HSI +224pts (+0.9%) 26,343 HSCEI +98pts (+1%) 10,483 T/O HK$129.15bn (+4.5% DoD
FTSE opened lower but worked back to flat in early trades. DAX and CAC opened higher and trading sideways/better. Sentiment initially weak in reaction to Trump’s tweet on the US Stimulus Bill but improved as expectations of a Brexit Deal improve. France re-opened its border with the UK requires passengers arriving at the border to have a negative coronavirus test result. Travel sector +VE
Daimler +VE on news it will list its trucks business. But weakness for HelloFresh and Games Workshop.
Import Prices Nov +0.5% MoM vs +0.3% Oct (F/cast was +0.5%)
Import Prices Nov -3.8% YoY vs -3.9% Oct (F/cast was -3.9%)
PPI Nov +1.7% MoM vs +0.1% Oct (F/cat was +0.3%)
Car Production Nov -1.4% YoY vs -18.2% Oct (F/cast was -27.1%)
Opened flat but sold down after Trumps tweet regarding the stimulus packages which means it is likely to be delayed. But have rebounded since Europe opened and now Dow +90pts with S&P and NDX higher too.
MBA 30 yr Mortgage Rate, Personal Income & Spending, PCE Price Index, Core PCE Price Index, House Price Index, New Home Sales, Michigan Consumer Confidence Data (Consumer Expectation, 5 year Inflation Expectations, Consumer Sentiment, Inflation Expectations, Current Conditions), EIA Oil & Gas Report, Baker Hughes Total Oil Rig Count.
CHINA CSI 300 Closed +42pts (+0.9%) @ 5,007
CSI 300 opened higher and has worked higher through the morning to 5,028 before easing back into lunch. PM opened higher and worked up to 5,028 again but unable to break out and then sold all the way down to the day low 4,968 in the next 45 minutes to just above Tuesday’s close before finding support. It then worked back in the last hour in choppy trading.
Suggests that Team China keen to keep the market around the 5,000 level.
Shanghai Comp +26pts (+0.8%) @ 3,382
Shenzhen Comp +133pts (+1%) @ 14,015
ChiNext Index +31pts (+1%) @ 3,062
CHINA DATA None
HSI Pre Market Opened @ 26,083 -36pts vs -86pts ADR’s.
ECommerce names were mixed, SMIC saw further weakness, Kunlun Energy rallied on news of an asset sale. Market initially worked higher to 26,150 level and then trading sideways until around 11am when it rallied into lunch. PM opened flat but worked higher to 26,300 but found resistance and trended lower until 2:45 when it rallied again to 26,320 level before easing back to 26,270 and then saw a final rally into the close, with an uptick in the closing auction.
Weighted Voting Rights share rallied on news the Hang Seng Indexes were looking at overhauling the index structure and raising their weightings.
Renewables +VE as the National Energy Administration has proposed a new installed capacity target of 120 million kW of wind power and solar energy next year. GOLDWIND (02208.HK +8.5%), CHINA LONGYUAN (00916.HK +8.7%), XINYI SOLAR (00968.HK +7.6%) and DATANG RENEW (01798.HK +7.2%)
Financial and ECommerce names remained weak
HONG KONG DATA
Centre for Health Protection said there were 53 new COVID-19 cases in Hong Kong today (vs 63 Tuesday) 20 cases with unknown origin. The lowest daily number in a month.
SHORT SELLING Wednesday 12% vs 14.2% Tuesday
Top Shorts Bud Apac (1876) 45%, Hang Lung Property (101) 44%, HK & China Gas (3) 43%, Hang Seng Bank (11) 37%, Hengan (1044) 34%, Country Garden (2007) 32%, MTRC (66) 30%, Henderson Land (12) 30%, Wharf REIC (1997) 29%, CKI (1038) 28%, BoC HK (2388) 28%, Anta (2020) 26%, Sands China (1928) 25%, Sinopec (386) 25%, AIA (2018) 25%.
