Tuesday marks the one-year anniversary of the market’s bottom as the coronavirus pandemic sent stocks tumbling.
Coordinated sanctions on China over human rights raised fears that the wolf warrior attitude against individual nations that ‘annoy’ China will now backfire.
HSI -388pts (-1.3%) 28,497 HSCEI -196pts (-1.7%) 11,111 T/O HK$166.58bn (+24.1% DoD)
Markets opened lower following the lead from Asia and worries over third wave of covid but are working higher. Tech weak after the lacklustre debut of Baidu in Hong Kong.
UK data was mixed but unemployment surprisingly fell. Israel’s general election being watched but too close to call.
Zur Rose Group surged on Morgan Stanley initiated coverage of the stock with an “overweight” rating.
Volvo fell weak after warning that the global shortage of semiconductors would affect its production in the second quarter.
Claimant Change Feb 86.6k vs -20.8k Jan revised (F/cast was -17k)
Employment Change Dec -147k vs -114k Nov (F/cast was -140k) Unemployment Rate Jan 5% vs 5.1% Dec (F/cast was 5.1%)
Average Earnings Inc Bonus Jan +4.8% vs +4.7% Dec (F/cast was +4.8%)
Average Earnings Ex Bonus Jan +4.2% vs +4.1% Dec (F/cast was +4.3%)
CBI Industrial Trends Orders Mar -5 vs -24 Feb (F/cast was -19)
30yr Gilt Auction 1.295% vs 1.302%
Opened Dow +38pts but have eased during Asia hours and fell as Europe opened Dow -136pts, S&P -0.4% and NDX -0.2%
Pre market Cruise operators weak along with Airlines.
ViacomCBS, weak after saying it would offer more stock for sale. The shares are up more than 700% since last March.
Current Account Q4 US$-188.5b vs -180.9b Q3 (F/cast was -190b)
Redbook -17.6% MoM vs -17.9% prior
Redbook +9.4% YoY vs +8.5% prior
New Home Sales, Richmond Fed Manufacturing Index, API crude Oil Stocks
Powell Testimoney, Brainard Speech
CHINA CSI 300 closed -48pts (-1%) @ 5,009
CSI 300 opened flat sold down 20pts and then retested Monday’s close but failed and trended lower for the rest of the morning. At lunch -73pts (-1.4%) @ 4,985. PM saw the market effectively trade sideways until 2:10pm when the market dipped to the day low (4,966) around 2:20pm after which the market worked higher into the close.
Concerns over futures coordinated sanctions and tight liquidity from the PBoC the main concerns along with earnings from Hong Kong listed companies. Most sectors fell, relative outperforms were: gas and heating, securities, wine, and communications equipment.
Laggards were non-ferrous metals, coal, chemical fiber, steel, tourism, electricity, mineral products dropped most.
Shanghai Comp -32pts (-0.9%) @ 3,412
Shenzhen Comp -153pts (-1.1%) @ 13,607
ChiNext -33pts (-1.2%) @ 2,809
Pre Market opened @ 29,008 +123pts vs +176pts ADR’s but saw initial selling, likely margin calls after two down days, to yesterdays close. A small bounce but then sold down as China tracked lower. Morning low was 28,428 but then an uptick; at lunch -340pts. PM opened lower, around the morning low, then bounced but only to trend lower to the day low (28,376) around 2:15pm before working higher for the rest of the afternoon to 28,520 but ticked lower in the closing auction.
Broad weakness with Ecommerce (had opened strongly) and Financials leading the declines with Baidu’s IPO closing flat. China Traders sold net $566.5m HK shares, most since March 15. Market focus was on China’s international relations, concerns about the impact of the PBoC trying reign in debt and the potential for more bond defaults and Hong Kong earnings; of which there were a lot and they were mixed. More came out after market. Tencent and Xiaomi report Wednesday.
HONG KONG DATA
The rateable values of four core districts in Hong Kong broadly descended, as Hong Kong Economic Journal cited Rating and Valuation Department's 2021/22 rateable values.
The overall rateable values of shops and commercial units in the city for next year fell 10.2%, where Causeway Bay and Mong Kok tracked more acute downfall at over 30% YoY broadly.
The Centre for Health Protection reported 12 new covid cases (vs 18 Monday) 1 from unknown sources.
SHORT SELLING Tuesday vs 11.7% Monday
Top Shorts Bud Apac (1876) 71%, Bank Of China (3988) 43%, China Life (2628) 34%, Ping An (2318) 33%, Sands China (1928) 33%, ICBC (1398) 33%, BoCHK (2388) 32%, HSBC (5) 31%, AAC Tech (2018) 30%, AIA (1299) 30%, MTRC (66) 27%, CCB (939) 27%, Hengan (1044) 25%.
