HSI +333pts (+1.2%) 29,008 HSCEI +39pts (+0.4%) 11,110 T/O HK$281.12bn (+64.4% DoD but ex Tencent placement T/O was HK$166.8b -1.3% DoD)
Markets opened higher PMI data was mixed FTSE initally dipped but now working higher, Dax trended lower and the CAC traded sideways. Some caution ahead of US initial claims.Healthcare leading but Insurance sector weak.
FT Lex’s UK stocks: happy domesticity; suggests that stocks are favourable on a relative basis but concludes 'Even liquidity is not assured at a time when financial collapses such as Archegos and Greensill are delivering small shocks to the system. Prudent investors should heed the old advice of “sell in May and go away”, even if that means a holiday cottage in Cornwall rather than a prohibited trip abroad.'
Construction PMI Mar 50.1 vs 45 Feb (F/cast was 52)
PPI Feb +0.5% MoM vs +1.7% Jan revised (F/cast was +0.4%)
PPI Feb +1.5% YoY vs +0.4% Jan revised (F/cast was +1.1%)
Factory Orders Feb +1.2% MoM vs +0.8% Jan revised (F/cast was+0.9%)
Construction PMI Mar 47.5 vs 41 Feb (F/cast was 48)
Balance of Trade Feb Euro -5.25b vs -4.19b Jan (F/cast was-3.2b )
Current Account Feb Euro -2.6b vs -2b Jan revised (F/cast was -1.8b)
Construction PMI Mar 49.7 vs 44 Feb (F/cast was 51)
Construction PMI Mar 61.7 vs 53.3 Feb (F/cast was 54.1)
Opened in Asian time Dow +20pts, S&P and NDX +0.1% but have worked better in Asian time but dipped towards the open Dow flat S&P +0.3% and NDX +1%Data due Initial Claims, Four Week Average Claims, Continuing Claims,EIA Natural Gas Report.
CHINA CSI 300 closed +9pts (+0.2%) @ 5,112
CSI 300 lower but rallied into the green in early trades only to sell down before rallying back into the green and working slightly higher. PM traded sideways for the first hour and then rallied to the day high before easing back to the lunch time level and trading sideways into the close. Looks like Team China at work as PBOC policy and poor international relations overhang the market. The yuan remains weak, as the dollar strengthens with the prospect of a strong recovery. PBOC happy to see the weakness which is +VE for exporters and says it wants a more flexibile yuan.
Sector wise; leaders were medical-aesthetics and steel. Laggards were carbon neutral and shipping concept sectors
Hainan-concept names advanced after China rolled out new measures aimed at making it easier for companies to set up in Hainan, including in gaming, civil aviation, aerospace, pharmaceutical and new energy vehicle sectors.
Shanghai Comp +3pts (+0.1%) @ 3,483
Shenzhen Comp +11pts (+0.1%) @ 13,990
ChiNext Comp +2pts (+0.1%) @ 2,911
China Association of Automobile Manufacturers (CAAM).March volume of China's auto sector was estimated at 2.38 million units in March 2021, up 64% MoM and 66.8% YoY
Pre mareket opened @ 28,604 -71pts vs -153pts ADR’s
Initial weakness on Tencent placement and some early margin selling.Broader market worked higher through the morning to 28,962 but eased back into lunch. PM initally dipped initially but then worked higher but resistance at 29,055 level despite being tested several times and eased back slightly into the close. A good rebound from the negative sentiment caused by TENCENT's share sale. Sentiment helped by FOMC minutes indicating accommodative policies to remain for sometime and they downplayed the inflation risks despite the recent surge in Treasury yields preferring to stress the stronger growth prospects.
My favourite Techtronics hit a new high today at HK$141.40; I’ve been recommending this stock for the past few years, when it was trading around HK$50. It has good management which is focused on the core business; its continued success
HONG KONG DATA
Pre Market PMI Mar 50.5 vs 50.2 Feb revised (F/cast was 51)
The highest reading since March 2018, amid reducing COVID-19 case numbers and an easing of some restrictions. Employment rose the most in almost a decade; new order trends improved; and buying levels rose after falling in the previous eight months, with the rate of growth hit a three-year high. Meantime, output was broadly unchanged, while new business from China fell at a slower rate. At the same time, the rate of lengthening in suppliers' delivery time eased. On the cost front, purchase costs rose solidly but less than that seen in February while staff costs increased for the first time in four months. Output prices continued to fall, though the rate of drop was the weakest in 21 months. Looking ahead, concerns around the impact of the pandemic led to a pessimistic outlook for the coming year, reversing the optimism seen in February.
