HSI +177pts (+0.6%) 29,970 HSCEI +122pts (+1.1%) 11,028 T/O HK$143.17bn (+15% DoD)
Opened slightly higher following the good US data but with some caution on the mixed data out of China and ahead of the Eurozone data. But slowly working better with Autos leading after good results from Daimler in early trading with Household goods weak
Finnish retail conglomerate Kesko +VE in early trade after reporting 16.9% sales growth YoYin March.
German meal-kit delivery firm Hellofresh +VE after a strong first-quarter earnings report.
WH Smith +VE after RBC upgraded the stock to “outperform” and raised its target price.
Ambu +VE after Morgan Stanley initiated coverage of the stock with an “overweight” rating.
New Car Registrations Mar +87.3% YoY vs -19.3% Feb (F/cast was +150%)
Balance of Trade Feb €+17.7B vs +11b Jan Revised (F/cast was +24b)
Core Inflation Final Mar +0.9% YoY vs +1.1% Feb (F/cast was +0.9%)
Inflation Final Mar +1.3% YoY vs +0.9% Feb (F/cast was +1.3%)
Inflation Final Mar +0.9% MoM vs +0.2% Feb (F/cast was +0.9%)
Opened in Asian time Dow +10pts, S&P flat NDX -0.2% abut rose during European trading Currently Dow +70pts S&P and NDX +0.2%
Housing Starts Mar +19.4% vs -11.3% Feb revised (F/cast was +11.2%)
Building Permits Mar +2.7% vs -8.8%Feb (F/cast was +2.9%)
Michigan Consumer Prelim data (Inflation Expectations, Consumer Sentiment, 5yr Inflation Expectations, Consumer Expectations, Current Conditions), Baker Hughes Rig Count
Earnings: Morgan Stanley, PNC Financial, Kansas City Southern, Bank of NY Mellon, Citizens Financial, Ally Financial, State Street
CSI 300 closed +17pts (+0.4%) @ 4,966CSI300 opened higher but sold down initially on the mixed data; GDP growth and Industrial production were less than expected but House Prices and Retail Sales remained strong. Saw some initial support at 4,940 and bounced but Thursday close was a resistance and it then sold down to 4,918 bounce to test Thursday's close but failed and sold down but then bounced again into lunch Flat.
PM market rallied top 4,980 but then eased into the close.
Looks like Team China were very active today
Leaders were liquor and digital currency names rose sharply along with autos, Auto-pilot, second-child, online education, and battery cells.
Laggards were F&B, agriculture, forestry, live feeds, non-ferrous, and semiconductor.
Shanghai Comp +28pts (+0.8%) @ 3,427
Shenzhen Comp +41pts (+0.3%) @ 13,721
ChiNext Comp +14pts (+0.5%) @ 2,883
FDI (YTD) Mar +39.9% YoY vs 31.5%
Feb House Price Index Mar +4.6% YoY vs +4.3% Feb (F/cast was +4.4%)
Fixed Asset Investment Mar +25.6% YoY vs +35% Feb (F/cast was +25.1%)
GDP Growth Rate Q1+0.6% QoQ vs +3.2% Q4 revised (F/cast was +1.7%)
GDP Growth Rate Q1+18.3% YoY vs +6.5% Q4 (F/cast was +16%)
Industrial Production Mar +14.1% YoY vs 35.1% Feb (F/cast was +25%)
Industrial Capacity Utilisation Q1 77.2% vs 78.0% Q4 (F/cast was 77.4%)
Retail Sales Mar +34.2% YoY vs 33.8% Feb (F/cast was +25%)
Unemployment Mar +5.3% vs 5.5% Feb (F/cast was +5.5%)
Pre market opened @ 28,827 +34pts vs +52pts ADR’s
Pre market Geely strong on Polestar news and Chinese consumer names +VE.
Market traded in a tight range around flat through the morning with Ecommerce names seeing interest but concerns about debt defaults as Huarong’s restructuring. PM the market rallied strongly after lunch to 29,080 following China but then eased back to 28,950 before testing 29,000 several times in the last hour of trading it sold down 37pts in the closing auction. Certainly looked like Team China seeking to see the HSI close at 29,000.