AFTER MARKET NEWS
Carrie Lam’s press conference announced a number of new measures Increased the quarantine period to no more that 28 days from the current 14; for those coming from the UK it will now be 21 daysSaid Citizens Have Right to Know Vaccine Types and a choice which vaccine they have (reversing her earlier declaration although she said she had been misunderstood).
The administration will set up a Security Fund to economically support citizens with a severe covid vaccine reaction. This is interesting as the HK administration has previously said it would use Chinese vaccines, whose trial data has not been released publicly. No other country has suggested the need for a fund to support those that have a severe reaction to the vaccine.
ExCo Enacts New Rule to Empower FHB on Emergency Vaccine Use, Effective for 12 Mths
Strikes Deal with AstraZeneca to Buy 7.5M Vaccine Shots and has inked deals for 22.5 vaccine does so far and is seeking a fourth supplier.
Vaccination Does Not Mean Immediate Border Clearance; To Unroll E-vaccination Card
Jimmy Lai granted bail for HK$10m cash
HKMA says The aggregate pre-tax operating profit of retail banks fell by 26.1% in the first three quarters of 2020, from last year, due to a drop in net interest income and a surge in loan impairment charges. The highly uncertain pandemic and economic outlook could continue to weigh on bank loan quality and profitability in the coming months, the HKMA said. Retail bank net interest margin narrowed to 1.24% in the first three quarters of 2020 from 1.64% in the same period of 2019.
The Ministry of Industry and Information Technology announced that yesterday (22nd), it had granted the ten-year permits for using 5G mid-band and low-band spectrum to CHINA TELECOM (00728.HK), CHINA MOBILE (00941.HK) and CHINA UNICOM (00762.HK)
TENCENT (00700.HK)'s Weishi will concentrate on developing micro-series in the coming year, planning to invest RMB1 billion of funds and 10 billion of data traffic in supporting the buildout.
SING TAO (01105.HK) is mounting provisional no-pay leave arrangements on employees, according to an internal letter from executives. The arrangement will be effective for three months starting from 1 January 2021, under which each staff member shall be furloughed four days per month.
GANFENG LITHIUM (01772.HK) clarified that there have been price hikes on some lithium metals products only. Rumor had it that GANFENGLITHIUM had raised prices of all lithium metals goods by 10% since 22 December.
Hong Kong reported a poor population as high as 1.491 million in 2019, up 85,000 yearly, with the poverty rate up to 21.4%, local media learnt from inside sources.
Centa-Salesman Index (CSI) last stood at 47.54 this week, down 1.61 pts weekly.CSI softened to 50 without plunging, following the 4th local Covid wave in late November, said Centaline Property. The index showed a narrowing weekly slide during the five weeks post-outbreak.
Ant Group in response to Chinese media's quotation of netizens that their Huabei quota was brought down to below RMB2,000 or RMB3,000, said that it is adjusting relevant quota of some young users to encourage rational spending habits.
Opened higher but trended lower after Trump tweeted the US Stimulus bill as a disgrace and he wanted Congress to amend it. Market found support at yesterday’s closing level and saw a bounce but eased into lunch. PM opened higher and worked higher back to 26,550 level but then eased lower and traded sideways to close +88pts (+0.3%) @ 26,525
Topix traded in a similar pattern but dipped below yesterday’s close before finding support. PM opened just below yesterday’s close but then worked into the green, then tested the support before a small rally to close +4pts (+0.2%) @ 1,765
Pre market BoJ Meeting notes no surprises. But one member expressed concern that “deflation might take hold” if Covid-19 spreads again and pushes down economic activity, so this “possibly warranted attention” in guiding monetary policy.