BIDU-SW (09888.HK), concluded the trade at $252, flattish with the listing price, onvolume of 14.62 million shares and turnover of $3.702 billion.
EARNINGs due Wednesday include Kingdee International Software (268) , Dah Sing Fin (440) TVB (511), Shenzhen Expressway (548), Haitong Sec (665), Tencent (700), Hopson (754), Maoye (848), Petrochina (857), Emperor Watch (887), China Yurun (1068), Harbin Electric (1133), Yashili (1230), New China Life Insurance (1336), Xiaomi (1810), Zhaojin Mining (1818), China Coal (1898), BAIC (1958), Anta (2020), China Mengniu (2319), China Oilfield (2883), China State Construction (3311), Bocom (3329).
AFTER MARKET NEWS
CHINA LIT (00772.HK)’s management said films and drama episodes under sectors related to the group's IP had been undermined amid the 2020 pandemic. Currently, China's film market seems to be surpassing global peers in terms of revival. The group also foresaw accelerating sector demand for CHINA LIT's IP.
GEELY AUTO (00175.HK) after market press conference CEO Gui Sheng Yue, at the results conference, conceded that 2020 marked the toughest year for the company with in-line results performance. Having said that, the CEO believed the situation has hit rock bottom since the company has finished shifting its production generation from 3.0 to 4.0. Amid the cycle ending for 3.0 generation, the company was challenged in terms of competitiveness and profit. Yet during 2H20, 4.0 products generated so much steam that new product sales were overwhelming, showing successful strategic deployment. The CEO assumed the company to re-embrace the upswing as in 2016 starting from 2021.CEO Gui Shengyue said the Geely-Volvo merger plan had been finalized last month. Both sides will combine their powertrain operations including engines and transmissions systems. However, the parties have no intention to proceed with the listing plan through merger, Gui added. Executive Director An Cong Hui disclosed Lynk&Co is setting foot this year in European developed countries, where delivery is beginning in April. While the chip shortage issue is yet to bring material impacts to the carmaker, the group will spare no efforts in bringing down the loss to the minimum, pledged An.
BILIBILI-SW (09626.HK) announced that the final offer prices for both the International Offering and the Hong Kong Public Offering have been set at HK$808 per Offer Share The gross proceeds from the Global Offering, before deducting underwriting fees and the offering expenses, are expected to be approximately HK$20.2 billion (assuming the Over-allotment Option is not exercised).
The Lands Department (LandsD) announced that a residential site and a commercial site in the 2020-21 Land Sale Programme will be disposed of by public tender. The two sites are Fanling Sheung Shui Town Lot No. 279 at Area 25, Kwu Tung, New Territories, and Inland Lot No. 8945 at Caroline Hill Road, Causeway Bay, Hong Kong. The tender invitation for Fanling Sheung Shui Town Lot No. 279 will commence on March 26 and close on April 23. The tender invitation for Inland Lot No. 8945 will commence on March 26 and close on May 7.
EVERSUNSHINE LS (01995.HK) announced that the Company proposes to change the English name of the Company from “Ever Sunshine Lifestyle Services Group Limited” to “CIFI Ever Sunshine Services Group Limited”.
Hurun Research Institute unveiled the list of China Top 100 Most Valuable Consumer Goods Companies. Huawei topped the chart with an RMB1.1-trillion market cap, roughly doubling Midea's market value (RMB580 billion) and Haitian Flavouring's (RMB500 billion). They were closely followed by BYD (RMB490 billion) and Xiaomi (RMB460 billion).
SMOORE INTL (06969.HK) announced that the Board has noted the recent unusual fluctuations in the price and trading volume of the shares of the Company. To the belief of the Directors, investors in the industry may be reacting to a publication yesterday from the MIIT seeking public opinion on the Draft Decision on Amending the Regulation for the Implementation of the Tobacco Monopoly Law of the PRC for strengthening the regulation of e-cigarettes and new tobacco products in the PRC.
China's MIIT published the Decision on Amending the Implementation of the Law on Tobacco Monopoly of the PRC (Draft for Comments), bringing the rules governing new tobacco products like e-cigarettes in line with those for traditional cigarettes. While tougher oversight is needed for the vaping market chaos, Beijing Tobacco Control Association (BJTCA) did not recommend placing e-cigarettes under tobacco monopoly regulation, cited Beijing Daily. Rather, BJTCA suggested engaging health departments, food and drug administration units or SAMR in vape supervision.