HONG KONG DATA
The Centre for Health Protection reported 17 new covid cases (vs 6 cases Thursday).
Short Selling Friday 13.4% vs 17.7% Thursday
Top Shorts Bud Apac (1876) 40%, Ali Health (241) 35%, BankComm (3328) 34%, Bank Of China (3988) 29%, Henderson Land (12) 29%, Sino BioPharm (1177) 29%, Sands China (1928) 27%, Longfor (960) 25%
IPO TRIP.COM-S (09961.HK) opened at $271 in gray market, up 1.1% against the offer price
of $268. It closed at $278 in gray market, up 3.7% or $10 against the offer price of $268, onvolume of 294,000 shares and turnover of over $81.1 million, PhillipMart data showed.
AFTER MARKET NEWS
SHENZHOU INTL (02313.HK) announced that in view of the recent developments in respect of the Epidemic in Cambodia, the Cambodian government has declared a lockdown in Phnom Penh from April 15, 2021 to April 28, 2021. To cooperate with the containment measures imposed by the Cambodian government, operations at the Group’s production bases in Cambodia will be suspended.
Fitch Ratings affirmed XIAOMI-W (01810.HK)'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) rating at BBB with a Stable Outlook. The rating was based on the agency's expectation that the company will expand its shares in the smartphone market, extend its presence in premium smartphone segments, and revive revenue growth in its internet of things (IoT), lifestyle products and internet services businesses in the coming years.
Li Ka Shing Foundation uploaded on its Facebook page a picture of Li Ka Shing being vaccinated, although no disclosure was made on which jab Li chose to receive.
BABA-SW (09988.HK)'s community group buying business Freshippo Market is now available at TENCENT (00700.HK)'s WeChat Mini Program, which supports WeChat payment. The Freshippo Market provides fresh food and lifestyle goods sales services.
MTR CORPORATION (00066.HK) announced that the tender for THE SOUTHSIDE Package Six Property Development has been awarded to Modern Expert Limited, a subsidiary of Wheelock Properties. Wheelock Properties is a well-established and reputable property developer in Hong Kong and has been working with the Corporation over the years on various development projects. The Corporation looks forward to working with Wheelock Properties to make the Development a success.
MGTO Deputy Director Ricky Hoi told Radio Macau that May 1 Golden Week's hotel booking rate approximates 40-50% at this moment. The visitor traffic of the gambling hub surmounted 190,000 in the latest week, disclosed Hoi.
The Hong Kong Monetary Authority (HKMA) announced today the progress made in its handling of banking complaints received as at end-March 2021. Banking complaints include cases concerning general banking services and conduct-related issues.
In March 2021, 290 cases were received and the handling of 270 cases was completed. As at end-March, the handling of 653 cases was in progress.
NEXT DIGITAL (00282.HK) Founder Jimmy Lai was sentenced to a eight-month imprisonment after pleading guilty of unauthorized assembly on Hong Kong Island dated 31 August 2019. Among which, two months of the imprisonment will be enforced separately from the "8.18" case in 2019. Therefore, Lai is subject to a total of 14-month jail.
Seven pro-democracy activists were found guilty of organizing and taking part in an unauthorized assembly on 18 August 2019. Of which, the first defendant Jimmy Lai, founder of NEXT DIGITAL (00282.HK), was sentenced for a 12-month imprisonment after mitigation.
CHI MER LAND (00978.HK) announced that for the period from 1 January 2021 to 31 March 2021, the Group had achieved aggregate contracted sales of approximately RMB14.208 billion (representing a year-on-year increase of 1.99 times).
CHINA TAIPING (00966.HK) announced that the gross premium income of Taiping Life Insurance for the period from January 2021 to March 2021 was RMB58 billion, up 3.2% yearly.
China's real estate loan growth declined to 12% YoY at the end of the first quarter of 2021, hitting the trough in eight years, announced China Banking and Insurance Regulatory Commission (CBIRC).
In 1Q21, China's banking industry tracked a net profit growth of 1.5% yearly, laying a solid foundation for maintaining reasonable capital replenishment and risk resistance, said Liu Zhiqing, Deputy Director of China Banking and Insurance Regulatory
CCL last printed at 179.95, down 0.75% weekly.
