HSI +563pts (+1.9%) 30,038 HSCEI +208pts (+1.8%) 11,810 T/O HK$175.98bn (+17.4% DoD) No Southbound connect flows
Markets opened slightly higher with focus on earnings after Societe Generale, Air Liquide, Metro, Thyssenkrupp, Siemens Energy, Heineken, Maersk and Equinor all reported pre-open. Basic Resources moving higher but Petrochems weaker.
Soc Gen higher after Q4 net profit 470m Euros.
Thule Group and Adyen climbed after strong fourth-quarter earnings reports.
Maersk lower despite strong Q4 warned of challenges ahead. Some analysts commented guidance was too conservative.
Inflation Rate Jan 1% YoY vs -0.3% Dec (F/cast was +1%)
Inflation Rate Jan +0.8% MoM vs +0.5% Dec (F/cast was +0.8%)
Industrial Production Dec -0.8% MoM vs -0.7% Nov revised (F/cast was +0.3%)
Indicate a higher open; Dow +100points. S&P 500 futures and Nasdaq 100 futures also both traded in mildly positive territory
Data due US MBA Mortgage Applications and 30 year Mortgage Rate, Inflation Rate, Wholesale Inventories, EIA Crude Oil Stocks Change Report, US Budget Plan, Monthly Budget Statement, Powells speech to Economic club of New York.
Earnings: Coca-Cola, General Motors, Uber, Zillow, Under Armour, Cerner, Zynga, iRobot, MGM Resorts, Spirit Airlines, Lumen Technologies, Molina Healthcare, O’Reilly Automotive, Wyndham Hotels
CHINA CSI 300 Closed +122pts (+2.1%) @ 5,808
Markets will be closed tomorrow re-opens 18 Feb
CSI 300 opened higher after the good loans data out after market Tuesday and lower than expected inflation and PPI in line. Market worked higher through the day peaking at 5,823 in the late afternoon before easing back at the close.
Kweichou Moutai lead the index higher, with brewing, biological products, medicine, nonferrous metals, insurance, and media all rising. Weakness in coal, banking, military/defense and brokers.
Shanghai Comp +52pts (+1.4%) @ 3,655
Shenzhen Comp +332pts (+2.1%) @ 15,962
Chinext Price Index +80pts (+2.4%) @ 3,334
Inflation Rate Jan-0.3% YoY vs +0.2% Dec (F/cast was -0.2%)
Inflation Rate Jan +1% MoM vs +0.7% Dec (F/cast was +1%)
PPI Jan +0.3% YoY vs -0.4% Dec (F/cast was +0.3%)
Inflation due to lower cost of non food items. Household goods were flat, healthcare eased but food rose.
PPI saw the first rise since Jan 2020 and a further sign of economic recovery
China's commercial banks grossed a total net profit of RMB1.94 trillion, down 2.7% yearly, with the decrease narrowed by 5.6 ppts compared with 1-3Q20, as revealed by China Banking and Insurance Regulatory Commission (CBIRC).
Market will have shortened trading hours on Thursday and close at Midday and then re-open on Monday.
HSI Opened @ 29,796 +320pts after the good China lending data. It did see an initial dip but then worked higher to test 30,000 in the first 30 minutes of trading. It then eased back and traded sideways around that level for the rest of the day with a small rally at the end of the day. E Commence names strong and Kuaishou continued to see demand.
HONG KONG DATA Centre for Health Protection said there were 17 new COVID-19 cases in Hong Kong today; (vs 26 Tuesday) plus 20 initial confirmed cases
SHORT SELLING Thursday 16.2% vs 19.8% Tuesday
Top Shorts: Hengan (1044) 44%, Bank of China (3988) 38%, BankComm (3328) 35%, Mengniu Dairy (2319) 33%, Hang Seng Bank (11) 30%, Bud Apac (1876) 28%, Country Garden (2007) 28%, Galaxy Ent (27) 27%, Ping An (2318) 26%, Sunny Optical (2382) 25%.
AFTER MARKET NEWS
STANCHART (02888.HK) announced that a meeting of a Committee of the Board of Directors of the Company will be held on 25 February 2021 for the purposes of approving the release of the Company’s announcement of results for the year ended 31 December 2020 and considering the payment of any final dividend for the year ended 31 December 2020.
NH HEALTH-B (06606.HK), having closed the IPO subscription today (10 February) and ready to list on 18 February, registered over 1.07 million subscribers, freezing capital of over $850 billion, according to market sources. The IPO was over-subscribed by 4,130 times.