Coincident index Final Oct 89.4 vs 84.8 Sept (F/cast was 89.7)
Leading Economic Index Final Oct 94.3 vs 93.3 Sept (F/cast was 93.8)
Kospi opened higher and ticked up to 2,750 but then sold down to 2,720 on Trump’s tweet before working higher through the session to 2,769 but that was the high eased back slightly but effectively traded sideways to close +26 pts (+1%) @ 2,760
Kosdaq opened higher and ticked up to 939 before reversing down to 920, then worked back to 936 but around 1pm sold down all the way back to 920 before a small bounce and then eased lower to close -6pts (-0.6%) @ 923
Market encouraged as LG Electronics surged around 30% in the afternoon trade after announcing a JV with automotive supplier Magna International to manufacture electric vehicle components.
Opened slightly higher, sold down with the rest of Asia and then rebounded to 14,220 before easing back to test support at Tuesday’s closing level before working better, rallied on the Consumer Confidence data and then worked slightly better before easing back to close +46pts (+0.3%) @ 14,223
Data mid morning
Consumer Confidence Nov 72.9 vs 71.1 Oct (F/cast was 70)
Retail Sales Nov +2.48% YoY vs +3.26% Oct (F/cast was +2.5%)
Industrial Production Nov +7.84% vs +6.44% Oct revised (F/cast was +5.5%)
Northbound Rmb 42,112m Buy 19,828m vs 22,284m Sell
Southbound HK$ 18,077m Buy 9,112m vs 8,965m Sell
Northbound Rmb 54,289m Buy 26,203m vs 28,086m Sell
Southbound HK$ 16,336m Buy 6,398m vs 9,938m Sell
MEITUAN (03690.HK) +3.9%
AIA (01299.HK) +2.4%
CCB (00939.HK) -1.6%
TENCENT (00700.HK) -0.3%
PING AN (02318.HK) -0.2%
BABA (09988.HK) -0.2%
HSI & HSCEI Constituents on Move:
XIAOMI (01810.HK) +7.6%, hitting new high
JD HEALTH (06618.HK) +6.9%, hitting new high
GEELY AUTO (00175.HK) +6.3%
JD (09618.HK) +5.6%
HAIDILAO (06862.HK) +4.9%
ENN ENERGY (02688.HK) +4.2%
ALI HEALTH (00241.HK) +3.5%
TECHTRONIC IND (00669.HK) +3.1%
ANTA SPORTS (02020.HK) +2.4%, hitting new high
HSMI & HSSI Constituents on Move:
GCL-POLY ENERGY (03800.HK) +14.5%
GREATWALL MOTOR (02333.HK) +12.5%, hitting new high
BJ ENERGY INTL (00686.HK) +11.1%
FIT HON TENG (06088.HK) +10.5%
JIUMAOJIU (09922.HK) +9.4%, hitting new high
MARKET HOURS NEWS
MTR CORPORATION (00066.HK) and AlipayHK announced that a QR code payment service will be launched in the MTR heavy rail network on 23 January 2021. Passengers can tap the entry gates with “QR Code Ticket” on the MTR Mobile or EasyGo of AlipayHK. MTR CORPORATION will also equip the stations with credit card readers in 2023.
TENCENT (00700.HK) has launched a facial recognition feature for over 100 mobile games, including Honor of Kings and Game for Peace, aiming to tackle the issue of kids outsmarting supervision using parents' ID information, according to Chinese media. Users failing to log in or pass the verification will be limited to a playing time of only 1.5 hours per day.
TENCENT (00700.HK)’s WeChat announced that at this moment, 13 million corporate service providers render their services via WeChat Work, of which the number of active users has reached 130 million.
Bank Rakyat Indonesia (BBRI) has received a green light from the Financial Services Authority and Bank Indonesia to cooperate with Alipay, CNBC reported. Hence, Alipay users can make payment by QR codes at QRIS-supported merchants in Indonesia.
Evergrande Taobao recently announced the proposed application for delisting its shares from National Equities Exchange and Quotation (NEEQ). The company was held as to 56.7% by Evergrande Real Estate, and as to 37.8% by BABA-SW (09988.HK)
The PBoC announced the successful issuance of 6-month bank notes in an amount of RMB10 billion, with successful tender rate of 2.70%, in Hong Kong today.