The Centre for Health Protection reported 10 new covid cases (vs 8 cases Wednesday) 1 from unknown origin.
LINKLOGIS–W (09959.HK), debut’s Thursday closed at $18.28 in gray market, up 4% or $0.7 against the listing price of $17.58, on volume of 17.2 million shares andturnover of $314 million, PhillipMart data showed. Excluding the handling fees, a book gain of $350 was reported per board lot of 500 shares.
Short Selling Thursday 4.6% vs 18.1% Wednesday
Top Shorts Haidilao (6862) 49%, Country Garden (2007) 47%, Bud Pac (1876) 44%, Mengniu Dairy (2319) 35%, Bankcomm (3328) 31%, Ping An (2318) 31%, Sino BioPharm (1177) 29%, Galaxy Ent (27) 28%, Bank of China (3988) 28%, Sands China (1928) 27%.
AFTER MARKET NEWS
NTES-S (09999.HK)'s Yanxuan disclosed that the group at this moment has no vehicle manufacturing plan, underscoring that they tend to work with dealers for now on vehicle sale business. NTES-S hopes to subsidize its clients with the cash and money it earns, according to Yanxuan.
CHINA HUARONG (02799.HK) is preparing to strip out non-core and loss-making assets as part of its broader plan to boost profitability and avoid debt restructuring or government recapitalization, Bloomberg citing sources. The Chinese company has received positive initial feedback from the watchdog after submitting the plan, sources said.
CHINA SCE GROUP (01966.HK) announced that the Group achieved an accumulated contracted sales amount of approximately RMB26.032 billion and an accumulated contracted sales area of 1.4933 million square metres for the first three months of 2021, representing a year-on-year increase of 101% and 66%, respectively. The average selling price for the period was RMB17,432 per square metre.
HKEX (00388.HK) announced addition of BILIBILI-SW (09626.HK) into the list of Volatility Control Mechanism (VCM) securities, with effect from 15 April 2021.
Hutchison China MediTech Limited (HCM.US) announced that it has entered into a definitive agreement for the issuance of US$100 million of shares at a price equivalent to US$30.5 per American Depositary Share (ADS) via a private placement to funds affiliated with Baring Private Equity Asia (BPEA). Christian Hogg, Chief Executive Officer of HUTCHMED, said the group expects significant growth of business this year as it looks to accelerate oncology revenues from ELUNATE and SULANDA.
TRIP.COM-S (09961.HK), on debut for its secondary IPO in Hong Kong, had its international placing reported over-subscription, according to market sources. It has started its secondary IPO in Hong Kong from today through 13 April. The maximum offer price is HK$333 per share. Entry fee. is around HK$16,817.78 per board lot of 50 shares.
TENCENT (00700.HK) and SAIC MOTOR (600104.SH) established a joint cybersecurity lab for profound cooperation on cybersecurity standards related to intelligent connected vehicles (ICVs), attack and defense technologies, as well as R&D and operation of cybersecurity technologies. This could raise US suspicions about links to the military that could result in sanctions.
PCCW (00008.HK) is working with its financial advisers on its proposed sale of PCCW Solutions, which may be valued over US$1.0 billion, Bloomberg learnt from insiders. Several telecom carriers and priva
te equity funds have shown interest in partial acquisition, according to the report.
China Association for Vaccines President Feng Duojia revealed at the Peking University seminar that China's COVID-19 vaccine production capacity can reach around 5 billion doses a year in 2022, reported Beijing Daily. He anticipated almost 70% of the Chinese people to gradually be vaccinated by the end of 2021.
FAST RETAIL-DRS (06288.HK) announced interim results ended February 2021. Profit attributable to owners of the Parent amounted to JPY105.868 billion, up 5.4% yearly. EPSequaled JPY1,036.76. Interim DPS. was JPY240.