HK Administration Intends to Let Some Establishments (e.g. Fitness Centers, Beauty Salons) Resume Limited Biz from 18 Feb. Nighttime dine in services to extend to 10pm from 18 Feb with 4 customers per table. Says that Establishments, Restaurants Resuming Biz Must Ask Customers to Use 'LeaveHomeSafe' App, Register Personal Info.
MTR CORPORATION (00066.HK) announced that the Board of Directors of the Company has recently undertaken a review of the Company’s corporate strategy, with a view to ensuring the sustainable growth of the Company in the future and the continued delivery of high quality public transport and property services to its customers in Hong Kong and in the other cities in which it operates (New Strategy). To support the implementation of the New Strategy, a new management organisation will be put in place by phases with the intention of clarifying accountability for the delivery of the new strategy and strengthening the Company’s internal control and risk management framework.
The first phase of the reorganisation encompasses the following changes, which will be implemented with effect from 22 February 2021: David Tang Chi-fai (an existing Member of the Executive Directorate of the Company) will be responsible for overseeing the Company’s European business, in addition to his existing responsibilities for the Company’s Hong Kong property business and Australian business. He will be appointed as the Property and International Business Director of the Company.
Director of Macao Government Tourism Office, learnt from local hoteliers that the average booking rate approximates 30% during the Chinese New Year holiday, cited Radio Macao. The gambling hub expected 6-10 million visitor arrivals this year, said the director.
Wallace Lau Chak-sing, Convenor of the Advisory Panel on COVID-19 Vaccines, said Sinovac Biotech intended to apply for emergency use of its vaccine in Hong Kong. The Panel shall receive data from the biotech firm in two days, which comprises clinical trial data of phases one and two. Lau claimed Sinovac's vaccine showed certain efficacy based on the phase three data, viewing the vaccine security was acceptable and quite high. Upon data collection from Sinovac, Lau hoped the Panel could convene a meeting two weeks later and make suggestion to the FHB after studying.
Ricky Wong, Managing Director of WPL, conservatively estimated FY21 home prices to grow 5-8%, riding on a peachy market after the Chinese New Year. Before Kai Tak Area 4E Site 2 closes tender tomorrow, Wong said the group will highly likely submit a tender.
Global trade recovery is set to slow down again during the first quarter of 2021 as the coronavirus pandemic kept eroding the travel industry, UNCTAD wrote in a report. The worldwide trade had contracted 9% in 2020, according to the report.
Centa-Salesman Index (CSI) last stood at 62.32, up 1.06 pts from the previous week's 61.26. The research department of Centaline Property, highlighted that the index had risen for seven weeks amassing 14.78-pt gain, indicating the front-line agents' sentiment kept rising. With Spring Festival drawing close and prosperous second-hand deals, they forecast the CSI to head north nearing 70 in coming weeks, hinting housing prices to enter long and sturdy uptrend.
*PETROCHEMS WEAK after their recent bounce despite Oil futures climbing overnight to, the highest in more than a year, as the dollar weakened and expectations for a rebound strengthened. CH OILFIELD (2883 HK HK -6.6%) CNOOC (883 HK -0.7%) ANTON OIL (3337 HK -3.6%).
*E-COMMERCE STRONG TENCENT's (700 HK +3%) League or Legends: Wild Rift and NETEASE's (9999 HK+4.5%) Diablo Immortals have won China's approval. MEITUAN (3690 HK +5%) as brokers revise up their price targets amid positive prospects, while ALIBABA (9988 HK +2.4%) laggard buying.
*CHINA BANKS STRONG as new bank loans hit a record of 3.58t yuan in Jan, boosted by seasonal demand, as the onshore yuan soared to a 32-month high. The amount was up from 1.26t yuan in Dec, the highest on record and topping the 3.34t yuan seen in Jan 2020. CCB (939 HK +2.3%) ICBC (1398 HK +2%) ABC (1288 HK +2.2%) BOC (3988 HK +1.9%).
HK banks STRONG too as HSBC (5 HK +2.4%) said it will consider the payment of any dividend for 2020 @ Feb 23 meeting. STAND CHART (2888 HK +0.7%) also announced considering a dividend HANG SENG (11 HK +3.2%) BEA (23 HK +2.7%).
*TECH & COMPONENTS FIRM as shipments of smartphones within China jumped 94.3% YoY to 39.6m handsets in January, according to the China Academy of Info & Comm. XIAOMI (1810 HK +0.7%) ZTE (763 HK +0.7%) AAC (2018 HK +0.4%). HUA HONG (1347 HK +8%) after yesterday it reported 4Q net profit +66.5% YoY.
