HSI +323pts (+1.1%) 29,079 HSCEI +129pts (+1.2%) 11,067 T/O HK$142.98bn (-6.6% DoD exclude Thursday China Gas US$1.5b placement)
Opened lower despite pre market UK retail sales better than F/cast and good PMI data for the UK and Eurozone after the open. Initially Oil & Gas weak but Basic Resources gaining.
Earnings from Air Liquide, Schaeffler and LafargeHolcim among the blue chip companies reporting on Friday. Renault and Merck both hold their annual general meetings.
Daimler +VE having raised its profit forecasts for 2021 but cautioned that the global shortage of semiconductor chips may continue to weigh on second-quarter sales.
Wartsila rallied further after beating earnings expectations on Thursday, Moncler weak after its results.
Cryptocurrencies are also on investors’ radar after a plunge overnight, with bitcoin dipping below the key $50,000 level; currently -6.7% @ 49, 536.16.
Flash PMI data
Manufacturing Apr 63.3 vs 62.5 Mar (F/cast was 61.7)
Services Apr 50.3 vs 49.6 Mar (F/cast was 49.1)
Composite Apr 53.7 vs 53.2 Mar (F/cast was 52.7)
Flash PMI data
Manufacturing Apr 66.4 vs 66.6 Mar (F/cast was 65.5)
Services Apr 50.1 vs 51.5b Mar (F/cast was 50.9)
Composite Apr 56 vs 57.3 Mar (F/cast was 56.4)
Flash PMI data
Manufacturing Apr 59.2 vs 59.3 Mar (F/cast was 58.5)
Services Apr 50.4 vs 48.2 Mar (F/cast was 45)
Composite Apr 51.7 vs 50 Mar (F/cast was 47)
Consumer Confidence Apr -15 vs -16Mar (F/cast was -12).
Retail Sales Mar +5.4% MoM vs +2.2% Feb revised (F/cast was +1.4%)
Retail Sales Mar +7.2% YoY vs -3.6% Feb revised (F/cast was +4%)
Retail Sales Ex Fuel Mar +4.9% MoM vs +2.5% Feb revised (F/cast was +1.1%)
Retail Sales Ex Fuel Mar +7.9% YoY vs -1% Feb revised (F/cast was +3.8%)
Public Sector Net Borrowing Mar £-28B vs -16b Feb revised (F/cast was -22b)
Flash PMI data
Manufacturing Apr 60.7 vs 58.9 Mar (F/cast was 58.5)
Services Apr 60.1 vs 56.3 Mar (F/cast was 59.1)
Composite Apr 60 vs 56.4 Mar (F/cast was 58)
Opened in Asian time Dow +16pts, S&P & NDX slightly +VE, and are currently trending slightly better; Dow +50pts, S&P and NDX +0.2% AHEAD PMI Flash (Manufacturing, Services and Composite), New Home Sales, Baker Hughes Rig Count.
Earnings American Express, Honeywell, Daimler, Regions Financial, Schlumberger, Kimberly-Clark
CSI 300 closed +46pts (+0.9%) @ 5,136
CSI300 opened flat but worked better through the morning to 5,150 with a strong rebound in big cap white horse companies, as foreign capital inflow continues amid recovery and earnings optimism. But eased back into lunch (5,127). PM initially dipped to 5,110 level which it tested a couple of times before a rally in the last 40 minutes.The ChiNext index (SZ399006) +1.8%. Green stocks jumped after President Xi pledged at the climate summit that China will strive to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060, while medical names rallied amid reform speculation in China's health insurance system.
Shanghai Comp +9pts (+0.3%) @ 3,474
Shenzhen Comp +142pts (+1%) @ 14,352
ChiNext Comp +24pts (+0.8%) @ 3,026
CHINA DATA No data
Pre market opened @ 28,799 +43pts vs -173pts ADR’s
Worked higher to 29,000 in the first 20 minutes and then traded sideways into lunch in a tight range 28,940/29065. Pm dipped initially to 28,935 level but. Then rallied in the last hour to close at the day high
Chinese Financials +VE (Except CCB -0.2%), Ecommerce strong, even Baba +1.4%
Green energy names rallied strongly after the Biden climate summit.
