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HSI +309pts (+1.1%) 28,027 HSCEI +65pts (+0.6%) 10,405 T/O HK$150.87bn (-6.2% DoD) but flat if you exclude the placement in Evergreen EV (HK$10.6bn) yesterday
Markets opened higher DAX & CAC saw some initial selling then worked higher. FTSE opened flat and traded sideways. Sentiment +VE after the strong rebound in Asia. UK Govt said it was worried about the new Indian covid variant.
Unicredit slight -VE as Blackrock votes against CEO’s renumberation package.
Atlantia reported after mkt Q1 net loss on Thursday and confirmed that it would make a decision on the sale of a majority stake in its motorway unit by June 11.
Man Group +VE after Credit Suisse raised its price target.
Commerzbank led a broad rally for banks, after price target raises from Independent Research and Morgan Stanley.
Earnings due from CureVac and British software firm Sage.
Opened in Asia: Dow flat, S&P +0.04% and NDX -0.06% but have rallied and now Dow +159pts S&P +0.6% and NDX +1%
Pre market Tech strong (DoorDash higher after strong earnings and Fisker +14.5% on signing a deal with Foxconn) and re-opening names generally but Disney -VE on weak earnings
Data due Retail Sales, Industrial Production, Manufacturing Production, Capacity Utilisation, Business Inventories, Michigan Data (Sentiment, Inflation Expectations, Consumer Expectations 5 year Inflation Expectation and Current Conditions) Baker Hughes Rig Count.
Earnings: Honda, Rosneft
Reported that the Irish Health System was subject to a ransomeware attack along with Toshiba’s French unit. Comes after it was revealed that Colonial Pipeline paid hackers US$5m in crypto ransome payment. For which they got a decrypting tool but it was so slow the company also used its own backups to restore the system.
CHINA CSI 300 closed +118pts (+2.4%) 5,110
CSI 300 opened slightly higher and tested Thursdays closing level in early trades before working higher to test 5,100 ahead of lunch. PM worked slowly higher in choppy trading to close around the day high
Leaders were healthcare on vaccine speculations and financial stocks as a recovery play.
Laggards were materials and energy stocks after the govt called for measures to deal with “overly fast” commodity price rises.
Shanghai Composite +61pts (+1.8%) @ 3,490
Shenzhen Composite +291pts (+2.1%) @ 14,209
ChiNext Index +75pts (+2.5%) @ 3,059
No data butMonday we get China House Prices, Retail Sales, Industrial Production, Unemployment and Fixed Asset Investment data.
Pre market opened @ 27,873 +154pts vs +130pts ADR’s T/O back to a normal HK$3.17b
Initial traded down to test Thursdays close but then worked better through the morning in choppy trading to test 28,000 going into lunch. PM opened lower and trading sideways around 27,975 level; until 2.30 pm when it worked higher to test and break through 28k to 28,064; then trended slightly lower into the close but ticked up in the closing auction. T/O remains relatively light with concerns over Sino/US relations as U.S. Trade Rep Katherine Tai said the U.S. needs new trade law tools to head off anti-competitive threats from China against key American high-tech industries. Value names seeing good interest as investors rotate.
HONG KONG DATA
GDP Growth Rate Q1 +5.4% QoQ vs +0.5% Q4 revised (F/cast was +5.3%)
GDP Growth Rate Q1 +7.9% YoY vs -2.8% Q4 revised (F/cast was +7.8%)
The Centre for Health Protection (CHP) reported 1 new covid cases (vs 1 Thursday)
Short Selling Friday 16.9% vs 12.2% Thursday
Top Shorts Country Garden (2007) 41%, CK Assets (1113) 40%, CLP (2) 38%, Henderson Land (12) 37%, MTRC (66) 35%, BoC HK (2388) 34%, Hengan (1044) 32%, Wharf REIC (1997) 32%, Bank Of China (3988) 32%, AIA (1299) 31%, Hang Seng Bank (11) 28%, Bud Apac(1876) 28%, Baba (9988) 27%, China Overseas Land (688) 27%, Shenzhou Int (2313) 27%
AFTER MARKET NEWS
SF REIT (02191.HK) closed at $4.94 in gray market, down 4 cents or 0.8% against the listing price of $4.98, on volume of 1.62 million units and turnover of $8 million, PhillipMart data showed.
Hong Kong's economy has seen green shoot but the resumption is not balanced, opined the Government Economic Advisor Andrew Au.
Au anticipated that the local demand of the second quarter will further improve as the business and consumption sentiment in April and May have turned vibrant, while the full revival still takes time.