Fitch Ratings commented that CKH HOLDINGS (00001.HK)'s CK Hutchison Group Telecom (CKHT) has adequate financial flexibility to maintain its underlying credit ratings. The timely sale of its tower portfolio will help the company assuage pressure on its free cash flow amid CAPEX expansion in Britain, wrote the ratings agency.
After Market Results
CH MODERN D (01117.HK) announced annual result ended December 2020. The revenue rose 9.2% year on year to RMB6.02 billion. The net profit amounted to RMB770 million, up 125.6% yearly. EPS. was 12.07 fen. A final dividend of RMB0.02 was declared.
LIFESTYLE CHI (02136.HK) announced annual result ended December 2020. The loss swung into profit of RMB213 million. EPS. was RMB0.145. No dividend was declared.
SINOPEC KANTONS (00934.HK) announced annual result ended December 2020. The net profit amounted to HK$2.302 billion, up 79.1% yearly. EPS. for continuing operations was HK50.97 cents. A final dividend of HK12 cents was declared against a dividend of HK12 cents in the corresponding period of the previous year.
HAIDILAO (06862.HK) announced annual result ended December 2020. The revenue rose 7.8% year on year to RMB28.614 billion. The net profit amounted to RMB309 million, down 86.8%. EPS was RMB0.06. A final dividend of HK$0.021 was declared. The Group’s profits have experienced a significant decline during the year. Such operating results have undoubtedly sounded the alarm for the management and exposed their management shortcomings and deficiencies in response capabilities, which are not related to COVID-19 epidemic but the management’s own problems. For the future, the Company’s management will continue to adhere to the management philosophy of “aligned interests and disciplined management”, and assess whether core tasks such as store process systems and business operations are truly fully implemented, and ensure that store managers, family heads, coaches and the Board form a linkage model, so that the Company can develop in a sustainable and healthy manner.
WUXI BIO (02269.HK) announced annual result ended December 2020. The revenue rose 40.9% year on year to RMB5.612 billion. The net profit amounted to RMB1.689 billion, up 66.6% yearly. EPS was RMB0.43. No dividend was declared.
PICC P&C (02328.HK) announced annual result ended December 2020. The net profit amounted to RMB20.868 billion, down 14.1% yearly. EPS was RMB0.938. A final dividend of RMB0.375 was declared against a dividend of RMB0.461 in the corresponding period of the previous year. Gross written premiums was almost flattish yearly at RMB433.187 billion.
SINO-OCEAN GP (03377.HK) announced annual result ended December 2020. The net profit amounted to RMB2.866 billion, up 7.9% yearly. EPS was RMB0.376. A final dividend of 7.5 fen was declared. The full-year dividend was 13.1 fen.
YUE YUEN IND (00551.HK) announced annual result ended December 2020. The profit swung into loss of US$90.791 million. LPS was US5.64 cents. No dividend was declared.
KINGSOFT (03888.HK) announced annual result ended December 2020. The Company swung into profit of RMB10.045 billion from loss of RMB1.546 billion in a year ago. EPS was RMB7.35. A final dividend of HK$0.2 was declared, against HK$0.1 in the year-ago period.
HENDERSON LAND (00012.HK) announced the results for the year ended 31 December 2020. Net profit amounted to HK$10.192 billion, down 40% yearly. EPS was HK$2.11. A final DPS of HK$1.3 was declared. The total DPS for the year will amount to HK$1.8. Underlying profit was HK$14.899 billion, up 1.8% annually. The Group’s underlying profit in this financial year included a profit contribution of HK$3.629 billion arising from the transfer of the Group’s equity interests in the company owning certain land lots in Wo Shang Wai, the New Territories. Underlying EPS was HK$3.08.
KUAISHOU-W (01024.HK) announced annual results ended December 2020. Loss deepened to RMB116.635 billion from RMB19.652 billion in the previous year. LPS equaled RMB125.25. No dividend was declared. During the year, non-IFRS adjusted loss was RMB7.949 billion.
AGILE GROUP (03383.HK)'s FY20 pre-sale value amounted to RMB138.19 billion, representing a 17.1% YoY increase. The group's targeted FY21 pre-sale value was fixed at RMB150 billion, revealed Vice President Pan Zhiyong. AGILE GROUP Chairman and President Chen Zhuolin expected the revenue from diversified businesses to account for around 20% of the FY21 total revenue, and 30-40% of the FY23-24 revenue.
GUOTAI JUNAN I (01788.HK) announced annual result ended December 2020. The net profit amounted to HK$1.563 billion, up 74.5% yearly. EPS was HK16.9 cents. A final dividend of HK$0.051 was declared against a dividend of HK$0.02 in the same period of the previous year.
