HSI +573pts (+1.9%) 30,747 HSCEI +156pts (+1.3%) 12,036 T/O HK$219.78bn (+139% DoD) No connect flows
Markets opened slightly higher following the strength in Asia and with US Futures +VE but data was mixed. DAX and CAC trading around flat, FTSE slightly higher. Resources still seeing interest but Media consolidating after Monday’s strong rally.
Earnings still in focus and covid encouragement as vaccination roll-outs continue and the AstraZeneca/University of Oxford Covid-19 vaccine is approved by the WHO for emergency use, expanding access to the comparatively inexpensive shot around the world.
Michelin +VE it reported a 2020 full-year net profit of 625 million euros ($758.6 million), a sharp decline from 2019′s 1.73 billion euros. However, the company projected up to 10% growth in its markets for 2021 and increased its dividends to shareholders.
Earnings also came from miners; BHP declared a record dividend and Glencore said it would resume payouts, as the mining industry underlined its status as one of the hottest spots in a global economy trying to battle back from the pandemic. Rio reports Wednesday.
TechnipFMC spin-off Technip Energies soared on their first day of trading in Paris. But TechnipFMC shares fell.
Employment Change Prelim Q4 -2% YoY vs -2.3% Q3 (F/cast was -1.8%)
Employment Change Prelim Q4 +0.3% QoQ vs +1% Q3 (F/cast was -0.1%)
GDP Growth Rate 2nd Est Q4 -0.6% QoQ vs +12.4% Q3 (F/cast was -0.7%)
GDP Growth Rate 2nd Est Q4 -5% YoY vs -4.3% Q3 (F/cast was -5.1%)
ZEW Economic Sentiment Index Feb -67.2 vs -66.4 Jan (F/cast was -68)
Economic Sentiment Index Feb 71.2 vs 61.8 Jan (F/cast was 60.5)
Current Conditions Feb -67.2 vs -66.4 Jan (F/cast was -68)
Unemployment rate Q4 8% vs 9.1% Q3 revised (F/cast was +8.5%)
Opened in Asian time Dow +180pts, S&P +20pts (+0.5%) and NDX +68pts (+0.5%) and trended higher in Asian time but pulled back slightly as Europe opened; now Dow +200pts, S&P and NDX still positive.
NY Empire State Manufacturing Index, Overall Net Capital Flows, Net Long Term TIC flows, Foreign Bond Investment.
Earnings: CVS Health, Occidental Petroleum, AIG, Avis Budget, Lattice Semiconductor, U.S. Foods, Advance Auto Parts, Vulcan Materials, Palantir, Agilent, La-Z-Boy
CHINA Closed re-opens Thursday 18 February
Re Opened pre market @ 30,675 (+1.7%) +502pts vs 279pts ADR’s Friday
Ecommerce mixed, Financials, Petrochems strong but a broad based recovery.
Market then trade sideways around 30,650 through the day closing on the upper side of the trading band. Sentiment encouraged by the drop in locally and globally in new covid cases as vaccinations are rolled out. Also the good Japan, Singapore and Thai GDP data out Monday and the general optimism in markets.
HONG KONG DATA
Centre for Health Protection said there were 8new COVID-19 cases in Hong Kong today; (vs 9 Monday) 3 from unknown sources.
SHORT SELLING Tuesday 15.1% vs 23.6% Thursday
Top Shorts: Power Assets (6) 40%, Shenzhou (2313) 39%, Bank of China (3988) 39%, Hang Lung Ppty (101) 35%, Hengan (1044) 33%, Ping An (2318) 30%, CSPC Pharma (1093) 30%, Anta (2020) 27%, SinoBiopharm (1177) 27%, Sunny Optical (2382) 26%, CCB (939) 24%.
AFTER MARKET NEWS
The Singapore government declared a US$8.3-billion Covid-19 relief package, including roughly US$3.6 billion for public health initiatives. Assistance will be provided to companies and workers as well.
Effective 18 February (the seventh day of the Lunar New Year), the restrictions on caterers and listed establishments under Chapter 599F will be conditionally alleviated, said Sophia Chan, Secretary for Food and Health, at the press conference. Limited operation of related premises will be allowed, including all sports premises, fitness centers, beauty and massage parlors, public entertainment venues etc.. Dining time inside restaurants may also be extended to 10 pm, allowing up to four people per table. In addition to observing venue and footfall restrictions and requiring body temperature, there are also two new measures for the said premises. The first is to ensure that users must scan the "LeaveHomeSafe" QR code before entering the premises, or register their names, contact numbers, time and date of visit for 31-day records. The second is to require the employees working in those establishments to undergo virus testing every 14 days starting from 11 February and keep records for 31 days. But Bathrooms, Party Rooms, Night Clubs, Karaoke Lounges, Mahjong Centres, Swimming Pools Remain Closed
The Advisory Panel on COVID-19 Vaccines will meet further this evening on the application of Sinovac for emergency use of its vaccine in Hong Kong, said Sophia Chan, Secretary for Food and Health, at the press conference.