AAC TECH (02018.HK) CFO Guo Dan said the optical GPM registered evident increment, but the overall GPM rise still needs time. The company aspired to diversified strategy in future.
NEXT DIGITAL (00282.HK) announced that Chang Yue Shing has tendered his resignation as an executive director of the Company in order to pursue his personal interest. The management of the Group has determined to cease publication in print form of the Group’s newspaper in Taiwan, namely Taiwan Apple Daily, with effect from 18 May 2021. This Strategic Plan will enable the Group’s management in Taiwan to increase focus on the strong market for digital media in Taiwan. The Group will be making certain redundancies in respect of its operations in Taiwan.
The Hong Kong Monetary Authority announced that at the end of April 2021. Foreign assets, representing the external assets of the Exchange Fund, decreased during the month by HK$8 billion to HK$4.0085 trillion. The Monetary Base, comprising Certificates of Indebtedness, Government issued currency notes and coins in circulation, the balance of the banking system and Exchange Fund Bills and Notes issued, amounted to HK$2.1117 trillion. Claims on the private sector in Hong Kong amounted to HK$246.7 billion.
Centa-City Leading Index (CCL) last tracked at 183.68, up 0.23% weekly to a new high since September 2019.
CCL Mass grew 0.57% weekly to 186.95;
CCL (mid-and-small units) added 0.48% weekly to 184.40;
CCL (large units) slipped 1.14% weekly to 179.85.
*COMMODITIES WEAK OIL fell over 3% overnight as inflation concerns picked up raising worries of commodity pullback. CNOOC (883 HK -0.7%) PETROCHINA (857 HK -1%).
BASE MATERIALS WEAK as Iron ore led industrial metals weak as Beijing looks to ratcheted up pressure to control rapid gains in raw material costs Plus and a weak USDA report; ANGANG (347 HK -2.7%) JIANGXI COPPER (358 HK -4.7%) YZ COAL (1171 HK -2.1%).
*E-COMMERCE/INTERNET MIXED under pressure
ALIBABA (9988 HK -3.8%) after Q4 earnings showed as a massive antitrust fine it received last month weighed on its earnings, putting it into a loss while revenue beat expectations. Ant #’s were good but are unlikely to be repeated.
BILIBILI (9626 HK -6.3%) reported 1Q net loss of 904.9m yuan vs profit of 538.6m yuan in the same period of 2020.
TENCENT (700 HK +1.2%) KUAISHOU (1024 HK +0.8%) MEITUAN (3690 HK -3%) BAIDU (9888 HK -1.6%).
*TECH & COMPONENTS MIXED Chip makers weak on uncertain outlook and ongoing worries on possibly more U.S. restrictions.
HUA HONG SEMI (1347 HK -9%) 1Q net income beat estimates, reported net income +63% YoY to US$33.1m, rev US$304.8m,+50% YoY.
SMIC (981 HK -0.4%) reported net income for the first quarter of $158.9m vs. $64.2m, +148% YoY, revenue +22% YoY to $1.10b.
APPLE suppliers strong, AAC (2018 HK +4.1%) SUNNY OPT (2382 HK +2.2%) TONGDA (698 HK +3.8%).
*INSURERS STRONG as AIA (1299 HK +6.3%) posted a stronger-than-expected 25% increase in new business value last quarter pre market. The measure of future profitability of new policies increased to $1.05b, from $841m a year earlier, beating the 16% median growth estimate. New business in all of its markets except Hong Kong returned to pre-pandemic levels, as movement restrictions eased, CEO said.
CH LIFE (2628 HK +3.1%) reported insurance premium in the first 4 months +4.6% YoY to 353b yuan.
*PHARMA/MEDICAL STRONG. Vaccine names jumped amid China's mRNA vaccine development; FOSUN (2196 HK +2.8%) CANSINO (6185 HK +5.7%) SINOPHARM (1099 HK +2.8%). CSPC (1093 HK +10%) following latest research and development progress on its drug products.
TONG REN TANG (3613 HK +3%) as China seeks to boost exports of Chinese medicine and services.
ASX200 market opened higher above 7,000 with strength in Banks, Fortescue Metals, Macquarie Group, and Woolworths. It then traded sideways around 7,040 for most of the day but slipped lower at the end to close +32pts (+0.5%) @ 7,014
Treasury Wine +VE on news it will pivot to the US market from China
High covid cases still a concern
Nikkei opened higher at 27,724 and worked slight better through the morning in choppy trading. PM opened higher and worked higher to close just off the highs +637pts (+2.3%) @ 28,085
Topix traded in a similar pattern and closed +34pts (+1.9%) @ 1,883
Monday we get PPI and Machine Tool Orders.
