HSI -747pts (-2.6%) 28,551 HSCEI -317pts (-2.7%) 11,334 T/O HK$269.88bn (+5.8% DoD)
Markets opened lower and intially sold down before rebounding to the opening levels. Petrochems leading the declines on more lockdown concerns. Earnings in focus along with the data.Diageo traded higher after a surprise rise in underlying net sales growth for the first half, with an uptick in retail demand in the U.S. offsetting the impact of pub closures in Europe. Vegetable oil firm AAK and Finnish telecoms firm Elisa both traded higher following strong fourth-quarter earnings reports.
Finnish engineering firm Wartsila weak after missing earnings expectations.
Sentiment Economic Jan 91.5 vs 92.4 Dec revised (F/cast was 89.2)
Sentiment Industrial Jan -5.9 vs -6.8 Dec revised (F/cast was -7)
Sentiment Services Jan -17.8 vs -17.1 Dec revised (F/cast was -18)
Consumer Confidence Jan -15.5 vs -13.8 Dec revised (F/cast was -15.5)
Consumer Inflation Expectations Jan 15.4 vs 15.3 Dec (F/cast was 14)
Inflation Rate Prelim due
Car Production Dec -2.3% YoY vs -1.4% Nov (F/cast was -26%)
Opened Dow -120pts, S&P -0.7% and NDX -0.8% in Asian time eased back to almost flat; but then sold off again; Dow -100pts, S&P and NDX -VE.
Investors will be watching the battle between retail and institutional names in GameStop and AMC Ent (both sold off in after hours but were still up on the day), whilst waiting to see if other short favourites come under pressure; Reddit Chat room becoming an important market indicator. A lot of key data also due to be released and more earnings.
GDP Price Index & Growth Rate, Initial Claims, 4 week Ave Claims, Continuing Claims, Goods Trade Balance, Wholesale Inventories, PCE Prices, Core PCE, New Home Sales, CB Leading Index, EIA Gas Stock Change, Kansas Fed Manufacturing Report.
Earnings: McDonald’s, Dow, Visa, Mondelez, Northrop Grumman, Comcast, Mastercard, PulteGroup, Southwest Air, Altria, American Airlines, JetBlue, T.Rowe Price, McCormick, Brunswick, Marsh and McLennan, Sherwin-Williams, Stanley Black and Decker, Canon, Valero Energy, Beazer Homes
CHINA CSI 300 Closed -151pts (-2.7%) @ 5,377
CSI 300 opened lower at 5,450 level and initially traded sideways but sold down from 10:20am to 5,400 level and then traded sideways into lunch. PM saw an initial rally to 5,430 at 1:20pm before trending lower to 5,360 at 2:50pm before a small bounce into the close on late bargain hunting. Investors cautious over US/China relations as US commits to foreign allies against China and rejects China’s maritime claims to the South China Sea that are beyond those permitted under international law. Many foreign investors are also questioning President Xi speech to the Davos group for its inconsistencies between his words and China’s actions.Local investors also concerned about the tightening liquidity by the PBoC ahead of the Chinese New Year. Profit taking seen in those sectors that recently rallied like medical equipment, lithium battery and solar.
Shanghai Comp -68pts (-1.9%) @ 3,505 (3 week low) T/O Rmb 391.6bn
Shenzhen Comp -500pts (-3.3%) @ 14,913 T/O Rmb 524bn
ChiNext Index -119pts (-3.6%) @ 3,161
CHINA DATA None
HSI Pre market opened at 28,915 -383pts vs -377pts ADRs on futures settlement day
Initially sold down to 28,800 before rebounding to 29,190 level which was the resistance and market reversed and sold down to 28,685 level, saw small bounce but then sold down to 28,660 before trading sideways into lunch. PM saw the market drift slightly lower with support at 28,500 and a slight rally in the last 15 minutes. Concerns after the US pull back despite good results from some Tech heavyweights; Facebook warned its advertising business could be hurt as the pandemic recedes hurt Ecommerce names.
