HSI -582pts (-2%) 28,014 HSCEI -220pts (-2.1%) 10,532 T/O HK$188.74bn (+15.4% DoD)
Markets opened lower and sold down for the first hour before seeing support. All sectors weak with Travel & Leisure leading the declines.German wholesale prices came in higher than expected adding the inflation concerns and the ZEW data was slightly better than expected but largely ignored with inflation being the focus.
Queen Elizabeth will present Prime Minister Boris Johnson's post-pandemic agenda and a couple of new law drafts in her speech to parliament today.
Earnings from Ubisoft -2.6% and Thyssenkrupp -6% before the bell.
Hugo Boss holds its AGM Tuesday.
THG +12.5% after it announced a substantial equity investment led by Japanese giant Softbank.
Evolution Gaming -9.5% after announcing the pricing of block trades.
ZEW Economic Sentiment Index May 84 vs 66.3 Apr (F/cast was 65)
Wholesale Prices Apr +1.1% YoY vs +1.7% Mar (F/cast was +0.8%)
Wholesale Prices Apr +7.2% MoM vs +4.4% Mar (F/cast was +6.8%)
ZEW Economic Sentiment Index May 84.4 vs 70.7 Apr (F/cast was 69)
ZEW Current Conditions May -40.1 vs -48.8 Apr (F/cast was -42)
Opened in Asian time Dow flat, S&P -0.1%, NDX -0.25% but eased now the Dow -150pts, S&P -0.7% and NDX -1.3%. With Tech shares weak pre market
AHEAD Redbook, JOLT’s Job Openings, API Crude Oil Stock Change. But the focus will be inflation data on Wednesday
Earnings: Electronic Arts, Chesapeake Energy, Hanesbrands, Aramark, International Game Technology, Palantir Technologies, Perrigo, Unity Software, Opendoor Technologies, Kinross Gold, Lemonade, Vizio
CHINA CSI 300 closed +30pts (+0.6%) 5,023
CSI300 opened lower as inflation came in slightly weaker that forecast and PPI slightly stronger. China also released its census data showing the slowest growth in 10yrs.
Market dipped to 4,926 before revising and trending higher into lunch. PM the market rallied into the green to 5,033 but then eased back to 5,010 level before a small push higher into the close. Definitely looked like support from Team China.
Consumer staples giving support after the early sell off in commodities.
Shanghai Composite +14pts (+0.4%) @ 3,442
Shenzhen Composite +49pts (+0.4%) @ 13,967
ChiNext Index +7pts (+0.3%) @ 2,954
Inflation Rate Apr +0.9% YoY vs +0.4% Mar (F/cast was +1.1%)
Inflation Rate Apr -0.3% MoM vs -0.5% Mar (F/cast ws -0.1%)
PPI Apr +6.8% YoY vs +4.4% March (F/cast was +6.5%)
Could get Vehicle Sales, New Yuan Loans, Outstanding Loan Growth, Total Social Financing, M2 Money Supply and time now.
Pre market opened @ 28,287 -309pts vs -127pts ADR’s.
But sold down to 28,000 in the opening minutes and then found support 27,900 level and traded sideways into lunch. PM traded higher initially to 28,150 level and then tested to 28,290 but unable to move higher and trended lower through the afternoon with support at 27,970 tested a couple of times in the last hour. Small bounce into the close.
Expect margin call selling on the open tomorrow
HONG KONG DATA
The Centre for Health Protection (CHP) reported 1 new covid cases (vs 4 Monday)
Short Selling Tuesday 13.9% vs 12.5% Monday
Top Shorts CK Assets (1113) 54%, Country Garden (2007) 40%, Wharf REIC (1997) 39%, HSBC (5) 39%, Hang Seng Bank (11) 38%, NWD (17) 35%, SinoBioPharm (1177) 33%, CLP (2) 33%, Henderson Land (12) 33%, AIA (1299) 34%, Ali Health (241) 32%, Bank Of China (3988) 30%, Hengan (1044) 30%, BoC HK (2388) 29%, MTRC (66) 28%,Shenzhou Int (2313) 28%, Citic (267) 28%, Galaxy Ent (27) 28%, China Res Land (1109) 27%, Xiaomi (1810) 25%, CKH (1) 25%
Most of yesterday’s names in the list. Considering the market trading many will be around the day lows.
