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HSI -332pts (-1.1%) 28,966 HSCEI -125pts (-1.1%) 10,827 T/O HK$138.93bn (-7.5% DoD)
Markets open lower as PMI data was weaker than expected and concerns over the weaker than expected China data. Markets are trending lower with caution ahead of US jobs data. Resources; especially with exposure to China leading the declines.
Saint-Gobain strong after it said it expected record operating income and margin for the first half of the year, Reuters reported.
National Grid weak after going ex-dividend.
Services PMI May 55.2 vs 50.5 Apr (F/cast was 55.1)
Composite PMI May 57.1 vs 53.8 Apr (F/cast was 56.9)
Services PMI May 52.8 vs 49.9 Apr (F/cast was 52.8)
Composite PMI May 56.2 vs 55.8 Apr (F/cast was 56.2)
Services PMI May 56.6 vs 50.3 Apr (F/cast was 56.6)
Composite PMI May 57 vs 51.6 Apr (F/cast was 57)
Services PMI May 62.9 vs 61.0 Apr (F/cast was 61.8)
Composite PMI May 62.9 vs 60.7 Apr (F/cast was 62.0)
Opened flat Dow +8pts S&P and Nasdaq slightly +VE and stayed around there in Asian time but dropped as Europe opened currently Dow -210pts; S&P -0.7% and NDX -0.9% with caution ahead of initial claims.
AMC Ent Weak having filed to sell up to 11.55 million common shares “from time to time,” according to a Securities and Exchange Commission filing. Other meme stock mixed BlackBerry +11.2% in the premarket, but Koss -10.1%, GameStop -2.3% and Bed Bath & Beyond -12.9% after soaring 62% Wednesday.
J.M. Smucker beat estimates by 22 cents a share, with quarterly profit of $1.89 per share. Revenue came in slightly above forecasts. Sales fell compared with a year earlier, however, when homebound consumers stocked up as the pandemic took hold. Smucker did issue an upbeat full-year earnings forecast.
Express reported a quarterly loss of 55 cents per share, smaller than the 58 cents a share that analysts were expecting. Revenue topped Street forecasts and Express said it expects sequential comparable sales improvement throughout this year. Its shares fell 7.1% in the premarket after an initial jump higher.
Challenger Job Cuts, ADP Employment Change, Initial Claims, 4 week Average Claims, Continuing Claims, Services and Composite PMI, ISM Non Manufacturing Data (PMI, Employment, New Orders, Prices), EIA Oil Report, EIA Natural Gas Report.
Fed Speakers Bostic, Kaplan, Harker and Quarles.
Earnings: Broadcom, Lululemon Athletica, Five Below, Hovnanian, DocuSign, Cooper Cos, CrowdStrike
CHINA CSI 300 closed -35pts (-0.7%) @ 5,255
CSI 300 opened lower ahead of the Caixin PMI data (which was 55.1 weaker MoM and missed f/casts but still well above 50) saw a brief rally to 5,305 but then sold down to 5,278 mid morning and then rallied to the day high 5,314 before easing slightly into lunch. PM the market traded lower insteps to close at the day lows.
News that Biden intends to revised the ban on Chinese companies with military companies hurting sentiment.
Shanghai Composite -13pts (-0.4%) @ 3,584
Shenzhen Composite -97pts (-0.7%) @ 14,761
ChiNext Index -27pts (-0.8%) @ 3,222
Caixin Services PMI May 55.1 vs 56.3 Apr (F/cast was 55.9)
Caixin Composite PMI May 53.8 vs 54.7 Apr (F/cast was 54.3)
HSI Pre market opened @ 29,365 +68pts vs +102pts ADR’s Traded sideways for the first 40 minutes but then trended lower throughout the day. Pre market HK PMI climbed to 52.7 the highest in 7 years but that had little impact. Chinese Financials and E-commerce stocks weak. Petrochems and tech +VE and Xtep strong after yesterday’s selling. Razor weak after placement.
HONG KONG DATA
PMI May 52.5 vs 50.3 Apr (F/cast was 50.6)
This represented the fourth successive month in which the Hong Kong SAR private sector registered stronger business conditions, with the latest improvement the greatest since February 2014. The expansion of the Hong Kong SAR private sector picked up pace in May as more easing of COVID-19 restrictions fuelled better economic conditions and business confidence.
Govt announced Q1 2021, total port cargo throughput -14% YoY to 49.2 million tonnes.