The Government announced that the Financial Secretary, Paul Chan, under the authority delegated by the Chief Executive pursuant to the Securities and Futures Ordinance, has re-appointed Julia Leung as the Executive Director (Intermediaries) (ED(INT)) and the Deputy Chief Executive Officer (DCEO) of the Securities and Futures Commission (SFC) for a term of three years from March 2, 2021 to March 1, 2024.
The Government is pondering over the proposals filed by the local tourism industry and may give green light to them to bring back local tour groups as soon as early March, with several possible requirements on precautionary actions, Hong Kong Economic Journal learnt from insiders. Travel agents will hopefully restore roughly 10-20% business upon this new measure, said Jason Wong, President of Travel Industry Council of Hong Kong.
The Hong Kong Monetary Authority published the credit card lending survey results for the fourth quarter of 2020 that total card receivables increased by 3.9 per cent during the quarter to HK$124.9 billion at end-December 2020 after a decrease of 3.2 per cent in the previous quarter.
Singaporean Finance Minister Heng Swee Keat announced that the government and Temasek will co-invest SGD1 billion (SGD500 million each) in large enterprises of the city state to help them expand overseas.
*PETROCHEMS STRONG playing catch up; as oil price jumped and amid speculation of recovery in demand and some say a ’supercycle'. Freezing temperatures in Texas threatens to disrupt energy supplies with power outages and frozen equipment, sending crude oil to a 13-month high. CH OILFIELD (2883 HK +10%) CNOOC (883 HK +9.5%) PETROCHINA (857 HK +13%) SINOPEC (386 HK +8%) ANTON OIL (3337 HK +9.4%).
*BASE METALS/RESOURCES STRONG increased talk of a new commodities cycle. Miners surged on economic recovery and easing of lockdowns shutting mines. BASE METALS rallied after BHP Group boosted its outlook for the global economy. ZIJIN (2899 HK +17%) JIANGXI COPPER (358 HK +13%) ANGANG (347 HK+ 3.7%) MAANSHAN IRON (323 HK +2.7%).
RARE EARTH strong after news reported that China is exploring whether to limit rare earth mineral supplies to US defense contractors, which us it in the production of F-35 fighter jets and other weaponry, although the US has been sourcing from other suppliers too; CH RARE EARTH (769 HK +7.8%) CHALCO (2600 HK +12%) MMG (1208 HK +12%).
*HK BANKS STRONG led the benchmark index higher amid speculation that dividend payout may be resumed very soon. HSBC (5 HK +7.6%) HANG SENG (11 HK +3.9%) STANCHART (2888 HK +6.8%).
*E-COMMERCE PLATFORMS WEAK TENCENT (700 HK -1.6%) MEITUAN (3690 HK -1.3%) KINGSOFT (3888 HK -2.7%) after recent strong gains concerns the recovery will put the sector valuations under pressure.NETEASE (9999 HK -4.5%) plans to rejoin the short video platform market as it will invest 1b yuan to support content creators across its various apps to compete with rivals, news reported. BABA (9988 HK +1.2%) and JD (9618 HK +1.2%) held firm, and CH LIT (772 HK +9%) jumped as an entertainment-related name as China looks to focus on on-line content.
*ENTERTAINMENT STRONG IMAX CHINA (1970 HK +32%) ALIBABA PIC (1060 HK +33.6%) after ticketing platform Maoyan Entertainment said China’s box-office revenue hit a record high during the Lunar New Year holiday weekend.
*HK PROPERTY STRONG. Property sales in the city soared to eight- and ten-year highs in the primary and secondary markets respectively over the four-day Lunar New Year holiday. New home sales doubled to an eight-year high with at least 32 transactions, compared to 14 over the same period last year. In secondary sales, 10 major housinG estates saw a 10-year high of six transactions compared to three over the same period last year.
HENDERSON LAND (12 HK +3.3%) sold a total of nine units, including five flats in Yuen Long, three in Quarry Bay, and one in Tai Kok Tsui.
SHKP (16 HK +3%) CKA (1113 HK +4.3%) NWD (17 HK +4.5%) HANG LUNG PROP (101 HK +5.7%) KERRY PROP (683 HK +5%).