PICC GROUP (01339.HK) announced annual results ended December 2020. Gross written premiums rose 1.5% year on year to RMB563.608 billion. Net profit amounted to RMB20.036 billion, down 9.5%. EPS equaled RMB0.45. Final DPS was 12 fen, as compared with 11.6 fen in the previous year. Full-year DPS was 15.6 fen.
SHUI ON LAND (00272.HK) announced annual result ended December 2020. Revenue declined 55.8% yearly to RMB4.597 billion. Loss was RMB740 million, against RMB1.932 billion in a year ago's profit. LPS equaled 9.2 fen. No dividend was declared.
CHINA JINMAO (00817.HK) announced the results for the year ended 31 December 2020 that profit attributable to owners of the parent receded 40.1% yearly to RMB3.881 billion; profit attributable to owners of the parent, excluding fair value gains on investment properties (net of deferred tax), and excluding the factor of impairment of properties, grew 15% to RMB7.063 billion. EPS equaled 31.86 fen. Final DPS was HK14 cents. Full-year DPS was HK26 cents.
ZA ONLINE (06060.HK) announced annual result ended December 2020. The total income rose 22.3% year on year to RMB18.493 billion. The loss swung into profit of RMB554 million. EPS was RMB0.38. No dividend was declared. Gross written premiums increased by 14.2% to RMB16.706 billion for the year ended December 31, 2020.
SINO BIOPHARM (01177.HK) announced annual results ended December 2020. Revenue declined 2.4% year on year to RMB23.647 billion. Net profit amounted to RMB2.771 billion, up 0.3%. EPS equaled 14.74 fen. Final. DPS was HK2 cents. Full-year DPS was HK8 cents.
CHINA LIT (00772.HK) announced annual result ended December 2020. The revenues rose 2.1% year on year to RMB8.526 billion. It reported loss of RMB4.484 billion, against profit of RMB1.096 billion over a year ago. LPS was RMB4.48. No dividend was declared.
TONGCHENG-ELONG (00780.HK) announced annual results ended December 2020. Revenue declined 19.8% year on year to RMB5.933 billion. Net profit amounted to RMB328 million, down 52.4%. EPS equaled RMB0.15. No dividend was declared.
ZENGAME (02660.HK) announced annual result ended December 2020. Net profit amounted to RMB221 million, up 37.7% yearly. EPS. equaled 21.71 fen. Final. DPS was HK$0.06.
*CHINESE BANKS WEAK Gauges of interbank borrowing costs remain elevated as the PBOC continues to avoid net injections of short-term liquidity into the financial system the practice is started late last month, both the benchmark 7-day and overnight repurchase rates above their 1-year averages. I continue to think that investors are also cautious about potential exposure to bond defaults.CCB (939 HK -1%) ICBC (1398 HK -0.5%) ABC (1288 HK -1.8%) BOC (3988 HK -1%).
*E-COMMERCE WEAK ahead of TENCENT's (700 HK -0.8%) results on Wednesday and ignoring today’s announcement of a tie up with Warner Music, and as BAIDU's (9888 HK unch) trading debut received a lukewarm reception. ALIBABA's (9988 HK -0.5%) Ant Group Co. created an investment advisory platform on its Alipay app, allowing companies that offer robo adviser services to reach its 1 billion users.
JD.COM (9618 HK -1.7%) is investing $800m into Dada shares and will hold a 51% stake in the retail and delivery platform following the transaction. MEITUAN (3690 HK -5.6%) KUAISHOU (1024 HK -5.3%) NTES (9999 HK -2.2%).
*TECH & COMPONETS WEAK on rising sanction risks given rising tensions between China and not only the US but other Western Governments on human rights issues. TRULY (732 HK -3.5%) XIAOMI (1810 HK -4.1%) BYDE (285 HK -4.5%) Q TECH (1478 HK -3.4%). E-cigarette maker SMOORE (6969 HK -27%) was -39% intraday after Chinese regulators drafted the Decisions on Amending the Regulations on the Implementation of the Law of Tobacco Monopoly and are soliciting public comments.
*AUTO MAKERS WEAK as GEELY's (175 HK -7%) FY net income missed est., -32% YoY to 5.53b yuan.
GREAT WALL (2333 HK -4.4%) DONGFENG (489 HK -2%) BYD (1211 HK -3.3%).
*TELCOS MIXED after month subscriber numbers.
