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HSI -467pts (-1.8%) 24,850 HSCEI -174pts (-2%) 8,742 T/O HK$204.32bn (+23.9% DoD)
Opened lower and trading sideways in the red. UK retail sales were weak, German PPI stronger and covid concerns remain. Most sectors in the red.
Marks & Spencer +11%, after the retailer lifted its profit outlook.
Morrisons +4.2%, after announcing it had approved a takeover offer of £7 billion ($9.5 billion) from U.S.-based private equity group Clayton, Dubilier & Rice.
Opened Dow -3pts, S&P and NDX +0.1% BUT have dropped and currently Dow -105pts S&P and NDX-VE
Ahead Kaplan speech and Baker Hughes oil rig count
CHINA CSI 300 closed -92pt (-1.9%) @ 4,769
CSI 300 opened lower and trended lower through the morning. At lunch -117pts (-2.4%) @ 4,745. PM initially traded sideways before working slightly better into the close
China Telecom debut in Shanghai saw the stock rally 34% on its trading debut. Sentiment weak as Government clampdown continues and concerns remain about the strength of the recovery. Liquor names continued to see selling pressure. Healthcare thought to be next in line
Prime Loan Rates left unchanged 1 yr @ 3.85%, 5 yr @ 4.65%
Shanghai Composite -38pts (-1.1%) @ 3,427 T/O US$74,954 +1.1%DoD
Shenzhen Composite -234pts (-1.6%) @14,254 T/O US$108,052 +3.3% DoD
ChiNext Composite Index -56pts (-1.6%) @ 3,474
China's National Health Commission reported COVID-19 confirmed cases yesterday (19th),
Pre market opened @ 25,241 -75pts vs -16pts ADR’s
Market trended lower through the morning to test 24,600 before lunch but closed -577pts (-2.3%) @ 24,740. PM saw a slight rebound but closed 28,850. Market failed to hold 25k and closed in bear territory
Health care names weak on concerns of more regulation. Evergrande -1.6% continued pressure as the PBoC publicly calls it out to address its debt position
BEA +3.8% after good earnings.
Earnings in focus.
EARNINGS HK due Monday includes: Henderson Land (12) Cross Harbour (32), Henderson Invest (97), Tingyi (322), Luks Group (366), Gemdale Property (535), Ajisen (538), China Overseas Land (688), Goodbaby (1086), China Modern Dairy (1117), CC Land (1224), China Lilang (1234), Grand Baoxin (1293), Xtep (1368), Genscript (1548), Fusen Pharma (1652), Guotai Junan Int (1788), Zhaojin Mining (1818), China Wood (1822), Shanghai Fosun Pharm (2196), Wuxi Bio (2269), Parkson Retail (3368), CICC (3908), KWG (3913), Poly Property Services (6049)
HONG KONG DATA
HK reported 2 new covid cases; both imported.
HK anti sanction legislation vote delayed in Beijing Slight +VE for sentiment
SHORT SELLING Friday 14.3% vs 15.3% Thursday
Top shorts Ali Health (241) 55%, Bud Apac (1876) 53%, Hang Lung Ppty (101) 48%, Hengan (1044) 43%, AIA (1299) 37%, CK Asset (1113) 37%, Country Garden (2007) 35%, Geely (175) 31%, Bank of China (3988) 30%, Bank Comm (3328) 30%, PetroChina (857) 26%, Sunny Optical (2382) 26%, HSBC (5) 26%.
AFTER MARKET NEWS
NANYANG HOLD (00212.HK) announced that the Group’s profit for the six months ended 30 June 2021 is anticipated to increase by more than 2.5 times as compared to that for the corresponding period in 2020.
The Securities and Futures Commission (SFC) announced to approve the launch of an A shares index futures contract by HKEX (00388.HK). Since the launch of the Mainland and Hong Kong Stock Connect
(Stock Connect) in 2014, international investors have increasingly participated in the A shares market via the northbound trading link. SFC’s Chief Executive Officer, Ashley Alder, said this A shares index futures contract provides a significant new risk management tool for the growing number of global investors who participate in China’s A shares market, including those trading through Hong Kong’s Stock Connect mechanism. The ability to trade A shares futures in Hong Kong, and to hedge pricing risks effectively, is expected to facilitate the further growth of long term capital flows into the Mainland financial markets.