HONG KONG DATA
After Market Business Confidence Q2 0 vs -17 Q4 (F/cast was +5)
Inflation Rate Mar +0.5% YoY vs +0.3% Feb (F/cast was +0.7%)
The Centre for Health Protection reported 9 new covid cases (vs 14 Thursday) 1 local infections of unknown origin.
Short Selling Friday 14.2% vs 13.8% Thursday
Top Shorts Wharf REIC (1997) 43%, Country Garden (2007) 38%, BankComm (3328) 35%, Bank Of China (3988) 34%, Sino BioPharm (1177) 34%, CCB (939) 32%, Sunny Optical (2382) 30%, Bud Apac (1876) 29%, Hang Lung Ppty (101) 29%,Wuxi Bio (2269) 27%, HK & China Gas (3) 25%, Petrochina (857) 25%
AFTER MARKET NEWS
CBHB (09668.HK) announced that the operating income for the three months ended March 31, 2021 was RMB7.992 billion and net profit RMB3.515 billion.
CM BANK (03968.HK) unveiled the first quarterly report of 2021. Net profit gained 15.2% yearly to RMB32.015 billion. EPS was RMB1.27. Net operating income added 11.1% yearly to RMB84.844 billion.
CHINARES CEMENT (01313.HK) announced first-quarter results ended March 2021. The net profit amounted to HK$1.29 billion, up 15.8% year-on-year EPS was HK$0.185.
The Government announced that a government site comprising two portions on Hoi Fan Road in Tai Kok Tsui will be granted to the Office for Safeguarding National Security of the Central People's Government in the Hong Kong Special Administrative Region (OSNS) for its permanent office premises and ancillary facilities
Centa-City Leading Index (CCL) last tracked at 180.19, up 0.13% weekly. CCL Mass last printed at 182.98 +0.48% weekly.CCL (small-to-medium units) last printed at 180.60, +0.26% weekly.
Centaline Property research pointed out that the three major indices have been ascending and descending altogether in the recent seven weeks, indicating the housing prices are zigzagging to trend up.
*COMMODITIES/RESOURCES: MIXED CNOOC (883 HK -0.12%) reported Q1 revenue +21% YoY to 48.34b yuan in pandemic recovery.
STEEL MAKERS continue to see support amid concerns on output cut, ANGANG (347 HK +1.7%) MAANSHAN (323 HK +1.4%).
COAL MINERS mixed. China will continue to increase coal consumption before decreasing it in the 5-year plan for 2026 to 2030, NDRC said.
CHINA COAL (1898 HK +5.2%) reported IFRS net Q1 of 4.03b yuan vs 1.06b yuan, +280% YoY. Net income was 3.51b, soared 441%. Revenue 44.4b yuan, +61% YoY. YZ COAL (1171 HK -0.5%) SHENHUA (1088 HK -0.1%).
*E-COMMERCE FIRM. UXIN will partner with JD.COM (9618 HK+1.9%) on an online store for used car transactions through JD’s platform. MEITUAN(3690 HK+4.9%) TENCENT(700 HK +1.8%) KUAISHOU(1024 HK +4.5%).
ALIBABA's (9988 HK +1.4%) upside was capped on the news that PBOC seeks to control Ant Group's consumer lending data.
BAIDU (9888 HK +1.1%) and Geely Group announced the formation of their smart EV JV Jidu Auto, plans to invest 50b yuan in making smart cars for the coming 5 years.
*INSURERS FLAT after PING AN (2318 HK +1%) Q1 net income +4.3% YoY to 27.22b yuan, new business value grows 15% YoY during the period. CH LIFE (2628 HK unch) , NCI (1336 HK unch) and CH TAIPING (966 HK unch)
*GREEN ENERGY STRONG on China’s plan to cut usage of coal; XINYI SOLAR (968.HK +7) COMTEC SOLAR (712 HK +54%) XINTE (1799 HK +6%) SOLARGIGA (757 HK +18%) GOLDWIND (2208 HK +3.6%).
*MEDICAL STRONG on hopes the sector would benefit from reform of the health insurance system. The State Council recently issued guidance on establishing and improving the Employee Basic Medical Insurance Scheme.