AFTER MARKET NEWS
CHINA RES LAND (01109.HK) announced that for the month ended April, the Group achieved gross contracted sales of approximately RMB33.2 billion with contracted GFA of approximately 2.0624 million square meters, up by 75.7% and 85.1% YoY respectively.
SUNNY OPTICAL (02382.HK) announced the operating data for April 2021. As for optical components, the shipment volume of handset lens sets +11.3% YoY to 123 million units, which was due to the increased market share. The shipment volume of vehicle lens sets +191.8% YoY to 6.123 million units, which was due to the increased market share, and the delay in shipment caused by the overseas pandemic in the same period of last year.
China Passenger Car Association announced that Tesla had sold 25,800 China-made electric vehicles, -27% MoM last month. News earlier reported that Tesla was halting its Shanghai expansion plans
The Census and Statistics Department released the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for April.The current diffusion index (DI) on business receipts amongst SMEs went up from 44 in March in the contractionary zone to 47.1 in April, whereas the May outlook DI on business receipts was 48.9.
A government spokesman said that business sentiment among SMEs improved to a two-year high in April, though remained cautious in overall terms. If the global economic recovery sustains and the local epidemic situation remains well-contained, business sentiment can hopefully see further improvement down the road.
CPIC (02601.HK) announced that the accumulated primary insurance premiums of China Pacific Life Insurance and China Pacific Property Insurance for the period between 1 January and 30 April 2021 respectively amounted to RMB107.325 billion and RMB55.741 billion, up 4.5% and 9.8% yearly.
KPMG China today unveiled the China Economic Monitor for the second quarter of 2021, which indicated the good start of domestic economy in the first quarter. The country maintained her solid revival trends as well. KPMG China's Chief Economist Kang Yong expected China's economic recovery to last into the second quarter as inoculation moved ahead and the pandemic came under control, with stronger economic growth contribution from consumption.
HENDERSON LAND (00012.HK) today uploaded sales brochures for "The Upper South”. The southern Hong Kong Island residential project may be open for sales as soon as May, with a show flat available to the public soon.
*COMMODITIES/BASE METALS WEAK on inflation worries; Iron ore futures surged more than 10% Monday and copper extended its record run amid bets they'll be among the biggest winners from the current commodities boom. Gold climbed to a three-month high after weaker-than-expected U.S. job figures. ANGANG (347 HK -9.8%) CHALCO (2600 HK -5.4%) ZIJIN (2899 HK -7.7%) CH RARE EARTH (769 HK -8.4%) JIANGXI COPPER (358 HK -7.7%).
*E-COMMERCE WEAK rising interest rates and regulatory issuesMEITUAN (3690 HK -5.3%) but off its lows, a second down day, after the Shanghai Consumers Council criticized MEITUAN for issues that hurt consumers’ rights in refunding and mobile app content misleading consumers. In a meeting with Meituan Monday, the non-government organization required Meituan to submit rectification reports to the council in the near term. ALIBABA's (9988 HK -3.5%) Ant Group became one of the first major privately run businesses to work with China's digital currency trials. TENCENT (700 HK -1.7%) KUAISHOU (1024 HK -5.3%) JD.COM (9618 HK -5.2%) BILIBILI (9626 HK -7.4%).
*TECH & COMPONENTS WEAK after Nasdaq and Phil Semiconductor Index both fell Monday night. SMIC (981 HK -4.4%) ASM (522 HK -2.9%).
XIAOMI (1810 HK -2.4%) rumour it was cutting its smartphone shipment target as smartphone's supply and sales will be hard-hit by the severe Covid-19 situation in India, although Xiaomi denied the report and that its original target remains in place.
SIM TECH (2000 HK -2.5%) April core business rev +97.2% YoY or -13.9% MoM to HK$55.2m.
*HK PROPERTY WEAK on rising interest rate concerns. HENDERSON LD (12 HK -1.9%) uploaded the sales brochure for its latest development the ‘Upper South’ that could go on sale this month. NWD (17 HK -2.6%) SHKP (16 HK -1.6%).
*CH PROPERTY WEAK interest rates rise worries and the the implications of the slowing population growth in China.