CCL edged up 1.57% during the six weeks after the Spring Festival holiday, said the research department of Centaline Property. Luxury homes saw more outstanding
rally among the top four indices. CCL (large units) +3.12% WoWCCL (small-to-medium flats) +1.28% WoWCCL Mass +0.97% WoW
*INTERNET/E-COMMERCE FIRM after recent correction amid regulatory concerns. ALIBABA's (9988 HK +1%) supermarket arm Freshippo, TENCENT (700 HK. +1.7%), BILIBILI (9626 HK+0.9%), KUAISHOU (1024 HK +0.8%) and TRIP.COM, are among 11 companies that issued brief statements yesterday pledging to obey antitrust laws.Meanwhile, TENCENT will sell $4.15 billion in one of Asia's biggest dollar bond sales of the year. Demand for the four-part offering reached just over $22 billion when books closed.
AIR CHINA (753 HK +1.5%) March Passenger Traffic +128.5%,
CH EASTERN AIR (670 HK +2%) March Passenger Traffic +219.9%,
CH SOUTHERN AIR (1055 HK +1.8%) March Passenger Traffic +174.4%, CATHAY PAC (293 HK +1.6%) March Passenger Traffic -94%.
*AUTO STRONG after China Association of Auto Manufacturers said nation’s auto manufacturing output rose 55% in 1Q compared to a decline of 26% in the same period last year. GAC (2238 HK +5.4%) GREAT WALL (2333 HK +4%) DONGFENG (489 HK +1.8%). GEELY AUTO (175 HK +7%) surged after it says its ZEEKR EVs will be delivered from September, aiming to sell 8,000 uniots of the model in 4Q.
*HK CONSUMPTION MIXED following sales data. SA SA INTL (178 HK +2.1%) said 1Q turnover fell 3.4% YoY to HK$818.8m. LUK FOOK (590 HK -1%) said its overall same store sales rose 30% YoY. Same store sales growth for the mainland market almost double during the quarter, as it jumped 95%. The HK & Macau market turned from a 35% decline to +19%.
*COAL MINERS FIRM as thermal coal futures contract rose nearly 4% to 775 yuan per ton, setting a record high again. YZ COAL (1171 HK +8.1%) CH COAL (1898 HK +3.9%) CH SHENHUA (1088 HK +1.3%).
Opened flat but trended lower to 7,030 around 1pm in choppy trading but then rallied back just into the green at 7,066 before trending slightly lower to close +5pts (unch) @ 7,064
Nikkei opened higher following the US and the good Tankan data but saw selling pressure on news of increased emergency measures and sold down to test Thursday’s close in the first hour, bounced but then retested before ticking slightly higher into lunch. PM opened higher but again sold down to test support, which hold and then bounced and traded sideways to close +41pts (+0.1%)@ 29,683
Topix opened higher and sold down to 1,953 saw a small bounced and then traded sideways in the red into lunch. PM opened higher in the green but sold down to Thursday’s close and traded sideways with a small uptick at the end to close +2pts (unch) @ 1,961
Tankan Index Apr 13 vs 6 Mar (F/cast was 8)
Monday pre market we get Trade Data and then later Industrial Production data
New covid cases reported were 673 remaining significantly above 600 for a second day; -VE for sentiment. Finance Ministry reported the economy is on a recovery track as exports remain robust and a slump in domestic demand has gradually eased amid the pandemic.
Kospi opened higher and tested 3,200 level a couple of times in early trades but failed to hold above and trended lower in choppy trading to 3,185 mid morning. Tested a couple of times before bouncing back to flat only to revisit 3,190. But from 1:30pm worked higher to close +4pts (+0.1%) @ 3,199
Kosdaq opened higher tested Thursday closing level after an hour but then worked better first to 1,020 and then to 1,022 which it tested the several times in the last 25 minutes to close +8pts (+0.8%) @ 1,022.
