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HSI -48pts (-0.2%) 28,918 HSCEI -21pts (-0.2%) 10,806 T/O HK$192.99bn (+38.9% DoD)
Open around flat and trading around yesterday’s close with caution ahead of the US jobs report
Construction PMI May 50.3 vs 50.1 Apr (F/cast was 54.4)
Retail Sales Apr -3.1% MoM vs +3.3% Mar (F/cast was -1%)
Retail Sales Apr +23.9% YoY vs +13.1% Mar (F/cast was +21%)
Construction PMI May 44.5 vs 46.2 Apr (F/cast was 54.5)
New Car Registrations May 37.2% YoY vs 90% Apr (F/cast was 51%)
Construction PMI May 51.1 vs 49.8 Apr (F/cast was 54.2)
Retail Sales Apr -6% MoM vs -0.8% Mar revised (F/cast was +1.2%)
Retail Sales Apr +42.1% YoY vs 24.9% Mar (F/cast was +34.8%)
New Car Sales May 674.1% YoY vs 3,176.6% Apr (F/cast was 690%)
Construction PMI May 64.2 vs 61.6 Apr (F/cast was 62.3)
Opened flat Dow +9ps S&P -0.01% and NDX -0.03%
Non Farm Payrolls, Unemployment Rate, Average Weekly Hours, Average Hourly Earnings, Participation Rate, Factory Orders,Baker Hughes Rig Count.
Fed Speakers Chairman Powell on central banks and climate change
CHINA CSI 300 closed +27pts (+0.5%) @ 5,282
CSI 300 opened lower and tested 5,221 in initial trades before working higher to 5,268 around 10:40am. Then trended lower to Thursday’s closing level before spiking into lunch; +25pts (+0.5%) @ 5,280. PM opened with a 55 point rally but unable to hold and sold back down to 5,260 before working better in the close. It certainly looked like TeamChina was trying to push the market.
Concerns over US relations as Biden extends Trumps list of companies that US citizens cannot invest in. China confirmed 24 additional COVID-19 cases yesterday (3 June), including nine local infections in Guangdong, reported by the National Health Commission.
Shanghai Composite +8pts (+0.2%) @ 3,592
Shenzhen Composite +110pts (+0.7%) @ 14,871
ChiNext Index +35pts (+1.1%) @ 3,257CHINA DATA
China confirmed 24 additional COVID-19 cases yesterday (3 June), including nine local infections in Guangdong, reported by the National Health Commission.
No data today but Monday pre market we get Trade Data
HSI Pre market opened @ 28,838 -128pts vs +14pts ADR’s market sold down to 28,738 in the opening minutes, with Meituan weak as CEO converts shares and places some in a charity foundation. Then worked better but saw resistance at Thursday’s closing level and eased back to 28,900 before rallying into lunch +41pts (+0.1%) @ 29,007. PM sold down to 28,880 bounced back 28,980 but then sold down to 28,820 worked backed but resistance at 28,910 eased back to 28,845; small uptick into the close and then +38pts in the closing auction.
Ecommerce names weak but Telcos unmoved by being on the Biden list most +VE but SMIC -2.7%
HONG KONG DATA
The Centre for Health Protection (CHP) reported 1 new covid case which was imported (same as Thursday)
A 17-year-old female is tested positive preliminarily for COVID-19 with a N501Y mutant strain, a local media reported, citing sources. The report states that said female lives in Tin Shui Wai and has no travel history; she has been admitted to Tuen Mun Hospital for isolation and treatment.Short Selling Friday 13.6% vs 17.6% Thursday
Top Shorts Wharf REIC (1997) 33%, Ali Health (241) 33%, Bank Comm (3328) 31%, Baba (9988) 29%, Henderson Land (12) 28%, Country Garden (2007) 26%, Petrochina (857) 25%,
AFTER MARKET NEWS
LINK REIT (00823.HK) announced that it agreed to acquire 100% interest in Happy Valley Shopping Mall in Guangzhou and its related loans for a total of RMB3.2047 billion, which represents a discount of 4.3% to the appraised property value of RMB3.35 billion as at 24 May 2021.