An application has been made by the Company for resumption of trading in its Hong Kong depositary receipts with effect from tomorrow.
Cenovus Energy Director Frank Sixt told reporters that the company does not intend to sell its Asian assets and that they are satisfied with relevant performances and their relationship with CNOOC (00883.HK), after the street had rumored earlier that the energy firm was pondering over disposal of Husky Energy's Asia-Pacific business.
Centa Valuation Index (Major Banks) (CVI) last stood at 81.25 this week, down 0.98 pts weekly. CVI softened for two weeks following a weekly surge of 9.38 pts, standing firmly around 80, said the research department of Centaline Property. This reflected bankers' rational stance on mortgage and a persistently upbeat view on the property market. They anticipated the index to hold steady at 80 in short run, foretelling a home price uptrend. Interesting to see that there has not been a re-rating after CY Leung said the HK administration was to focus on the housing situation in Hong Kong.
*PETROCHEMS WEAK after CNOOC (883.HK -3.9%) off intraday lows of over -5% announced that it is proposing to change its independent auditor. CHINA OILFIELD (2883 HK -4.3%) PETROCHINA (857 HK -0.4%).
*RESOURCE/MATERIALS STRONG JIANGXI COPPER (358 HK +5.4%) speculation the Covid case surge in Chile will curb copper supply, which may push prices higher. CHALCO (2600 HK +4.4%) ANGANG (347 HK +0.9%) MAANSHAN (323 HK +2%).
*E-COMMERCE MIXED after major shareholder Prosus placed 2% of TENCENT (700 HK -1.5%) stock; it managed to trade above its placement price of HK$595, which was priced at the top end of the price range. Prosus' raised $14.7b selling 192m Tencent shares; reducing its holding to just under 29% but remaining the biggest shareholder. ALIBABA (9988 HK +0.5%) BIDU (9888 HK -1.3%) NTES (9999 HK +1.2%).
*TECH & COMPONENTS STRONG on components/chips shortgage. News reported that Macbook and IPad production is being delayed due to component shortages. AAC (2018 HK +2.5%) QTECH (1478 HK +2.6%) SUNNY OPTICAL (2382 HK +1.8%) HUA HONG (1347 HK +5.4%).
*AUTOS MIXED after sales data. Sales volume of China's auto sector was estimated at 2.38 million units in March 2021, up 64% monthly and 66.8% yearly, Chinese media citing data from China Association of Automobile Manufacturers (CAAM) released in the morning session.
BYD (1211 HK +0.1%) sales +33% YoY to 40,817 units with new-energy vehicle sales surged 97.6% to 24,218 in March. Production grew 26.4% to 39,007 units.
GEELY AUTO (175 HK+2%) sales +37% last month while Q1 sales +62% to 334,000 units, reaching 22% of its annual sales target.
SAIC Motor may cut production by 200,000 units (or 3.2% of its 2021 sales f/cast) due to chips shortage. GAC (2238 HK -0.7%) DONGFENG (489 HK +2.2%).
*OTHER MOVERS: GOME (493 HK -11%) agrees to pay its controlling shareholder 17.9b yuan to lease three properties, proposing the issue and transfer of new shares as well as an entire stake in a subsidiary as consideration.
KINGBOARD (148 HK +7%) and KINGBOARD LAMINATES (1888.HK+4.5%) jumped after they announced in a preliminary statement that their Q1 net profits more than doubled compared with the six months ended June because of increased in selling prices.
SINOPHARM (1099 HK +4.9%) and SINO BIOPHARM (1177 HK +3%) as press reports Chinese Covid-19 vaccines are starting to get international recognition.