From January to July 2021, the foreign exchange settlement and sales by banks aggregated RMB9.2181 trillion and RMB8.279 trillion, respectively, with a surplus of RMB939.2 billion, according to statistics of the State Administration of Foreign Exchange (SAFE).
HK & CHINA GAS (00003.HK) Short selling $42.93M; Ratio 9.318% announced the interim result ended 30th June 2021. Net profit amounted to HK$4.2 billion, up by 57.5 per cent yearly. EPS hit HK22.5 cents. The Group declared an interim dividend of HK12 cents per share, flattish annually. Profit (exclusive of the Group’s share of revaluation value from an investment property, the International Finance Centre complex) amounted to HK$4.2 billion, up by 41.4 per cent yearly.
Centa-City Leading Index (CCL) last posted 190.39, down 0.49% after notching a new record high last week.
CCL Mass last stood at 192.51, likewise down 0.55% after setting record highs for two consecutive weeks. CCL (small-and-medium units) slumped 0.47% to post at 190.3. CCL (large units), ending its five-week rising streak, dropped 0.6% to post at 190.83.
Market trended higher in the first hour touching 7,512 led bWesfarmers, Woolworths and CSL before reversing and dipping into the red around 1pm (7,457), then effectively traded sideways around flat to close -4pts (-0.05%) @ 7,461.
NSW announced new restrictions as covid cases continue at elevated levels. Iron ore prices remain weak on concerns about the Chinese economy. Energy small weakness. Support from Consumer Staples and Discretionary. It then saw a bounce and is currently trading sideways just above flat. Cochlear -7.5% even after reporting record $1.4b revenue and a $1.40 dividend, but still undershooting consensus expectations
Auto names and most of the supply chain remain weak after the Toyota’s -4.1% news yesterday; Denson Corp -8.8% but Renesas Electron +1% who will benefit from the chip shortage. Nintendo +2.4% on talk of NKY225 inclusion again. Shippers seeing some profit taking Nippon Yusen -7.7% covid and China slowing prompting the selling. Transport, Iron/Steel and Trading Companies also weak. Strength in EPG’s, Rail, Pharma, Food, Retail and Precision Instruments.
Surveys show that Business wants PM Suga replaced
Nikkei opened slightly lower, ticked up to 27,320 in initial trades before trendng lower to 27,035 before a bounce to 27,100 level at lunch. PM opened flat and trended slightly lower in choppy trading to close -268pts (-1%) @ 17,013
Topix traded in a similar fashion to close -17pts (-0.9%) @ 1,881
Inflation Jul -0.3% YoY vs -0.5% Jun revised (F/cast was -0.1%)
Inflation Jul +0.2% MoM vs +0.1% Jun revised (F/cast was -0.2%)
Core Inflation Jul -0.2% YoY vs -0.5% Jun revised (F/cast was -0.3%)
Inflation Ex Food & Energy Jul -0.6% vs -0.9% Jun revised (F/cast was -0.6%)
Monday we get the flash PMI data
Foreigners still selling tech along with Steel on China growth concerns. Pharma also seeing some profit taking. Game names that were popular yesterday under pressure. Kakao Bank mutes despite potential W200bn MSCI inflow expected MOC.
Kospi opened higher and after an initial dip touched 3,120 in the first hour before reversing down to 3,060 in the next 45mins. The traded sideways 3,060/80 but then sold off to close -36pts (-1.2%) @ 3,062
Kosdaq traded in a similar pattern; tested 1,000 in the first hour. Then sold down to 970 and traded sideways but again sold off at the end to close -24pts (-2.4%) @ 968.