ANGELALIGN (06699.HK), on the second day of IPO, reported over $220.13 billion of margin subscription as at around 6 pm. Based on the public fundraising amount of $291 million, the IPO was over-subscribed by more than 755 times.
CASH FIN SER GP (00510.HK) announced that during the period from 3 to 4 June 2021, the Group has acquired an aggregate of 41,600 MEITUAN-W (03690.HK) Shares through the open market at an aggregate consideration of approximately HK$12.9 million. The board holds positive views towards the financial performance and future prospect of Meituan. The company considers that the acquisition is an opportunity to acquire attractive investment, which will enhance investment return for the group.
Kwok Chi Chung, President of the Macau Association of Gaming and Entertainment Promoters, expressed reservations about the Government's full-year GGR forecast of MOP130 billion, despite surging visitor arrivals in the city during the May Day holiday.
TENCENT (00700.HK) president Martin Lau has sold 250,000 and 50,000 TENCENT shares on 2 and 3 June respectively, at a respective average price per share of $629.7726 and $624.465, cashing in around $189 million, according to HKEX disclosure of interests notices.
HSBC HOLDINGS (00005.HK) plans to split Peter Wong's job of managing the bank's Asian business, Bloomberg citing sources. The lender intends to appoint David Liao, a protege of Wong, and HSBC India CEO Surendra Rosha as co-heads of the Asian arm. Liao will reportedly be in charge of Greater China, while Rosha will take helm of the rest of the region.
CHINA OVERSEAS (00688.HK) announced that for the first five months of 2021, the accumulated contracted property sales of the Group amounted to RMB155.414 billion and the accumulated corresponding GFA sold was 7.6757 million square meters, with year-on-year increase of 35.8% and 22.4% respectively.
SHIMAO GROUP (00813.HK) announced that, the group’s contracted sales amounted to RMB29.05 billion, up 31.93% YoY and the group’s contracted sold area amounted to 1.63 million sq.m.. The average selling price was RMB17,823 per sq.m.. The group’s aggregated contracted sales for the five months ended 31 May 2021 amounted to approximately RMB121.795 billion and the Group’s aggregated contracted sold area amounted to 6.8695 million sq.m., recording year-on-year increase of 52% and 50% respectively. The average selling price for the five months ended 31 May 2021 was RMB17,730 per sq.m..
SUNSHINE 100 (02608.HK) announced that, in May 2021, the group achieved unaudited contracted sales of approximately RMB660 million, corresponding to a contracted sales area of approximately 60,100 sq.m.. For the five months ended 31 May 2021, the Group achieved unaudited contracted sales of RMB1.811 billion, up 2.72% YoY corresponding to a contracted sales area of approximately 171,600 sq.m..
The U.S. president Biden has signed executive order to expand the blacklist for Chinese companies with investment ban to 59 companies, over concerns of their potential link to the Chinese military. China expressed its resolute opposition to such measures as Wang Wenbin, spokesperson for MoFA, condemned the U.S. for abusing its national powers to suppress and restrict Chinese companies. Wang, during a press conference, has said subsequently that China will take any necessary measures to ensure and protect the legitimate rights of Chinese companies.
MAS expects further increasing capital inflow into fintech companies this year as investment of this nature has already rose rapidly from approximately USD20 million in 2014 to USD1.1 billion last year, said Sopnendu Mohanty, its chief fintech officer, during a Bloomberg interview.
Mohanty continued saying that, Singapore is in the process of building an appropriate environment for fintech companies to realize their business opportunities, encouraging the companies to translate their creativity into profiting value.
Centa-City Leading Index (CCL) last tracked at 185.16, up 0.36% weekly to a 91-week high.
CCL Mass inched up 0.70% weekly to 187.55.
CCL (mid-and-small units) climbed 0.65% weekly to 185.40.
The research department of Centaline Property, mentioned the uptick in home price indices for four main regions of Hong Kong, which was first seen in 25 weeks.Regional Markets
ASX 200 dipped on the open but then worked better with Home loans better than expected but Investment lending for home missed. ASX 200 saw resistance at 7,300 (high was 7,300.5) and closed +35pts (+0.5%) @ 7,295.
