HSI +579pts (+2.2%) 27,147 HSCEI +214pts (+2.1%) 10,663 T/O HK$153.32bn (+10.5% DoD)
EUROPE Markets opened flat. FTSE trading just in the green with sentiment helped by news that the coronavirus vaccine developed by AstraZeneca and the University of Oxford for emergency use in the country. The vaccination program may start next week. The vaccine is able to immunize the world "more effectively and more rapidly than any other vaccines" available at this moment, commented Richard Horton, editor-in-chief of The Lancet. CAC also trading in the green but the DAX just dipping into the read.
EU leaders +VE on the China trade deal and European Commission President Ursula von der Leyen and European Council President Charles Michel are scheduled today to talk with Chinese President Xi Jinping today.
Nationwide Housing Prices Dec +7.3% YoY vs +6.5% Nov (F/cast was +7.5%)
Nationwide Housing Prices Dec +0.8% MoM vs +0.9% Nov (F/cast was +0.7%)
US Futures Opened higher; eased but now moving higher with Dow +71pts, S&P and NDX slightly +VE. Mnuchin says stimulus cheques will start going out tonight although sentiment slight depressed after Republican Mitch McConnell blocked Trump’s and the Democrat request for higher stimulus payments.
CHINA CSI 300 Closed +71pts (+1.4%) @ 5,114
CSI 300 opened flat but rallied in the first hour to 5,093 and the worked better into lunch. PM opened higher tested 5,100 but didn’t break above and has eased back slightly to 5,084 level before working higher and breaking above 5,100 briefly, consolidated and then pushed higher again to 5,107 and traded sideways into the close and a 4pt uptick at the close.
Northbound connect flows were strong with autos, brewing, coal mining, non-ferrous metals, and brokerage trusts companies seeing interest. News that the EU/China trade agreement was nearly complete also +VE for sentiment.
Shanghai Comp +35pts (+1.1%) @ 3,415
Shenzhen Comp +231pts (+1.7%) @ 14,202
ChiNext Index +88pts (+3.1%) @ 2,901 (a new high)
CHINA DATA China’s 2019 GDP growth was revised to 6.0% from 6.1%.
HSI Pre Market Opened @ 26,695, +126pts vs -74 ADR’s E-commerce names seeing good interest including Baba +5.8%. Financials and Green Energy names also seeing interest; generally a broad recovery.Market opened higher and worked to test 27,000late morning but failed to break above and eased back into lunch. PM is worked slightly higher and continued to test the 27,000 level then just after 3pm it broke above and worked higher to close at the day high.
ZERO2IPO (01945.HK), on debut, finished the trade at $11.6, up 60 cents or 5.5% against the listing price $11, on volume of 53.39 mn shares and turnover of $758 mn. Excluding the handling fees, a book gain of $240 was reported per board lot of 400 shares.
WENLING MCT (01379.HK), on debut, finished @ $6.03 -19 cents or -3.04% against the listing price on volume of 6.77m shares.
HONG KONG DATACentre for Health Protection said there were 54 new COVID-19 cases in Hong Kong today (vs 53 Tuesday) Plus 50 initially confirmed cases.
SHORT SELLING Wednesday 16.7% vs 11.4% Tuesday
Top Shorts Bud Apac (1876) 50%, MTRC (66) 46%, Ping An (2318) 44%,Anta (2020) 39%, Henderson Land (12) 35%, BoC (3988) 33%, Country Garden (2007) 30%, Hang Seng Bank (11) 29%, Link Reit (823) 28%, Hengan (1044) 28%, AIA (1299) 26%, Wuxi Bio (2269) 26%.
AFTER MARKET NEWS
Centa-Salesman Index (CSI) last printed at 50.08, +2.54 pts WoW said Centaline Property. The CSI received resilient support as it ran its course away from the trough of 43.34 as set in the third spike of plague. While the index indicated front-line agents' sentiment remained shaky, they did not turn bleak on the property market. They envisioned the CSI to trend more certainly with signals of subsiding epidemic.
Taiwanese Central Epidemic Command Center reported the first confirmed case of coronavirus variant stemmed from the UK. The patient, now in a stable condition, returned to Taiwan with fever days ago. The government announced prohibition against all non-Taiwanese foreign visitor arrivals, effective Friday (1 January 2021), as part of its enhanced border control.
