HSI +254pts (+1%) 26,569 HSCEI +138pts (+1.3%) 10,449 T/O HK$138.81bn
Markets opened higher, with the FTSE rallying as it played catchup having been closed Monday. Dax opened higher but drifting back towards flat and CAC trading sideways. No data due. Only Autos and Banks in the red. AstraZeneca strong on news its vaccine is expected to be approved for used in the UK this week.
Open flat in Asian time but worked better and currently Dow +130pts, S&P +15pts and NDX +45pts. Covid cases still a concern but encouragement that the Covid relief bill has been signed. Data due Redbook, Case-Shiller Home Prices
CHINA CSI 300 Closed -22pts (-0.4%) @ 5,043
CSI 300 opened slightly positive but sold down to 5,034 in early trades. Rebounded to 5,070 but failed to hold and sold down into lunch. PM opened trended lower into the close, with support at the 5,040 level. Concerns remain over more sanctions a the US Treasury issues a clarification paper on its recent investment ban.
Shanghai Comp -18pts (-0.5%) @ 3,379
Shenzhen Comp -74pts (-0.5%) @ 13,970
ChiNext Index 30pts (-1%) @ 2,813
CHINA DATA None
HSI Pre Market Opened @ 26,491 +173pts vs +41pts ADRs With Baba and Tencent and Meituan and other E-commerce names seeing strong interest. Good interest in Tech and Renewables too but SMIC, CNOOC and Telcos remained weak. Autos were also weak.Market then traded the morning in the range 26,500/600. In the PM the range was tighter but still sideways. A number of brokers revising their price targets as we approach the new year, most upward.
HUISEN INTL (02127.HK), on debut, finished the day at $1.8, up 3 cents or 1.7% against the listing price $1.77, on volume of 326 million shares and turnover of $576 million.
CGII HLDGS (01940.HK), on debut, finished the day at $1.62, up 25 cents or 18% against the listing price $1.37, on volume of 105 million shares and turnover of $173 million. Excluding the handling fees, a book gain of $500 was reported per board lot of 2,000 shares.
WENLING MCT (01379.HK), to be listed tomorrow, closed at $6.19 in grey market, down 1% or 6 cents against the listing price $6.25, on volume of 1.44 million shares and turnover of $9.13 million, PhillipMart data showed.
ZERO2IPO (01945.HK), to be listed tomorrow, closed at $15.24 in grey market, up 38.6% or $4.24 against the listing price $11, on volume of 6.73 million shares and turnover of $103 million, PhillipMart data showed.
HONG KONG DATA
Hong Kong's Private Domestic Price Index -0.7 pts or 0.2% MoM to 380.4 in November, representing a two-month downfall and the trough since April, Rating and Valuation Department (RVD) reported.
Centre for Health Protection said there were 53 new COVID-19 cases in Hong Kong today (vs 61 Monday) Plus 40 initially confirmed cases.
SHORT SELLING Tuesday 11.4% vs 9.5% Monday
Top Shorts Hengan (1044) 57%, Henderson Land (12) 42%, BoC (3988) 41%, ICBC (1398) 37%, Ping An (2318) 37%, Hang Seng Bank (11) 34%, CLP (2) 31%, Anta (2020) 31%, Sinopec (386) 27%, CNOOC (883) 26%, Sunny Optical (3228) 25%
AFTER MARKET NEWS
YUZHOU GROUP (01628.HK) planned to split off its property management service wing, U Life Services, for listing, possibly raising US$800 million, Reuters' IFR reported. The listing was expected in 1H21.
CATHAY PAC AIR (00293.HK) announced that CAI Jianjiang has resigned as a Non-Executive Director and Deputy Chairman of the Board of the Company and that SONG Zhiyong has been elected Deputy Chairman of the Board of the Company. Such resignation and election took effect on 29 December 2020.
BABA-SW (09988.HK)'s Taobao TMall Macau announced the launch of a brand new cross-border shipping-free package, whereby the shipping fee exemption threshold has been brought down from RMB99 to RMB49 for Macau's orders.