PPI Jul +0.7% MoM vs +0.5% Jun revised (F/cast was +0.4%)
PPI Jul +7.1% YoY vs +6.6% Jun revised (F/cast was +6.3%)
Taiex opened higher and tested to 16,500 in initial trades. Then sold down first support 16,320 but then down to 16,250 before a strong rebound to 16,420. Then worked better but saw resistance approaching 16,500. Around 12:30pm saw the market trend lower and sold off to closed -34pts (-0.2%) @ 16,342
Shipping and Paper leaders. Support from Tech Hon Hai +2%, UMC +1%, but TSMC -0.8% sold off heavily into the close.
Export orders after the close.
T/O was US$12.42b vs US$15.43bn Thursday
CECC reported 6 new covid cases (3 imported)
Northbound RMB 64,830m Sell 35,533m vs 29,297m Buy
Southbound HK$ 23,060m Sell 12,145m vs 10,914m Buy
Northbound RMB 80,222m Sell 42,401m vs 37,821m Buy
Southbound HK$ 26,248m Sell 14,612m vs 11,635m Buy
MEITUAN (03690.HK) Short selling $1.37B; Ratio 13.045% closed at $193.4, down 4.5%
BABA (09988.HK) Short selling $1.88B; Ratio 21.681% closed at $157.9, down 2.6%
AIA (01299.HK) Short selling $646.52M; Ratio 37.349% closed at $95.6, down 2.1%
HKEX (00388.HK) Short selling $792.61M; Ratio 18.101% closed at $463.2, down 2%
PING AN (02318.HK) Short selling $353.45M; Ratio 17.033% closed at $64.4, down 1.3%
TENCENT (00700.HK) Short selling $1.04B; Ratio 4.687% closed at $425.4, up 1%
HSI & HSCEI Constituents on Move:
JD HEALTH (06618.HK) Short selling $862.20M; Ratio 53.659% closed at $58.1, down 14.4%
ALI HEALTH (00241.HK) Short selling $769.09M; Ratio 54.899% closed at $9.97, down 13.3%
WUXI BIO (02269.HK) Short selling $359.99M; Ratio 8.018% closed at $105.3, down 7.5%
CSPC PHARMA (01093.HK) Short selling $63.02M; Ratio 9.254% closed at $10.14, down 7%
SANDS CHINA LTD (01928.HK) Short selling $43.58M; Ratio 8.369% closed at $22.35, down 5.9%
HANSOH PHARMA (03692.HK) Short selling $53.58M; Ratio 31.582% closed at $24.3, down 5.8%
GALAXY ENT (00027.HK) Short selling $160.91M; Ratio 14.677% closed at $44.3, down 5.4%
HAIDILAO (06862.HK) Short selling $60.33M; Ratio 9.673% closed at $27.1, down 4.9%
WH GROUP (00288.HK) Short selling $46.73M; Ratio 10.224% closed at $5.84, up 4.8%
NTES (09999.HK) Short selling $261.49M; Ratio 24.098% closed at $120, down 4.7%
SINO BIOPHARM (01177.HK) Short selling $158.46M; Ratio 24.333% closed at $6.31, down 4.7%
CG SERVICES (06098.HK) Short selling $42.67M; Ratio 3.808% closed at $53.95, down 4.3%
GEELY AUTO (00175.HK) Short selling $720.60M; Ratio 30.773% closed at $25.75, down 3.9%
ANTA SPORTS (02020.HK) Short selling $148.64M; Ratio 7.446% closed at $161, down 3.8%
KUAISHOU-W (01024.HK) Short selling $419.77M; Ratio 14.018% closed at $68.05, up 3.5%
HANG LUNG PPT (00101.HK) Short selling $38.25M; Ratio 48.017% closed at $19.8, down 3.2%
BYD COMPANY (01211.HK) Short selling $697.08M; Ratio 22.086% closed at $250.4, down 3.1%
HSMI & HSSI Constituents on Move:
MEITU (01357.HK) closed at $1.75, up 23.2%
EVEREST MED-B (01952.HK) Short selling $6.04M; Ratio 13.641% closed at $49, down 16.9%
MINSHENG EDU (01569.HK) Short selling $51.32K; Ratio 1.213% closed at $1.12, down 13.8%
ZAI LAB (09688.HK) Short selling $5.81M; Ratio 9.636% closed at $938, down 12.8%
NH HEALTH (06606.HK) Short selling $25.17M; Ratio 27.770% closed at $36.5, down 12.2%
FRONTAGE (01521.HK) Short selling $1.21M; Ratio 0.676% closed at $4.55, down 11.1%
INNOCARE (09969.HK) Short selling $5.18M; Ratio 2.290% closed at $19.56, down 10.9%
RESULTS at lunchtime
OOIL(00316.HK) announced interim result ended June 2021. The revenue rose 103.7% year on year to US$6.988 billion. The net profit amounted to US$2.811 billion, up 2653.5% year on year. EPS was US442.4 cents. A total dividend of US$4.41 was declared, including an interim dividend of US$1.76 and a special dividend of US$2.65.
