HSI +133pts (+0.5%) 28,755 HSCEI +51ts (+0.5%) 10,939 T/O HK$154.52bn (flat DoD but -7.5% if you exclude todays China Gas US$1.5b placement)
Markets opened higher; FTSE trading sideways in the green Dax and CAC trending slightly higher.
Credit Suisse week on announcing a net loss of 252 million Swiss francs ($275 million) as it digests the impact of the Archegos hedge fund scandal.
Renault weak Q1 revenue -1.1% Nestle strong reported strongest quarterly sales in a decade.
Wartsila strong after beating estimates on first-quarter orders despite missing profit forecasts.
Deutsche Boerse announced the delisting of Coinbase Global, Inc. (COIN.US) shares from its Xetra trading system after market close on 23 April, due to a missing reference data for the stocks. A wrong LEI code was used by mistake when Coinbase began trading at Deutsche Boerse's platforms. Such reference code is necessary for identification and a regulatory requirement for trading admission. Coinbase can only resume trading after the issuer has applied for an LEI.
Daimler off initial highs announced to slash working hours for roughly 18,500 employees and suspend production at two factories for a week starting April 23, aiming to cope with chip shortage.
The European Central Bank to deliver its latest monetary policy announcement, no major shifts are expected.
Government Budget to GDP 2020 -7.2% vs -0.6% prior (F/cast was -8.6%)
Government Debt to GDP 2020 98% vs 83.9% prior (F/cast was 115%)
CBI Industrial Trends Orders Apr -8 vs -5 Mar (F/cast was +5)
CBI Business Optimism Index Q2 38 vs -22 Q1 (F/cast was-10)
Opened in Asian time Dow -31pts, S&P and NDX -0.15% have eased to Dow -13pts S&P and NDX flat expect some caution ahead of initial claims data.
AHEAD Chicago Fed National Activity Index, Initial Claims, 4 week Average Claims, Continuing Claims, Existing Home Sales, EIA Natural Gas Report, Kansas Fed Manufacturing Index, 5 year TIPS auction.
Earnings AT&T, Intel, D.R. Horton, American Airlines, Union Pacific, Alaska Air, Pentair, Tractor Supply, Celanese, Seagate Technology Biogen, Dow, Credit Suisse, SAP, Boston Beer, Mattel, Snap, Valero Energy, Freeport-McMoRan, Quest Diagnostics
CSI 300 closed +10pts (+0.2%) @ 5,089
CSI300 pre market opened higher @ 5,114 but sold down to 5,068 level in first 30 minutes before working back to test Wednesdays resistance leve l5,100 and failed to hold above going into lunch. PM opened lower and traded sideways into the close.
Caution after some weak Q1 numbers from Chinese companies, raising valuations concerns. Also people watching for President Xi’s speech at Biden’s climate conference.
Leaders Steel and Shipping (Baltic Index was +9.6% overnight)
Laggards Banks and the Leisure/Tourism sector.
Shanghai Comp -8pts (-0.2%) @ 3,465
Shenzhen Comp +58pts (+0.4%) @ 14,209
ChiNext Comp +24pts (+0.8%) @ 3,002
CHINA DATA No data
Pre market opened 28,717 +95pts vs +201pts ADR’s
Rallied initially to test 28,800 before selling down to yesterday’s close. Then rallied back to 28,750 and traded sideways into lunch. PM opened lower but has worked back to morning highs, basically traded sideways around 28,750 Chinese banks still weak with tighten concerns and the Huarong situation. China Gas -11.3% after placement raised concerns about further placements; Kingboard shareholder placement rumoured. China Res Beer +3.4% after good Heineken results. Cathay closing Australia and N Zealand bases and HK/SG travel bubble announcement cancelled as SG sees a worker dormitory covid outbreak.
HONG KONG DATA
Unemployment Mar +6.8% vs 7.2% Feb (F/cast was 7%)
The Centre for Health Protection reported 14 new covid cases (vs 0 Wednesday) 2 local infections of unknown origin.
Short Selling Thursday 13.8% vs 12.5% Wednesday
Top Shorts Country Garden (2007) 42%, Bud Apac (1876) 37%, BankComm (3328) 36%, Bank Of China (3988) 35%, Wharf REIC (1997) 33%, CKI (1038) 33%, Sino BioPharm (1177) 32%, Sunny Optical (2382) 30%, Ali Health (241) 28%, Petrochina (857) 28%, Power Assets (6) 28%, HK & China Gas (3) 27%, Mengniu Dairy (2319) 27%, CCB (939) 26%, ICBC (1398) 26%, Sinopec (386) 25%, HSBC (5) 25%, Wuxi Bio (2269) 25%.
