HSI +150pts (+0.6%) 26,820 HSCEI +144pts (+1.4%) 10,701 T/O HK$113.63bn (-36.6% DoD)
EUROPE opened higher but sold down in the morning session to flat Aviva trading lower after saying it expects to pay a total dividend for 2020 of 21 pence (28 cents) and is exploring options for divesting its remaining businesses in Asia and continental Europe in order to focus on Britain, Ireland and Canada.
Britvic were higher after earnings were better than expected
AstraZeneca weak as questions are raised over the way Astrazeneca and Oxford University tested their coronavirus vaccine, with the head of the White House’s vaccine task force voicing doubts about trial data and the drug’s efficacy rate.
Remy Cointreau weak after reporting a 23% fall in first-half operating profit. It forecast real recovery in the second half, driven by a rebound in demand from the U.S. and China.
Loans to Households Oct +3.1% YoY vs 3.1% Sept (F/cast was 3%)
Loans to Companies Oct +6.8% YoY vs 7.1% Sept (F/cast was 7%)
M3 Money Supply Oct 10.5% vs 10.4% Sept. (F/cast was 10.1%)
Germany Consumer Confidence Dec -6.7 vs -3.2 Nov Revised (F/cast was -5)
French Consumer Confidence Nov 90 vs 94 Oct (F/cast was 92)
UK Car Production Oct -18.2% YoY vs -5% Sept (F/cast was -8.1%)
US Markets closed for Thanksgiving
CHINA CSI 300 Closed +9pts (+0.2%) @ 4,920
Opened flat initially ticked higher but then sold down to 4,868 at 11am before rebounding into lunch. PM opened higher and traded around flat for most of the afternoon with a small rally into the close. Helped by hopes that relations with the US may improve under Biden. Auto weak on news the authorities are scrutinizing new-energy investments in the auto industry. Also weak were chipmakers, oil & gas equipment, and home appliance names. Gainers were Military, power, banks and insurance sectors.
Shanghai Comp +7pts (+0.2%) @ 3,370
Shenzhen Comp -56pts (-0.4%) @ 13,600
ChiNext Index -6pts (-0.2%) @ 2,609
CHINA Data None
Industrial profits on Friday.
HSI Pre Market opened 26,695 +25pts vs -215pts ADR’s @ 26,453 with Ecommerce +VE but HSBC was lower after Wednesday’s rally. Market initially traded sideways around flat (26,650/700) PM opened higher and worked higher to close at the day high. Tech and Insurers lead the market higher on the expectation of further integration with the mainland following Carrie Lam’s policy address.
HONG KONG DATA
Centre for Health Protection said there were 81 new COVID-19 cases in Hong Kong today (vs 85 Wednesday)
SHORT SELLING Thursday 22.1% vs 19.7% Wednesday
Top Shorts Ping An (2318) 52%, Bank of China (3988) 48%, Henderson land (12) 47%, BoC HK (2388) 43%, Hang Seng Bank (11) 38%, Wharf REIC (1997) 37%, Galaxy Ent (27) 36%, CCB (939) 35%, CLP (2) 35%, Swire Pac (19) 33%, AIA (1299) 33%, China Unicom (762) 30%, Power Assets (6) 29%, Country Garden (2007) 29%, Sinopec (386) 28%, CNOOC (883) 26%, HSBC (5) 26%, MTRC (66) 26%, Sunny Optical (2382) 25%, Hengan (1044) 25%.
AFTER MARKET NEWS
LUK FOOK HOLD (00590.HK) interim result ended September 2020. The revenue declined 47% year on year to HK$3.344 billion. The net profit amounted to HK$291 million, down 41.3%. EPS was HK$0.5. A total dividend of HK$0.5 was declared, including an interim dividend of HK$0.225 and a special dividend of HK$0.275, staying flattish yearly.
CAFE DE CORAL H (00341.HK) CEO Lo Tak Shing, Peter revealed during the results conference that the company is now having more room to negotiate renewal rents with landlords, yet viewed there will not be material rental cut if it does not sign short-term contract. Therefore, the CEO has not witnessed any sharp rental fall so far. The company has recently obtained $680 million of mid-to-long-term capital from banks, by which the network and shops could be expanded. As there is still unused capital from banks, the company's cash flow remained positive despite lacking Employment Support Scheme (ESS) in the second half of the financial year.