opened lower and traded sideways in a tight range around yesterdays closing level until the last hour when it rallied to 17,100 and then traded sideways to close +82pts (+0.5%)@ 17,159
Northbound RMB 38,465m Sell 17,576m : 20,889m Buy
Southbound HK$ 13,748m Sell 6,606m : 7,142m Buy
Northbound RMB 43,833m Sell 19,997m : 23,836m Buy
Southbound HK$ 14,706m Sell 5,102m : 9,605m Buy
TENCENT (00700.HK) +1.9%
MEITUAN (03690.HK) +1.9%
AIA (01299.HK) -0.9%
HKEX (00388.HK) +0.8%
BABA (09988.HK) +0.8%
CCB (00939.HK) +0.6%
PING AN (02318.HK) -0.6%
HSI & HSCEI Constituents on Move:
GEELY AUTO (00175.HK) +7.1%
ENN ENERGY (02688.HK) +3.1%
CNOOC (00883.HK) +3.1%
CHINA MOBILE (00941.HK) +3%
HSMI & HSSI Constituents on Move:
NEW HIGHER EDU (02001.HK) +10.5%
YANZHOU COAL (01171.HK) +8.1%, hitting new high
REALORD GROUP (01196.HK) +8.1%, hitting new high
POWERLONG (01238.HK) +4.3%, hitting new high
CHINA COAL (01898.HK) +3.9%, hitting new high
SHIMAO SERVICES (00873.HK) +3.6%, hitting new high
MARKET HOURS NEWS.
Chinese State-owned Assets Supervision and Administration Commission announced that state-owned enterprises had delivered 1Q21 net profit of RMB415.29 billion, up 2.2 times yearly.
JD-SW (09618.HK)'s JD Logistics is seeking an approval as soon as late-April for its planned listing that will fetch US$3-4 billion, IFR reported. The logistics company anticipates to run listing hearing during the last week of April or the first week of May, with target valuation of around US$40 billion, said insiders.
JD Logistics' Jingxi Courier has suspended its courier business, from which insiders estimated the loss to reach roughly RMB200 million, said Chinese media.
I.T (00999.HK) today held a general meeting to vote on proposed privatization. Chairman Sham Kar Wai extended his gratitude to everyone's support and expressed his anticipation to pass the proposal smoothly.
Sinopharm plans to inject RMB30 billion (about US$4.6 billion) worth of assets to BTBP (600161.SH) to speed up listing of its fast-growing vaccine unit, Reuters citing two insiders. The input will be conducive to diversifying fundraising channels, according to the people. Sinopharm aims to start injecting six vaccine-focused biological product makers (including two Covid vaccine developers) next few weeks.
A technological decoupling between the U.S. and China is set to erode global gross domestic product deeper than the trade war, Helge Berger, Head of IMF’s China mission, told Bloomberg. U.S.-China technological fragmentation may lead to 5% GDP losses for many countries, as compared with 0.4% from the trade war, opined Berger.
TENCENT (00700.HK) fixed the prices of interim notes at a principal amount of US$4.15 billion. The note subscription eventually began on Wednesday (14 April), reported IFR. Orders rocketed in US trading session, reflecting American investors were unworried over grave selling pressure on Huarong's USD bonds. TENCENT's ten-year notes recorded a sharp over-subscription, according to sources.
In its business development target, ByteDance anticipates Douyin to reap e-commerce GMV as high as RMB600 billion this year, up over 2.5 times yearly, according to an internal memo seen by Bloomberg. The internet titan is meanwhile targeting 680 million daily active users in 2021, as compared with roughly 610-620 million in March, for Douyin.
XIAOMI-W (01810.HK) Chairman Lei Jun announced that the group's first-ever foldable phones MIX FOLD are available for sales omni-channel at 10 am today. Within a minute, the sales have already towered RMB400 million. MIX FOLD is priced between RMB9,999-12,999.
CATHAY PAC AIR (00293.HK) announced that Cathay Pacific carried a total of 18,500 passengers last month, a decrease of 94% compared to March 2020. The month’s revenue passenger kilometres (RPKs) fell 95.7% year-on-year. Passenger load factor dropped by 28 percentage points to 21.2%, while capacity, measured in available seat kilometres (ASKs), decreased by 90%. In the first three months of 2021, the number of passengers carried dropped by 98.4% against a 91.7% decrease in capacity and a 98.2% decrease in RPKs, as compared to the same period for 2020
GEELY AUTO (00175.HK) unveiled the first BEV model "Zeekr 001" at the brand's launching ceremony. Daiwa found the new product decent but not thrilling. On another note, the Zeekr brand will be run under a direct sales model with home-grown sales and charging network, similar to that of the next-generation auto OEMs. The broker maintained GEELY AUTO's Hold rating.