AFTER MARKET NEWS
CHINA COAL (01898.HK) announced that for 1Q21, the net profit was RMB3.509 billion, up 441.1% year-on-year. Basic EPS was RMB0.26.
WANT WANT CHINA (00151.HK) announced that on 22 April, it had repurchased at the Stock Exchange 2.50 million shares, involving roughly $14.3332 million.
Despite high energy consumption involved in Bitcoin mining, the latest research by Cathie Wood's ARK Investment found that such mining could be good for the environment. Research suggested Bitcoin mining would encourage investment in the solar system, while allowing renewable energy to fulfill more grid power demands.
SMOORE INTL (06969.HK) announced that the Group’s profit reached RMB1.179 billion for the first quarter, up 4.03 times year-on-year. The increase of the profit and total comprehensive income of the Group was largely the result of the steady growth of revenue of the Group, economies of scale and changes in product mix which was partially offset by the share-based payment expenses of approximately RMB48.3 million.
HENGAN INT'L (01044.HK) announced the repurchase of 400,000 shares on 22 April at $51.4-51.65 each, involving $20.6083 million.
CNOOC (00883.HK) announced that the Company achieved a total net production of almost 138 million barrels of oil equivalent (BOE) for the first quarter of 2021, representing an increase of 4.7% YoY. The unaudited oil and gas sales revenue of the Company reached approximately RMB48.34 billion for the first quarter of 2021, representing an increase of 21% YoY.
PING AN (02318.HK) released the unaudited results for the three months ended March 31, 2021. Net profit increased by 4.5% year on year to RMB27.223 billion. EPS was RMB1.54. Total revenue added 3.25% yearly to RMB366.794 billion.
Gan Lin, deputy head of State Administration for Market Regulation (SAMR), delivered a speech at an anti-monopoly work conference in Kunming, Yunnan today. Members at the conference stressed that 2021 not only marks the start of the 14th Five-Year Plan, but also represents the big year for antitrust works. Accordingly, China will further step up her antitrust regulation and enforcement, bolster the position of competition policy, refine fair competition systems and upgrade the level of anti-monopoly oversight. Looks to be more -VE news for Ecommerce
SFC Chairman Lui Tim Leung, Tim, in appearance at a forum, expressed his opinion that carbon neutrality is a global development trend, as such the Hong Kong government will in later time this year announce long-term strategic details for the related subject for 2050. The SFC will, in cooperation with regulators all over the world, bend over backwards to promote Environmental, Social and Corporate Governance (ESG) and enhance scrutiny level, Lui said.
*GAS PROVIDERS WEAK after CHINA GAS (384 HK -11.3%) raised US$1.5b in share placement, sold 392m shs at 9% discount at HK$29.75. It plans to use the proceeds for potential acquisition opportunities in the city gas distribution sector in China, expansion of the LPG smart microgrid business, development of distributed heating business and general corporate purposes. ENN (2688 HK. -3%) KULUN (135 HK -1.2%) CR GAS (1193 HK +0.4%).
*E-COMMERCE/INTERNET FIRM, except ALIBABA (9988 HK unch) amid ongoing concerns on regulatory risks. Alibaba Cloud launched CloudQuotation, a cloud-based solution that helps financial institutions, Internet information providers and FinTech companies access real-time market quotes.
Authorities in the US. and Japan will jointly monitor Japanese e-commerce firm RAKUTEN after a unit of TENCENT (700 HK +2%) became a major shareholder on concerns about customer information leakage to China. JD.COM (9618 HK +1.4%) MEITUAN (3690 HK +3.5%) BIDU (9888 HK +3.2%).
KUAISHOU (1024 HK +3.5%) disclosed that the number of monthly active users (MAUs) for search engine has zoomed past 250 million.
*TECH & COMPONENTS FIRM on increasing demands on components.
ASM PAC (522 HK +3.5%) announced 1Q net profit skyrocketed more than 21 times to HK$521.51m. It expects to record revenue of US$600m to US$650m in 2Q through a strong backlog. In a hearing on President Joe Biden's infrastructure plan, the U.S. Commerce Secretary told senators the U.S. faces a national security crisis due to its lack of semiconductor production. He said the nation is entirely reliant on China & Taiwan for semiconductors. Worth noting TSMC Founder Morris Chang said the semiconductor manufacturing of China is still lagging behind TSMC by more than five years after tens of billions of US dollars has been splashed by China in the last two decades,
SMIC (981 HK +0.4%) SUNNY (2382 HK +3.3%) Q TECH (1478 HK +1.3%).
