (PV) models being included, such as Tesla (TSLA.US)'s Model 3, XPENG-W (09868.HK)'s P5 and P7, etc..

EVERGRANDE (03333.HK) disclosed on its public WeChat account that Hengda Real Estate in Pearl River Delta has expedited the home building resumption 
since EVERGRANDE signed the guarantee of house delivery. So far, almost 20 Hengda projects have resumed construction.

CNOOC (00883.HK) announced that on 29 September, it entered into a 15-year long-term liquefied natural gas (LNG) purchase and sale agreement for 3.5 million tons of LNG per year with Qatar Petroleum through a videoconference.  The agreement is a long-term LNG purchase and sale agreement with the highest annual contract volume  signed by domestic firms in the last eight years. It marks significant meaning for timely supplement to the domestic gas shortage and satisfaction of domestic gas demand.

Brazilian state-run oil firm Petrobras mentioned CNOOC (00883.HK)'s interest in buying an additional 5% stake 
in the Buzios oilfield at US$2.08 billion.

Overnight HIBOR last posted at 0.03929%, logging a 1-month high, according to HKAB. 
Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.06339%.

WEICHAI POWER (02338.HK) (000338.SZ)  expressed that its power generation engines have been seeing relatively better demand, 
reported Chinese media. With a more complete product pipeline, WEICHAI POWER's offering of power engines could satisfy diverse needs including emergency power source, rental service, data centers, etc., the company added.

China's Ministry of Finance (MOF) announced that, with the approval from the State Council, it will issue a batch of USD sovereign bond in Hong Kong on 19 October,
for institutional investors of the global financial market, at a scale of USD4 billion, with tenures of 3 years, 5 years, 10 years and 30 years.

Air China Cargo has added several new shareholders including Zhejiang Cainiao Supply Chain Management Co. Ltd. involving a subscribed capital contribution of approximately RMB1.6 billion from the latter, reported Chinese media, citing data from qcc.com.   The registered capital of Air China Cargo, correspondingly, stretched 44.93%, from RMB7.376 billion to RMB10.69 billion.

LINK REIT (00823.HK) is planning to purchase from the Singaporean sovereign fund, GIC, half of its stake in the three shopping malls located in the business district of Sydney, Australia, namely Queen Victoria Building, Strand Arcade and Galeries, reported Australian media, Financial Review. The relevant stakes are valued at approximately AUD550 million (approximately HKD3.09 billion), the report added

Lazada, the Southeast Asian e-commerce platform under BABA-SW (09988.HK) , announced to work with Cainiao on cross-border logistics network upgrade to further optimize their one-stop and diversified cross-border logistics services. Following, the effectiveness of merchants' direct mail delivery to Southeast Asia will likely be increased by as much as 50%.

Guangdong Province will launch trial to resume the Mainland residents' application for business endorsements to Hong Kong, as Xinhua News Agency cited the Chinese exit and entry administration.  With effect from 11 October, employees of enterprises and institutions in Guangdong Province and individual business operators who intend to travel to Hong Kong to engage in business activities can apply for business endorsements to Hong Kong at the exit and entry administration of Guangdong Province.
Personnel who has been in mid-to-high risk regions and those who has travel/ residency history in such regions in the last 14 days are excluded from the new arrangement.

Monetary Authority of Singapore (MAS), as part of the standard regulation, questioned the three major Singaporean banks last week -- 
DBS Group, OCBC Bank and United Overseas Bank, on their exposures to the EVERGRANDE (03333.HK) crisis, reported Bloomberg News, citing sources. DBS Group's spokesman expressed that the bank has no exposure to EVERGRANDE, while the group's CEO, Piyush Gupta, previously stated that he does not think that the Chinese homebuilder's crisis would constitute systematic risks to the regional banking sector.  United Overseas Bank's spokesman likewise responded that it does not have any exposure to EVERGRANDE, while OCBC Bank's spokesman said that the bank is unable to comment on specific loan, though the bank is reported to also have no exposure to EVERGRANDE.

Pre Market News
Bank of Japan Governor Haruhiko Kuroda played down risks arising from EVERGRANDE (03333.HK)'s debt crisis, saying China's real estate trouble is different from the one facing Japan in the late 1980s and early 1990s.
  The EVERGRANDE turmoil is unlike the 2008 U.S. subprime mortgage crisis given limited direct exposure of Japan, the U.S. and Europe to China's real estate market, the BOJ Governor added.

HSBC HOLDINGS (00005.HK)  and Temasek announced a partnership to establish a debt financing platform dedicated to sustainable infrastructure projects with an initial focus on Southeast Asia.  HSBC and Temasek will invest up to a combined US$150 million of equity to fund loans, working alongside the platform’s strategic partners in the initial phase. Over the longer term, the ambition is to build a pipeline of projects to scale, with the platform dispensing over US$1 billion of loans within 5 years. The platform will target marginally bankable, sustainable infrastructure projects, providing project development expertise, technical assistance and blended finance solutions where needed.

COSCO SHIP HOLD (01919.HK) (601919.SH) announced that the deviation of decrease in the closing price of the A Shares of the company for the three consecutive trading days on 27, 28 and 29 September 2021, on an aggregated basis, exceeds 20%, which constitutes unusual trading movements of the shares.  The company expressed that the production, operation, financial position and external environment of the company were normal and there was no material information which should be disclosed but had not been disclosed.  At present, the freight rates of the main routes of the company remain stable, and the export market of the east-west main routes is maintained at full capacity, COSCO SHIP HOLD added.