The Government will in the fourth quarter (January-March 2021) supply 4,800 units in private residential projects, the highest supply of the fiscal year, Michael Wong, Secretary for Development, told reporters. For the said units, three sites in Mansfield Road, Kai Tak and Kwu Tung North, provided 2,240 units. Such sites will be sold by way of tender. Private Home Supply Forecast Kept at 92,000 Units for Next 3-4 Yrs
PUBLIC FIN HOLD (00626.HK) declared the second interim dividend of HK$0.12 per share for the year ending 31 December 2020, payable in cash on 26 February 2021.
Nikkei opened higher and has continued to track higher though the session. Index heavyweights seeing good interest with Fast Retailing +4.5% and Softbank +4.5%, Sony +2%, Daikin +1.8%, MUFJ +2.1%, Closed +714pts (+2.7%) @ 27,568
Topix traded in a similar fashion +31pts (+1.7%) @ 1,819
Market is ex Dividend today.
Kospi opened slightly positive but dipped initially before rebounding to 2,820 but then trended lower through morning hitting the day low; 2,795 around 12:45pm and the rebounded to test Monday’s closing level but failing to break out eased back to 2,800 but then rallied to close +12pt (+0.4%) @ 2,821 Kosdaq opened higher and rallied to 945 before working gradually better close +30pts (+3.3%) @ 957 the day high
Opened higher and tested to 14,547 but failed to break higher and reversed. Sold down to 14,435 level and then traded sideways with resistance at Monday’s closing level. Closed -11pts flat @ 14,472
Northbound Rmb 43,220m Buy 20,919m vs 22,301m Sell
Southbound HK$ 16,002m Buy 4,866m vs 5,130m Sell
Northbound Rmb 53,953m Buy 25,432m vs 28,521m Sell
Southbound HK$ 17,915m Buy 5,847m vs 12,068m Sell
BABA (09988.HK) +5.7%
MEITUAN (03690.HK) +5.2%
TENCENT (00700.HK) +2.2%
CCB (00939.HK) +1.6%
AIA (01299.HK) -0.8%
HSI & HSCEI Constituents on Move:
XIAOMI (01810.HK) +5.3%
CSPC PHARMA (01093.HK) +4.8%
SUNNY OPTICAL (02382.HK) +3.2%
HSMI & HSSI Constituents on Move:
KINGBOARD HLDG (00148.HK) +5.3%, hitting new high
KB LAMINATES (01888.HK) +5.2%, hitting new high
KINGDEE INT'L (00268.HK) +4.8%, hitting new high
HAITIAN INT'L (01882.HK) +2%, hitting new high
CHINA LONGYUAN (00916.HK) +1.7%, hitting new high
MARKET HOURS NEWS
XIAOMI-W (01810.HK) has entered into strategic cooperation with Chinese online music sharing platform Ximalaya FM, whereby the two parties will cooperate on content and hardware sectors, Chinese media reported.
TENCENT (00700.HK) and CHINA LIT (00772.HK) co-launched "New World Cultural Heritage Project", which was modeled on the cultural heritage included by UNESCO, imploring Chinese online literature writers to create short literary works with the connotation and stories of cultural heritage. The project would invite directors, screenwriters and short video creators to develop literary works in forms of digital contents, such as short dramas, animations and music.
The Community Care Fund (CCF) announced the launch of the second round of the One-off Living Subsidy for Low-income Households Not Living in Public Housing and Not Receiving Comprehensive Social Security Assistance (CSSA) programme (the 2021 Programme) on January 4, 2021, to relieve financial pressure on low-income households. The Programme is administered by the CCF Secretariat, with 220 service units operated by non-governmental organisations (NGOs) to accept and carry out initial processing of applications. Law Chi-kwong, Chairperson of the CCF Task Force under the Commission on Poverty, said that the CCF has set aside around $1.448 billion, expecting to benefit nearly 137,200 households (or about 353,600 persons).
