Aug 10 HK / CHINA Late wrap with after market news


10 Aug

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

HSI 
+322pts (+1.2%) 26,606 HSCEI +185pts (+2%) 9,499 T/O HK$160.78bn (+9% DoD)

CHINA CSI 300 closed +58pt (+1.2%) @ 5,042
CSI 300 opened lower then range traded around 4,975 into lunch. PM trended higher to close at the day high.
Bargain hunting as team china supported the market; Liquor +VE as national heritage especially Beijui ahead of Mid Autumn festival sales. QH SALT LAKE (000792) +306% on resumption of trading; after 14 months; lithium play.

Shanghai Composite +35pts (+1%) @ 3,530 T/O US$78,447 +2.8% DoD
Shenzhen Composite +116pts (+0.8%) @ 15,058 T/O US$117,641 +6.5% DoD
ChiNext Composite Index +18pts (+0.5%) @ 3,666

CHINA DATA
China's National Health Commission reported 143 confirmed COVID-19 cases yesterday (9th), 
with 108 of them being local cases (50 recorded in Jiangsu; 37 in Henan; 15 in Hubei and 6 in Hunan).

HONG KONG

Led higher by a rebound in giant tech companies, with TENCENT and MEITUAN rebounded from recent weaknesses. Investors have realised that the Govt does not want to kill the business but wants all businesses to fall in line with party thought. Slight -VE because now there is party doctrine that needs to be priced in. Upside was capped as yield on 10-year Treasuries advanced to 1.32% following comments from a Fed official that the central bank should move to taper its asset purchases with another strong month or two of employment gains, and proceed faster than in past episodes. Focuses remain on the spread of the highly contagious delta in corners of the world which could impact China’s exports. Traders continue monitoring upcoming 2Q earnings reports. Southbound traders bought net HKD5.5b of Hong Kong shares through Stock Connect.

HONG KONG DATA
HK reported no new local untraceable covid cases 
and 4 imported cases.SHORT SELLING Tuesday 15.7% vs 13.2% Monday
Top shorts  
CKAsset (1113) 56%, Bud Apac (1876) 51%, Country Garden (2007) 48%, Wharf REIC (1997) 46%,  MTRC (66) 44%,  CLP (2) 40%,  HSBC (5) 38%,   Baba (9988) 37%, AIA (1299) 37%, CCB (939) 34%, Haidilao (6862) 34%

AFTER MARKET NEWS
WHARF HOLDINGS (00004.HK)  Short selling $10.68M; Ratio 35.767%   Chairman Stephen Ng opined that the continuously tight land supply and loosened capital should underpin housing prices fundamentally; even if prices fall, the magnitude should be limited.  Contented with the current asset portfolio of the group, WHARF is not in rush to increase the assets in hand, viewing the existing assets are sufficient for development. In medium term, the group will magnify investment in Hong Kong. Key here is that HK developers don’t have to hold a land bank because of the Government reserve list.   Call me if you want more details

The Securities and Futures Commission (SFC) will introduce investor identification for the securities market in Hong Kong and require reporting of over-the-counter (OTC) securities transactions. The investor identification regime is expected to be launched in the second half of 2022 and the OTC securities transactions reporting regime in the first half of 2023, subject to the completion of system testing and market rehearsals. To provide more time for the industry to prepare, the implementation timelines were extended after taking consultation feedback into account.

The government announced that the registration for the Consumption Voucher Scheme will close this Saturday (August 14). The government remarked that people choosing to upload their Hong Kong identity card copy for authentication in respect of their electronic registration should upload their HKID card copy via the scheme website by August 16 to complete the registration procedure, otherwise the electronic registration submitted will be regarded as incomplete and will not be processed.   Slight -VE But may indicate a good take up so far.

SUNWAH KINGSWAY (00188.HK)  announced that between 25 May 2021 and 10 August 2021, the Company, through its wholly-owned subsidiaries, conducted on the Stock Exchange a series of on-market transactions to further dispose of an aggregate of 54,500 MEITUAN-W (03690.HK)  Short selling $1.03B; Ratio 10.457%   Shares at an average daily price between HK$193.6 and HK$307.6 per Meituan Share for an aggregate consideration of approximately HK$13.986 million. The Further Disposals realised a loss of approximately HK$100,000.

LONGFOR GROUP (00960.HK)  Short selling $34.64M; Ratio 9.442%   announced that in July, the Group recorded contracted sales of RMB19.02 billion, down 9.34% year-on-year.

U-PRESID CHINA (00220.HK)  announced interim result ended June 2021. The net profit amounted to RMB847 million, down 20.5% year-on-year. EPS was 19.62 fen. No interim dividend was declared.

YUEXIUTRANSPORT (01052.HK) announced interim result ended June 2021. The company swung into net profit of RMB468 million from loss of RMB288 million in the same period of 2020. EPS was RMB0.2795. An interim dividend of HK$0.2 per share was declared.

China's Central Commission for Discipline Inspection (CCDI) issued an article on the sexual assault on the Alibaba's female staff, urging the company to eradicate the soil that brews any hidden rules in the job market. While the company announced to conduct phased investigation and follow-ups, the police is probing the case and collecting evidence.
The article accentuated that anyone who is found violating laws and committing any crimes must be solemnly punished by the law. Apart from citing the legal issues, the article also pointed out the hidden rules involved in the incident should trigger deep reflection of the public.

GIORDANO INT'L (00709.HK)  expressed that, in light of the development of the COVID-19 pandemic, it is difficult to forecast the overall sales performance in 2H21 and that the company will concentrate on controlling relevant costs and account receivable, said Gary Chan, executive director of the company.  Mark Loynd, another executive director of the company, remarked that the company remains optimistic on the outlook of its businesses in China, Hong Kong and Taiwan at the moment and that it has begun expanding the Central Asia market which harbors immense potential.

Japanese beverage giant Kirin's profit in 1H declined 28.7% to JPY23.75 billion (approximately USD215 million) with its revenue slumped by 1% to JPY864.02 billion. The company lowered the full-year earnings forecast from JPY103 billion to JPY86.5 billion and the revenue forecast from JPY1.88 trillion to JPY1.87 trillion.

SHK PPT (00016.HK)  Short selling $47.71M; Ratio 14.788%   released the first price list for the phase one of "Wetland Seasons Bay" -- a residential project at No. 1 Wetland Park Road, Tin Shui Wai. The developer launched 245 units, with saleable area of 300-795 square feet. The discounted selling prices of the first batch range from $4.551 million to $11.247 million.

In July 2021, the number of residential property transactions involved Buyer's Stamp Duty (BSD) amounted to 49, down 55 deals or 52.9% monthly, according to the Stamp Office of Inland Revenue Department.
The amount of BSD collected was $120 million, down 34.3% month-over-month to a 5-month low.

Comments
* The email will not be published on the website.