*TELCOS FIRM CH UNICOM (762 HK +0.7%) reported 1Q net income +21.4% YoY to 3.843b yuan and saw some broker upgrades.
CH MOBILE (941 HK +1.6%) CH TEL (728 HK +0.4%).
*AUTO WEAK as GREAT WALL (2333 HK -23.7%) reported 1Q net income 1.64b yuan, missing estimates
GEELY (175 HK -1.8%) GAC (2238 HK -1.7%) DONGFENG (489 HK -1.9%).
*INSURERS WEAK, despite CH LIFE (2628 HK +1.1%) announcing prelim 1Q net income +55% to +75% YoY. Net income in the first quarter rose by 9.4b-12.8b yuan from a year earlier.
PING AN (2318 HK -0.9%) NCI (1336 HK -0.3%).
*MACAU FIRM advanced on recovery hopes, SANDS CHINA (1928 HK +0.14%) reported 1Q net loss US$213m but better than some expected and gave a +VE outlook.
GALAXY (27 HK +0.8%) SJM (880 HK +0.8%) WYNN MACAU (1128 HK +0.8%) MGM (2282 HK +1.1%).
*PHARMA STRONG SINOPHARM (1099 HK +2.8%) said no serious or adverse effects have been seen in nearly 520,000 inoculations using the Covid vaccines developed by its Beijing and Wuhan institutes, citing a research paper based on data collected via its vaccination information system. CANSINO BIO (6185 HK +10%) said there have been no reports of blood clots amongst the 1m people inoculated with CanSino’s Covid-19 vaccines so far, according to an expert with Chinese Center for Disease Control and Prevention.
SINO BIOPHARM (1177 HK +2%) WUXI BIO (2269 HK +2.4%).
*SPORTSWEAR MAKERS STRONG as XTEP (1368 HK +14%) following broker's upgrade, given its 1Q retail sales exceeded expectations. Sector rose across the board amid outlook optimism; LI NING (2331 HK +3.1%) 361 DEGREE (1361 HK +8.4%) ANTA SPORTS (2020 HK +3.3%) POU SHENG (3813 HK +2.9%).
ASX200 opened higher and after a shaky start worked higher to close at the day high. +58pts (+0.8%) @ 7,055Friday we get Flash PMI data pre market
Nikkei opened higher as expected and worked better through the morning and then traded sideways in the afternoon but from 2pm worked higher into the close breaking the resistance at 29,125 to close at the day high +680pts (+2.4%) @ 29,188
Topix Traded in a similar pattern to close +34pts (+1.8%) @ 1,923
Tokyo Governor Yuriko Koike has requested the Japanese central government to impose a state of emergency on the city, adding the details of restrictions is still under discussion, Bloomberg reported. PM Suga expected to make a decision Friday.
Foreign Stock investment ¥286.3B vs 641.1B prior
Foreign Bond investment ¥906.5B vs 1,715.5B prior
Tomorrow Inflation and Flash PMI data pre market
Kospi saw a choppy first hour, opened higher rallied to 3,190, sold down to 3,180 rallied to 3,196 and then eased back and then trended lower to 3,175 and then worked slightly higher in the last 30 minutes to close +6pts (+0.2%) @ 3,178
Kosdaq choppy start, found support at 1,023 then worked higher to test 1,030 before selling back down to 1,023 and then bouncing to close +4pts (+0.3%) @ 1,026
Opened higher and tested 17,430 in early trades, then eased back and traded sideways until late morning. Then it sold off into the red with support at 17,100 bounced but failed to break about yesterdays close. Then sold down to close -105pts (-0.6%)@ 17,097
After market Unemployment Mar +3.72% vs 3.73% Feb (F/cast was 3.8%)
Northbound RMB 39,020m Sell 20,602m : 18,418m Buy
Southbound HK$ 14,542m Sell 5,647m : 8,895m Buy
Northbound RMB 47,695m Sell 23,554m : 24,141m Buy
Southbound HK$ 15,283m Sell 6,319m : 8,964m Buy
MEITUAN (03690.HK) +3.5%
TENCENT (00700.HK) +2%
PING AN (02318.HK) -1%
AIA (01299.HK) +0.9%
CCB (00939.HK) -0.3%
BABA (09988.HK) -0.2%
HKEX (00388.HK) -0.2%
HSI & HSCEI Constituents on Move:
CHINA GAS HOLD (00384.HK) -11.3%
KUAISHOU-W (01024.HK) +3.6%
CHINA RES BEER (00291.HK) +3.4%
SUNNY OPTICAL (02382.HK) +3.3%
ANTA SPORTS (02020.HK) +3.3%
BIDU-SW (09888.HK) +3.2%
HSMI & HSSI Constituents on Move:
ALPHAMAB (09966.HK) +17.4%
XTEP INT'L (01368.HK) +14%, hitting new high
OCUMENSION-B (01477.HK) +13.6%
CHINA ORIENTAL (00581.HK) +12.8%
GREATWALL MOTOR (02333.HK) -12.7%
CANSINOBIO (06185.HK) +10.1%
INNOCARE (09969.HK) +9.7%, hitting new high
PACIFIC BASIN (02343.HK) +7.9%, hitting new high
SHENZHEN INVEST (00604.HK) +3.5%, hitting new high
MARKET HOURS NEWS.