MTR CORPORATION (00066.HK) is inviting developers and/or consortia to submit tenders for Wong Chuk Hang Station Phase 5, which is closing at 14:00 on 26 January 2021.
Macao Tourism Board announced that during the Christmas holiday (23-27 December 2020), the number of daily average visitor arrivals exceeded 24,000; the hotel occupancy rate neared 70%. On Christmas Day (25th), the tourist figure reached 27,755.
Ant Group plans to fold various financial businesses into a holding company which may be regulated like a bank, people familiar with the situation were quoted as saying by Bloomberg News.
Greater Bay Airlines (GBA) is weighing appointment of Cathay Dragon CEO Algernon Yau as its CEO, effective January 4, 2021, according to an internal document seen by South China Morning Post and Apple Daily.
Beijing launched the first central bank digital currency application scenario, under which digital yuan was trialed in a cafe, where authorized consumers could use the digital currency to pay for all sorts of goods.
JD Retail has purportedly announced appointment of several executives and new business integration, Chinese media reported, as JD-SW (09618.HK) goes on with consolidation.
BABA-SW (09988.HK)'s Alibaba Cloud will partner with the state-owned Saudi Telecom Company and VC fund eWTP Arabia Capital to provide public cloud services in Saudi Arabia, foreign media reported. It was projected that there will be US$500-million investment in the next five years.
Hutchison China MediTech Limited (Chi-Med) (HCM.US) announced that it has initiated the filing of a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) - the first portion of a rolling submission for surufatinib for the treatment of pancreatic and non-pancreatic neuroendocrine tumors (NET). Chi-Med plans to complete the NDA submission in the first half of 2021, which would be the company’s first NDA in the U.S.
HKEX (00388.HK) Group General Counsel Ferheen Mahomed and Group Head of Human Resources Eva Chau have tendered resignation in recent month. Bloomberg quoted people familiar with the matter. Both executives are members of the HKEX's Management Committee, the report furthered. It has also yet to decide upon a new CEO.
PRE MARKET NEWS
In a recent meeting with various online platform players, Chinese State Administration for Market Regulation (SAMR) laid "9 Don'ts" guidance for group buying and clarified that internet behemoths should never deem themselves superior to their peers, cited Xinhuanet. In the Government's opinion, it is crucial to oversee innovative businesses in order to ensure a level playing field, said the article. The seemingly group-buying-targeted guidance is indeed realization of fairness in market scrutiny, instead of a specific requirement on group buying.
XIAOMI-W (01810.HK) At its product launch held last night, introduced Mi 11, equipped with Snapdragon 888 processor. The flagship smartphone, priced from RMB3,999, will start sales on 1 January 2021.
China and the EU may ink an investment deal on Wednesday that will allow EU firms to better enter the Chinese market, improve competition conditions and protect EU investment in China, European officials told Reuters. The negotiation on the investment deal had begun in 2014, yet stagnated for years since China failed to make good on promises to unwind curbs on EU investment. The talks are purportedly about to wrap up, and there are only some minor details which need to be hammered out. It was expected that China will open up market to EU companies for construction, advertising, air transport, maritime services, telecoms and cloud computing.
U.S. Treasury Department has published guidance which clarifies its executive investment ban applicable to exchange-traded funds (ETF), index funds and subsidiaries of Chinese companies deemed tied with Chinese military. The Pentagon has earlier designated 35 Chinese companies, including CNOOC and SMIC.
Every Chinese region has commenced successively the COVID-19 vaccine inoculation on specific clusters, China Securities Journal reported. In order to enable the public to learn about the vaccination appointment services at first hand, Tencent Health launched on 26 December an online public service zone for vaccination, which provided official links to vaccination appointment services in China and vaccination policy for needed group etc..
The Standing Committee of Zhejiang Provincial Committee convened a meeting yesterday (28 December) in order to study and deploy for the implementation of requirement made by the Central Political Bureau Meeting and Central Economic Working Conference in respect of strengthening anti-monopoly work and preventing disorderly capital expansion.