CHUNLI MED(1858 HK +13%) WEIGAO (1066 HK +8%) AKMEDICAL (1789 HK +14%).
*CHINA PROPERTY WEAK after CH VANKE (2202 HK -5%) Q1 net income 1.29b yuan, missed estimates.
CIFI (884 HK +0.7%) outperformed as it aims to list its rental residence business in a few years. The unit will seek a listing after tripling its portfolio to at least 30b yuan in about three years, its CEO said. It aims to expand assets under management about tenfold to 100b yuan in a decade.
Opened lower but quickly bounced back to flat on good PMI data but then trended lower back to the initial lows (7,036 level) before trading sideways until the last 15mins when it saw a small rally to close +5pts (+0.1%) @ 7,061Data out pre market
Manufacturing Apr 59.6 vs 57 Mar. (F/cast was 56)
Services Apr 58.6 vs 55.5 Mar. (F/cast was 55)
Composite Apr 58.8 vs 55.5 Mar. (F/cast was 55)
Nikkei opened lowered tested down to 28,800 following the US and despite inline inflation data. Then worked higher through the morning despite mixed PMI data to 29,035 around 11am before easing back into lunch. PM the market traded sideways around 28,960 level with a small uptick in the last 15minutes to close -168pts (-0.6%) @ 29,021. Encouraging to see it close above 29,000
Topix followed a similar pattern and closed -8pts (-0.4%) @ 1,915Japanese PM Suga declared the third state of emergency in Tokyo, Osaka, Kyoto and Hyogo from April 25 to May 11.
Inflation Rate Mar -0.2% YoY vs -0.4% Feb (F/cast was -0.1%)
Inflation Rate Mar +0.2% MoM vs +0.1% Feb (F/cast was +0.2%)
Inflation Rate Ex Food and Energy Mar +0.3% YoY vs +0.2% Feb (F/cast was +0.3%)
Core Inflation Rate Mar -0.1% YoY vs -0.4% Feb (F/cast was -0.2%)
Due after market open
Services Apr 48.3 vs 48.3 Mar. (F/cast was 49)
Manufacturing Apr 53.3 vs 52.7 Mar. (F/cast was 53)
Composite Apr 50.2 vs 49.9 Mar. (F/cast was 51)
South Korea confirmed 797 additional COVID-19 cases, bringing the tally to nearly 117,500 infections. Untraceable cases made up 29% of the total over the past two weeks, hitting an all-time high.
Kospi opened lower and tested down to 3,145 level in the first few minutes but having tested a couple to times it worked better to 3,185 just above yesterday’s close and then traded sideways although it dipped around 12:40 to 3,170 but rebounded and continued sideways to close +9pts (+0.2%) @ 3,186
Kosdaq traded in a similar pattern currently +1pts (+0.1%) @ 1,027
Tested yesterday close in initial trades but then worked better to 12,245 around midday, then pulled back before working higher to test 17,300 at the close +203pt (+1.2%)
TSMC (TSM.US) gave greenlight to almost US$2.9 billion in capital budget to ramp up auto chip manufacturing capability. The Taiwanese firm approved the budget to meet higher structural demand and address chip shortage spread challenges across the globe. The funds will be used for the 28nm advanced node capacity at the Nanjing fab, with mass production plans slated for 2H22.
Industrial Production Mar +16.78% YoY vs 2.52% Feb (F/cast was 5.5%)
Retail Sales Mar +12.05% YoY vs 12.81% Feb (F/cast was +9.5%)
M2 Money Supply Mar +8.9% YoY vs 9.12% Feb (F/cast was +8.8%)
Northbound RMB 39,770m Sell 17,980m : 21,790m Buy
Southbound HK$ 13,866m Sell 6,796m : 7,071m Buy
Northbound RMB 49,907m Sell 22,929m : 26,9781m Buy
Southbound HK$ 16,904m Sell 6,881m : 10,023m Buy
MEITUAN (03690.HK) +4.9%
TENCENT (00700.HK) +1.8%
BABA (09988.HK) +1.4%
HKEX (00388.HK) +1.3%
AIA (01299.HK) +1.1%
PING AN (02318.HK) +1%
CCB (00939.HK) +0.9%
HSI & HSCEI Constituents on Move:
ALI HEALTH (00241.HK) +5.3%
KUAISHOU-W (01024.HK) +4.6%
WUXI BIO (02269.HK) +4.4%
NTES (09999.HK) +4%
JD HEALTH (06618.HK) +3.8%
CSPC PHARMA (01093.HK) +3.3%
ENN ENERGY (02688.HK) +3%
TECHTRONIC IND (00669.HK) +2.5%, hitting new high
HSMI & HSSI Constituents on Move:AK MEDICAL (01789.HK) +14%
CIMC ENRIC (03899.HK) +11.1%, hitting new high
POWERLONG CM (09909.HK) + 5.4%, hitting new high
CHINA COAL (01898.HK) +5.3%, hitting new high
MARKET HOURS NEWS.