The housing price-to-income ratio climbed to 19.6 in the second quarter of 2021, compared with the peak value of 14.6 in 1997, according to Hong Kong Monetary Authority's Half-yearly Monetary and Financial Stability Report. The income-gearing ratio reached a high of 91.8%, well above the long-term average. Housing affordability became more stretched, reflecting higher housing prices but weak growth in household income.  The household debt-to-GDP ratio edged up slightly by 0.8 percentage points to 91.8% in the first half of 2021. The increase was contributed by the growth in household debt, which was almost offset by the rebound in the nominal
GDP

National Development and Reform Commission's Guangdong branch published a notice on issues tied to further optimizing the province's time-of-use electricity rate policy, reported CCTV-2. Accordingly, Guangdong will revise the current electricity price ratio between peak and trough hours from 1.65:1:0.5 to 1.7:1:0.38 starting tomorrow (1 October).

R&F PROPERTIES (02777.HK)  announced that on 29 September, the Company entered into the Agreement with Li Sze Lim and Zhang Li, both substantial shareholders of the Company, in relation to the Joint Venture Arrangement for the purposes of identifying and jointly investing into project development and property-related investments.  Each of the JV Companies will be held as to 51% by the Company and as to 49% by the two substantial shareholders.  Each of the Company and the substantial shareholders will make capital contribution to the JV Companies in the amount pro rata to their equity holding in the JV Companies. The proportion of total commitment attributable to the Company to the JV Companies will be up to RMB10.8 billion. The total commitment of the substantial shareholders to the JV Companies will be up to RMB10.4 billion, which will be settled first, by offsetting against the Financial Support; and secondly, in cash.

OPEC+, comprising OPEC and allies led by Russia, has no intention to increase oil production after oil price set a three-year high, Reuters citing insiders.  OPEC+ is keep the plan to boost oil output by 400,000 bpd so far, the people said.

In spite of facing debt woe, EVERGRANDE (03333.HK) is attracting the attention of American investment funds which are pursuing new targets, Bloomberg reported.  The interested parties include Boaz Weinstein's Saba Capital Management and Ruben Kliksberg's Redwood Capital Management, which start to establish EVERGRANDE's debt position.  Meanwhile, European banks reassured investors that they have limited exposure to EVERGRANDE.

Some offshore China Evergrande bondholders had not received the due coupon payment by the end of Asian trading hours yesterday (29th), Reuters citing sources.  The Chinese developer was due yesterday to make a US$47.5-million interest payment on its 9.5% offshore bond due March 2024.

S&P Global Ratings pointed out that Hong Kong's economy has been constantly recovering from setback in the last two years, given tamed epidemic and strong foreign demand. It predicted that the revival will persist in the next 12-24 months, and affirmed Hong Kong’s long-term credit rating at "AA+" and the short-term credit rating "A-1+". The outlook was kept Stable.

China Evergrande New Energy Vehicle Group's research institute on Shanghai's outskirts told staff that there will be no more free lunches and other at-work meals starting September 27th, Bloomberg citing sources. Catering services will be offered on a fee basis.  In addition, some staff at Shanghai and Guangzhou production bases have been asked to get furloughed by end-October and extend their leave beyond the National Day holiday, which shall be ending on October 7th.

Germany's federal cybersecurity watchdog, the BSI, confirmed that they are conducting technical investigation on XIAOMI-W (01810.HK)'s handsets, yet without revealing further details. Strategy Analytics said that XIAOMI-W became the largest smartphone supplier in Europe for the first time in 2Q21, with shipments hitting a record-breaking 12.7 million units.

Kim Jong-un, the President of North Korea's State Affairs Commission, expressed yesterday that, as desired by the North Korean people, the communication channel between North and South Korea will be reopened from early October, reported Korean Central News Agency. Kim, however, remarked that whether the relationship between the two nations could be restored and further develop depends entirely on the attitude of the South Korean government.

U.S. asset management company Marathon's CEO, Bruce Richards, believes that now is the optimal timing to bargain hunt EVERGRANDE (03333.HK), reported Bloomberg News. Richards revealed that Marathon has acquired EVERGRANDE bonds for the first time this week and intends to further expand its position.  EVERGRANDE may settle some of its USD bond interest payment in near-term, which may stimulate a rebound its bond prices, Richards remarked. Also, Richards stated that the bondholders will potentially be compensated with attractive rewards when the Chinese home developer eventually undergoes debt restructuring.

Wang Wentao, Chinese Minister of Commerce, attended a virtual meeting with the representatives from U.K. commercial and industrial sectors yesterday (29th), also the representatives from 15 multinational corporates, including HSBC Group, Burberry Group and Standard Chartered among the attendants.  During the meeting, Wang expressed that China welcomes U.K. corporates to further deepen their cooperation with their Chinese counterpart and wished that the British companies could act as a bridging intermediary to broadcast to all sectors across the U.K., a set of China policy that is built on mutual respect, open collaboration and mutual benefit.

Responding to the rumor that the Foxconn's Shenzhen manufacture park will face a blackout on 1 October, Foxconn expressed that the power outrage is a scheduled standard maintenance procedure and that electricity supply for the park will be channeled from other sources with no disruption to the production operation, reported cnstock.com. The company added that its major manufacture parks in Shenzhen, Zhengzhou and Chengdu are all operating normally.
Part of the iPhone assembly operation is being carried out in Foxconn's Shenzhen manufacture park while the company's Zhengzhou park is the largest production factory for Apple's iPhone, the report added.

CHINA STRATEGIC (00235.HK) announced that on 29 September, the Company disposed of a total of 70 million EVERG VEHICLE (00708.HK) Shares to the independent third party Hung Hon Man through a block trade transaction on the Stock Exchange, at the aggregate consideration of around HK$160 million. The Selling Price was HK$2.28 each.

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