ASX 200 opened higher, worked higher to 7,102 then drifted lower before an final surge to close +71pts (+1%) @ 6,999
Nikkei opened lower, despite good pre market data as covid cases surge and caution ahead of earnings that kick off next week. It sold down to 29,516 in the first hour before rallying back to test 29,650 only to ease lower into lunch. PM open lower but retested 29,650 resistance, again eased back but then worked higher with a rally at the end to close -22pts (-0.07%) @ 29,709
Topix traded in a similar fashion, initially selling down to 1,950 and then trading sideways into lunch. PM opened lower worked back to 1,950 and traded sideways before a spike close -16pts (-0.8%) @1,952
Data Pre Market
Current Account Feb 2916.9b vs Y646.8b Jan (F/cast was 1900b)
Foreigner Stock Investment Y978.4b was Y-852.4b prior
Foreigner Bond Investment Y377b vs Y+200.7b prior
Consumer Confidence Mar 36.1 vs 33.8 Feb (F/cast was 36)
At 1pmEco Watchers Current Mar 49 vs 41.3 Feb (F/cast was 43)
Eco Watchers Outlook Mar 49.8 vs 51.3 Feb (F/cast was 52)
Some initial profit taking after Fed minutes and news average monthly household spending fell 2.3 percent on year in 2020 as the COVID-19 pandemic hurt private consumption but news that Fitch raised its ratings on Hyundai and Kia helped along with the positive prelim readings from LG and Samsung.
Kospi opened lower and sold down to 3,122 in first 30 mins but then rallied and worked higher to test 3,145 around midday but then reversed and dipped into the red before working better with a spike at the end to close +6pts (+0.2%) @ 3,143.
Kosdaq traded in a similar pattern but open higher, sold down to 970 then rallied to test 980 several times; eased back before working higher to close +9pts (+0.9%) @ 982
opened lower and tested 16,750 in early trades following mixed US and concerns about increased tension with China but then worked higher initial resistance at 16,900 but then pushed through to 16,927 before easing slightly to close +111pts (+0.7%) @ 16,926
Wholesale Prices Mar +4.36% vs -0.02% Feb revised (F/cast was +2.1%)
Inflation Rate Mar +0.34% MoM vs -0.05% Feb revised (F/cast was +0.2%)
Inflation Rate Mar +1.26% YoY vs +1.4% Feb revised (F/cast was +1.4%)
Northbound RMB 42,158m Sell 21,737m : 20,422m Buy
Southbound HK$ 21,257m Sell 9,508m : 11,749m Buy
Northbound RMB 42,989m Sell 21,688m : 21,300m Buy
Southbound HK$ 19,548m Sell 8,530m : 11,018m Buy
AIA (01299.HK) +6.2%
TENCENT (00700.HK) -1.5%
HKEX (00388.HK) +1.5%
MEITUAN (03690.HK) + 0.9%
CCB (00939.HK) +0.8%
BABA (09988.HK) +0.5%
PING AN (02318.HK) -0.1%
HSI & HSCEI Constituents on Move:
SHENZHOU INTL (02313.HK) +7.1%
TECHTRONIC IND (00669.HK) +5.6%, hitting new high
CHINA FEIHE (06186.HK) +5.5%
MENGNIU DAIRY (02319.HK) +4.4%
CNOOC (00883.HK) -3.9%
CHINA RES BEER (00291.HK) +3.7%
BUD APAC (01876.HK) + 3.5%
ANTA SPORTS (02020.HK) +3.3%
SINO BIOPHARM (01177.HK) +3.1%
HSMI & HSSI Constituents on Move:gOME RETAIL (00493.HK) -11.4%
POWERLONG CM (09909.HK) +10.7%
SSY GROUP (02005.HK) +10.7%
KINGBOARD HLDG (00148.HK) +7.2%, hitting new high
U-PRESID CHINA (00220.HK) +6.2%, hitting new high
CHOW SANG SANG (00116.HK) +4.9%, hitting new high
TONGDAO LIEPIN (06100.HK) +4.8%, hitting new high
MARKET HOURS NEWS.
The U.S. proposed to the 139 countries partaking in the Organization for Economic Cooperation and Development (OECD)'s negotiations on digital taxation and global minimum levies that nations should be allowed to tax corporate profits based on their revenues within borders, Bloomberg citing sources. Equally, Washington proposed to apply the tax formula to all multinational corporations instead of just internet firms.
Apple (AAPL.US) plans to argue during its defense against Epic Games' antitrust lawsuit that developers and consumers will suffer if Epic Games wins in the case, Bloomberg reported. The US tech giant also criticized Epic Games of launching the fight via a carefully planned public relation campaign, in an attempt to set up its own payment system and app store on the iOS platform.