*LOGISTICS COMPANIES STRONG after China's courier SF (002352 CH) seeks 51.8% stake in KERRY LOGISTICS (636 HK +5.5%) for HK$17.6b in cash. Kerry Logistics will remain a listed company in H.K.; shares held by the public will be lowered to 15% from 25% if the deal completes. SINOTRANS (598 HK +4%) OOIL (316 HK +2.5%).
*AUTOS STRONG after CAAM said auto sales surged in Jan with a 30% YoY jump, the tenth month of gains, as China continued to lead the global automobile industry's recovery. Sales reached 2.5m vehicles in Jan. Also news that Min of Commerce said Local Govts May Launch, Renew Car Buying Subsidy Policies +VE
GREAT WALL (2333 HK +6.1%) announced launching the brand in Thailand.BYD (1211 HK +2.7%) GEELY (175 HK +2.2%).
DEALERSHIPS traded firm after Tesla’s sales in China more than doubled last year amid the coronavirus pandemic, according to a filing out Monday, news reported. Tesla's sales in China of US$6.66b last year accounted for about a fifth, or 21% of the US$31.54b total. ZHENGTONG (1728 HK +2.6%) ZHONGSHENG (881 HK +2.8%) GRAND BAOXIN (1293 HK +7.5%).
*PHARMA/BIOTECH FIRM on Chinese vaccine optimism, after CANSINO (6185 HK +14.5%) yesterday said its vaccine showed 66% efficacy from one shot and 91% effective in preventing severe disease. Cansino halted trading in the late afternoon pending announcement. It then says its vaccine receive approval in Mexico for emergency use.
JUNSHI BIO (01877.HK +3%) announced that the U.S. Food and Drug Administration has granted Eli Lilly and Company Emergency Use Authorisation (EUA) for investigational Etesevimab 1,400 mg and Bamlanivimab 700 mg together.FOSUN (2196 HK +12%) SINOPHARM (1099 HK +1.2%) GENESCRIPT (1548 HK +3.4%).
Market will be closed tomorrow for National Foundation Day and re-open Friday.
Nikkei 225 opened lower following the weakness in the US overnight. Pre market PPI was in-line with expectations and market worked better through the morning breaking into the green ahead of lunch. PM opened lower (back in the red) and traded sideways for most of the afternoon before rallying at the end to close +57pts (+0.2%) @ 29,563
Topix opened lower but broke above yesterday’s close mid morning and rallied into lunch the day high. PM opened lower and traded sideways to close +5pts (+0.3%) @ 1,931
PPI Jan +0.4% MoM vs +0.5% Dec (F/cast was +0.3%)
PPI Jan -1.6% YoY vs -2% Dec (F/cast was -1.7%)
The eleventh straight decline in producer prices, mainly explained by petroleum & coal products (-14.7 percent vs -16.3 percent in December), chemicals (-3.4 percent vs -4.3 percent), iron & steel (-0.7 percent vs -2.0 percent), and lumber & wood products (-0.5 percent vs -1.3 percent). On the flip side, prices in the food & beverages division increased by 1.5 percent after a 0.9 percent expansion in December. On a monthly basis, producer prices increased 0.4 percent after a 0.5 percent advance in the previous month, also matching consensus source: Bank of Japan
Markets will be closed tomorrow and Friday; re-opens Monday.
Options Expiry was today but key was foreigners turned buyers
Kosdaq opened flat and initially traded lower to 950 level on the poor unemployment data and rising covid cases before reversing and working higher but saw resistance at yesterday’s closing level and traded sideways. Mid afternoon broke through yesterday’s closing level and worked back to 965 where is again saw resistance and then traded sideways to close +7pts (+0.7%) @ 964
Kospi followed a similar trading pattern and closed +16pts (+0.5%) @ 3,101.
Unemployment Rate Jan +5.4% vs +4.6% Dec (F/cast was +4.1%)
Market Closed all week
Apple Inc has partnered with Taiwan Semiconductor Manufacturing Co to develop ultra-advanced display technology in Taiwan, Nikkei Asia reported on Wednesday, Reuters said.
TSMC is poised to set up an R&D subsidiary in Ibaraki Prefecture, Japan with JPY18.6 billion (approximately USD180 million) in a bid to develop manufacturing technology of high-efficient 3D chip.
Moderna has struck supply deals for its COVID-19 vaccine with Taiwan and Colombia for deliveries beginning mid-2021, Reuters reported. The U.S. drugmaker will provide Taiwan and Colombia with 5 million and 10 million shots, respectively.