South Land, package one of "The Southside" project in Wong Chuk Hang station co-developed by RK Properties and MTR CORPORATION (00066.HK), unveiled the first price list of 160 units, measuring 383-937 sq.ft. each. Based on a maximum discount of 18%, the project is priced at $11.461-28.67 million, representing an average floor price of $29,689/ sq.ft.
Alibaba.com, a B2B cross-border trade platform of BABA-SW (09988.HK), posted a 151% annual increment of GMV in its goods in the first quarter. Zhang Kuo, Group Vice President and General Manager of Alibaba.com, said the next three years will represent an earning period for cross-border trade, furthering the group's target is to grow 10 million buyers year-on-year by April 2022, and to grow 100% daily active buyers year-on-year.
Geely Group and BIDU-SW (09888.HK) announced in early 2021 the formation of their smart EV joint venture Jidu Auto. Jidu Auto plans to invest RMB50 billion in smart auto manufacturing for the coming five years, aiming to roll out its first EV model next three years and striving to speed up R&D, revealed CEO Xia Yiping. The carmaker has no sales target yet.
The PBOC is trying to control the enormous consumer lending database of Ant Group, an affiliate of BABA-SW (09988.HK), foreign media reported. The Chinese central bank has requested Ant to transfer the related data of over 700 million users to a state-controlled credit scoring company which will be managed by former PBOC executives, Financial Times quoted people familiar with the matter.
China's Ministry of Industry and Information Technology (MIIT) published the notice on APPs infringing users' rights and interests (4th batch for 2021), naming 93 apps that have yet to complete rectifications up to now. According to the 1Q21 review, MIIT found that app issues on Tencent's MyApp and Xiaomi Market respectively made up 14.22% and 13.81% of the total.
Ant Group and Israel's national fund affirmed their green innovation partnership, signing a memorandum of understanding on creating innovative solutions for afforestation, environmental protection and biodiversity to promote global green development.
LINK REIT (00823.HK) announced that Link has completed rebranding all its wholly-owned retail properties in Mainland China to "Link Plaza”. George Hongchoy, Link’s Chief Executive Officer, said brand alignment is an important step in the company's development strategy in the Mainland market. Rebranding its shopping malls helps promote its brand presence and better position Link for new opportunities in the Mainland market as it continues to pursue its medium-term target Vision 2025.
TENCENT (00700.HK) announced completion of US$4.15-billion issue of notes under a note program yesterday.
Former MEITUAN-W (03690.HK) delivery operation head Yin Bingbing joined the transfer platform Lalamove to act as the vice president of freight department, who is responsible for the management of delivery drivers, Chinese media reported.
Kwu Tung North's first residential site, Area 25, received at least ten tenders, including GREAT EAGLE H (00041.HK), KOWLOON DEV (00034.HK) and CK ASSET (01113.HK), as well as sole bids from HENDERSON LAND (00012.HK), CHINESE EST H (00127.HK) and Chinachem and a joint bid from KAISA GROUP (01638.HK) and Vanke, according to on-site witness, before its tender had closed at noon.
WeChat Pay HK has received significantly more enquiries from merchants and citizens regarding the consumption voucher scheme of the government ever since being picked as one of the scheme's SVF operators. Accordingly, the company pledged to give back all extra gains from the scheme to users or merchants, citing offers for early-bird subscription to e-voucher information. Users will enjoy $10 e-coupons upon registration for the service.