Inward port cargo -18.1% YoY to 31.9 million tonnes
Outward port cargo -5.1% YoY to 17.2 million tonnes
The Centre for Health Protection (CHP) reported 1 new covid case which was imported
Short Selling Thursday 17.6% vs 20.3% Wednesday
Top Shorts Power Assets (6) 43%, Bud Apac (1876) 35%, Country Garden (2007) 34%, Henderson Land (12) 34%, BoC HK (2388) 32%, Bank Comm (3328) 31%, Geely Auto (175) 31%, ICBC (1398) 29%, Sunny Optical (2382) 28%, Petrochina (857) 28%, Hengan (1044) 28%, Sands China (1928) 28%, Baba (9988) 27%, Galaxy (27) 25%, BoC (3988) 25%.
AFTER MARKET NEWS
YUZHOU GROUP (01628.HK) announced that in the first five months of 2021, the accumulated sales of Group was RMB41.694 billion, up 35.6% YoY.
More than 27,000 subscription registrations were received for The Pavilia Farm III, a residential project co-developed by NEW WORLD DEV (00017.HK) and MTR CORPORATION (00066.HK) atop Tai Wai Station, breaking the record of The Pavilia Farm I.
Adrian Cheng, executive vice-chairman and CEO of NEW WORLD DEV, said the group is negotiating with MTR CORPORATION to launch more units as soon as possible given robust demand.
Chongqing Ant Consumer Finance Co. Ltd. obtained approval from CBIRC to operate while the latter demanded Ant Group to take effective measures to ensure that consumers will be able to acquire adequate information regarding the names of the loan provider. In response, Ant Group said that, the company will endeavor to fulfil consumers' expectations for financial services, under the guidance of regulatory department, by active participation in financial service system building and continuous enhancement of service quality as well as risk prevention and control.
Chongqing Ant Consumer Finance Co. Ltd. regained its license to operate. According to the reform proposal, Ant Group should complete the brand reform of "Check Later" and "Cash Now" within 6 months of the opening of Ant Consumer Finance Co. Ltd., said CBIRC. After said reform, "Check Later" and "Cash Now" shall become consumer financial loan products exclusive for Ant Consumer Finance Co. Ltd., and any other consumer loans offered by other financial organizations using digital information provided by Ant Group must not be labelled with the same names, so as to avoid confusion.
Chongqing Ant Consumer Finance Co. Ltd. was approved to commence operation, according to CBIRC's Chongqing office website. Ant Group and Nanyang Commercial Bank had respectively contributed RMB4 billion and RMB1.2008 billion in funds, representing 50% and 15.01% of the registered capital of Chongqing Ant Consumer Finance.
Huarong International had completed as scheduled the payment for the five-year US$900 million bonds issued on 3 June 2016, according to the company's official social media platform.
CATHAY PAC AIR (00293.HK) announces that it has further elevated its support for the Hong Kong SAR Government’s Covid-19 community vaccination drive by offering one lucky winner the opportunity to host a private party on board the new, state-of-the-art Airbus A321neo aircraft. In addition, the airline is also giving away 20 million Asia Miles in a lucky draw. Eligible participants must be Hong Kong Identity Card holders who have been fully vaccinated before the end of August 2021.
The new generation of business leaders will have to overcome multitude of difficulties as they navigate post-pandemic recovery while considering sustainable development, said Peter Wong, Deputy Chairman and Chief Executive of HSBC.
Fortunately, Wong added that, Asian regions have accumulated substantial experience and capability over the years to propel the global economy and the development of innovation and technology in the future.
ASX 200 opened higher and tested 7,280 in the morning trading before easing back to trade in the 7,240/270 range for the rest of the session to close +42pts (+0.6%) @ 7,260
Pre market data missed F/cast but the trade data and retail sales were +VE. Oil names +VE as crude continues to rise. Utilities and Financials were also strong. Sentiment helped by the Government announcing a $500 per week disaster payment system for those affected by covid lockdowns.
Services PMI data was 46.5 down MoM but better than forecast
Tokyo reported 487 new covid cases (+16 DoD) and nationwide was 3,036
Nikkei opened lower at 28,890 but rallied to 29,135 in the opening trades and then traded sideways for most of the morning before easing back to 29,046 at lunch. PM the market traded sideways to close +112pts (+0.4%) @ 29,058
Topix traded in a similar pattern high was 1,967 before easing back to 1,958 at lunch. PM traded sideways to close +16pts (+0.8%) @ 1,959
Kospi opened higher and worked to the day high 3,258 around 1:15pm before easing back to close +23pts (+0.7%) @ 3,247
Kosdaq worked better for most of the day to a high of 992 and then traded slightly lower to close +9pts (+0.9%) @ 990
Taiex opened higher and rallied to 17,283 in early trades and then traded sideways in the range 17,200/290 to close +81pts (+0.5%) @ 17,246 T/O was US$17.38b.