CH MOBILE (941 HK -0.5%) customer fell by 3.69m or 0.39% MoM to 937.2m. The pace of reduction was faster than the January decrease of 1.06m, 5G users rose 4.2m or 2.42% to 173m. 4G users increased by 1.71m to 781m. The annual customer number fell 4.75m. (Data was out yesterday)
CH UNICOM's (762 HK -0.5%) customers -0.02m MoM to 306.34m. The number of 5G package subscribers was 84.54m, +6.59m. The net addition of mobile billing subscribers this year was 0.525m.
CH TEL's (728 HK +2.2%) net addition of customers increased 250,000 to 352m. The 5G users advanced by 6.2m to 103m. Unicom and Tel data came out after market Monday.
Weaker on concerns about China facing more sanctions as western governments jointly sanction it over human rights in Xinjiang
ASX 200 dipped initially but then traded higher to 6,780 which it tested a few times and broke briefly above before trending lower in the PM; saw some support around yesterday’s closing level then trended lower in the last 30 minutes to close -7pts (-0.1%) @ 6,745
Nikkei opened higher after the futures saw a choppy pre market. It tested to 29,500 in early trades but then trended lower into lunch. PM opened in the red and traded just below Monday’s close but then trended lower in the last 45 minutes to close -178pts (-0.6%) @ 28,996Topix traded in a similar pattern to close -19pts (-0.9%) @ 1,972
Press reports the number of stock trading accounts has risen sharply over the past year to surpass the 40 million mark amid a buying craze by retail investors, industry data showed Tuesday. An increase of 10m since March 2020.
Kosdaq opened higher and initially rallied to 963 before trending lower, saw some support at yesterday’s closing level but dipped into the red around 11am, found support at 952 level and traded back to flat but then sold off from 1pm to close just off the day low -9pts (-1%) @ 946
Kospi following a similar pattern, initial high 3,059, support at 3,004 closed -31pts (-1%) @ 3,005.
Opened higher after good export and unemployment data and rallied in early trades to 16,352 but then reversed and trended lower with support at yesterday’s closing level it bounced and retested that support but ticked lower at the end to close -12pts (-0.1%) @ 16,178
Industrial Production Feb 2.96% YoY vs 19.04% Jan revised (F/cast was 3.5%)
Retail Sales Feb +12.81% vs +3.74% Jan revised (F/cast was +4.5%)
Northbound RMB 44,867m Sell 23,981m : 20,885m Buy
Southbound HK$ 18,159m Sell 9,818m : 8,341m Buy
Northbound RMB 52,109m Sell 28,099m : 24,011m Buy
Southbound HK$ 23,000m Sell 12,961m : 10,039m Buy
MEITUAN (03690.HK) - 5.2%
HKEX (00388.HK) -1.6%
CCB (00939.HK) -1.2%
TENCENT (00700.HK) -0.8%
BABA (09988.HK) -0.5%
AIA (01299.HK) -0.4%
PING AN (02318.HK) -0.2%
HSI & HSCEI Constituents on Move:
ENN ENERGY (02688.HK) -8%
GEELY AUTO (00175.HK) -6.6%
CG SERVICES (06098.HK) +4.6%, hitting new high
KUAISHOU-W (01024.HK) -4.3%
XIAOMI (01810.HK) -4.1%
NONGFU SPRING (09633.HK) -3.6%
CHINA GAS HOLD (00384.HK) -3.3%
HAIDILAO (06862.HK) -3.3%
WUXI BIO (02269.HK) -3.3%
CSPC PHARMA (01093.HK) -3.2%
HSMI & HSSI Constituents on Move:MEITU (01357.HK) -17.3%
GREENTOWN CHINA (03900.HK) -12.5%
JUNSHI BIO (01877.HK) -12.4%
CHINAHONGQIAO (01378.HK) -11.8%
YADEA (01585.HK) -10.7%
CHINA ORIENTAL (00581.HK) -10.1%
REALORD GROUP (01196.HK) +0.8%, hitting new high
MARKET HOURS NEWS
BABA-SW (09988.HK)-backed Zuoyebang has recruited Joyy (YY.US) CFO Bing Jin as the Chinese online tutoring platform is preparing for its planned IPO in the U.S., Bloomberg learnt from people familiar with the matter.
Nintendo plans to equip its new Switch model, slated for end-2021 launch, with an upgraded Nvidia (NVDA.US) chip boasting better graphics and processing capability, Bloomberg citing insiders. The new Switch model will support Nvidia’s Deep Learning Super Sampling (DLSS) technology that utilizes A.I. to offer higher-fidelity graphics in a more efficient way.
China is considering selling around 500,000 tons of aluminum from its national reserves to cool down aluminum prices and meet the country's emission target, Bloomberg citing insiders. China's aluminum prices plummeted on 23 March as traders dumped aluminum futures contracts.