Banks, CSL and Woolies leading the market higher. Iron ore +VE, Gold weak but miners under pressure. Tech weak. Sentiment +VE despite news that Public health officials have identified a “very concerning” new COVID-19 variant in some cases that have been identified in Melbourne that are not linked to the current outbreak
Pre market Household spending beat forecasts
Nikkei opened lower and dipped to 28,765 level which it tested a number of times in the first 30 minutes before bouncing and trading 28,800/886 before working better into lunch, 28,915.
PM opened higher and traded sideways to close -117pts (-0.4%) @ 28,942
Topix traded a similar pattern with a low of 1,946 and a high after lunch at 1,959 (yesterday’s closing level) and traded around that level, did see a sell down ahead of the close but rallied in the last minutes to close flat @ 1,959
Data pre market
Household Spending Apr +0.1% MoM vs +7.2% Mar (F/cast was -2.4%)
Household Spending Apr +13% YoY vs 6.2% Mar (F/cast was +9.5% )
KDCA reported 695 new covid cases (674 local inflections); third day in the 600’s but up from Thursday.
Govt to consider another extra budget without debt sale +VE for sentiment.
Kospi opened lower and sold down to 3,218 in the first 15 traded sideways for the next hour and re-tested the support but then worked better; Resistance at 3,245 eased back and traded sideways to close -7pts (-0.2%) @ 3,240
Kosdaq similar pattern, sold down to 985 in the opening 15 minutes, bounced but then trended lower to 983 at 10:40am before working better. Saw resistance at 990 mid afternoon and eased back to close -3pts (-0.3%) @ 988
Taiex opened lower and sold down to 17,150 in early trades. Then dipped to 17,100 but bounced back. Traded sideways around 17,150 before dipping to 17,085. Then traded sideways in the range 17,100/150. to close -99pts (-0.6%) @ 17,147
CECC reported 364 new covid cases with 219 back log cases and also announced that 1m vaccine doses would arrive from Japan today.
Tropical Storm Choi-Wan is likely to be downgraded to a tropical depression +VE as likely to bring rain and cooler temperatures
GDP Growth Rate Q1 +8.92% YoY vs 5.09% Q4 (F/cast was 8.16%)
Foreign Reserves May $542.978b vs 541.11b Apr (F/cast was 551b)
CONNECT FLOWS (significant increase DoD)
Northbound Rmb 50,622m Sell 24,484m vs 26,138m Buy
Southbound HK$ 19,963m Sell 9,922m vs 10,042m Buy
Northbound Rmb 54,051m Sell 26,319m vs 27,732m Buy
Southbound HK$ 20,812m Sell 11,010m vs 9,803m Buy
MEITUAN (03690.HK) -1.7%
TENCENT (00700.HK) -0.6%
CCB (00939.HK) +0.6%
PING AN (02318.HK) -0.5%
HKEX (00388.HK) +0.5%
AIA (01299.HK) +0.4%
BABA (09988.HK) -0.3%
HSI & HSCEI Constituents on Move:
HAIDILAO (06862.HK) -6.2%
GEELY AUTO (00175.HK) +6.2%
CHINA RES BEER (00291.HK) +4.2%
CG SERVICES (06098.HK) -4.1%
HANSOH PHARMA (03692.HK) -3.7%
BIDU-SW (09888.HK) -3.1%
HSMI & HSSI Constituents on Move:
CR MEDICAL (01515.HK) +9.7%, hitting new high
UNI MEDICAL (02666.HK) +5.2%, hitting new high
FIRST PACIFIC (00142.HK) +3.6%, hitting new high
MARKET HOURS NEWS.
Honda Motor's China new vehicle sales dropped 4.1% YoY to 128,700 units in May, marking the first YoY fall in ten months. The impact of production decline has been coming into view given global semiconductor scarcity.
CHINA UNICOM (00762.HK) will give full play to its resources edges, having received a Radio and TV Program Production and Business Operation License from National Radio and Television Administration. The telco aims to work with both upstream and downstream content sector chain players to create an open, collaborative, reciprocal and win-win video content ecosystem.