Leveraging its new EV Zeekr 001 coupe, Zhejiang Geely Holding Group will vie with Apple (AAPL.US) , XIAOMI-W (01810.HK) and other carmakers interested amongst the EV market, as Zhejiang Geely President An Cong Hui told Bloomberg TV. The Zeekr EVs will be delivered from September, as Zhejiang Geely aims to sell 8,000 units of the model in the fourth quarter of 2021.
Following last Friday's reduction, National Integrated Circuit Industry Investment Fund further cut 55 million shares of SMIC (00981.HK) on market on 12 April, cashing in $1.406 billion, as revealed by the Stock Exchange.
Overnight HIBOR last posted at 0.03881%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.10286%, down for 7 days, marking a 1-month low.
The global smartphone wholesale revenue will rise 13% year-on-year this year, the fastest growth in six years, according to a report published by Strategy Analytics, a survey agency. In spite of the economic uncertainty and dampened consumer confidence wrought by the pandemic, the market is predicted to pick up in 2021, thanks to the iPhone 12 super cycle and the onset of 5G globally.
BABA-SW (09988.HK) announced a basket of measures to facilitate merchants on Taobao and Tmall in upgrading their marketing and operating models and streamlining entry threshold, by means of "lowering, waiving and helping". The group said it plans to undo partial charges on merchants for marketing and operating tools this year, applicable to the universal platform.
The U.S. posted a net capital inflow of US$72.6 billion period-on-period in February, reported the U.S. Department of the Treasury. On another note, China increased U.S. bonds for four months in a row by US$9 billion in February to a total amount of US$1.1042 trillion.
China's electricity generation surged by 17.4% yearly to 657.9 billion kWh in March, according to National Bureau of Statistics (NBS) data. The accumulated electricity generation burgeoned 19% annually to 1.9 trillion kWh in the first quarter of 2021.
EY said, just as traditional IPO. markets have been highly active, the special purpose acquisition company (SPAC) IPOs in Q1 2021 have also been breaking records. The global IPO market saw 430 deals raising US$105.6 billion in proceeds, increasing by 85% and 271% year-on-year, respectively. This was the best performing first quarter in 20 years.
Japan is considering expanding quasi-emergency measures to 10 regions, such as Aichi, Kanagawa and Saitama, as Economy Minister Yasutoshi Nishimura told Reuters, citing the COVID-19 case spread.
Official Receiver's Office announced that the number of petitions presented for bankruptcy surged to 779 in March, up 44% monthly but down 5.3% yearly.
TENCENT (00700.HK) announced the issuance of USD notes at a total principal amount of US$4.15 billion. The giant recorded over US$22 billion in total subscription for its four parts of USD notes, representing an over-subscription of more than four times, Bloomberg citing sources.
Commodity residential property price hike would be flattish MoM and higher YoY in March 2021 across Chinese cities, said NBS statistician Sheng Guoqing. Based on estimates, new commodity home prices rose 0.4% MoM in four tier-1 cities, down 0.1 ppt from February. New commodity home prices climbed 5.2% YoY in tier-1 cities, up 0.4 ppts from the previous month.
The U.S. House of Representatives Judiciary Committee formally cleared a report that criticizes major tech firms of acquiring or crushing smaller firms. The over-400-page report will become a legislation blueprint to rein in the market power of Google, Apple (AAPL.US), Amazon.com (AMZN.US) and Facebook (FB.US)
eft Payments (Asia) estimated more than 3,000 new merchants will in the next few months apply for installation of POSs, which support Octopus Cards, AlipayHK and WeChat Pay HK, after the government had announced the handout of $5,000 e-vouchers, cited local media.
PRE MARKET HOURS NEWS
Monetary Authority of Macao told Chinese press that the government is paying close heed to central bank digital currency (CBDC) development across the world and that they will stay in close touch with the People's Bank of China while timely looking at the feasibility to roll out digital currency.