CONNECT FLOWS No southbound flows for settlement reasons
Northbound Rmb 55,825m Buy 28,929m vs 26,896m Sell
Northbound Rmb 66,952m Buy 33,350m vs 33,602m Sell
MEITUAN (03690.HK) +5.2%, hitting new high
HKEX (00388.HK) +3.8%
TENCENT (00700.HK) +2.8%
BABA (09988.HK) +2.6%
CCB (00939.HK) +2.5%
AIA (01299.HK) +1.1%
PING AN (02318.HK) +0.4%
HSI & HSCEI Constituents on Move:
JD (09618.HK) +4.6%
NTES (09999.HK) +4.6%, hitting new high
HAIDILAO (06862.HK) +4.2%
CPIC (02601.HK) +4%
SHENZHOU INTL (02313.HK) +3.6%
CHINA FEIHE (06186.HK) -3.3%
ANTA SPORTS (02020.HK) +2.2%, hitting new high
CM BANK (03968.HK) +1.2%, hitting new high
HSMI & HSSI Constituents on Move:
SANY INT'L (00631.HK) +14.6%, hitting new high
CANSINOBIO (06185.HK) +14.5%, hitting new high
HENGTEN NET (00136.HK) +13.4%, hitting new high
FOSUN PHARMA (02196.HK) +12%, hitting new high
CHINA LIT (00772.HK) +10.2%, hitting new high
MARKET HOURS NEWS
TENCENT (00700.HK)'s leisure and tourism unit - Tencent Culture and Tourism -announced cooperation with Beijing Yanqing District's leisure and tourism office to hold online Chinese New Year event through its transportation service platform, in a bid to enrich the holiday life experience of the tourists and the public.
JUNSHI BIO (01877.HK) announced that the U.S. Food and Drug Administration has granted Eli Lilly and Company Emergency Use Authorisation (EUA) for investigational Etesevimab 1,400 mg and Bamlanivimab 700 mg together. This therapy is authorized for the treatment of mild to moderate COVID-19 in patients aged 12 and older who are at high risk for progressing to severe COVID-19 and/or hospitalization.
The residential site at Nos. 9 and 11 Mansfield Road, the Peak was awarded at $7.25 billion. James Cheung from Centaline Surveyors said the floor price per sq.ft. of $50,010 aligned with street consensus and refreshed new record. He expected the floor price per sq.ft. to hit $80,000 upon completion. Worth noting there is an element of special premium as Wharf already owns the adjacent site
Huawei will in a veiled timetable launch game consoles, like PlayStation and Xbox, and within this year unroll game laptops, Chinese media reported.
DBS Hong Kong delivered net profit of SGD963 million, down 32.6% yearly, for the financial year ended 31 December 2020. Second-half net profit of SGD361 million was 46% lower than a year ago and 40% lower than the first half. Q4 net profit down 33% yearly to SGD1.012 billion, close to SGD1.02 billion in consensus. During the period, net interest margin narrowed 4 bps quarterly and 37 bps yearly to 1.49%.
GREATWALL MOTOR (02333.HK) announced the official launch of GWM brand in Thailand market. The automaker said it hoped to become an NEV bellwether in the country with a plan to unroll nine NEV models in three years.
MI MING MART (08473.HK) announced that it had submitted an application of Proposed Transfer of Listing to the Main Board to the Stock Exchange on 11 October 2019. As six months had passed since the submission, the Application automatically lapsed, and the Company resubmitted an application to the Stock Exchange on 9 February 2021.
PRE MARKET NEWS
MSCI announced the index review results, where the Global Standard Indexes will include 23 shares and remove eight.
The MSCI China Index will add 14 shares and kick out three. The included stocks comprise 21Vianet Group (VNET.US) , Avic Hi-Tech (600862.SH), CICC (601995.SH), EVERSUNSHINE LS (01995.HK), JIUMAOJIU (09922.HK), Li Auto (LI.US), MING YUAN CLOUD (00909.HK), NONGFU SPRING (09633.HK), WEIMOB INC (02013.HK), and so on.
The ousted shares include CTI (300012.SZ) , HEBEI CONS (01727.HK) and LUYE PHARMA (02186.HK)
MSCI announced that EMPEROR INT'L (00163.HK) will be deleted from Small Cap Index from the close of February 26, 2021. The stock will be added to Micro Cap Index instead.