Fed comments about low interest rates and asset purchases largely ignored but comments about the economy being a long way from full recovery weighed on investors; prompting a risk-off day. Concerns still about China/US relations and with other countries like Australia after President Xi’s speech to Davos group yesterday. Also Biden’s decision to review some Trump decision leading to uncertainty.
HONG KONG DATA
Centre for Health Protection said there were 39 new COVID-19 cases in Hong Kong today; (vs 60 Wednesday) with 20 of unknown origin.
NATIONAL SECURITY LAW. Carrie Lam said she’s “optimistic” the new U.S. administration will give her government “a fair hearing” with regards to the city’s controversial national security law. She denied that Hong Kong is a sticking point between the two economic powers. But said the U.S. sometimes used the city as a “pawn” in its dealings with China. Asked if she would seek reelection when her term ends next year, she declined to answer but said: “I just try to comfort myself that very often, women are being left to do the most difficult job. And I happen to be one of them.”
SHORT SELLING Thursday +18.7% vs 14.8% Wednesday
Top Shorts: Ping An (2318) 48%, NWD (17) 41%, Sands China (1928) 40%, Wharf REIC (1997) 40%, Hang Seng Bank (11) 39%, Henderson Land (12) 39%, Hang Lung Property (101) 32%, Citic (267) 32%, ICBC (1398) 30%, Country Garden (2007) 30%, HSBC (5) 29%, BABA-SW (9988) 29%, Galaxy Ent (27) 28%, CLP (2) 27%, CKI (1038) 26%, SHKP (16) 25%, Bank of China (3988) 25%.
AFTER MARKET NEWS
BYD COMPANY (01211.HK) announced the completion of placing of 133 million H shares to not less than six individuals at $225 per share. The aggregate net proceeds from the Placing amount to approximately $29.801 billion.
VALUE PARTNERS (00806.HK) co-chairman and co-chief investment officer Cheah Cheng Hye attributed the downswing of Hong Kong/ China bourses today (28 January) to investors' concern that the PBOC will no longer launch economic booster proactively, but take more neutral stance to stabilize the financial system and avert bubbles. The chairman deemed the Hong Kong/ China's market downswing as natural and reasonable on profit-taking after ascending for days. In his opinion, the market worry was overdone. He remained upbeat on the related Chinese equities this year.
BMW axed selling prices for its all-electric SUV iX3 to RMB399,900 - RMB439,900, down about 15% from the original prices of RMB470,000 - RMB510,000 unveiled in September 2020.
LP10, jointly developed by Nan Fung and MTR CORPORATION (00066.HK), recorded over 4,080 subscriptions today, representing over 17 times of over-subscription. The second round of sales is starting this Saturday (30 January).
BABA-SW (09988.HK) On 25 January it disposed on-market of 146.5 million shares of ALI HEALTH (00241.HK), involving nearly $3.88 billion, according to the shareholding disclosures at the Stock Exchange.
Thai Beverage intends to file for listing its brewery arm on Singapore's stock exchange as early as next week, aiming for a valuation of US$10 billion, foreign media reported. This will pave way for Singapore's biggest IPO in nearly a decade. The brewer may go public in the second quarter at the earliest.
BAUHAUS INT'L (00483.HK) announced that the Franchisor DKH Retail Limited has agreed to grant to its subsidiary Bauhaus Holdings Limited a nonexclusive license to carry on the Superdry Business in the Territory at, or operate the Superdry Business from, the Stores, including the right to use the Retail Trade Mark, subject to and in accordance with the terms of the Franchise Agreement.
MEDIALINK GROUP (02230.HK) being the exclusive authorized agent of "The Little Prince" in Asia including China, has long-standing cooperation with the latter, said Chairman Chiu Siu Yin Lovinia. In recent year, the business of "The Little Prince" doubles up while yielding peachy growth in China. Starting from 29 January, the company will hold an art gallery for "The Little Prince" at Harbour City in collaboration with local illustrators. Chiu also revealed the company will sell a wide range of limited-version goods at the gallery, before organizing the same in Singapore.