According to Chinese reports, CHINA UNICOM will team up with Pingyao People's Government for a 52-episode animated series on ancient China's armed escort agent
HANG LUNG PPT (00101.HK) announced the launch of initiatives worth over HK$10 million, targeting both employees and members of the public, in support of the Hong Kong Special Administrative Region Government’s COVID-19 vaccination drive. To further encourage vaccination among its colleagues, the Company announced that each eligible staff will receive HK$1,000 Hang Lung e-shopping coupons and extra two days of paid vaccination leave upon receiving two doses of the vaccine before the end of September 2021. Additionally, each of its fully vaccinated and eligible Hong Kong staff members will receive extra HK$3,000 e-shopping coupons if the vaccination rate among its Hong Kong staff reaches 70% by October 31, 2021. The offer of e-shopping coupons will apply for its eligible outsourced staff.
CHINA UNICOM (00762.HK) and Peng Cheng Laboratory reached a strategic partnership on 2 June, where both sides will establish a mechanism guiding consultation, communication and day-to-day. Equally, the parties will devote themselves to significant national scientific research projects centering on material scientific issues, as well as key and core technologies.
If Biden's U.S. administration continues to enforce economic sanctions specifically targeted to Russia, Russia may attempt to move away from USD-denominated oil contracts in a short-term, Russia's deputy prime minister Novak expressed during a CNBC interview. He continued to state that the Russian government prefers not to move away from USD-denomination as the dollar is an international currency used for settlements. They would, however, be left with no choice but to do so should the U.S. chooses to continue with its sanctions
The first batch of the second round of the “Spend-to-Redeem Free Tours” programme, launched on 1 June, has received an overwhelming response, with all quotas from the 136 itineraries taken within 4 days. The second batch of about 60 tours will be released in mid-June. Quotas for the tour are limited and are available on a first-come first-served basis.
Apple is currently developing new iPad Pro model with wireless charging function while redesigning iPad Mini, reported Bloomberg News, citing people familiar with the matter.
Sources continued to state that Apple hopes to launch the new iPad Mini, which features narrowed monitor edges and no home button, later this year while the new iPad Pro will possibly be released next year.
BMW is considering to issue RMB bonds among Chinese banks through its wholly-owned European subsidiary BMW Finance NV, reported Bloomberg News, citing sources. The issuer is reported to be considering issuing one-year commercial papers and mid-term notes of maximum period of 3 years.
The Huawei HI version of the ACRFOX Alpha S will become the first automobile model to have Huawei's Harmony OS as its automotive system, announced BAIC ACRFOX.
Huawei launched the HarmonyOS 2 operating system on 2 June, stressing its capability of combining with devices from other markers to be an ultra terminal, which benefits cross-platform data processing.
Cheng Wu, CHINA LIT (00772.HK) CEO, TENCENT (00700.HK) Vice President and Tencent Pictures CEO, announced a large-scale China Literature strategic upgrade based upon online literature to jointly establish an IP ecosystem chain. CHINA LIT has formed a "three-in-hand" system of film, television and production amid close-knit partnerships with Tencent Pictures and New Classics Media, revealed Wu.
Both the U.K. and Australia are endeavoring to overcome disagreement and reach a trading agreement before mid-June, following bilateral talks between British Trade Minister Liz Truss and her Australian counterpart Dan Tehan on Thursday (3rd), the British High Commissioner to Australia Vicki Treadell said.
Treadell mentioned that both parties are striving to have an agreement in principle during the bilateral meeting between the British prime minister Boris Johnson and his Australian counterpart Morrison on 15 June.
Twitter (TWTR.US) has launched the first subscription service, Twitter Blue, to Canadian and Australian users respectively for CAD3.49 and AUD4.49 per month. Twitter Blue allows users to preview tweets before publishing, alongside a reader mode that makes reading long threads much easier.