*CHINA PROPERTY FIRM as Jan. contracted sales data have been strong across the industry. LONGFOR PROP (960 HK +1.8%) said Jan. Contracted sales +93% YoY to 19.51b yuan.EVERGRANDE (3333 HK +4.5%) SUNAC (1918 HK +2.8%) TIMES CHINA (1233 HK +4%).
*AUTOS FIRM focus remaining on EV news. EVERGRANDE EV (708 HK +12%) following announcement of 3 new EV models. GREAT WALL MOTOR (2333 HK +4%) will produce 80,000 electric vehicles within the first quarter in Thailand, which is in line with the company’s plan to make the nation its production and exporting hub for the ASEAN region. BYD (1211 HK +1.7%) GAC (2238 HK +3.7%).
Nikkei opened higher and worked higher into lunch. The Tertiary Industry Index missed but the market trended higher in the PM hitting resistance at 30,715 level (a 31yr high) and having tested twice saw a sell down to 30,400 but then bounced to closed +383pts (+1.3%) @ 30,468 at a 31 year high.
Topix followed a similar pattern, resistance at 1,975 but saw a steeper sell off but bounced to close +11pts (+0.6%) @ 1,965
Tertiary Industry Index Dec -0.4% vs +0.7% Nov (F/cast was +0.3%).
Pre market data was weak
Kosdaq opened flat dipped initial and then spiked to 988 but then sold down to 975 level and traded sideways to close -4pts (-0.4%) @ 978
Kospi opened flat and rallied to 3,180 then trended lower to test yesterdays close around 12:30pm and then traded sideways to close +16pt (+0.5%) @ 3163
Export Prices Jan -6.7% YoY vs -5.4% Dec (Consensus -5.1%)
Import Prices Jan -2.3% YoY vs -10.2% Dec (Consensus -11.2%)
TAIWAN Closed re-opens tomorrow Wednesday 17
CHINA Closed re-opens Thursday 18
No CONNECT FLOWS
HKEX (00388.HK) +2.4%
TENCENT (00700.HK) -1.6%
AIA (01299.HK) +1.4%
MEITUAN (03690.HK) -1.3%
BABA (09988.HK) +1.2%
CCB (00939.HK) +1%
PING AN (02318.HK) +0.8%
HSI & HSCEI Constituents on Move:
PETROCHINA (00857.HK) +13.2%
WHARF REIC (01997.HK) +10%, hitting new high
CNOOC (00883.HK) +9.5%
SINOPEC CORP (00386.HK) +8.1%
HSBC HOLDINGS (00005.HK) +7.6%
SUNNY OPTICAL (02382.HK) +6.7%, hitting new high
AAC TECH (02018.HK) +6.5%
ALI HEALTH (00241.HK) +5.5%, hitting new high
XIAOMI (01810.HK) +5.3%
TECHTRONIC IND (00669.HK) +5.2%, hitting new high
HANG LUNG PPT (00101.HK) +5.2%
NEW WORLD DEV (00017.HK) +4.8%CHINA RES BEER (00291.HK) -4.5%
NTES (09999.HK) -4.5%
EVERGRANDE (03333.HK) +4.3%
CK ASSET (01113.HK) +4.3%
HANG SENG BANK (00011.HK) + 3.9%
CITIC (00267.HK) +3.4%
CM BANK (03968.HK) +3.4%, hitting new high
HENDERSON LAND (00012.HK) +3.4%
CKH HOLDINGS (00001.HK) +3.2%
SMIC (00981.HK) +3.1%
HSMI & HSSI Constituents on Move:
KASEN (00496.HK) +65.3%, hitting new high
HENGTEN NET (00136.HK) +46.3%, hitting new high
ALI PICTURES (01060.HK) +34.6%, hitting new high
GOME RETAIL (00493.HK) +33.9%, hitting new high
ZA ONLINE (06060.HK) +32.2%, hitting new high
IMAX CHINA (01970.HK) +31.1%, hitting new high
YIXIN (02858.HK) +23.4%, hitting new high
INNOCARE (09969.HK) +20.8%, hitting new high
SA SA INT'L (00178.HK) +17.8%, hitting new high
SIHUAN PHARM (00460.HK) +17.5%
ZIJIN MINING (02899.HK) +17.2%, hitting new high
CGN NEW ENERGY (01811.HK) +16.7%, hitting new high
CHINA RISUN GP (01907.HK) +16.1%, hitting new high
CMOC (03993.HK) +15.1%, hitting new high
JIANGXI COPPER (00358.HK) +13.2%, hitting new high
COSCO SHIP HOLD (01919.HK) +12.8%
CHALCO (02600.HK) +12.4%
MMG (01208.HK) +12.2%, hitting new high
MEITU (01357.HK) +11.7%, hitting new high
HOPSON DEV HOLD (00754.HK) +11.3%, hitting new high
SAMSONITE (01910.HK) +11.2%
SUNCITY GROUP (01383.HK) +11.1%
CH MODERN D (01117.HK) +10.5%
CHINA OILFIELD (02883.HK) +10.5%
SWIRE PACIFIC B (00087.HK) +10.3%
CHINA ZHONGWANG (01333.HK) +10.2%
CHINA LONGYUAN (00916.HK) +10%, hitting new high
MARKET HOURS NEWS
China is studying to curb US defense contractors' production of F-35 fighter aircraft and other sophisticated weaponry by limiting rare earth mineral exports, Financial Times citing insiders. China's MIIT last month proposed draft bills on the manufacturing and export of 17 rare earth minerals.