HSBC plans to allow a maximum of 50% occupancy in its Hong Kong offices from next Monday (April 12), citing the declining COVID caseload in the city, according to an internal memo seen by Bloomberg. The London-based bank had previously announced that only critical staff is allowed to come back to the office.
City University of Hong Kong announced the Consumer Confidence Index (CCI) of the cross-strait region, Hong Kong and Macau for the first quarter of 2021. The overall CCI for Hong Kong is 62.4, down 2.7% quarter on quarter, but up 12.8% year on year (YoY). All the scores are lower than 77, indicating that Hong Kong consumers have not regained confidence in any of these aspects. There were decreases in confidence levels in four main aspects: Property Purchases, Commodity Prices, Stock Investments and Employment. The sub-index of Property Purchases saw the steepest decrease of 16.2% compared with the last quarter.
Tokyo Governor Yuriko Koike said she would request Japanese central government to take emergency measures in the capital region to stem the surging caseload of novel coronavirus infections. Tokyo today confirmed 545 additional cases, a new record since early February.
FAST RETAIL-DRS (06288.HK) announced that during the six-month period ended February 28, 2021, consolidated revenue declined slightly to JPY1.2028 trillion, a 0.5% decrease compared to the same period a year ago; profit attributable to the owners of the parent increased 5.4% to JPY105.8 billion.
XIAOMI-W (01810.HK) announced to revise the suggested retail prices of some Mi TV and Redmi TV models. It mentioned the sharp price volatility in core TV components including display panels and chips, under global market supply change, pandemic and forex change. The group expected a continuous price hike in core components for a lengthy period of time.
Apple (AAPL.US) has partially postponed production of MacBooks and iPads due to the worldwide component shortage, the Nikkei reported.
At the request of FAST RETAIL-DRS (06288.HK), trading in its Hong Kong depositary receipts on The Stock Exchange of Hong Kong Limited will be halted with effect from 1:00 p.m. on Thursday, April 8, 2021, pending the release of the interim results announcement of the Company and its subsidiaries for the six months ended February 28, 2021, which constitutes inside information. The stock posted flattish price with zero transaction before trading halt.
CANSINOBIO-B (06185.HK) announced that the Recombinant Novel Coronavirus Vaccine (Adenovirus Type 5 Vector) (trade name: Convidecia) has been granted emergency use authorization by the Instituto de Salud Publica de Chile (ISP).
Citibank said in the latest findings of HK Affluent Study for 2020 that there are at least 515,000 multi-millionaires in the city, up around 11,000 from 1H20 to a new record. The median of their fortune is $15.50 million, shrinking from $17 million in 1H20's findings, according to the study. In terms of their investment portfolios, 71% of their assets were allocated on property, and 15% on cash and deposits and 7% on stocks.
The U.S. Federal Trade Commission (FTC) and multiple U.S. state governments asked a federal court to reject Facebook (FB.US)'s request to dismiss material antitrust lawsuits filed against the latter last December. The FTC said Facebook acquired Instagram as CEO Mark Zuckerberg regarded the photo-sharing app as a major competitor, according to court filings. The takeover of WhatsApp was to neutralize a nascent competition threat. Hence, the FTC asked the court to order the social media giant to dump these assets.
Peter Thiel, a renowned US venture capitalist and co-founder of PayPal, expressed concern that China was using bitcoin to sabotage the United States. Thiel claimed the crypto would threaten the US dollar, adding China would rather see two reserve currencies globally than the US dollar being designated as the default reserve currency.
HKD Index stabilized this morning, and the spot USD T/T rate is last at 7.7836. The banking balance is expected to be $457.464 billion next Monday.
In March 2021, 37 Chinese mobile game developers were ranked among the top 100 grossing developers globally, with aggregate revenue over US$2.29 billion, Sensor Tower wrote in a report. In particular, TENCENT (00700.HK), NTES-S (09999.HK) and miHoYo were the top three grossing Chinese game developers, according to the report.
Sales volume of China's auto sector was estimated at 2.38 million units in March 2021, up 64% monthly and 66.8% yearly, Chinese media citing data from China Association of Automobile Manufacturers (CAAM).