SHIMAO (813 HK -2.5%) April contracted sales +19% YoY to 25.22b yuan. LONGAN (3380 HK -0.7%) April contracted sales +12% YoY to 11b yuan.
*AUTOMAKERS WEAK after GEELY (175 HK -6.3%) April vehicle sales -5% YoY to 100,331 units.
GREAT WALL (2333 HK -5%) April vehicle sales +14% YoY to 91,784 units.
*HK RETAILERS WEAK after SA SA INT'L (178 HK -2.2%) warned that its full-year loss is expected to be between HK$350m and HK$420m as of end-March. CHOW TAI FOOK (1929 HK -1.6%) LUK FOOK (590 HK -1.7%) LIFESTYLE (1212 HK -2.3%).
ASX200 sold down through the morning hitting support at 7,078 around 12.30pm and then trading slightly higher in the afternoon; to close -76pts (-1%)@ 7,097
Tomorrow we get New Home Sales and Building Permits
Nikkei opened lower despite the good Household Spending number which was ignored and it trended lower though the day finding support at 28,535 around 2pm and then traded sideways to close -910pts (-3.1%) @ 28,609
Topix traded in a similar pattern with support at 1,902 and closed -46pts (-2.4%) @1,906DataHousehold Spending Mar +7.2% YoY vs -6.6% Feb (F/cast was +1%)
Kospi opened lower and sold down to 3,192 in the first hours and then worked slightly better for the rest of the day. Closed -40pts (-1.2%) @ 3,209
Kosdaq sold down in the first hour to 976 and then traded sideways, dipped lower around 2pm but then bounced to close -15pts (-1.4%) @ 979
Opened lower the trended lower to 16,460 before a small bounce into the close -653pts (-3.8%) @ 16,583
Northbound Rmb 48,143m Sell 25,537m vs 22,606m Buy
Southbound HK$ 20,376m Sell 9,274m vs 11,103m Buy
Northbound Rmb 51,494m Sell 26,672m vs 24,822m Buy
Southbound HK$ 25,588m Sell 11,242m vs 14,346m Buy
MEITUAN (03690.HK) -5.3%
BABA (09988.HK) -3.5%
AIA (01299.HK) -3.1%
HKEX (00388.HK) -2.6%
TENCENT (00700.HK) -1.8%
CCB (00939.HK) -1.4%
PING AN (02318.HK) -0.2%
HSI & HSCEI Constituents on Move:
GEELY AUTO (00175.HK) -6.4%
HANSOH PHARMA (03692.HK) -5.9%
KUAISHOU-W (01024.HK) -5.3%
JD (09618.HK) -5.2%
NTES (09999.HK) -5%
CG SERVICES (06098.HK) -5%
JD HEALTH (06618.HK) -4.5%
SMIC (00981.HK) -4.4%
HANG LUNG PPT (00101.HK) -3.8%
CNOOC (00883.HK) -3.5%
BIDU-SW (09888.HK) -3.5%
HAIDILAO (06862.HK) +3.3%
CHINA FEIHE (06186.HK) +3.2%
HSMI & HSSI Constituents on Move:
WISDOM EDU INTL (06068.HK) -18.2%
TIANLI EDU (01773.HK) -17.1%
KOOLEARN (01797.HK) +10%
TOWNGAS CHINA (01083.HK) +3.9%, hitting new high
MARKET HOURS NEWS.
SF REIT (02191.HK) decided to fix its offer price at $4.98 each, above the median ($4.92) of the price range $4.68-$5.16, IFR citing insiders. The company aims to raise approximately $2.589 billion. SF REIT is expected to go public next Monday (17th).Entry fee will be about $5,211.99 with a board lot size of 1,000 units.
Tesla (TSLA.US) has put brakes on its plan to buy land to expand its Shanghai EV plant and to make it a global export hub amid overhangs from U.S.-China tension, people familiar with the matter were quoted as saying by Reuters.
The Buildings Department approved 22 building plans in March 2021, with 10 on Hong Kong Island, four in Kowloon and eight in the New Territories. Of the approved plans, 12 were for apartment and apartment/commercial developments, three were for commercial developments, two were for factory and industrial developments, and five were for community services developments.
Two smaller Chinese liquefied natural gas importers have been verbally instructed by Beijing to avoid buying new cargoes from Australia through the end of 2022, Bloomberg citing people with knowledge of the order.