CATHAY PAC AIR (00293.HK) announced that, with respect to the dividend which is due to be payable to the holder of the Preference Shares on 16 February, it has resolved to defer the payment of such dividend. Financial Secretary's Office commented that the Government has exercised flexibility, allowing the flagship carrier to defer dividend payment on preference shares to it, when making investments therein.
GCL NEWENERGY (00451.HK) announced planned top-up placing of 2 billion shares at $0.455 each, representing a 14.15% discount to the closing price yesterday. The net proceeds were expected to approximate $895 million.
HKEX (00388.HK) had announced yesterday (9 February) that Alejandro Nicolas Aguzin, the head of JPMorgan’s international private banking business, will be the next CEO. Chairman Laura Cha, in response, reassured that Aguzin has extensive experience in capital market with knowledges of China's market as well. His background was believed to assist HKEX's significant role in the world.
EVERG VEHICLE (00708.HK)'s Hengchi released a short video on its official Weibo, announcing the debut of three car models - Hengchi 7, 8 and 9.
KERRY PPT (00683.HK) and KERRY LOG NET (00636.HK) jointly announced that SF Holding (002352.SZ) planned to acquire about 931 million shares of KERRY LOG NET (representing 51.8% of the Shares in issue of the company) at the Offer Price of HK$18.8 per Offer Share. The aggregate cash consideration will amount to HK$17.555 billion. Meanwhile, KERRY LOG NET intended to sell to KERRY PPT the entire issued share capital of the Target Warehouse Companies (including properties in Kwai Chung and Fanling) at the total consideration of HK$13.5 billion. Upon completion, the Company will declare the Special Dividend of HK$7.28 per Share. Also, KERRY LOG NET intended to sell to KERRY PPT its Taiwan business at USD equivalent of NTD4.537 billion. KERRY PPT and KERRY LOG NET have resumed trading in their shares today (10 February).
PHOENIX TV (02008.HK) Founder Liu Changle and his family have withdrawn from the management completely, whilst the Chairman and General Manager have been replaced, HK01 reported. The report cited staff sources that Xu Wei, Secretary of Shanghai Academy of Social Sciences, and Sun Yusheng, Deputy Director of CCTV, will take over the positions of Chairman and General Manager respectively. The takeover by the Chinese state-run institutions of PHOENIX TV purportedly linked to the company's financial borrowing crisis, affecting 70,000 people and involving almost RMB10 billion. The company clarified this morning that it is considering a split of the role of its Chief Executive Officer and Chairman by appointing a new personnel to take up the position of Chief Executive Officer. No decision has been made as at the date of this announcement and the change may or may not happen. No other change to the Company’s directors and senior management is contemplated as at the date of this announcement.
The Securities and Futures Commission (SFC) has issued restriction notices to Enlighten Securities Limited and Futu Securities International (Hong Kong) Limited, prohibiting them from dealing with or processing certain assets held in three trading accounts, which are related to a suspected social media ramp-and-dump scam involving the manipulation of the market in the shares of two companies listed on the Stock Exchange between March 2020 and October 2020.
Chinese Ministry of Commerce wrote that it will aggressively coordinate with financial institutes to ramp up personal credit support in terms of spending on vehicles by mildly trimming first instalment ratio and loan rate and extending repayment duration. The ministry will give incentives to no-car households on buying their first EVs, while local governments may shower buyers with comprehensive encouragements, ranging from charging to parking, in EV purchase.
CSOP STAR 50 Index ETF starts to trade on Hong Kong Stock Exchange today (10 February). CSOP STAR 50 (03109.HK) is the first ETF tracking the 50 HK-listed securities on the Shanghai's Star market. With a listing price of $15.6 per unit, CSOP STAR 50 has trading lot of 100 units and entry fee of about $1,560.
SF Holding (002352.SZ) announced the proposed non-public share issuance to not more than 35 designated targets to raise not more than RMB22 billion. In addition, the Company intended to acquire a 51.8% equity interest in KERRY LOG NET (00636.HK) by way of a cash offer.LANGHAM-SS (01270.HK) announced that for the year ended 31 December 2020, distributable income amounted to $6 million, down 97.7% yearly. The Board of Directors recommended not to declare a final distribution for the year.
GREAT EAGLE H (00041.HK) announced that it entered into the heads of agreement with the Existing Developer Gold Brilliant Investment, Pan Sutong and Goldin Properties in relation to an MTR CORPORATION (00066.HK) project atop Ho Man Tin Station, pursuant to which the Existing Developer will novate all its rights and liabilities to the Company or its nominee. The land, being Kowloon Inland Lot No. 11264 located in Ho Man Tin, Kowloon, will be developed into residential units of 800 units to 1,000 units.