TENCENT (00700.HK)'s Honor of Kings topped the world's highest-earning mobile game chart in March, with turnover rising 63% yearly to almost US$258 million, according to Sensor Tower's report. 96.3% of its revenue came from China, followed by 1.6% and 1.2% from Thailand and Taiwan. TENCENT's PUBG Mobile was the second highest-grossing mobile game, amassing nearly US$241 million.
In regards to auto chip supply, BYD COMPANY (01211.HK) illustrated at a briefing that the company will on one hand prepare for any risk pursuant to the delivery forecast this year with a bid to lock capacity, while on the other hand keeping frequent communication with upstream suppliers so as to reach pivotal consensus on auto semiconductor and enhance capacity priority, according to Chinese media.
HSBC HOLDINGS (00005.HK) is moving over 1,200 staff in Britain's retail customer service division to permanent working from home contracts, Reuters citing a local employment union. The London-based lender is in discussion with relevant colleagues on the issue, a spokesperson replied to the press.
GOME RETAIL (00493.HK)'s offline stores will begin to make profits by guiding the market through both online and offline means, as Chinese media cited Huang Guangyu, the group's controlling shareholder and founder. He projected to derive an RMB800-million earnings from supply chain platforms this year. Huang suggested losses amid the pandemic were minimal, adding GOME RETAIL will not rule out financing to introduce cash flows for other segments.
PRE MARKET HOURS NEWS
The White House’s US$174-billion proposal to boost electric vehicles consists of a US$100-billion subsidy to vehicle owners and US$15-billion funds to build 500,000 new electric vehicle charging stations, Reuters citing a Transportation Department email addressed to congressional staff.
HKD Index continued to weaken, and the spot USD T/T rate was last at 7.7845.
BYD COMPANY (01211.HK) released four new vehicles at a Chongqing launch event, namely the Qin Plus EV, the 2021 Tang EV, the Song Plus EV, and the 2021 e2, reported Shanghai Securities News. All of the above models are equipped with the Blade Battery.
TENCENT (00700.HK) announced that the Company was informed by Prosus, which is majority owned by Naspers and is a controlling shareholder of the Company, that its wholly-owned subsidiary, MIH TC, has entered into a placing agreement with the placing agents on 8 April in relation to the disposal of nearly 192 million Shares, representing approximately 2% of the total number of issued Shares, for a total consideration of HK$114.175 billion. Immediately upon completion of the Disposal, Prosus will indirectly hold 2.769 billion Shares, representing approximately 28.86% of the total number of issued Shares, and Naspers, Prosus and MIH TC will cease to be controlling shareholders of the Company. Prosus announced that it will not sell further Shares for at least the next three years, in line with its long-term belief in the potential of the Company’s business.
Tencent’s ADR closed at HK$608.631 (equivalent), down 3.3% from TENCENT (00700.HK)'s closing price of HK$629.5 yesterday. According to filings, Tencent's substantial shareholder Prosus would sell up to 191.89 million Tencent shares through its subsidiary, MIH TC Holdings.
RONSHINECHINA (03301.HK) announced that during the month ended March 2021, total contracted sales amounted to RMB15.536 billion, up 98.1% yearly.
XIAOMI-W (01810.HK) disclosed that on 7 April, it had through the Stock Exchange repurchased 18.8734 million shares, involving roughly $499 million. The Chinese tech firm has to date repurchased 45.846 million shares.
CST GROUP (00985.HK) announced that on 7 April, the Company, acquired a total of 4 million CNOOC (00883.HK) shares on the open market at an aggregate consideration of HK$32.732 million at average price of HK$8.183 per share.
CHINA COAL (01898.HK) has issued a positive profit alert, expecting profit attributable to equity holders for the three months ended 31 March 2021 of RMB3.937-4.042 billion, representing a year-on-year increase of 272-282%.
KINGBOARD HLDG (00148.HK) and KB LAMINATES (01888.HK) jointly announced that the KBH Group (including KB LAMINATES) is expecting to record an increase of over 100% in the net profit for the three months ended 31 March 2021 as compared with the six months ended 30 June 2020. This is mainly attributable to the growth in the unit selling price of the products of various divisions, namely laminates division, printed circuit boards division and chemical division.