MEITUAN-W (03690.HK) has recently revised its delivery rules by dividing service fulfillment fees into three metrics, namely distance, price and timeslot, reported Chinese media. Accordingly, such fees will be calculated based on distance and food prices in a way similar to the taximeter. The new rule has been rolled out in all cities with direct Meituan Waimai operations from 1 May.
BABA-SW (09988.HK) Chairman and CEO Zhang Yong revealed that 52% of the group's headcounts belong to the post-90s generation. This year, BABA-SW will continue to scale up its campus recruitment program and provide young people with more innovation opportunities, he added.
PCCW (00008.HK) announced that ViuTV and Now TV welcomed Hong Kong Government’s acquisition of the broadcast rights to the Tokyo Olympics. The two TV channels look forward to bringing this prestigious sporting event to Hong Kong viewers. Members of the public would be able to enjoy this world-class event at home or on-the-go via ViuTV, Now TV, Now E and affiliated platforms. They will announce more details on the broadcasting arrangements in due course.
TVB (00511.HK) noted that the Government has successfully acquired the television broadcasting rights to Tokyo 2020 Olympic Games. TVB and local TV stations will broadcast the events live. Hong Kong citizens will be able to witness the achievements of Hong Kong athletes at the Olympics via local TV channels and cheer for them.
After AGM, WHARF HOLDINGS (00004.HK) Chairman and Managing Director Stephen Ng foresaw Hong Kong's property market to keep developing healthily should interest rates stay low, coupled with economic revival and stable pandemic situations. Ng said the group may consider ramping up investment in the city given gradual fund influx under project sales in Mainland China.
Foxconn's production of the Apple (AAPL.O) iPhone 12 at an Indian plant has shrunk by more than 50% due to rampant COVID-19 outspread, inside sources were quoted as saying by Reuters.
NISSIN FOODS (01475.HK) announced first quarter results ended March 2021. Net profit amounted to HK$93.195 million, down 5.8% yearly. EPS equaled HK8.7 cents. No dividend was declared. It announced that it would invest approximately HK$194 million in consolidation of production facilities and investment in installation of new smart production lines in production plants located at Tai Po Industrial Estate. The Company regularly reviews its asset utilization and efficiency of its production facilities.
LONGFOR GROUP (00960.HK) announced that as at the end of April 2021, the Group achieved aggregated contracted sales of RMB82.33 billion, up 36.7% yearly.
At the result conference, SUNART RETAIL (06808.HK) CEO Lin Xiaohai predicted a high single-digit growth in community group-buying unit this year despite challenges, given partnership with BABA-SW (09988.HK) in forging their thorough business development. Lin noted increased financing for fresh produce e-commerce merchants and community group-buying firms following the pandemic. However, spending money like water does no contribute to long-lasting development in the retailing sector. Hence, SUNART RETAIL will not join the price war in pursuit of business increment.
TENCENT (00700.HK)'s "Honor of Kings" and "PUBG Mobile" were top two grossing mobile games worldwide in April 2021, whose player spending respectively reached US$259 million and US$238 million, Sensor Tower wrote in a report.
Wynn Resorts Limited (WYNN.US) owner of WYNN MACAU (01128.HK), reported loss of US$281 million for the first quarter of 2021, down 30.1% YoY. The diluted LPS equaled US$2.41 post-adjustment, missing a US$2 LPS in consensus. The company plans to spin off its online gaming unit, Wynn Interactive, and merge it with Austerlitz Acquisition Corp I, an SPAC under billionaire Bill Foley.
China should fulfill her commitment to equal treatment on foreign enterprises and pull a plug on "implicit" guidance to replace foreign goods with domestic alternatives, said the American Chamber of Commerce in China.
Chief Executive Carrie Lam mentioned the largely orderly situations since anti-plague steps have been relaxed from 29 April. Therefore, the measures expiring on Thursday will be extended by two weeks as usual. Half-day face-to-face classes may be resumed in all schools on 24 May, following the end of HKDSE exams, she expected.
At a news conference held today, Chinese State Council Information Office announced that the population surmounted 1.41 billion, up 72.06 million from 2010's level. The findings illustrated that China has retained slow growth in population over the last decade. It disclosed that male and female population respectively amounted to 723 million and 688 million, meaning that the number of men exceeded females' by 34.90 million.