JD-SW (09618.HK) forged a cooperation with Tradeling, a Middle East B2B e-commerce platform, whereby Tradeling's wholesale platform will introduce JD brands and products and facilitate the overseas expansion of Chinese brands, foreign media reported.
KUAISHOU-W (01024.HK)'s search engine responsible person Li Yan disclosed that the number of monthly active users (MAUs) for search engine has zoomed past 250 million.Cathie Wood's ARK Invest bought 459,300 MEITUAN-W (03690.HK) shares, 56,800 TENCENT (00700.HK) ADRs, roughly 58,800 Netflix (NFLX.US) shares, and 1,956 Pinduoduo (PDD.US) ADRs through its fund, according to stock exchange data. Meanwhile, ARK Invest unloaded around 122,000 Twitter (TWTR.US) shares, about 163,900 Tesla (TSLA.US) shares, and roughly 119,200 PayPal Holdings (PYPL.US) shares
CATHAY PAC AIR (00293.HK) plans to shut down pilot bases in Australia and New Zealand following the same closure in Canada, putting hundreds of jobs in peril, reported SCMP. The group's European and American cockpit crew bases will be reviewed this year as well, according to an internal memo.
Singapore's Ministry of Manpower said 11 more workers living in Westlite Woodlands dormitory had tested positive for COVID-19. The authority is considering moving hundreds of migrant workers to a quarantine facility, reported the Straits Times. Singapore and Hong Kong called off today's announcement on their air travel bubble scheme, which had seemingly run into obstacles for the second time in five months, Bloomberg citing insiders.
Overnight HIBOR last posted at 0.03738%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.09161%, marking a 1-month low.
Singapore and Hong Kong called off today's announcement on their air travel bubble scheme, which had seemingly run into obstacles for the second time in five months, Bloomberg citing insiders. No reason has been provided on the delay and no new date has been fixed, the people said. It was Singapore who initiated the cancellation.
The public will likely need a third jab of COVID vaccine, or even get vaccinated annually, as immunity against the virus may wane over time, said BioNTech CMO Ozlem Tureci.
KUAISHOU-W (01024.HK) is setting FY21 e-commerce GMV target at RMB750-800 billion, up 96.5-109% yearly, Chinese media learnt from inside sources.
BABA-SW (09988.HK)'s Ant Group sealed a deal to buy 5% shareholdings in the Brazilian loyalty program Dotz, which has 20 million active users, according to a securities filing seen by Reuters. The two companies also entered into a business cooperation agreement, whereby they will explore new opportunities for digital financial services in Brazil.
SoftBank seeks to expand the syndicated leveraged loan obtained at the end of March from US$8.125 billion to US$10 billion, Bloomberg cited sources. The bank is purportedly inviting more lenders to join. The interest rate on the additional loan amount is 2.7%, which is LIBOR + 250 bps. The related loan was borrowed by Skywalk Finance GK, a subsidiary of SoftBank, and was secured by partial BABA-SW (09988.HK) (BABA.US)'s shares.
Dada Nexus Limited (DADA.US)'s JD Daojia announced the partnership with MissFresh, a Chinese e-commerce platform backed by TENCENT (00700.HK), allowing MissFresh to go online simultaneously on the JD-SW (09618.HK) app. Some 400 MissFresh stores and front-end warehouses will be among the first to go online, covering hundreds of Chinese cities like Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou.