After Bitcoin had surged three times last year, Bank for International Settlements (BIS) General Manager Agustin Carstens said at a meeting on Wednesday that the cryptocurrency is inherently risky and that only central banks should issue digital currencies. Carstens warned investors that Bitcoin "may well break down altogether," as the system turns vulnerable to majority attacks when it gets close to maximum supply of 21 million coins, adding that central banks are obliged to issue digital currency should any market demands arise.
PRU (02378.HK) announced that the Board has decided to pursue the separation of its US business, Jackson Financial, from the Group in the second quarter of 2021 through a demerger, whereby shares in Jackson would be distributed to Prudential shareholders. The demerger, which is subject to shareholder and regulatory approval. In order to accelerate de-levering during 2021 through the redemption of existing high-coupon debt, PRU is considering raising new equity of around US$2.5-3 billion in Hong Kong or London, or both, with an objective to increase the Group’s investor base in Asia.
Based on the recent results release, HANG LUNG PPT (00101.HK) reaped sharp growth in Chinese rental income during the second half of 2020 as compared with the first half, said Chairman Ronnie Chan, foretelling the segment to remain major contribution for the year ahead. Nevertheless, CEO Weber Lo mentioned pressures on Chinese office business mainly as a result of oversupply, although the business impact is negligible given the group's competitive edge from its offices situating inside town centers.
On the acquisition of the property owned by U.S. Consulate General in Hong Kong at 37 Shouson Hill Road was interrupted owing to foreign affairs between China and the U.S..
CEO Weber W.P. Lo said at the conference call that the company has been keeping close contact with the seller, adding it is still willing and capable of wrapping up the deal. Yet, he reiterated the related property is not an ordinary one, which requires the seller to meet foreign obligation and requirement and that is not under the company's control. He forecast that the housing market in Hong Kong will hail a slight boom on the ride of pent-up demand to be unleashed after the pandemic. Coupled with low rate environment, the CEO was sanguine about the housing market, particularly the luxury property. He also mentioned the property leasing performance in Hong Kong, anticipating the pandemic to taper off as soon as possible to make way for retail sales normalization. He expected a better landscape HoH in 2H21 should Covid vaccines be rolled out successfully. Glad to see a dip in HANG LUNG PPT's property vacancy rate, however, Lo believed the leasing market will come under pressure this year.
*US SANCTIONED NAMES WEAK despite President Biden giving investors more time to unwind investments in companies tied to the Chinese military as the administration reviews Trump-era policies. The Treasury Department delayed the deadline to May 27 from Jan. 11, but left the Nov. 11 date for a full investment ban intact. It named CNOOC (883 HK-1.7%), CH MOBILE (941 HK unch), CH TEL (728 HK -1.3%) and CH UNICOM (762 HK -3.5%) as affected firms.
MSCI also said it won’t proceed with the deletion of the securities referenced in its communication on Jan. 26 from the MSCI ACWI or the MSCI China All Shares Indexes, and from relevant non-market capitalization weighted indexes and custom indexes as of the close of Jan. 28. CGN (1816 HK +0.6%) INSPUR (596 HK -3.3%). I would expect FTSE Russell and others to follow. It puts the stocks in a holding pattern rather than being out of the woods.
*E-COMMERCE WEAK after FACEBOOK's 4Q sales jumped 33% to US$28.1b, beating F/casts of US$26.4 but the company warned of "significant uncertainty” to advertising revenues as pandemic eases and said 2H growth may slow. ALIBABA (9988 HK -3.2%) also had news that Ant Group will become a Financial holding company under the oversight of the PBoC.
NTES (9999 HK -5%) JD.COM (9618 HK -6%) TENCENT (700 HK -3%) MEITUAN (3690 HK -2.3%) WEIMOB (2013 HK -8%).
CHINA LITERATURE (772 HK +11%) bucked the trend as it replicates wild short squeeze action of US-listed GAMESTOP.
*TECH & COMPONENTS continued to drop on profit-taking after Nasdaq reached record high recent, raising concerns on valuations. SMIC (981 HK -7.5%) HUA HONG (1347 HK -9%) FIT HON TENG (6088 HK -6.1%) ASM (522 HK -8.5%).