Chief Executive Carrie Lam told CCTV that it is the top priority of her administration team to perfect Hong Kong's electoral system. While the schedule is packed tight, she foresaw the first mission to vet and clear relevant amended bills at the Legislative Council can be achieved on 26 May. With 150,000 local residents returning to their home city under "Return2HK" so far, Lam disclosed that "Come2hk" will hopefully be launched this month to facilitate Mainlanders' trip to the financial hub.
The COVID-19 vaccine developed by Sinopharm has been authorized for emergency use by World Health Organization. In an interview, Sinopharm Chairman Yang Xiaoming said the drugmaker will ramp up its annual vaccine output capacity to 3 billion doses in the third stage, providing a billion of Chinese people with shield immunity by end-2021 or early 2022.
PRE MARKET HOURS NEWS
China Foreign Exchange Trade System announced today (11 May) that the central parity of USD/ RMB gained 171 bps from the last trading day to 6.4254, logging an almost-three-year high.
Malaysia announced nationwide lockdown effective tomorrow through 7 June, after reporting over 3,000 daily infections for five straight days. WHO Director General Tedros Adhanom Ghebreyesus stated India's COVID variant, more transmissible than the original virus, will render vaccines less protective.
WYNN MACAU (01128.HK) announced the results prepared in accordance with IFRS for the first quarter ended 31 March 2021. Operating loss narrowed yearly to US$72.993 million; net loss was US$161 million, up from a year ago's US$154 million.
The Archegos Capital meltdown can be deemed a valuable opportunity to "test the effectiveness of post-crisis reforms", IOSCO Chairman cum SFC CEO Ashley Alder told foreign reporters, who will instruct the "secretariat initially to do some work in this area" and pick this incident "up at the international level".
BABA-SW (09988.HK) Fonder Jack Ma made reappearance at the Group's headquarters in Hangzhou for celebrating Ali Day on 10 May, according to Chinese media. At the occasion, Ma delivered a speech with great spirit, a rare public show-up since Ant's listing was called off by Chinese watchdogs, the report said.
Beijing Shougang (000959.SZ) reported sufficient contracts for electrical steels, automotive steel sheets and containers in May, with a higher delivery rate. The steel market's supply-demand fundamentals are now at a tight balance. Beijing Shougang found it likely for domestic steel market prices to keep being highly volatile in near term.
Vanguard and Ant Group are in talks to boost capital further into their JV company from RMB50 million to RMB150 million, Bloomberg citing insiders. Ant had rolled out a fund advisory service on Alipay with Vanguard last year.
To put into practice the “2021 Scheme for Employment Security, Economic Stabilization and Care for Residents’ Livelihood”, the Macao Special Administrative Region Government is launching measures to reduce/ exempt a range of taxes and extend the coverage of tourism tax exemption, which is expected to benefit over 370 tourism service establishments and involve about MOP379 million in the budget, according to an announcement made by Tourism Office. According to the provisions of the articles on tourism tax exemption in the Budget Proposal for the Fiscal Year 2021, as amended by Law No. 3/2021, the establishments concerned will be exempt from the tourism tax levied at 5% on their services provided, effective from 11 May 2021 until 31 December 2021.
China's State Administration for Market Regulation has recently released a notice on stepping up anti-unfair competition law enforcement and promoting high-quality development. Accordingly, market regulators of all grades shall fully enforce the law and implement the inspection requirements made by the National People's Congress. Equally, the watchdog has to focus on cementing and improving anti-unfair competition actions.
SUNART RETAIL (06808.HK) announced the results for the fifteen months ended 31 March 2021. Net profit reached RMB3.572 billion. EPS equaled 37 fen. A final dividend of HK13 cents was declared.
GREATWALL MOTOR (02333.HK) announced that the total auto production and sales volume for the month of April reached 89,843 units and 91,784 units, respectively up 10.28% and 13.55% from the previous year.
SEAZEN (01030.HK) announced that in April, the Company, together with its subsidiaries, achieved contracted sales of RMB20.771 billion, up 15% YoY. Contracted sales area reached 1.7456 million sq.m., up 6.2% YoY.