Skypoint Royale has its sixth price list just uploaded, involving 56 units at an average discounted price of $15,886 per sq.ft., said Thomas Lam, General Manager of Sales (1) Department of Henderson Property Agency Limited. There has been a 0.5-1% price hike from the previous price list, Lam frankly admitted, not ruling out further price increase in the third round of sales.
XIAOMI-W (01810.HK) will focus its efforts this year on the smart home appliance sector, so that consumers can in the future experience relevant products at Mi Home, Vice President cum Redmi Brand General Manager Lu Weibing wrote on Weibo.
CK ASSET (01113.HK)'s super luxury suite, Phase I of 21 BORRETT ROAD, nailed the tender of a featured apartment at Unit 1, 23/F. Together with the 2,131-sq.ft. rooftop, the total saleable area was 3,378 sq.ft.. The transaction price exceeded $459 million, in bundle with three parking spaces. The price per sq.ft. of $136,000 broke the previous record of $132,100 as logged in 2017, when a unit at Mount Nicholson was sold. The price per sq.ft. also marked a new high of apartments in Asia.
AAC TECH (02018.HK) announced that it had on 11 February received approval from the Hong Kong Stock Exchange that the Company may proceed with the Proposed Spin-off of AAC Optics for separate listing in the PRC. It is anticipated that AAC Optics will issue new shares by initial public offering on a stock exchange in the PRC. The proposed issue of new shares by AAC Optics will result in a dilution of the Company’s equity interest in AAC Optics.
ACCA Hong Kong predicted HKSAR Government to record $288 billion in FY20/21 deficit, compared with Financial Secretary Paul Chan's earlier estimate of $300 billion. The association also floated several proposals, such as a $10,000 tax allowance per person and a streamlined application for paying tax by instalments.
Property transactions during Chinese New Year holiday were promising under the backdrop of quantitative easing worldwide and economic stability, as Justin Chiu, executive director of CK ASSET (01113.HK), told a radio program. Chiu forecast the local housing market to trend steadily this year with a 5% volatility.
Bank of Japan Governor Haruhiko Kuroda said the recent stock uptick had reflected market optimism over the world's economic prospects, brushing aside comments that the central bank's ultra-loose monetary policy was catalyzing an asset price bubble.
CHINA GAS HOLD (00384.HK) On 10 February, Chairman Liu Ming Hui through China Gas Group acquired on-market 200,000 shares, marking his seventh share purchase in nine trading days. Liu has acquired 3.3036 million shares in seven times.
Australian free-to-air television network and the main metro printed media Seven West Media announced that it has struck a licensing deal with Alphabet (GOOGL.US)'s Google, whereby it will provide news content for Google's News Showcase.
India's smartphone market shipment shed almost 2% yearly to 150 million units in 2020, after several years of growth, IDC wrote in its report. In the fourth quarter alone, 45 million devices were shipped, up 21% yearly.
As of 09:30 this morning, the Chinese film market has grossed over RMB10 billion in 2021 box office, including pre-sale turnover, Chinese media learnt from a market researcher, and 229 million in audience counts and 16.3874 million house sessions.
ByteDance is exploring disposal of its India operations of TikTok to a local rival Glance, Bloomberg learnt from people familiar with the matter. The talks, still at an early stage, were initiated by SoftBank, a backer of both ByteDance and Glance’s parent firm InMobi.