COMPONENT makers remained under pressure after APPLE's supplies revenue topped US$100b for the first time, with sales jumped 21% to $111.4b vs $103.1b estimate. Handset sales were $65.6 billion vs $60.3b consensus. Question is whether it can maintain the momentum or will be markets become saturated: AAC (2018 HK -3%) SUNNY (2382 HK -7%) TONGDA (698 HK -7%).
*AUTO MAKERS WEAK as TESLA missed on profit due to Musk’s salary and cheaper model sales. It reported an adjusted EPS of 80 cents a share, falling short of the $1.03 consensus. The company also didn't provide guidance on deliveries for the year but said it expects 50% ave annual growth in deliveries going forward.
BYD (1211 HK -7%) is planning to debut the new high-end EV brand "Dolphin" next year, according to market rumour. GEELY (175 HK -6%) GREAT WALL (2333 HK -3.4%) EVERGRANDE EV (708 HK -5.5%) GAC (2238 HK -4.4%). Worth noting also that Colbalt pries are hitting new highs increasing the cost of lithium batteries.
*PHARMA WEAK despite WUXI BIO (2269 HK -4%) Positive Profit Alert yesterday after market; it expects to report a 65% surge in net profit for 2020. A consortium led by SINOPHARM (1099 HK -2.7%) plans to take private CH TRAD CHINESE MED (570 HK suspended) in a deal that would value the firm at least US$3.3b. The corsortium plans to offer at least HK$5.10/shr for CTM, a premium of about 33% to the average share price over the past month of HK$3.83, news reported.
*HK PROPERTY WEAK as home prices continued to be weighted down by rising Covid cases. A consortium of four developers; NWD (17 HK -0.7%), Empire Group, CSI PROP (497 HK unch) and LAI SUN DEV (488 HK -4.5%) won the tender for package 5 at MTRC (66 HK +2.3%)’s The Southside development atop Wong Chuk Hang station. The development will offer up to 1,050 homes and the valuation between HK$10.16b and HK12.3b, with an average price of HK$16,000-HK$19,000 per square foot. The fact the developers prefer to bid as part of a consortium rather than individually shows that they are still unconvinced about the prospects.
CH EVERGRANDE (3333 HK -4%) will launch 253 units of Emerald Bay in Tuen Mun on Sunday.
* OTHER MOVERS:
VINDA INTL (3331 HK +2.7%) Annual net profit +64.7% YoY to HK$1.87b in 2020, as the Covid-19 pandemic raised public awareness of personal hygiene and Chinese economic recovery boosted demand for premium products.
CH COMM CONSTRUCTION (1800 HK -2.4%) on news a US$10b airport deal had been revoked in the Philippines.CATHAY PAC (293 HK-9.7%) raised US$869m from a sale of five-year convertible bonds; comes as new quarantine restrictions will significantly hurt it aircrews ability to work and could reduce cargo capacity by 25%. -VE
Nikkei 225 opened lower at 28,170 and initially dipped on the weak Retail Sales data to 27,975 before working gradually higher through the morning to a high of 28,360 which it tested a couple of times before easing slightly into lunch. PM opened slightly lower and trading sideways. Closed -438pts (-1.5%) @ 28,197
Topix traded in a similar pattern; currently -21pts (-1.1%) @ 1,839
Retail Sales Dec -3% YoY vs +0.6% Nov revised from +0.7% F/cast was -0.5% YoY
Retail Sales Dec -0.8% MoM vs -0.2% Nov (F/cast was +0.5% MoM)
Foreign Stock Investment Yen 209.2 bn vs 177.5bn prior (revised)
Foreign Bond Investment Yen 752.6bn vs 276.6bn prior (revised)
Pre market Business Confidence data beat forecasts and a number of companies had good results Wednesday but markets opened slightly lower, following the US.