CH OVS G OCEANS(00081.HK) announced interim result ended June 2021. The revenue rose 59.8% year on year to RMB25.738 billion. The net profit amounted to RMB2.7 billion, up 32.7% year on year. EPS was RMB78.9 fen. An interim dividend of HK8 cents was declared against a dividend of HK7 cents in the corresponding period of the previous year.
CHINA RES POWER (00836.HK) announced interim result ended June 2021. The net profit amounted to HK$5.105 billion, up 12.7% year-on-year. EPS was HK$1.06. An interim dividend of HK$0.25 per share was declared, against HK$0.225 in the corresponding period of the previous year.
China is projected to achieve a vaccination rate of above 80% by the end of this year, expressed Zhong Nanshan, academician of Chinese Academy of Engineering. Zhong explained that as China's vaccines' efficacy rate is at around 70% at the moment, it is vital for the country to push the inoculation rate to higher than 80% to ensure effective herd immunity.Regular Covid tests will no longer be an option for the unvaccinated CATHAY PAC AIR (00293.HK) Short selling $8.97M; Ratio 34.656% staff members from 1 December, SCMP citing a memo from the carrier's director of people Patricia Hwang. Third-party employees will also have to be inoculated by 1 October.
However, the airline did not say whether staff refusing to get jabs would be fired.BABA-SW (09988.HK)'s Tmall Luxury announced that its "hassle-free shopping" experience went online on 14 August (Chinese Valentine's Day), rolling out featured services, such as video consultancy, one-click after-sales, exclusive packaging, interest-free instalment and more, aiming to render quality counter services online to luxury product consumers. At present, more than 200 luxury brands have set foot on the platform, with over 40 luxury brands, like Cartier, GUCCI, Chopard, Qeelin, and LANVIN, which provide exclusive packaging services on Tmall Luxury, selling more than 10,000 luxury products as a whole.
Uber (UBER.US) announced today it has acquired Hong Kong e-hail startup HKTaxi. The company further expressed that this partnership brings together HKTaxi’s engineering strength and local knowledge with Uber’s global R&D capabilities and operational expertise. It will accelerate growth in the taxi industry in Hong Kong, and underscores the city’s role as a regional startup and mobility hub.SMOORE INTL (06969.HK) Short selling $166.71M; Ratio 14.998% is ambitiously scouting the application of atomization technology in medical care and beauty industries, said Chairman Chen Zhiping. After more than four years of research, the company is now exploring the integration of the equipment and drugs, hopeful of reaping fruits in next 3-5 years. In 1H21, RMB236 million was invested, accounting for about 3.4% of revenue, against nearly RMB420 million for the whole of last year, the Chairman revealed. During the period, four new basic research institutes were established in the United States and Shenzhen, with the annual R&D expenditure expected to exceed the level of last year.The state-run People's Daily published an article, saying drug safety is a matter of the people's physical health and is integral to the healthy and orderly development of the new "Internet + Healthcare" business norm. The commentary suggested allowing professional clinical pharmacists to review online prescriptions under the principle of "online and offline consistency".
China's Standing Committee of the National People's Congress has passed a new personal data protection law, with effect from November, reported Xinhua News Agency. Under the newly enforced law, applications which handle personal information illegally might face temporary or permanent suspension from operation.