Bitcoin, reaching a new league at US$28,579.59 over the past 24 hours, last traded at US$28,085.37, according to Coindesk.
Beijing intends to undermine Jack Ma's power in his fintech empire and possibly increase stake in his business, Wall Street Journal cited Chinese central officials and government advisers. While Ant Group had announced the restructuring roadmap and plan to return to its root as online-payment platform, the more lucrative investment and loan businesses will be downsized.
*E-COMMERCE STRONG. TENCENT (700 HK +5.5%) and MEITUAN (3690 HK +5.3%), rebounded from concerns over antitrust probe of rival ALIBABA (9988 HK +6.4%). Ant Group will go along with a push by the central bank for it to fold its financial operations into a holding company that could be regulated more like a bank, likely halting growth of its most profitable units, news reported.
*HK PROPERTY MIXED After the Govt on Tuesday outlined its supply of units fro Q4 yesterday. It further announced it will offer for tender a commercial site in Causeway Bay that covers an area of 159,305 sq ft and provides a total gross floor area of 1,076,391 sq ft, valued by consultant at HK$14b or HK$13,000 per buildable sq ft.
MTRC has received 37 expressions of interest for its Wong Chuk Hang station package five property development and opened tenders starting from Tuesday. The land premium was HK$10,119 psf, 4.4% lower than the last batch, with the figure for the project reaching HK$6.431b.
SHKP (16 HK +0.9%) HENDERSON (12 HK +0%) NEW WORLD (17 HK +0%) CK ASSET (1113 HK +1.3%) SINO LAND (83 HK -0.2%).
HANG LUNG PPTY (101 HK +2.1%) announced the delay in completion of 37 Shouson Hill because the US Govt has not submitted the right paper work.
*GAS PROVIDERS STRONG Demand expected to rise as China is hit with a cold spell. CHINA GAS (384 HK +4%) TIAN LUN GAS (1600 HK +7%) ENNENERGY (2688 HK +4%).
*MACAU FIRM as MGM (2282 HK +8.6%) as news reported that hotel room occupancy during the Christmas holiday was 50%, with the occupancy rate of some hotels reaching 70% to 80%. GALAXY (27 HK +2.4%) SANDS (1928 HK +2.4%) SJM (880 HK +1.2).
*DAIRY MAKERS FIRM speculation of expanding demand and market share due to the improving quality of Chinese dairy products. CH MODERN DAIRY (1117 HK +7.6%) CH MENGNIU (2319 HK +4.6%) AUSNUTRIA (1717 HK +4%).
*OTHERS NEXT DIGITAL (282 HK +3.8%) but was +25% intraday as Jimmy Lai announcing his resignation as Chairman.FLAT GLASS (6865 HK +5.6%) sees 2020 net profit more than doubling from 2019.
Market will be closed Thursday
Opened slightly lower having hit a 30 year high on Tuesday. Traded down to the 27,340 level and then traded sideways into lunch. PM opened higher and worked higher to test Tuesday’s closed but failed to break out and sold down to close -124pts (-0.5%) @ 27,444
Topix traded in a similar pattern to close -15pts (-0.8%) @ 1,805
Pre market data mixed but markets working better ahead of market being closed Thursday.
Kospi opened flat dipped briefly but has trended higher through the day to close at the day year high +53pts (+1.9%) @ 2,874
Kosdaq opened flat and traded like the Kospi but eased back at the end to close just off the day high (971) but still at a new high. +11pts (+1.2%) @ 968
Pre Market Data
Business Confidence Dec 82 vs 85 Nov (F/cast was 80)
Retail Sales Nov -1% MoM vs -0.9% Oct (F/cast was +1.5 )
Retail Sales Nov -1.5% YoY vs -0.2% Oct (F/cast was -0.5%)
Industrial Production Nov +0.3% MoM vs -1.2% Oct (F/cast was +0.9%)
Industrial Production Nov +0.5% YoY vs -2.2% Oct (F/cast was +1.2%)
Manufacturing Production Nov +0.7% YoY vs -2.2% Oct (F/cast was -2.5%)
Construction Output Nov -0.8% YoY vs -8.9% Oct (F/cast was -5.5%)
Opened higher and trended higher with buying accelerating at the end to close +216pts (+1.5%) @ 14,688 a new high.