TENCENT (00700.HK) will have to make major concessions in the merger between Huya and DouYu, the giant's top-two videogame live-streaming platforms, to resolve watchdog' antitrust worries, Reuters citing insiders. Regulators may give greenlight to the merger subject to conditions, given concerns that the deal would make TENCENT overwhelmingly dominant, the people said.
Under tight semiconductor capacity worldwide, the use of chips for NEVs was 100% higher than that of fuel-engined cars, Securities Times citing Li Shaohua, deputy secretary-general at China Association of Automobile Manufacturers (CAAM).
On another note, Li attributed the PV chip shortage to chip capacity decline in a short time, plus panic buying and stockpiling in the auto sector.
The Financial Services Development Council (FSDC) announced that Financial Industry Recruitment Scheme for Tomorrow (FIRST), which has been paused since 20 November 2020, re-opened for application today.
Moody's said the price level of aluminium surmounted RMB17,000/ ton in March 2021, reaching an almost 5-year high. This will help Chinese aluminium manufacturers de-leverage, which is positive to their credit position, said the ratings agency.
Chinese Ministry of Industry and Information Technology announced 2M21 statistics that the three underlying telecom carriers had garnered RMB36.2 billion in revenue from big data, cloud computing, AI and such other emerging businesses, up 28.9% yearly.
K. WAH INT'L (00173.HK) announced annual results ended December 2020. Revenue rose 10.1% yearly to HK$11.732 billion. Net profit amounted to HK$3.268 billion, up 3.8%. EPS equaled HK104.55 cents. Final DPS was HK14 cents, flattish yearly. Full-year DPS was HK21 cents, up 5% or HK1 cent yearly
GEELY AUTO (00175.HK) announced results for the year ended 31 December 2020. Revenue amounted to RMB92.114 billion, down 5.4% yearly. Net profit was RMB5.534 billion, down 32.4%. EPS equaled RMB0.56. Final DPS was HK20 cents, as compared HK25 cents a year ago. It also announced that it had on 23 March 2021 entered into a Framework Agreement with Zhejiang Geely Holding, pursuant to which both parties agreed to form a JV Company to engage in the research and development, purchase and sale of the electric mobility related products such as the intelligent electric vehicles under the ZEEKR Brand and the provision of service relating thereto in the PRC through an indirect wholly foreign-owned enterprise to be established by the JV Company in the PRC. Pursuant to the Framework Agreement, the JV Company will issue 2 billion JV Shares. GEELY AUTO and Zhejiang Geely Holding will make capital contributions of RMB2 billion in total.
AGILE GROUP (03383.HK) announced annual result ended December 2020. The net profit amounted to RMB9.475 billion, up 26.1% yearly. EPS. was RMB2.44. A final dividend of HK60 cents was declared against a dividend of HK40 cents in the same period of the previous year.
Sina (SINA.US) announced the completion of the merger pursuant to the previously announced agreement and plan of merger, dated as of September 28, 2020, by and between the Company, Parent and Merger Sub. As a result of the Merger, the Company became a wholly owned subsidiary of Parent and will cease to be a publicly traded company. The Company requested that the Nasdaq file a Form 25 with the Securities and Exchange Commission (the "SEC") notifying the SEC of the delisting of its Ordinary Shares on the Nasdaq and the deregistration of the Company's registered securities. Following the above steps, the company will become a private corporation controlled by Chairman Charles Chao and the Sina management, according to Chao's internal letter. Meanwhile, Sina will beef up investment efforts and expedite the pace of M&A going ahead to achieve a diversified business development, added Chao.
Chengdu Tencent Internet Hospital, an affiliate of TENCENT (00700.HK), was formally established with a registered capital of RMB10 million, according to Tianyancha's app. The legal representative is Zhang Yu. The company's business scope mainly includes Internet hospital services dependent on physical hospitals, drug Internet information services, and so on.
XIAOMI-W (01810.HK) Chairman Lei Jun, on his Weibo, said Mi 11 Pro and Mi 11 Ultra mobile phone products will debut at the launching event on 29 March.
TENCENT (00700.HK)'s Tencent Music Entertainment Group (TME.US) announced that the company and Warner Music expanded multi-year strategic licensing agreement, and agreed to establish a joint venture music label in China. TME will continue to make Warner Music's repertoire available across all its online music platforms in mainland China, including QQ Music, Kugou Music and Kuwo Music, as well as its live streaming platforms and WeSing, its online karaoke platform. In addition, Warner Music's repertoire will also be made available, via TME's online music platforms, on certain designated connected devices, such as in-car audio systems, in mainland China.