KDTECH (002516.SZ) said on an interactive platform that the company has so far not nailed any official cooperation with EVERG VEHICLE (00708.HK), and their business is still at development stage.
XIAOMI-W (01810.HK) ponders to join the at least RMB1.5 billion financing of Black Sesame Technologies, Bloomberg cited people with the knowledge of the matter. The fundraising will value Black Sesame Technologies, the AI and self-driving chipmaker, at as much as USD1.5 billion, people within the circle said. TENCENT (00700.HK) had purportedly partaken in the last financing of Black Sesame Technologies.
Overnight HIBOR last posted at 0.03524%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.08607%, marking a 1-month low.
Clubhouse garnered 9.6 million downloads in February, reported Sensor Tower. Despite slower install velocity, Clubhouse has sparked the craze for and competition among social audio apps. Sensor Tower data showed that audio-chat apps have amassed nearly 20 million downloads year-to-date, with Clubhouse taking the top spot by 15.3 million installs.
According to the Live-streaming Sales and Marketing Management Methods (Trial) jointly unveiled by seven Chinese authorities, live-streamers engaging in live-streaming sales activities will be divided into studio operators and sales representatives with clear age limit and redlines for their behavior. Live-broadcast sales platforms shall take the lead to help consumers safeguard their legitimate rights, stressed the watchdog in the Methods.
Wells Fargo (WFC.US) is secretly mapping out a plan to relocate Asian regional hub to Singapore from Hong Kong as part of the overhaul plan, Financial Times cited people with the knowledge of the matter. Wells Fargo will gradually establish an Asian hub in Singapore by recruiting new employees and laying off others in Hong Kong, report said. Yet, the bank will not exit the Hong Kong market.
PRE MARKET HOURS NEWS
Tianhong Asset Management announced that the net asset value of Yu'e Bao, Ant Group's money market fund managed by Tianhong, shrank by 18.3% yearly to RMB972.4 billion in the first quarter of 2021.
GALAXY ENT (00027.HK) has recently introduced a voluntary redundancy program for pit managers and supervisors at the casinos, respectively offering them MOP520,000 and MOP380,000 in ex gratia payments, reported Macao Daily News.
Citigroup (C.US) may pocket as much as US$6 billion from the disposal of retail banking units in China and 12 other markets, Bloomberg citing insiders. The sale in Australia has progressed the furthest along, as most potential buyers of the assets are from local corporations, the people said.
After the Macao government had announced yesterday that tourist arrival amounted to 755,000 in March 2021, up 2.6 times yearly, local tourism sector players told Macao Daily that the daily average is set to exceed 40,000 during the "May 1 Golden Week" unless there are unexpected incidents. Yet, the Travel Industry Council reminded hoteliers and SMEs not to gin up their prices for anticipated growth in the gambling hub's visitor footfall during the holiday.
Ericsson To Further Scale Up CN R&D Inputs, Actively Join Local 5G Buildout
Having made substantial progress in 5G buildout in 2020, China is becoming a pivotal driver for developing key 5G functions going ahead, said Chris Houghton, Ericsson's Senior Vice President and Head of Market Area North East Asia at a Beijing meeting.
The Swedish company is ramping up R&D inputs further in China, taking the lead to partake in the country's 5G network construction, Houghton added.
Alibaba Cloud has recently won the tender for four procurement projects of Sealand Securities, comprising exclusive cloud platform, data middle office and digital operation for retail customers. Both sides have inked a strategic cooperation deal to explore in-depth partnership in technology and business middle platforms as well as smart risk management.
State Administration for Market Regulation (SAMR) of Guangzhou announced that it had on 20 April mounted investigations on the food safety of takeaway shops' kitchen, and had talked with the related responsible persons of the takeaway units under MEITUAN-W (03690.HK) and BABA-SW (09988.HK) (BABA.US)'s Ele.me. As a result, the Administration instructed the problematic caterers to take the food with potential safety loophole offline, while deploying rectification on all online eateries. Upon investigation, seven takeaway shop kitchens were ordered to suspend business
XIAOMI-W (01810.HK) President Wang Xiang disclosed at a forum that the company has not yet started manufacturing vehicles, according to Chinese media. He said the early announcement of the decision is due to two reasons: firstly, the company wants to make official announcement to clarify the market rumor; secondly, it hopes early announcement could help capture better global resources for the concerted development of Xiaomi cars.