KINGBOARD HLDG (00148.HK)'s controlling shareholder Hallgain Management Limited, where group chairman Cheung Kwok Wing acts as a board member, plans to place 27 million shares at $42.9-43.75 each to raise roughly $1.158-1.181 billion, said market rumors. The placing price represented a 5.5-7.34% discount to yesterday's closing price $46.3.
WANT WANT CHINA (00151.HK) disclosed that on 21 April, it had repurchased at the Stock Exchange 2.50 million shares, involving roughly $14.5178 million.
PRE MARKET HOURS NEWS
RAZER (01337.HK) disclosed that on 21 April, it had repurchased at the Stock Exchange 3.024 million shares, involving roughly $8.372 million.
TSMC (TSM.US) Founder Morris Chang, at a forum, said the semiconductor manufacturing of China is still lagging behind TSMC by more than five years after tens of billions of US dollars has been splashed by China in the last two decades, Taiwan media reported. Meanwhile, logic semiconductor design of China also falls behind the US and Taiwan by 1-2 years. Chang expressed hope that the Taiwan government, society and TSMC could strive to defend such advantage, citing semiconductor is a pivotal industry for people's livelihood, economy and national defense for Taiwan.
SANDS CHINA LTD (01928.HK)'s controlling shareholder LAS VEGAS SANDS CORP. announced the results for the first quarter ended March 2021. On a US GAAP basis, total net revenues for SCL decreased 4.6%, compared to the first quarter of 2020, to US$771 million. Net loss for SCL was US$213 million, compared to US$166 million in the first quarter of 2020. Robert G. Goldstein, chairman and chief executive officer of LVS, said the company remains confident in the eventual recovery in travel and tourism spending across its markets. Demand for its offerings from its customers who have been able to visit remains robust, but pandemic-related travel restrictions, particularly in Macao and Singapore, continue to limit visitation and hinder its current financial performance.
CHINA GAS HOLD (00384.HK) announced the proposed top-up placing of 392 million shares, representing 6.99% of the enlarged share capital. The Placing Price would be HK$29.75 per share, representing a 9% discount to yesterday's closing price of HK$32.7. The net proceeds are expected to be HK$11.602 billion.
China's NPC Standing Committee (NPCSC) unveiled the 2021 legislative working plan, with continuous review of 17 legal cases and initial review of 37 cases, reported Xinhua. Of which, cases on amendments to Anti-monopoly Law, Enterprise Bankruptcy Law, Emergency Response Law, etc. will be submitted for initial review this year.
Li Hongzhong, Secretary of Tianjin Municipal Party Committee, talked with XIAOMI-W (01810.HK) Chairman and CEO Lei Jun and XIAOMI-W President Wang Xiang yesterday (21 April), Tianjin Daily reported. At the meeting, Li Hongzhong voiced hope that XIAOMI-W could nail a pragmatic cooperation with Tianjin Municipal Government in exploring AI and advanced manufacturing, and propelling the implementation of Xiaomi's ecological related projects.
Regarding over-collection of information and data leakage of apps, Chinese Minister of Industry and Information Technology told Economic Information Daily that it always accords high attention to the protection of personal information, and it is nailing down a provisional regulation to uphold information protection in mobile apps under concerted efforts with relevant authorities. The Chinese watchdog is meanwhile stepping up the investigation, exposure and penalty in regards to illicit collection of personal information.
BILIBILI-SW (09626.HK) announced that on April 21, the Joint Representatives have fully exercised the Over-allotment Option in respect of an aggregate of 3.75 million shares, representing 15% of the Offer Shares initially available under the Global Offering, at HK$808 each. The Company will receive additional net proceeds of HK$3.019 billion. Listing of the Over-allotment Shares will commence on April 26.
TRIP.COM-S (09961.HK) announced that on April 21, the Joint Representatives had fully exercised the Over-allotment Option in respect of an aggregate of 4.7453 million shares, representing approximately 15% of the total number of Offer Shares initially available under the Global Offering before any exercise of the Over-allotment Option. The gross proceeds to the Company from the Over-allotment Option are expected to be approximately HK$1.27 billion.
XIAOMI-W (01810.HK) disclosed that on 21 April, it had repurchased at the Stock Exchange 15.10 million shares, involving roughly $398 million.