The New Zealand government announced a suite of new measures taking aim at property speculators in order to cope with runaway house prices and to prevent the formation of a "dangerous" bubble. Prime Minister Jacinda Ardern explained that 15,000 individuals "bought homes who already owned five or more" last year.
The Government announced that a cumulative total of about 379,600 persons have so far received their first vaccination dose, with about 243,800 persons receiving Sinovac vaccine and about 135,800 persons receiving BioNTech vaccine.
Chinese AI-powered technology platform BAIRONG-W (06608.HK) is closing books for international placing at 17:00 today, a day ahead of schedule, IFR learnt from market sources.
The digital RMB trial in Mainland China is speeding up. The six major state-owned Chinese banks have already started promotion of their digital RMB currency wallets, as Shanghai Securities News learned. A wide range of application scenarios have begun to accept digital RMB as payment method, including JD-SW (09618.HK) and MEITUAN-W (03690.HK)
The Linked Exchange Rate System of Hong Kong is still solid as stone, commented Eddie Yue, Chief Executive at Hong Kong Monetary Authority (HKMA), in response to capital flow of the city. The HKD Index has been on the Strong-side Convertibility Undertaking, indicating uninterrupted fund inflow. In the last two years, local banks' deposits also rose, rather than dropped, by 8.4% in aggregate, Yue added.It would be interesting to know whether the funds were flowing from China or globally and how similar the flows were to previous years. He also said at the forum that Hong Kong's future financial development will primarily be oriented to opportunities in China, fintech and green financial. In terms of China-HK opportunities, the authority is working closely with the PBoC on Southbound Bond Connect and an upgrade to the CMU mechanism, furthered Yue. With respect to fintech, Commercial Data Interchange will hopefully hit the market in 2023 with a new generation of financial infrastructure in full swing.
The European Union slapped sanctions against four Chinese officials in Xinjiang. The US also sanctioned Xinjiang officials, including Wang Junzheng and Chen Mingguo, while Britain and Canada unrolled similar sanction lists against China.
China slammed the EU for disregarding facts and spreading lies and disinformation maliciously, and immediately sanctioned ten European Parliament members and scholars as well as four entities in retaliation, banning the individuals concerned and their families from entering Mainland China, Hong Kong and Macau.
Financial Secretary Paul Chan said at an online forum that the Government will spare no efforts in taking forward the local technology sector and foster the city's tie with the Greater Bay Area. While domestic economic resurgence was recorded in 3Q20, Chan explained the depth and width of 2H21 recovery would hinge primarily on the potential customs clearance between China and Hong Kong. In terms of external factors, Chan predicted the relationship between Beijing and Washington to remain tense after their recent high-rank meeting.
PRE MARKET HOURS NEWS
The White House is considering a US$3-trillion economic revival proposal, which would be split into two bills and submitted to the Congress, according to multiple US media. Biden and his team are weighing a range of options for investing in working families and tax code reform, NBC citing White House press secretary. Speculations about upcoming economic bills are premature and not an indication of the White House’s thinking, she added. Splitting into two bills would be a way of trying to get more republican support for some of the measures.
In response to media enquiries on an article by the Financial Times dated March 22 and carrying an interview with Matthew Cheung, Chief Secretary for Administration, a Government spokesman reiterated that with a low and simple tax regime, Hong Kong maintained a high level of transparency in taxation policy and would continue to do so. On Chinese National People's Congress' decision on improving the electoral system of the Hong Kong Special Administrative Region (HKSAR), the spokesman reiterated that the HKSAR Government will fully and resolutely implement "One Country, Two Systems. Under the "One Country, Two Systems" principle, issues such as housing, land and the wealth gap that concern the wellbeing of many sectors of the Hong Kong community are squarely within the HKSAR's high degree of autonomy.Cheung did not say that the HKSAR Government was "instructed" by Chinese Central People's Government to focus on such areas as wrongly stated in the article, the spokesman stressed. It will be interesting to see if the FT amends the interview.
BILIBILI-SW (09626.HK) (BILI.US) proposed to price its offer shares in Hong Kong at HK$808 each, down over 18.2% against the maximum offer price of HK$988, as Chinese media cited people with the knowledge of the matter. Each American Depositary Share is equivalent to 1 Class Z common stock. The HK offer price represented a discount of 2.65% to the closing price of US stocks at US$106.88 per share last night.