In an open letter to Chief Executive Carrie Lam, the European Chamber of Commerce in Hong Kong (EuroCham) anticipates the Hong Kong Government to create and communicate a clear exit strategy to the pandemic which would take into account not only the local health concerns but also the overall mental wellbeing of the entire population, particularly children and the elderly. Equally, the EuroCham encourages the Government to continue to relax all quarantine measures for vaccinated visitors as this will help to reactivate the international (as well as local) business.
HSBC issued an internal email, requiring all employees to receive COVID-19 vaccination as soon as possible. All unvaccinated employees and those who have not received the second dose of vaccine within 60 days after their first injections will be required to take self-funded testing every two weeks, the email added.
The Travel Industry Council of Macau (TICM) expressed that the outlook of visitor number in August is rather grim due to the sudden outbreak of local COVID-19 infections, reported Macao Daily. TICM forecast that the visitor number will take around two to three weeks to rebound to an optimal level. The council hopes that Macau would be able to reach an average daily visitor number of 20,000 or above by mid-September.
Ant Group's AntChain has struck in-depth cooperation with TN Battery (688819.SH) 's Tianneng Lithium Battery on the new energy front, Chinese media reported. Accordingly, both sides will achieve highly efficient management by exploring the introduction of blockchain technology into lithium batteries.
WEIMOB INC (02013.HK) Short selling $47.08M; Ratio 16.671% announced that the board of directors formally resolved to utilize the share repurchase mandate to repurchase shares in the open market as appropriate at the aggregate price of not exceeding HK$1 billion. The period for the proposed share buy-back plan is from August 19, 2021 to November 18, 2021.
BYD COMPANY (01211.HK) Short selling $338.24M; Ratio 18.024% announced the cooperation with a British bus manufacturer Alexander Dennis (ADL) to deliver the first BYD ADL Enviro200EV XLB large three-axis pure electric bus to the Auckland Transport Bureau. The bus model has a length of 12.6 meters, providing a total of 36 passenger seats, with a full load of 78 people. The automaker revealed that it currently runs a number of markets in Asia-Pacific countries, including Japan, South Korea, Singapore, Australia, India, etc. The brand's pure electric vehicles mobilize in more than 300 cities around the world, and its businesses span across over 50 countries and regions.
SHK PPT (00016.HK)'s Wetland Seasons Bay Phase 1 will roll out 350 units in the first log tomorrow (21 August), 302 of which will be sold based on the price list and 48 will be sold by tender. Subscription registrations for the project were closed yesterday (19 August). More than 10,000 registrations were received, representing a 32.1 times oversubscription of the 302 units to be launched.
PRE MARKET NEWS
Evergrande Group has been in talks with several uprising carmakers including NIO, XPeng as well as XIAOMI-W (01810.HK), in respect of the sales of its EV business, reported chinastarmarket.cn. The discussion, however, has not yet reached a final conclusion. XIAOMI-W, nonetheless, will proceed with its own proposed automobile manufacture project and the location of its auto factory will be announced by next week at the earliest, the report added. XIAOMI-W's spokesperson clarified in a statement that the group has indeed been in touch with car-making teams on all fronts so far. However, it has no intention to forge partnership with any of them and will no longer respond to market rumors going ahead. The public should refer to its official announcement afterwards, if any.
Securities Daily published an article stating that online ride-hailing is a form of public service and the prices for those relevant platforms ought to be regulated. The platforms, as suggested by the article, should regard fulfilling their obligations towards the public as their top priority instead of achieving high profit. Reasonable profit could only be achieved by the corporates' own positioning, combining with their respective efforts in internal management to lower relevant costs, the article remarked. The appropriate and benign competition should be carried out through providing services with high quality, diversity and personalized features to attract capital and passengers, in lieu of price wars and subsidies.
Relevant departments of the Chinese government have launched a series of new regulatory policies YTD, targeting specifically the Internet and after-school training sectors, reported Economic Daily. The highly market-sensitive foreign capital have showed diverse reactions to the tightening in regulatory measures. The fierce crackdowns on different sectors, however, are predicted to generate immense opportunities, despite the inevitable temporary "pain", the report remarked. The antitrust campaign will reveal the corporates' core competitiveness, cultivate corporates with rich economic and social values with healthy culture and ultimately lead the overall economy towards prosperity, the report concluded.