The Securities and Futures Commission (SFC) announced yesterday a joint operation with Commercial Crime Bureau of the Police against a syndicate suspected of market misconduct and fraud. The operation was a follow-up to the joint operation on 4 and 5 March 2021 against an active and sophisticated syndicate suspected of operating ramp-and-dump market manipulation schemes. It involved a search of the office premises of a Hong Kong-listed company and the residences of its senior executives. The SFC conducted the search with the Police under the Securities and Futures Ordinance for offences related to market manipulation and other market misconduct.
VINDA INT'L (03331.HK) announced that for the first quarter ended 31 March 2021, net profit surged by 46.5% yearly to HK$553 million. Gross margin increased by 1.4 ppts to 38.9% which was mainly due to optimized portfolio mix.
Baltic Dry Bulk Freight Index lifted 40 pts, or 1.5%, to 2,750 pts, marking the peak since October 2010.
Chinese President Xi Jinping gave an important speech via conference call at the Leaders Summit on Climate last night (22 April). Facing unexampled adversities in global environmental governance, Xi believed the international community will have to manifest unprecedented ambition and action, be brave enough to shoulder responsibility, and build a community of life for man and nature. During a climate summit last night, Chinese President Xi Jinping extended warm welcome to the US' return to the multilateral climate pact, cited Xinhua News Agency, after the two largest economies co-declared a joint statement to tackle climate crisis. Beijing is striving for low-carbon green development with an ecosystem-oriented mindset, added Xi.He also pledged to put coal-fired power generation projects under strict control, reported Xinhua. Equally, China aims to strictly limit her coal consumption growth in the 14th Five-Year Plan period and gradually scale it down over the 15th Five-Year Plan period, Xi added. China has also decided to accept the Kigali Amendment to the Montreal Protocol and strengthen her non-carbon dioxide emission control, alongside a launch of national carbon market online trading.
China has never been absent from the fight against global climate change, said Chinese Vice Minister of Foreign Affairs Ma Zhaoxu. China's goals and visions for carbon emission peak and carbon neutrality were indeed key strategic decisions based on sustainable development and her role of building a community with a shared future for mankind. They also indicated the biggest requirements under the Paris Agreement, Ma added.
TSINGTAO BREW (00168.HK) announced that in accordance with the PRC GAAP, net profit amounted to RMB1.022 billion for the first quarter of 2021, up 90.3% yearly. EPS equaled 75.6 fen.
XIAOMI-W (01810.HK) disclosed that on 22 April, it had repurchased at the Stock Exchange 7.40 million shares, involving roughly $197 million.
CSC (06066.HK) announced that in accordance with the PRC GAAP, net profit attributable to the equity holders amounted to RMB1.722 billion for the first quarter of 2021, down 11.7% yearly. EPS equaled 21 fen.
CGN POWER (01816.HK) announced that based on China Accounting Standards, net profit for the first quarter ended 31 March 2021 amounted to RMB2.374 billion, representing a year-on-year increase of 54.9%. EPS equaled 4.7 fen.
ANTON OILFIELD (03337.HK) announced that during the first quarter of 2021, the Group won new orders of approximately RMB1.279 billion, representing an increase of 5% compared to the same period last year. As of 31 March 2021, the Group had order backlog of approximately RMB6.209 billion
SMIC (00981.HK) announced the disposal of its entire 55.87% stakes in SJ Semiconductor Corporation to independent third parties CM BANK (03968.HK), CICC (03908.HK), Suzhou Oriza Rivertown and Suzhou Puhua Chuangyu, including 51 million Series A Preference Shares and 266 million Series B Preference Shares. The total consideration is US$397 million. It is expected that the Company will record a gain of US$231 million.
CHINA VANKE (02202.HK) announced that for the first quarter ended 31 March 2021, the net profit amounted to RMB1.292 billion, representing a year-on-year increase of 3.4%. EPS equaled 11.12 fen.