KDCA announced 747 new covid cases above 700 for a second day
Kospi opened higher at 3,131 and traded around 3,140 until midday before working higher with resistance first at 3,150 and then 3,160 which it tested several time in the last 40 minutes before easing back to close +31pts (+1%) @ 3,153
Kosdaq opened higher and after some volatility in the first hour worked slowly better to close at the day high +15pts (+1.6%) @ 967
Data pre market
Export Prices Apr +10.6% YoY vs +5.9% Mar revised
Import Prices Apr +15% YoY vs +9% Mar
Taiex opened higher at 15,819 and quickly rallied to 16,076 in the first 20 minutes but then trend lower to 15,730 around 12.40pm before working better to close +157pts (+1%) @ 15,827
Govt reported 29 new covid cases, concerns over cases making investors cautious. TSMC rebounded as expected along with other tech names. Plastics +VE but China Steel -3.7%
TSMC annoucned after market it is weighing plans to pump another tens of billions of USD into its chip factories in the U.S. state of Arizona, although prospects for an advanced European plant remain in the air, people familiar with the matter told Reuters.
Northbound Rmb 46,159m Sell 20,295m vs 25,864m Buy
Southbound HK$ 15,850m Sell 6,949m vs 8,902m Buy
Northbound Rmb 51,482m Sell 24,009m vs 27,473m Buy
Southbound HK$ 16,702m Sell 6,980m vs 9,722m Buy
AIA (01299.HK) +6.3%
BABA (09988.HK) -4%
MEITUAN (03690.HK) -3%
PING AN (02318.HK) +2.5%
TENCENT (00700.HK) +0.5%
HKEX (00388.HK) +0.5%
HSI & HSCEI Constituents on Move:
CSPC PHARMA (01093.HK) +10.4%
CHINA FEIHE (06186.HK) +4.5%
AAC TECH (02018.HK) +4.3%
CM BANK (03968.HK) +4.3%
CPIC (02601.HK) +3.9%
JD HEALTH (06618.HK) -3.9%
HANSOH PHARMA (03692.HK) +3.8%
SINO BIOPHARM (01177.HK) +3.5%
ENN ENERGY (02688.HK) +3.2%
CHINA LIFE (02628.HK) +3.1%
JD (09618.HK) -3%
HSMI & HSSI Constituents on Move:
GENSCRIPT BIO (01548.HK) +21.7%, hitting new high
SCHOLAR EDU (01769.HK) -10.1%
TOWNGAS CHINA (01083.HK) +9.6%, hitting new high
MARKET HOURS NEWS.
Xiaomi Technology has recently applied for the registration of numerous trademarks "MI CARE" and "CARE MI", as revealed by Tianyancha App. The international categories are financial property management, advertising sales and scientific instruments. The condition is "under application".
According to a joint report made by Climate Bonds Initiative and HSBC on Hong Kong's green bond market 2020, the green bond offered by Hong Kong issuers last year totaled US$2.09 billion, down 18% from 2019. As of end-20, the size of green bonds aggregated over US$38 billion.
HENDERSON LAND (00012.HK) sold 133 flats of Arbour, a residential project in Tsim Sha Tsui, cashing in over $1.3 billion, said Mark Hahn, General Manager of Sales (2) Department of Henderson, at a press conference.
DarkSide, the hacker group behind the cyberattack on U.S. Colonial Pipeline, claimed to have also attacked Toshiba's subsidiary in France and stolen confidential data therefrom, NHK News reported. Toshiba is looking into the incident.
Chinese Ministry of Transport, Cyberspace Administration of China and such other authorities have recently met with ten transportation platforms, including Didi Chuxing and Meituan Ride-hailing. The said platforms were told to take their problems seriously and to shoulder corporate responsibility.
The Centaline Greater Bay Area Index gained 0.41% monthly to 126.02 in April, logging new highs for four months. GBA cities were dampened by property control measures, leading to narrower price hike in April and slimmest increment of the index in April in five months, Centaline said.
The worldwide public cloud services market shot up 24.1% YoY in 2020 with revenues totaling US$312 billion, according to the IDC report.
TENCENT (00700.HK) announced that Senior Executive Vice President Tong Tao Sang would be named as CEO of CSIG in latest business reshuffle.