Study and research from China Passenger Car Association (CPCA) showed China's narrow-sense PV retail sales volume may recede by 9% year-on-year to 1.55 million units due to the pandemic and inadequate supply.
Offline WeChat Pay will introduce a new function to recommend users to follow public accounts after their payment starting from 1 September, in a bid to protect user interests and upgrade their experience, announced Tenpay Payment Technology Co., Ltd..
After accepting admonition talks with the PBOC and CBIRC yesterday (19th), EVERGRANDE (03333.HK) said it will implement the requirements as discussed thoroughly, enforcing the strategic deployment of the central government steadfastly in regards to the sturdy and healthy development of the real estate market. The company also pledged to bend over backwards to ensure the completion and delivery of properties with quality and quantity; disclose material information upon laws and regulations; and resolve debt risks to stabilize property and financial markets.
EVERGRANDE (03333.HK) announced, in response to the news circulating online suggesting that Evergrande Group is in talks with XIAOMI-W (01810.HK) to sell a 65% stake in EVERG VEHICLE (00708.HK), that EVERG VEHICLE has had preliminary communication with XIAOMI-W in regards of introducing strategic shareholder but did not proceed to deepen the discussion.
CHINA POWER (02380.HK) announced interim result for the six months ended 30 June 2021. Net profit amounted to RMB1.372 billion, up 17% yearly. EPS was 13 fen. No interim dividend was declared.
CITIC SEC (06030.HK) Short selling $21.82M; Ratio 27.616% announced interim result for the six months ended 30 June 2021. The net profit amounted to RMB12.198 billion, up 36.7% yearly. EPS was 94 fen. No interim dividend was declared.
TVB (00511.HK) Short selling $160.16K; Ratio 12.855% announced that a JV, owned as to 82.5% by TVB and 17.5% by SHAW BROTHERS (00953.HK) , was established to acquire 75% of the share capital of Ztore at a total consideration of HK$200 million. The consideration will be satisfied by HK$70 million in cash and a remaining sum represented by resources in other advertising products on TVB’s free to air and digital platforms.
TENCENT (00700.HK)'s statement disclosed that on August 19, it repurchased 180,000 shares on the Stock Exchange at a price ranging from $419.4-435.2 per share, involving about $76.97 million. So far, TENCENT has repurchased a total of 180,000 shares, accounting for 0.00188% of the company's share capital.
YUZHOU GROUP (01628.HK) announced that, on 19 August 2021, Lam Lung On, the chairman of the board and a controlling shareholder of the company, has acquired 1 million shares of the company on the market for an aggregate consideration of HK$1.54 million (representing an average price of approximately HK$1.54 per share). Immediately following the acquisitions, Lam is interested in an aggregate of 3.708 billion shares, representing approximately 58.83% of the total issued share capital of the company.
CROSS-HAR(HOLD) (00032.HK) announced that it has conducted a serious of acquisitions on the open market during the period from 28 December 2020 to 18 August 2021 and acquired a total of 1.1514 million BABA-SW (09988.HK) Short selling $792.56M; Ratio 18.208% shares at an aggregate purchase price of HK$250 million.
CKH HOLDINGS (00001.HK) Short selling $13.57M; Ratio 7.119% announced that it repurchased 530,000 shares through the Stock Exchange on August 19, with a price of $57.4-57.9 per share, involving about $30.52 million.
SMOORE INTL (06969.HK) announced the interim results for the six months ended 30 June 2021. The revenue for the period amounted to RMB6.953 billion, up 79.2% YoY. Net profit rocketed 36.6x to RMB2.879 billion. EPS was RMB48.45 cents. An interim dividend of HK21 cents was declared.
BAOZUN-SW (09991.HK) announced the results for the second quarter ended 30 June 2021. The total net revenues were RMB2.304 billion, up 7.1% YoY. Net profit declined 33.4% to RMB79.77 million. EPS was RMB36 fen.