Information from Macao Statistics and Census Service (DSEC) indicated that, under the prevention and control measures imposed in different places against the pandemic of novel coronavirus pneumonia, visitor arrivals in February 2021 dropped by 23.3% month-to-month to 427,100; however, the figure represented an uplift of 1.7 times year-on-year as the pandemic spread in February last year. Overnight visitors (245,300) and same-day visitors (181,800) soared by 2.3 times and 1.2 times year-on-year respectively in February. The average length of stay of visitors shortened by 0.9 day year-on-year to 1.9 days; the duration for overnight visitors (3.2 days) went down by 2.2 days, whereas that for same-day visitors (0.1 day) remained unchanged.
CHINA SHENGMU (01432.HK) announced annual result ended December 2020. Net profit amounted to RMB407 million, up 1365.9% yearly. EPS equaled RMB0.0535. No dividend was declared.
Tencent Music (TME.US)'s fourth-quarter net income rose 14.9% to RMB1.197 billion, hitting a new quarterly high. Tencent Music announced an authorization deal for long-term strategic partnership with Warner Music, while forming a new record label with the latter.
YINCHENG LS (01922.HK) announced annual results ended December 2020. Net profit amounted to RMB67.286 million, up 103.2% yearly. EPS was RMB0.25. A final dividend of HK$0.92 was declared per ten ordinary shares (2019: HK$0.42 per ten ordinary shares).
Baidu (BIDU.US) closed up 3.4% to USD266.13 (roughly HKD2,066.7). Each of its ADSs represents eight Class A ordinary shares (equivalent to HKD258.3 per share). In other words, Baidu's US closing price represented a 2.5% premium to BIDU-SW (09888.HK)’s offer price HKD252.
WeWork lost US$3.2 billion in 2020, while planning to go public at a US$9-billion valuation (comprising debt) by combining with a special purpose acquisition company (SPAC), Financial Times citing WeWork's filing to raise US$1 billion in investment.
CH MODERN D (01117.HK) announced a plan to acquire the entire equity interests in Fuyuan from MENGNIU DAIRY (02319.HK)'s Inner Mongolia Mengniu, Goldman Sachs, Shining and Individual Shareholders at an aggregate consideration of RMB3.48 billion. Fuyuan currently operates a total of 14 dairy farms with approximately 60,000 dairy cows in China.
STANCHART (02888.HK) announced that it had repurchased 2.0053 million shares at GBX485.6-491.4 each in London on 22 March. The weighted average price paid was GBX488.3985 per share, involving GBP9.7941 million.
S&P Dow Jones Indices said XIAOMI-W (01810.HK) was once again eligible to be included in the indices, as a federal court paused the US investment ban on XIAOMI-W. S&P Dow Jones Indices will review whether XIAOMI-W could be added to the indices in their June quarterly review.
CANSINOBIO-B (06185.HK) announced that, on March 22, the clinical trial application for the Recombinant COVID-19 Vaccine (Adenovirus Type 5 Vector) for inhalation, jointly developed by the Company and Beijing Institute of Biotechnology, Academy of Military Medical Sciences, has been approved by Chinese National Medical Products Administration.
Tencent Cloud announced the conclusion of a strategic cooperation agreement with China Media Group and wwwscn.com, in addition to the launch of one-stop solution of online services, facilitating the creation of "e-sports hub" in Wuhan. Tencent Cloud will jointly invest RMB20 billion with the partners for the construction of edge computing node and provision of computing resources.
China's MIIT announced the introduction of Article 65 to the Decision on Amending the Implementation of the Law on Tobacco Monopoly of the PRC (Draft for Comments), bringing the rules governing new tobacco products like e-cigarettes in line with those for traditional cigarettes. The amendment was a specification of the basis of regulatory law on new tobacco products like e-cigarettes.
SINOPEC SSC (01033.HK) announced FY20 preliminary results prepared in accordance with the PRC Accounting Standards that net profit was RMB78.98 million, down 91.4% yearly. EPS equaled 0.4 fen.
CG SERVICES (06098.HK) and LANGUANGJUSTBON (02606.HK) jointly announced that the former nailed to acquire a total of 71.17% equity interest of the latter from BRC (600466.SH), Ningbo Jiaqian and Chengdu Jiayu, involving 126 million H Shares and 750,000 Domestic Shares, at an aggregate of RMB5.432 billion. Meanwhile, CG SERVICES proposed to delist LANGUANGJUSTBON from the Stock Exchange. The two companies applied for a trading resumption with effect from this morning (23 March).
KWG LIVING (03913.HK) announced FY20 results that net profit amounted to RMB323 million, up 74.7% yearly. EPS equaled 19 fen. Final DPS was 6 fen.
CHINA TAIPING (00966.HK) FY20 results that net profit was $6.549 billion, down 27.3% yearly. EPS equaled $1.822. Final DPS was 40 cents.