Kospi opened at 3,115 but sold down to 3,050 level in the first 45 minutes having seen a brief support at 3,060. Market then worked back to 3,100 which became resistance and after testing twice the market reversed and trended lower before trading sideways to close -54pts (-1.7%) @ 3,069
Kosdaq opened 981 but sold down to 960 before bouncing to 975 and then 977 but then reversed and trended lower; before trading sideways to close -25pts (-2.5%) @ 961
Data Business Confidence Jan 85 vs 82 Dec (F/cast was 83)
As uncertainty over the coronavirus pandemic and vaccine distribution retreated. In the non-manufacturing sector, the BSI on business conditions for November 2020 was 68, up 2 points from the previous month, while the outlook for the following month rose by 6 points to 70.
Opened lower at 15,520 despite good results from UMC saw an initial dip but the bounced to 15,560 level, traded sideways for 30 minutes and then trended lower to 15,370 before seeing a small bounce and trading sideways to close -286pts (-1.8%) @ 15,416
Northbound Rmb 52,991m Buy 27,326m vs 23,665m Sell
Southbound HK$ 32,980m Buy 14,798m vs 18,183m Sell
Northbound Rmb 69,619m Buy 36,181m vs 33,437m Sell
Southbound HK$ 40,040m Buy 16,603m vs 23,437m Sell
AIA (01299.HK) -4.7%
BABA (09988.HK) -3.2%
HKEX (00388.HK) -3.1%
TENCENT (00700.HK) -2.9%
PING AN (02318.HK) -2.7%
MEITUAN (03690.HK) -2.3%
HSI & HSCEI Constituents on Move:
SMIC (00981.HK) -8.6%
TECHTRONIC IND (00669.HK) -7.6%
GEELY AUTO (00175.HK) -6.9%
JD HEALTH (06618.HK) -6.9%
ALI HEALTH (00241.HK) -6.8%
HAIDILAO (06862.HK) -6.8%
SUNNY OPTICAL (02382.HK) -6.8%
CPIC (02601.HK) -6.2%
JD (09618.HK) -6%
BUD APAC (01876.HK) +4.9%
NTES (09999.HK) -4.8%
SUNAC (01918.HK) -4.8%
SHENZHOU INTL (02313.HK) -4%
WUXI BIO (02269.HK) -4%
HENGAN INT'L (01044.HK) +4%
CHINA RES LAND (01109.HK) -3.9%
CHINA RES GAS (01193.HK) -3.9%
ANTA SPORTS (02020.HK) -3.8%
HANSOH PHARMA (03692.HK) -3.8%
CHINA UNICOM (00762.HK) -3.5%
SINO BIOPHARM (01177.HK) -3.5%
EVERGRANDE (03333.HK) -3.4%
HSMI & HSSI Constituents on Move:
KASEN (00496.HK) +16.7%
VITASOY INT'L (00345.HK) +15.4%
CHINA LIT (00772.HK) +11.4%, hitting new high
GCL-POLY ENERGY (03800.HK) -10.1%
CMS (00867.HK) -10.1%
U-PRESID CHINA (00220.HK) +4.9%, hitting new high
MARKET HOURS NEWS
PRADA (01913.HK) expects revenue rising to EUR5 billion in four to five years, said Chief Executive Patrizio Bertelli, attributable to sharp growth when the pandemic is over.
Faraday Future is set to announce as soon as Friday its plan to go public in the U.S. through SPAC merger, which is valued as high as US$2.7 billion, Reuters learnt from people familiar with the plan. Geely will be an anchor investor of the IPO and invest US$775 million, while Zhuhai Gree, Zhuhai Huafa and such other Chinese state-owned companies will also invest in the deal.
Canon announced that during the fourth quarter ended December 2020, net profit boomed 64% yearly to JPY53.59 billion (roughly USD515 million), beating market estimates.
Toyota Motor announced that FY20 global sales volume shrank 11.3% to 9.528 million vehicles and the group surpassed Volkswagen for the first time in five years as the top carmaker in the world.
During the fourth quarter of 2020, worldwide smartphone shipment reached 360 million units, down 2% yearly, Canalys wrote in a report. In terms of brands, XIAOMI-W (01810.HK) closely followed Apple and Samsung and delivered shipment of 43.40 million units, up 31% yearly.