39 Chinese game publishers entered the top-100 global mobile game publisher list in May, garnering almost US$2.39 billion of revenue and making up 40.3% of the top-100 firms' total grossing, according to Sensor Tower's report. By revenue, TENCENT (00700.HK) took top spot among Chinese game publishers during the period, followed by NTES-S (09999.HK)
MTR CORPORATION (00066.HK) tends also to consider the matter of convenience, in addition to the distance of the train ride, when they are deciding the train fares, which may induce a disproportion in which a longer ride might result in cheaper fare, said Jacob Kam, the CEO of the company, in the legislative council. Kam continues to state that there is also certain historical factors involved in setting the train fares and that the company will address the issues with fare adjustment in the future. Also, Kam added that as a celebration for Tuen Ma Line's commencement on 27 June, there will be a giveaway of 100,000 single-ride tickets.
An inhalation vaccine with adenovirus vector jointly developed by CANSINOBIO-B (06185.HK) and members of the CAE is currently applying for emergency use authorization, reported Chinese media. Xuefeng Yu, CANSINOBIO-B's CEO, has said during another occasion, that the inhalation vaccine, which is same vaccine as its injected counterpart but with a different method of administration, has already begun its phase 2 clinical trials.
Pershing Square Tontine Holdings, an SPAC under superstar investor William Ackman, is nearing a deal to buy a 10% stake in Universal Music Group that would value the latter at US$40 billion, WSJ citing sources. Universal is the record label behind Lady Gaga, Taylor Swift, Billie Eilish, the Weeknd and other artists, held as to around 20% by TENCENT (00700.HK). Vivendi's plan to spin off its arm Universal for listing in the Netherlands later this year, with a 60% stake distributed to Vivendi's investors, is still in place.
China Foreign Exchange Trade System announced today (4 June) that the central parity of USD/ RMB sagged 261 bps from the last trading day to 6.4072.
PRE MARKET HOURS NEWS
MEITUAN-W (03690.HK)'s CEO Wang Xing signed a share conversion proposal to convert 57.319 million class A shares into class B shares and to transfer that portion of class B shares into the Wang Xing Fund, according to information disclosed by HKEX. Said charity fund, based on MEITUAN-W's closing price of $311.8 on 2 June, has a market value of approximately $17.9 billion and is reported to be utilized specifically for promoting education and scientific researches.
ANGELALIGN (06699.HK), on IPO debut yesterday, reported almost $198.5 billion of margin subscription according to media reports. Based on the public fundraising amount of $291 million, the IPO was over-subscribed by more than 681 times.
SING TAO (01105.HK) announced that the former controlling shareholder HO Tsu Kwok, Charles entered into a supplemental agreement with the Purchaser KWOK Hiu Ting, pursuant to which the parties agreed to adjust the number of the Sale Shares from 246 million to 250 million and the total consideration from HK$369 million to HK$375 million, with the price remaining at HK$1.5 per share. The disposal took place on 3 June. Equally, Ho has resigned as an executive Director, the chairman of the Board and in his respective position in the board committee of the Company.
EVERGRANDE (03333.HK) will continue to lessen its the liabilities and expects the liability with interest, which reached its peak of RMB874.3 billion last year, to drop below RMB600 billion before the end of this month, said Xu Jiayin, chairman of the company during a strategic partner meeting.
China's State Administration for Market Regulation (SAMR) had convened an administrative guidance meeting on sharing-economy yesterday, having called Hellobike, DiDi Bike, MEITUAN-W (03690.HK) and five other operating entities on the carpet. Accordingly, "sharing consumption" players were asked to build up their compliance awareness and standardize pricing and competitive behavior.
Tesla (TSLA.US)’s China electric vehicle orders nearly halved monthly in May, coming in at roughly 9,800 units, reported The Information. Shares of Tesla stumbled more than 5% overnight.
BAUHAUS INT'L (00483.HK) announced that the Company entered into the provisional agreement with independent third party Wealthy Linker Trading in respect of the sale and leaseback of the warehouse property in Wofoo Building, Texaco Road, Tsuen Wan, New Territories at a consideration of HK$48 million. The net proceeds arising from the Disposal is expected to be used for the payment of a special dividend of approximately about HK$46 million.
CHINA VANKE (02202.HK) announced that for the month ended 31 May 2021, the Company achieved a contract sales amount of RMB57.56 billion, down 6.1% YoY.