Banks are facing a bunch of challenges in managing data assets, given the distinctiveness and changing features amid transformation of data assets, said HKEX (00388.HK) Chief China Economist Shusong Ba. Lenders shall build a sound data asset management framework with clear division of responsibilities, and an intact data asset management system to bolster asset security, protection and risk management, furthered Ba.
China's State Administration for Market Regulation (SAMR) disclosed the third batch of Commitment to Operate in Compliance with Laws and Regulations made by the internet companies to the society. Such companies included BABA-SW (09988.HK) (BABA.US), CHINA LIT (00772.HK), iQIYI (IQ.US), KE Holdings Inc (BEKE.US), Dangdang Inc (DANG.US), Dmall, Qunar, Sogou (SOGO.US), 58.com (WUBA.US), Alibaba's Ele.me, and BeiBei.com.
The Chinese market regulator is working to brush up IPO sponsorship regime by stepping up relevant scrutiny and standard, China Securities Journal reported, while pondering over further optimization of pricing, underwriting and placing mechanisms.
TENCENT (00700.HK) announced that yesterday (15 April), the Company entered into a Subscription Agreement with the Managers with respect to the issue of the Notes under the Programme in an aggregate principal amount of US$4.15 billion (around HK$32.238 billion). They included the US$500 million 2.88% senior notes that will mature in 2031, the US$900 million 3.68% senior notes that will mature in 2041, the US$1.75 billion 3.840% senior notes that will mature in 2051, and the US$1 billion 3.94% senior notes that will mature in 2061. The estimated net proceeds from the issue of the Notes will amount to approximately US$4.13 billion.
Zhejiang Consumer Council, together with the local jeweler industry association and Fangyuan Checking Group, met with a number of renowned live-broadcast platforms, including Pinduoduo (PDD), KUAISHOU-W (01024.HK), Taobao and JD. During the meeting, Fangyuan Checking mentioned misstatement, property rights infringement and such other loopholes in livestream sales, whereas the platform runners remarked correspondingly on the comparison reviews.
Chinese State Administration of Market Regulation told Xinhua News Agency that the authority is stepping up its investigational efforts in major monopolistic cases under antitrust regulation, citing the importance of a level playing field to a market mechanism. Beijing will uphold consumer rights by reinforcing her capability and standard of antitrust oversight.
At a party group meeting, the People's Government of Zhejiang Province earnestly urged BABA-SW (09988.HK) (BABA.US) and Ant Group to take full responsibility for rectification, reported Zhejiang News. Accordingly, these firms shall timely complete their rectifying missions and facilitate regulatory normalization.
A Notice on the Report of the Procurement Data of Types of Drugs for the Fifth Batch of State Organized Centralized Drug Procurement, published by the Joint Procurement Office of the State Organized Centralized Drug Department, was leaked and circulated among the pharmaceutical industry, according to Chinese media. The Notice revealed the drug name list of the Fifth Centralized Procurement, covering 60 types and 207 speculations. Prior to this batch, the Fourth Centralized Procurement involved 45 types.
XIAOMI-W (01810.HK) disclosed that on 15 April, it had repurchased at the Stock Exchange 9.88 million shares, involving roughly $249 million.AIR CHINA (00753.HK) announced the combined operating data. The number of passengers carried increased 13.4% to 15.5475 million for the first three months of this year. The total cargo and mail carried added 33.6% to 285,100 tons.
CHINA EAST AIR (00670.HK) unveiled the operating data for March 2021. The number of passengers carried soared 280.36% yearly to 8.6095 million. The weight of freight carried advanced 123.44%.
Governor of the People's Bank of China Yi Gang, at the seminar for Green Finance and Climate Policy jointly with the International Monetary Fund (IMF), revealed that China will have to pump RMB2.2 trillion annually for carbon emission reduction by 2030, and RMB3.9 trillion in 2030-2060. He said more social capital is needed to meet such goal since the mere government support is far from enough. Besides, the PBOC plans to unroll facilitating tools in achieving carbon reduction, for example by providing certain low-cost capital.