MACAU information from the Statistics and Census Service (DSEC) indicated that a total of 120 hotels & guesthouses were open for business in December 2020, a decrease of 3 year-on-year; number of available guest rooms dropped by 8.2% to 35,000. Data on hotels & guesthouses used for medical observation were excluded in the compilation of the results. The average occupancy rate of guest rooms was 53.1%, representing a month-to-month growth of 9.1 percentage points and yet a year-on-year decrease of 38.9 percentage points.
Ant Group's Huabei and Jiebei have recently rolled out a new function so that users may on their own adjust the quota, said Chinese media.
Hang Lung Group Earnings at lunchtime FY20 The underlying net profit fell 25.3% yearly to $2.834 billion, after excluding a net revaluation loss of properties of $4.375 billion. Underlying EPS equaled $2.08. The final DPS was $0.63.
HANG LUNG PPT (00101.HK) announced annual result ended December 2020. The revenue rose 1.4% year on year to $8.973 billion. The underlying net profit dropped 6.1% to $4.201 billion. Underlying earnings per share correspondingly decreased to $0.93. The final dividend was $0.59 per share.
ND PAPER (02689.HK) announced that, if the exchange gains on operating and financing activities net of tax were excluded, the profit for the six months ended 31 December 2020 is expected to increase not less than 60% as compared to the six months ended 31 December 2019, due to stable growth of the sales revenue and increase in gross profit margin
The Hongkong and Shanghai Banking Corporation Limited announced today (28 January) that the best lending rate was put on hold at the current level of 5%.
The Biden administration will strive for protecting American telecom networks from the national security threats from untrustworthy suppliers like Huawei, according to White House spokesperson Jen Psaki.
China has approved the first batch of 84 domestic game edition numbers for January 2021, including 42 mobile games like Metal Revolution from TENCENT (00700.HK)'s NExT Studios, and one XD INC (02400.HK's game, announced by National Press and Publication Administration.
India's smartphone shipment surged 13% to 43.9 million units in 4Q20, but declined 2% to 145 million units for the full year, reported Canalys. By brands, XIAOMI-W (01810.HK)'s shipment grew 7% to 12 million units in 4Q, topping the chart with a 27% market share.
TENCENT (00700.HK) has acquired a minority stake in French game developer Dontnod Entertainment at EUR30 million (roughly USD41.4 million), said foreign media. The Chinese tech giant may thereafter nominate a representative in the board of Dontnod.
BABA-SW (09988.HK) established Alibaba Cloud Yangtze Delta (Jiashan) Information Technology in Jiaxing, Zhejiang with a registered capital of RMB1 billion, Chinese media reported. The company is engaged in information technology consulting services.
Tencent Cloud announced the strategic cooperation agreement with Bank of Beijing. Both sides aim to create a sector model for finance digitalization transformation under the active guidance of financial watchdog. In addition, the parties will explore the partnership in smart marketing, big data risk management, WeChat ecosystem scenarios, and so on.
NEW CENT REIT (01275.HK) announced that on 26 January 2021, the Trustee (as the seller) and the Manager have respectively entered into the Agreement for the disposal of all businesses, assets and outstanding loans (EUR2.937 million) to the Purchaser Huge Harvest, at a total consideration of around HK$1.92 billion (equivalent to approximately RMB1.73 billion). New Century REIT should be terminated in accordance with the REIT Code, the Units should consequentially be delisted from trading on the Stock Exchange and New Century REIT should be deauthorised in accordance with applicable regulatory requirements. The Board has resolved, subject to Completion, for the Proposed Interim Distribution of HK$2 for every Unit. At the request of the Manager, trading in the Units on the Stock Exchange has been halted from 9:00 a.m. on 27 January 2021 pending the release of this joint announcement. Application has been made by the Manager to the Stock Exchange for resumption of trading in the Units on the Stock Exchange with effect from 9:00 a.m. on 28 January 2021.