CECC confirmed 366 Covid diagnoses today (3 June), including 364 local infections and two imported cases, together with 219 backlog cases, Taiwan reported 583 local diagnoses for the day.
Northbound Rmb 44,771m Sell 22,399m vs 22,372m Buy
Southbound HK$ 14,233m Sell 7,430m vs 6,803m Buy
Northbound Rmb 52,417m Sell 25,435m vs 26,983m Buy
Southbound HK$ 17,420m Sell 8,177m vs 9,243m Buy
TENCENT (00700.HK) -2.1%
CCB (00939.HK) -2.1%
HKEX (00388.HK) -1.8%
BABA (09988.HK) -1.7%
AIA (01299.HK) -1.6%
MEITUAN (03690.HK) -1.4%
PING AN (02318.HK) -1.4%
HSI & HSCEI Constituents on Move:
EVERGRANDE (03333.HK) -5.3%
AAC TECH (02018.HK) +5.2%
CITIC (00267.HK) +4%, hitting new high
HSMI & HSSI Constituents on Move:
RAZER (01337.HK) -12.7%
CR MEDICAL (01515.HK) +6.9%, hitting new high
XTEP INT'L (01368.HK) +6.5%, hitting new high
HOPSON DEV HOLD (00754.HK) +3.1%, hitting new high
CHOW SANG SANG (00116.HK) +2.4%, hitting new high
MARKET HOURS NEWS.
The Secretary for Food and Health today approved to lower the age limit for receiving Comirnaty vaccine to age 12. The Department of Health had submitted an application for lowering such age limit and the relevant clinical trial data to the Advisory Panel on COVID-19 Vaccines for consideration. The Panel thus suggested the Secretary for Food and Health to approve the application.
The worldwide sales of chip manufacture equipment surged 51% year-over-year in the first quarter this year to USD23.5 billion, according to statistics published by SEMI. South Korea became the largest market in the quarter with a USD7.3 billion sales while China ranked second with a USD5.9 billion sales.
GREATWALL MOTOR (02333.HK) 's factory in Rayong, Thailand has come to service with the projected annual production capacity of 80,000 vehicles. The automaker will in this year start producing hybrid cars, and plan to make pure electric cars after 2023.
Thanks to the alleviation of the pandemic, the turnover volume
for new and second-hand properties in Hong Kong is expected to rebound, with ordinary residential buildings projected to have a 3% increase in prices, said Thomas Lam, Executive Director, Head of Valuation & Advisory of Knight Frank.
With the tender invitation for the Central Harbourfront site scheduled to close on 18 this month, Lam believes the tendered price to be a deciding factor. The estimated floor price for the site is approximately $23,000 per foot, with an approximate total land price of around $30-40 billion.
Chinese Vice Premier Liu He had spoken with US Trade Representative Katherine Tai and Treasury Secretary Janet Yellen on conference call in the recent week, exchanging views for around 50 minutes respectively, as Gao Feng, Spokesman of Ministry of Commerce (MOC), revealed at the regular press conference. He said both parties started the dialogue swimmingly, opining both nations have resumed normal communication.
China and the US agreed that their next approach should be conducive to both countries and the whole world, and they should make concerted efforts in tackling certain specific problems pragmatically for producers and consumers, propelling their trade relationship towards healthy and sturdy development.
Ant Group is currently building a new team with less than 10 members at its Hangzhou headquarter, which focuses on handling international government and policy issues, aiming to burnish relationship with the local governments in its Asian market, reported Bloomberg News, citing people familiar with the matter.
The new team is reported to be prioritizing markets of Southeast Asia, Hong Kong and Macau, while also keeping the European market in mind.
Macau Financial Service Bureau's statistics show that, the total revenue of Macau SAR government in the first four months of 2021 recorded MOP30.836 billion, down 22% year-over-year, while gaming revenue accounts for MOP12.38 billion, with a 39.7% year-over-year drop.