GENSCRIPT BIO (01548.HK) announced that it has been informed by GS Corp, a controlling shareholder of the Company, that it had on 14 May entered into an agreement relating to the transfer of shares of the Company with GNS Holdings for HK$18.658 per Share, representing roughly 5% discount to its share price before trading suspension. GENSCRIPT BIO (01548.HK) announced that the Company and the Investor Hillhouse Capital Management had entered into the binding Term Sheet in relation a proposed Series A Financing of Probio Cayman, an indirect wholly-owned subsidiary of the Company.
Meanwhile, Legend Biotech, also backed by GENSCRIPT BIO, had agreed to issue and sell an aggregate of nearly 20.81 million shares to LGN Holdings, whose sole investment manager is Hillhouse Capital Management, for an aggregate consideration of US$300 million. An application has been made by the Company to the Stock Exchange for the resumption of trading of its shares of the Company from this afternoon.
The Singaporean health ministry announced capping public gatherings to two participants, from five, and banning dine-in services under a fresh round of pandemic precautions, effective May 16 through June 13.
Edward Yau: HK May Not Resume Travel Bubble with SG as Planned on 26 May. Both sides will keep an eye on the situation, and approach one another further early next week, Yau stated, adding they will make an announcement once decision is nailed.
AAC TECH (02018.HK) announced that for the first quarter ended 31 March 2021, the net profit increased by 909.6% YoY to RMB532 million. The EPS was RMB0.44. The Group achieved revenue of RMB4.292 billion, representing a YoY increase of 20.6%. The demand of the global smartphone market is on a recovering trend. The major overseas customer’s peak season had a delayed start in the fourth quarter last year. Various business segments of the Group have further penetrated into the domestic Android market. All of the reasons above contributed to a significant YoY growth of the Group’s total revenue.
MAN WAH HLDGS (01999.HK) announced annual results ended March 2021. Profit attributable to owners of the Company amounted to HK$1.925 billion, up 17.5% yearly. EPS equaled HK50.26 cents. Final
DPS was HK$0.16.
Bridgetown 3 Holdings, the third SPAC co-established by Richard Li's Pacific Century Group and Thiel Capital, has lodged a listing application at the US SEC, Reuters' IFR reported. The SPAC is going to raise up to US$260 million. Richard Li's FWD intended to invest US$90 million.
U.S. electric carmaker Fisker has finalized "Personal Electric Automotive Revolution", a seven-year vehicle-assembly deal, with Foxconn, including plans to establish a U.S. plant in 2023.
The pair will jointly share in any profit under the agreement.
PRE MARKET HOURS NEWS
US Centers for Disease Control and Prevention announced that vaccinated residents are no longer required to wear mask or keep social-distancing in outdoor and most indoor areas. Canada's Ontario on the other hand declared a two-week extension to the stay-home order through June 2.
AIA (01299.HK) announced that for the first quarter ended 31 March 2021, the value of new business (VONB) was US$1.052 billion, up 19% YoY on CER or up 25% YoY on AER, above the brokers' forecast of US$967.2 million - 1.026 billion as compiled by our reporters. The group delivered the overall VONB growth for the Group, including excellent growth in Mainland China, Thailand and Malaysia and double-digit growth from its domestic customer segment in Hong Kong.
JD-SW (09618.HK) announced that its subsidiary JD Logistics had recorded a revenue of RMB22.4 billion during the three months ended March 31, 2021, up 64.1% from the same period in 2020, gross profit of RMB231 million, down 72.7% from the same period in 2020, and a total sum of selling and marketing expense, research and development expense, and general and administrative expense of RMB2.2 billion.
SAMSONITE (01910.HK) announced the first-quarter report ended March 2021. Net sales amounted to US$355 million, down 41% yearly. Loss narrowed to US$72.70 million from a year ago's US$787 million. LPS equaled US5.1 cents.
SMIC (00981.HK) announced the first quarters result ended March 2021. The revenue rose 22% year on year to US$1.104 billion. The net profit amounted to US$159 million, up 147.6% yearly. EPS was US$0.02.
Revenue for the first half of 2021 will be expected to be around US$2.4 billion.
BABA-SW (09988.HK) announced that in the fourth quarter ended March 31, 2021, the non-GAAP net income was RMB26.216 billion, an increase of 18% year-over-year. Revenue for the quarter was RMB187.395 billion, an annual increase of 64%. Executives disclosed that purchase users amounted to 891 million during the year ended March 2021 and that the group hopes to boost the figure beyond 1 billion in China as soon as possible. The group is committed to more aggressive investment in the coming fiscal year and bumping all profit generated from business growth into technology innovation and other key strategic sectors, mentioned Chairman Daniel Zhang.