Samsung Electronics announced Q4 operating profit +26% to KRW9.05 trillion (around USD8.17 billion), in-line with the company's early-January estimate. The South Korean tech giant somehow warned of a weaker profit result this quarter as a result of stronger KRW and costs related to new chip production.
PRE MARKET NEWS
MSCI announced that it will not implement its decision declared on January 26 to remove the securities of five Chinese firms from ACWI index series, China All Shares Index and such other indices. The said firms involve CGN POWER (01816.HK), CNCEC (601117.SH), CNNP (601985.SH), CSICL (601989.SH) and INSPUR INT'L (00596.HK)
U.S. President Joe Biden refreshed the investment ban on some Chinese military companies after assuming office. The Treasury Department said the investment curb on a majority of firms “whose name closely matches, but does not exactly match, the name of a Communist Chinese military company” would be delayed until May 27, stretching the original deadline of January 28.
The PBOC will inject RMB100 billion into the market through the seven-day reverse repos, as Bloomberg cited trader's sources. The single-day net withdrawal amounted to RMB150 billion, the highest amount since last October.
In response to India's earlier report that it will forever ban 59 Chinese mobile apps, including Douyin and WeChat, the spokesperson of the Chinese Embassy in India said such move violated the non-discrimination principle of the World Trade Organization and the fair competition rule of the market economy. China vigorously opposed to the action as it devastated the legal interest of Chinese companies.
BABA-SW (09988.HK)'s affiliate Ant Group will turn into a financial holding company and fall under scrutiny of the People's Bank of China to be bound by capital regulation, Wall Street Journal cited sources. Report said Ant Group has submitted to Chinese watchdog its revamp plan, which is expected to come to final amendment before Chinese New Year. Ant refused to respond to the report, whilst the PBOC, CBIRC and State Council Information Office have yet to reply.
SANDS CHINA LTD (01928.HK)’s controlling shareholder, Las Vegas Sands Corp., announced its financial results for the fiscal fourth quarter and full year ended December 31, 2020. On a US GAAP basis, full year 2020 total net revenues for SCL decreased 80.8%, compared to the full year 2019, to US$1.69 billion. Net loss for SCL was US$1.52 billion in 2020, compared to net income of US$2.04 billion in 2019. On a US GAAP basis, total net revenues for SCL decreased 69.9%, compared to the fourth quarter of 2019, to US$672 million. Chairman and chief executive officer of LVS, said the recovery process from the COVID-19 pandemic continues to progress in both Macao and Singapore. The group remains optimistic about the eventual recovery of travel and tourism spending across markets. The group achieved positive EBITDA in both Macao and Singapore during the fourth quarter. Its business will rebound to pre-COVID levels in the future.
CATHAY PAC AIR (00293.HK) announced proposed issue of $6.74-billion 2.75% guaranteed convertible bonds due 2026. The initial Conversion Price is $8.57 per Conversion Share, which represents a premium of 30.0% over the last closing price as quoted yesterday.
Beijing declared that people from mid-to-high risk regions of China and regions under territory-wide isolated management will in principle be denied access thereto, cited Beijing Daily. Inbound passengers from other domestic ports will be allowed entry to the Chinese capital post 21-day quarantine, followed by 7-day health tracking upon entry.
SMOORE INTL (06969.HK) announced planned top-up placement of 60 million shares at placing price of $74.4 per share, representing 7% discount to the closing price yesterday. Meanwhile, Executive Director Xiong Shaoming plans to sell 30 million sale shares, involving $2.232 billion.
COSCO SHIP PORT (01199.HK) announced that the Company acquired a 20% stake in RSGT, a privately-owned, independent international terminal operator, from independent third parties SISCO, City Island, Xenel and Tusdeer at a cash consideration of US$140 million. RSGT is a Saudi company committed to Red Sea regional and global infrastructure and facility investment.
SHANGHAI PECHEM (00338.HK) Profit Warning, expecting net profit attributable to equity shareholders of RMB567-693 million for the year ended 31 December 2020, representing a decrease of 69%-74% over the corresponding period of the previous year.