Mount Nicholson at the Peak, residential project jointly developed by WHARF HOLDINGS (00004.HK) and Nan Fung Group, recently started the separate sales of its parking spaces, with one of them sold at $10.20 million, reported local media. It is expected to be the most expensive parking space in the world, excluding the $13 million-buy on a parking space in the industrial district in Kwun Tong in 2015, which was induced by the impending deadline for revitalization application at the time.
The Chinese autonomous driving system startup Shanghai Zongmu Technology conducted the series D fundraising in three stages with XIAOMI-W (01810.HK)-backed Hubei Xiaomi Changjiang Industrial Investment Fund Management leading the third phase, and Japan's Denso, Fosun Capital and Qualcomm Ventures also participating in this round. This latest round raised around USD190 million. Tong Rui, founder and CEO of the company, expressed that the company is considering the possibility of listing on STAR board exchange.
Microsoft (MSFT.US) is scheduled to launch the new generation of Windows system on 24 June. The current Windows 10 operation system was first launched back in 2015 and Microsoft has been updating twice each year ever since. The company, however, said last month that it has already set aside the development for the Windows 10X system.
TikTok's worldwide installation figures claimed number one in the world this May with over 80 million installations, with 16% in Brazil and 12% for the Chinese version "Douyin", reported Sensor Tower. Facebook(FB.US) and its Instagram, WhatsApp and Messenger secured second to fifth places on the list, with Facebook recording 53 million installations.
Macau's Health Bureau announced last night that, in light of pandemic development in Guangzhou City and Shenzhen City in Guangdong Province, with effect from 21:00 of 2 June 2021, all individuals who have been to Wufeng Community in Changgang Sub-district of Haizhu District, Guangzhou City of Guangdong Province, or Yangang Community in Yantian Subdistrict of Yantian District, Shenzhen City of Guangdong Province within the past 14 days prior to their entry into Macau must, at the discretion of the health authorities, undergo medical observation for 14 days at designated venue.
TENCENT (00700.HK)'s Tencent Cloud announced today (3 June) to set up four brand new data centers respectively in Bangkok, Frankfurt, Hong Kong and Tokyo to cater the demand of global customers. With the formation of the new data centers, the network infrastructure of Tencent Cloud has already spanned across 27 geographic regions and 66 Availability Zones. Availability Zones 2 in Bangkok, Frankfurt and Tokyo as well as Availability Zone 3 in Hong Kong could meet the ever-growing business demand worldwide, said the company. Tencent Cloud even plans to add more than 30% of its data centers globally this year to satisfy the global demand for cloud services looking forward.The Pavilia Farm III, a residential project co-developed by NEW WORLD DEV (00017.HK) and MTR CORPORATION (00066.HK) atop Tai Wai Station, unveiled the second price list for 149 units measuring 310-1,022 sq.ft. each. The discounted selling prices range $7.539-25.295 million. Rumor has it that nearly 20,000 subscription registrations were received for the project as of 7pm yesterday.
SAMR announced that Tesla (Beijing) decides to recall part of the imported Model 3 electric vehicles, including 311 of them, manufactured between 12 January 2019 and 20 November 2019, over safety concerns of seatbelt assembly; and 423 of them, manufactured between 2 February 2019 to 20 November 2019, over the risk of bolt-loosening due to improper assembly. The company will provide free inspection for all recalled vehicles and free repair should there be any identified, in order to eliminate all safety concerns.
The Come2hk Scheme scheduled to launch in May, which would allow non-Hong Kong residents to enter Hong Kong without being subjected to compulsory quarantine, has been postponed in light of the recent development of the COVID-19 pandemic, said the Chief Executive Carrie Lam in the legislative council, in response to members' questions.
The Hong Kong Government announced to enhance the testing requirements for persons who have stayed in the Mainland or Macao within 14 days of arrival at Hong Kong, with effect from today (June 3). For persons who have been fully vaccinated, or who arrive at Hong Kong under the Return2HK Scheme (regardless of whether arriving via land boundary control points or the airport), the number of tests will be increased from the current two tests after arrival at Hong Kong to three tests on the third, fifth, and 12th day of arrival at Hong Kong.
US President Joe Biden plans to revise the investment ban on Communist Chinese military companies this week to ensure the order would be free from legal challenges, Bloomberg citing insiders. By then, the US Treasury Department will come up with a blacklist of firms prone to sanctions over bonds with China's defense and surveillance tech units. Biden is set to keep a majority of firms on the list, while the Office of Foreign Assets Control will announce a batch of new joiners.