The World Bank bank wrote in its report that it projects economic growth in China to slow to 2 percent in 2020 before rebounding to 7.9 percent in 2021.
XIAOMI-W (01810.HK) said that Mi 11, scheduled to be launched on 28 December, will take the lead to adopt Snapdragon 888 chips.
The annual meeting of China Energy Research Society was convened in Beijing yesterday (22nd), reported cnenergynews.cn. A representative said the National Energy Administration had proposed a new installed capacity target of 120 million kW of wind power and solar energy next year.
GOLDIN FIN HOLD (00530.HK) TRADNG HALT with effect from 9:00 a.m. today (23 December), pending the release of an announcement on inside information of the Company.
Shenzhen Stock Exchange announced that HAIER SMARTHOME (06690.HK), which had today gone public by way of introduction, would be included into the Southbound Trading list under Stock Connect with immediate effect.
SUNART RETAIL (06808.HK) to change the financial year end date from 31 December to 31 March with effect immediately. Accordingly, the next financial year end date of the Company will be 31 March 2021 and the next published audited financial statements of the Company will cover a 15-month period from 1 January 2020 to 31 March 2021.
France will reopen her borders with Britain on Wednesday. However, entrants to France will each have to present a negative COVID-19 test result which is less than 72 hours old.
ESR (01821.HK) announced the successful listing of ESR Kendall Square REIT on the KRX KOSPI Market of the Korea Exchange, marking the first publicly listed institutional quality logistics asset focused real estate investment trust (REIT) in Korea.
PRE MARKET NEWS
BYD COMPANY (01211.HK) announced that it has entered into an equity investment and partnership agreement with various parties. The investment scope mainly covers AI and big data related software and hardware industries.
TCL ELECTRONICS (01070.HK) announced that it had on 22 December been informed by Chairman Li Dongsheng that he plans to increase his shareholding in the Company by acquiring no more than 5 million shares on market in the next few days.Comes as the stock sold down heavily on Tuesday as the US announced it was investigating TCL as a security risk.
The Hong Kong Monetary Authority (HKMA) announced that Chief Executive Eddie Yue led the delegation of Hong Kong Association of Banks (HKAB) to have annual meetings with the Mainland financial regulators on 17, 21 and 22 December. The delegation met with Yi Gang, Governor of the People’s Bank of China, Zhou Liang, Vice Chairman of the China Banking and Insurance Regulatory Commission and Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission respectively to discuss the recent financial developments in Hong Kong and the Mainland, as well as issues on financial cooperation that are of interest to various parties. The Mainland financial regulators recognise Hong Kong’s role as a financial hub and its strength in providing a world connection, and have full confidence that Hong Kong will continue to play an active role in the Mainland’s "dual circulation" strategy, said Yue.
The U.S. Department of Homeland Security (DHS) is going to issue a warning to U.S. businesses, advising them against using communications equipment and services from Chinese-government-linked firms for latent data security risks, Axios reported.
At the State Council executive meeting chaired by Chinese Premier Li Keqiang, the Council confirmed a decision to extend the principal and interest repayment delay policy for inclusive finance loans to small and micro enterprises, as well as the credit loan support program, according to gov.cn.
KUNLUN ENERGY (00135.HK) announced the disposal of certain pipeline assets to PipeChina, including 60% equity interest in Beijing Pipeline and 75% equity interest in Dalian LNG, for a cash consideration of RMB40.886 billion. The Company expects to receive cash of RMB37 billion from the deal, of which around 50% will be used for the dividend distribution. Upon completion of the Transaction, the Company will cease to hold any equity interests in Beijing Pipeline and Dalian LNG.
S HARBOURHOLD (01663.HK) announced that Wong Lam Ping, the Company's chairman and substantial shareholder, had acquired 446,000 shares in the open market on 22 December, at an average price of $0.152 each.