NTES-S (09999.HK) plans to rejoin the short video platform market by investing RMB1 billion in a new fund to support content creators across five apps regarding news, social media, e-commerce, music and education, SCMP citing sources. NTES-S is set to rival with existing short video platforms like Douyin and KUAISHOU-W (01024.HK)
Patrick Nip, Secretary for the Civil Service, predicted the first batch of one million doses of the BNT162 Covid vaccine by Fosun/BioNTech to arrive in Hong Kong by the end of this month. The inoculation is expected to begin in early March should things go smoothly, with details to be unveiled in near term.
Huawei has recently launched an intelligent pig raising solution, as Chinese media cited Duan Aiguo, president of the group's machine vision field. The group aims to make inroads into the breeding industry through digitalization, intelligentization and unmanned technology, claimed Duan.
BHP's underlying profit from continuing operations climbed 16% to US$6.04 billion for the first half of the fiscal year ended 31 December 2020. The figure was the best in seven years, yet missing consensus of US$6.33 billion. The group predicted China's demand to stay strong this year.
HSBC HOLDINGS (00005.HK) sets growth target in wealth management as a new profit driver in amplifying Asian deployment, committed to becoming one of the biggest wealth managers in the world, Bloomberg reported. HSBC HOLDINGS CEO Noel Quinn had disclosed last Tuesday that the bank will massively invest in areas with the biggest potentials, pointing out Asia, the UK and Middle East are the possible expansion regions, according to a document obtained by the report.
The HKSAR Government will have more room to consider about loosening anti-plague measures after 18 February, if local newly confirmed Covid cases per day drop to a single digit, as Sophia Chan, Secretary for Food and Health, told Commercial Radio Hong Kong. The Government is also hoping the public to receive inoculation of Covid vaccine, as one of the conditions of entering premises, Chan added.
HKEX (00388.HK)'s online Lunar New Year market open ceremony, Chairperson Laura Cha said market chances, in the year ahead, coexist with crisis. While the extensive vaccination program is rendering economic recovery possible, overhangs on the other hand persist in a macro context. Sustainable development is growing more and more important in investment, mentioned Cha. As an exchange, a watchdog and a listed company, HKEX is going to promote sustainable development.
Over 70,000 public and private venues have posted QR codes for LeaveHomeSafe so far, boosting the app's installs to above 700,000, wrote Secretary for Innovation and Technology Alfred Sit in his blog. The Government is working with the University of Hong Kong to explore an automatic scanning function for the app using Bluetooth technology, revealed Sit. Accordingly, the app will automatically record users' entry and exit times on their Bluetooth devices.
PRE MARKET HOURS NEWS
The first-hand property market of Hong Kong delivered 33 deals during the four-day Chinese New Year holiday, marking the most vibrant Spring Festival performance in eight years, according to market sources.Vanke Hong Kong's Le Pont sold a duplex unit measuring 2,200 sq.ft. with a garden at $32 million, i.e. a floor price of $14,545 per sq.ft.
SINO LAND (00083.HK) 's Silversands sold the a special unit at $6.408 million, i.e. a floor price of $24,000 per sq.ft. The developer's Grand Central Phase II marked two sales yesterday.
GREATWALL MOTOR (02333.HK) is poised to produce 80,000 electric vehicles in Thailand in 1Q21, and plans to make the country as its production and export hub among ASEAN region, foreign media reported.
Mike Rake, the former chairman of BT Group, is stepping down from the board of Huawei's British business. Rake will resign as a non-executive director next month, Sky News reported.
Apple will retain iPhone 13 Mini in its forthcoming iPhone 13 series, despite recent reports suggesting lacklustre sales of iPhone 12 mini, which made up only 6% of overall iPhone 12 sales in the U.S. in October and November, said foreign media.
The World Health Organization (WHO) granted emergency use authorization to the COVID-19 vaccine co-developed by AstraZeneca (AZN.US) and the Oxford University. The British pharma wished to provide over 330 million doses to 145 countries in 1H21 under the COVAX global vaccine-sharing initiative.
CANSINOBIO-B (06185.HK) announced that based on the interim results for phase III clinical trial of the Recombinant COVID-19 Vaccine (Adenovirus Type 5 Vector) (the Ad5-nCoV), Ad5-nCoV has been granted emergency use authorization by the Drug Regulatory Authority of Pakistan.
MANULIFE-S (00945.HK) announced that it intends to issue CAD2-billion principal amount of 3.375% Limited Recourse Capital Notes Series 1 (Subordinated Indebtedness), subject to resetting every five years.
FOSUN INTL (00656.HK) announced a connected transaction that it will subscribe for the Convertible Bonds of Xingye Investment in the principal amount of RMB2.8 billion, with simple interest of 6.8% per annum.