China will launch tender for the 5th batch of National Centralized Drug Procurement (NCDP) in Shanghai on 23 June, according to Joint Procurement Office's document on the Sunshine Medical Procurement All-In-One website. The upcoming procurement will involve 58 kinds of medicines, ousting Mifepristone and Carbetocin from the list.
The lucky draw, jointly sponsored by Ng Teng Fong Charitable Foundation Limited (‘NTFCF’), the philanthropic arm of Sino Group, and CHINESE EST H (00127.HK), will open for registration from 9 a.m. on 15 June 2021. The result will be announced on the lucky draw website on the same day, and will be published in local newspapers on 13 September 2021. With the aim to support the Government’s vaccination programme, the lucky draw is open to Hong Kong residents aged 18 or above who have received two doses of the COVID-19 vaccine in Hong Kong on or before 1 September 2021, while those who have already received both doses before this announcement are also eligible. Participants are required to register and submit their applications via the lucky draw website by 5:30 p.m. on 1 September 2021.
PRE MARKET HOURS NEWS
CATL (300750.SZ) and GREATWALL MOTOR (02333.HK) (601633.SH) sealed the ten-year long-term strategic cooperation framework agreement at the technological center in Baoding City, Hebei Province. Pursuant to the agreement, CATL and GREAT WALL MOTOR will harness their respective advantages and nudge NEV technology advancement based on deep partnership, with the aim to achieve "carbon peak" and "carbon neutrality".
SoftBank Group seeks to use its BABA-SW (09988.HK) shares as collateral to ramp up its US$8.125-billion margin loan size to US$10 billion, Bloomberg reported. The additional loans will be provided by Bank of East Asia, Bank SinoPac, China Minsheng Bank, etc.
FTSE Russell unveiled the second-quarter review results, where XIAOMI-W (01810.HK) will once again be included in FTSE China 50 Index.
Adds CITIC (00267.HK) and COSCO SHIP HOLD (01919.HK) Deletes GEELY AUTO (00175.HK), EVERGRANDE (03333.HK) and NEW ORIENTAL-S (09901.HK)
All changes will be made effective from 21 June.
RAZER (01337.HK) announced that it was informed by Min-Liang Tan, the chairman and chief executive officer of the Company, and Lim Kaling, non-executive director of the Company, that on June 3, 2021, Tan together with Lim Teck Lee Land and Archview Capital have entered into separate placing agreements with a placing agent to sell an aggregate of 275 million shares in the Company, at a price of HK$2.405 per share. The placing price per share was 7.5% discount to yesterday's closing price, involving cash of HK$661 million. Following the completion of the Placing, Tan and Lim's shareholdings will drop to 33.76% and 23.06% respectively. Tan will remain a controlling shareholder of the Company, and Lim will remain a substantial shareholder of the Company. In response to the proposed sales of 275 million shares by the controlling shareholder and substantial shareholder, said their sales of stocks were merely aimed at financial management related to personal income tax, furthering share sales by shareholders were a common practice amidst the company's growth and progression.
The investment quotas for qualified domestic institutional investor (QDII) reached US$147.319 billion as of June 2, up US$10.3 billion from the previous reading of US$137.019 billion on May 31, Reuters citing SAFE's review. This likely signaled regulators' intention to expedite capital outflow amid RMB appreciation hopes. 17 institutions received the new quotas on June 1, including HSBC Bank (China), China Southern Asset Management, and PICC GROUP (01339.HK) (601319.SH)
Huawei has officially launched its self-developed HarmonyOS 2 operating system, along with several new products with said OS inbuilt within them, signifying Huawei's independence from Google Android OS. Huawei states that HarmonyOS 2 will provide brand new application services that are totally free from the constraints of terminal device. Huawei projects that by the end of 2021, the number of devices using HarmonyOS will reach 300 million, with more than 200 million of them manufactured by Huawei.
COUNTRY GARDEN (02007.HK) announced that for the single month of May, the Group achieved contracted sales amounted to RMB57.38 billion, up 2.3% YoY. Contracted sales GFA reached approximately 6.51 million square meters, down 2.1% YoY.
MELCO INT'L DEV (00200.HK) announced that the board of directors of Melco Resorts & Entertainment Limited (Melco Resorts), a subsidiary of the Company, had approved a new US$500 million share repurchase program. Melco Resorts was to purchase its ordinary shares and/or ADSs over a three-year period commencing from 2 June 2021.