Northbound Rmb 40,572m Buy 19,894m vs 20,679m Sell
Southbound HK$ 20,038m Buy 9,488m vs 10,551m Sell
Northbound Rmb 57,267m Buy 25,806m vs 31,461m Sell
Southbound HK$ 19,699m Buy 7,442m vs 12,257m Sell
BABA (09988.HK) +6.4%
TENCENT (00700.HK) +5.5%
MEITUAN (03690.HK) +5.3%
HKEX (00388.HK) +2.9%, hitting new high
AIA (01299.HK) + 2.2%, hitting new high
PING AN (02318.HK) +0.7%
CCB (00939.HK) +0.7%
HSI & HSCEI Constituents on Move:
SMIC (00981.HK) +12%
ALI HEALTH (00241.HK) +9.1%
WUXI BIO (02269.HK) +5.3%, hitting new high
JD (09618.HK) +4.9%
MENGNIU DAIRY (02319.HK) +4.6%, hitting new high
CHINA GAS HOLD (00384.HK) +4.6%
ENN ENERGY (02688.HK) +4.5%, hitting new high
TECHTRONIC IND (00669.HK) +4.3%
ANTA SPORTS (02020.HK) +3.9%, hitting new high
SUNNY OPTICAL (02382.HK) +3.8%, hitting new high
BUD APAC (01876.HK) +3.7%
CHINA RES LAND (01109.HK) +3.6%
CHINA FEIHE (06186.HK) +3.4%
HAIDILAO (06862.HK) +3.2%
CHINA RES GAS (01193.HK) +3.1%
HSMI & HSSI Constituents on Move:
DONGYUE GROUP (00189.HK) +14.4%, hitting new high
KINGSOFT (03888.HK) +12.4%, hitting new high
GCL-POLY ENERGY (03800.HK) -12%
MARKET HOURS NEWS
ZTE (00763.HK) Chairman Li Zixue, delivering his New Year's speech, said the company is set to magnify investment in fundamental and core technologies, such as chips. Citing ZTE captured development opportunities in 5G infrastructure, it manifested advancement in both 5G market deployment and shares. In 3Q20, ZTE's 5G base station deliveries made up 33% of the global market share, ranking number two worldwide.
On 28 December, JD-SW (09618.HK), XIAOMI-W (01810.HK), Megvii Technology and such other firms, via their related companies, established a joint venture (Chinese name: 樸道徵信) with registered capital of RMB1 billion, Chinese media learnt from corporate shareholding structure platforms.
TENCENT (00700.HK)'s related company has participated in the establishment of a technology firm (Chinese name: 山東文旅雲智能科技有限公司) with registered capital of RMB50 million, Chinese media reported.
Indonesia and South Korea's LG Group have executed a memorandum of understanding (MOU) on a US$9.8 billion electric vehicle (EV) battery investment, making Indonesia the first country across the globe to integrate the whole industry from mining to lithium battery production.
SWIRE PACIFIC A (00019.HK) and SWIREPROPERTIES (01972.HK) announced the completed sale of 100% interests in the Cityplaza One Property. Gaw Capital Partners announced that the firm, through a fund under its management, and consortium partners, including Schroder Pamfleet, with Manulife had acquired the property.
HANG LUNG PPT (00101.HK) and HANG LUNG GROUP (00010.HK) jointly announced that the $2.566 billion acquisition of No.37 Shouson Hill Road had been scheduled to be completed by noon today (30 December). Will be delayed because
on 21 December 2020, HLP and the Tenderer, through its legal advisers, received a letter from the Land Registry stipulating, among other things, that the US Consulate General in Hong Kong SAR is not a commercial entity and the Property is not an ordinary real estate property as such; sale of the Property involves foreign affairs between The People’s Republic of China and the U.S. and should not be regarded as an ordinary commercial activity; the Central People’s Government of China (CPG) has advised the Government of Hong Kong SAR that if the US Consulate General in Hong Kong SAR intends to rent, purchase, sell, or otherwise acquire or dispose of any real estate property in Hong Kong SAR, the Government of the U.S. must make a written application to the CPG via the Office of the Commissioner of the Ministry of Foreign Affairs of China in Hong Kong SAR at least 60 days prior to any intended transaction, and shall not proceed with the intended transaction without the written consent of the CPG (the “Diplomatic Obligations”); as at the date of the Letter, the Land Registry had not received any documents demonstrating compliance with the Diplomatic Obligations by the Government of the U.S. in respect of sale of the Property (i.e. the Transaction); and as a result, the Land Registry was unable to register the Memorandum of Agreement unless and until written evidence was produced demonstrating compliance by the Government of the U.S. with the above-mentioned requirements.
SINOPHARM's biotech company in Beijing announced that the novel coronavirus inactivated vaccine developed by the company showed 79.34% effectiveness in the phase three clinical trial, meeting the WHO standards and the requirements of China National Medical Products Administration (NMPA, formerly known as CFDA). The company is now making an application to the NMPA for market launch.
Ideanomics's electric vehicle unit, Mobile Energy Global (MEG), announced that it signed an agreement with Meihao Chuxing, a joint venture between BYD COMPANY (01211.HK) and Didi, to purchase an initial 2,000 units of model BYD D1. The deliveries were expected to begin in 1H21.
FTSE Russell announced that more Chinese companies would possibly be kicked out from its global benchmarks after the Trump administration had strengthened the Chinese stock investment ban to cover ETF, index funds and subsidiaries of banned enterprises. The global index publisher has excluded nine Chinese companies from its benchmarks so far.
Singaporean National Centre for Infectious Diseases has started vaccinating its healthcare workers with Pfizer /BioNTech -developed vaccines. Elderly citizens aged 70 or above are set to receive vaccine shots from February 2021.
ByteDance Ltd. applied for a new trademark "Douyin Pay", as a Chinese company information query platform disclosed. The status of the trademark is "registration under application".
Chinese regulators had met with Ant Group twice, showing their determination to countering fintech monopoly and upholding financial market order, commented Economic Daily. An uneven playing field means an unhealthy disorderly competition, said the editorial. Not only will it lead to less efficient resource allocation, it may also trigger pricing signal malfunction. Consumer rights will hence eventually be deeply eroded.
PRE MARKET NEWS
NEXT DIGITAL (00282.HK) Founder Lai Chee Ying, Jimmy was released on bail last week after being charged with conspiracy of fraud and collusion with foreign powers. Yesterday (29 December), the High Court delivered a written reasoning, saying the conditions of bail provided by Lai sufficiently convinced the Court he would not commit any crime threatening national security during his bail, and the chance of him absconding or re-violating National Security Law was not high. The Justice Department did not surrender to the reasoning and thus appealed to the Court of Final Appeal. A trial was slated for tomorrow (31 December).
The European Union and China will soon announce an investment agreement, Bloomberg reported. European Commission President Ursula von der Leyen and European Council President Charles Michel are scheduled today to talk with Chinese President Xi Jinping in a video conference, signalling the support from the leaders of both sides for the agreement.
PBOC that a solid monetary policy should be flexible and accurate with justifiable moderation, adding the continuity, stability and sustainability of monetary policy had to be maintained. The monetary policy should also keep the necessary support for economic revival of the country. The Monetary Policy Committee of the PBOC held a regular meeting for the fourth quarter of 2020. The meeting underscored that companies and financial institutions should be guided to adhere to the principle of "risk neutralization" and that market expectation should be stabilized.
GCL-POLY ENERGY (03800.HK) and GCL NEWENERGY (00451.HK) jointly announced that the former placed up to 638 million shares to the latter at $0.235 each, representing a discount of 32.86% to the closing price as quoted on last trading day (29 December). The gross proceeds were $150 million.
MEITUAN-W (03690.HK) Beijing Intellectual Property Court accepted the antitrust lawsuit against the company the China Economic Weekly reported. The investigation notice issued by the Court revealed that the litigation involved Meituan App and Meituan Dianping App, which were alleged of misusing their market dominance to block Alipay's payment channel. Consumers were therefore not able to make payment in those Apps via Alipay.
The new requirement by the Shenzhen Municipal Government is to strengthen the joint epidemic prevention and control efforts between Guangdong (GD) and Hong Kong. Starting from 10am on January 5, 2021, save for persons who have been granted approval for exemption from quarantine arrangement; all other persons who are entering Shenzhen via the Shenzhen Bay Port would be required to present a valid proof of a negative COVID-19 nucleic acid test result issued within 24 hours by one of the testing institutions recognised by the GD and the HKSAR Government, as well as a hotel reservation confirmation for the 14-day period of centralised quarantine and medical surveillance after their entry into Shenzhen.