LEE'S PHARM (00950.HK) announced the first three quarters result ended September 2020. The net profit amounted to HK$122 million, up 51.9% yearly.
EPS was HK20.75 cents. No dividend was declared.
DICKSON CONCEPT (00113.HK) interim results ended September 2020. Net profit amounted to $133 million, up 12.1% yearly. EPS equaled 33.9 cents. Interim DPS was 8 cents.
TAI CHEUNG HOLD (00088.HK) interim result ended September 2020. The Company swung into loss of HK$10.6 million from profit of HK$70.4 million over a year ago. LPS was HK1.7 cents. An interim dividend of HK12 cents was declared, flattish year-on-year.
Li Ka-shing and Victor T K Li, through Li Ka Shing Foundation Limited, acquired a total of 702,500 shares in CK ASSET (01113.HK) at the average price of HK$43.4733, HK$42.831, HK$43.3566 and HK$43.9265 per share on 20 November, 23 November, 24 November and 25 November 2020 respectively. As a result, the deemed interests of Li Ka-shing and Victor T K Li in CK Asset increased from 35.77% to 35.79%, and increased from 35.83% to 35.85%, respectively.
SAIC MOTOR (600104.SH) announced that, in order to create its own high-end smart BEV brand, the firm intends to partake in the set-up of Shanghai Yuanjie Intelligent Technology Equity Investment Fund Partnership by contributing RMB5.399 billion in capital. The Fund planned to invest in high-end smart pure electric vehicle projects with Alibaba.com.
China has started speeding up imports of American crude oil, propane and liquefied natural gas (LNG) since July, reported Reuters. For the first ten months of 2020, however, Beijing's purchases of U.S. energy products added up to US$6.61 billion only, i.e. 26% of the US$25.3-billion target under the first-phase trade deal.
In its 3Q20 Chinese monetary policy execution report, the PBoC stated that in the next step, it will inject higher flexibility and clearer direction in the robust monetary policy in accordance with the central government's deployment.
PBoC: Injects Flexibility Into Robust Monetary Policy, Betters Cross-cyclical Policy Design The Chinese central bank will brush up the cross-cyclical policy design and the coordination mechanism of monetary supply while giving full play to the role of monetary base injection in nudging high-quality economic development.
The People's Bank of China published China's monetary policy implementation report for 3Q20, citing RMB9 trillion worth of monetary policy and response measures rolled out year-to-date. For 10M20, financial authorities have forgone around RMB1.25 trillion of profits for the sake of the real economy.
JD HEALTH (06618.HK), the spin-off of JD-SW (09618.HK), registered margin
of almost $70.7 billion from brokers as at 6 pm today (26 November). Based on the fundraising amount of $1.347 billion from the public offering, the margin was oversubscribed by approximately 51.5 times. The stock initiated public offering in Hong Kong today.
Jiayuan Services (01153.HK) intended to utilize 70% of its listing proceeds on selective strategic investment and acquisition opportunities. The company said it will continue to tweak the structure for third-party projects, aiming the proportion of related projects to surpass its parent's in next two years.
The Chinese property developer Datang Group (02117.HK) unveiled the IPO
details. It will commence IPO from tomorrow (27 November) to next Friday (4 December). It planned to issue 333.4 million shares at $3.6-4.6 each. Excluding handling fee, the entry fee is approximately $4,646.35 per board lot size of 1,000 shares. The company is projected to list on 11 December.
Centa Valuation Index (Major Banks) (CVI) last printed at 44.40, up 1.82 pts weekly, said Centaline Property. The index managed stand firm aloft 40, hinting at resilient support force.
*PETROCHEMS MIXED OIL companies traded mixed following yesterday's rally, while support was seen after oil climbed following a surprise drop in U.S. crude holdings. US nationwide stockpiles fell by 754,000 barrels last week, along with a 10th straight weekly draw in distillate inventories.
SINOPEC (386 HK +4.1%) PETROCHINA (857 HK +1.1%) CH OILFLD (2883 HK -1.7%) ANTON OIL (3337 HK -4.2%).
*E-COMMERCE/INTERNET FIRM MEITUAN (3690 HK +4.7%) ahead of next week's quarterly earnings. ALIBABA (9988 HK +0.7%) and JD.CO (9618 HK +0.8%) rebound after stocks dropped on yesterday news that dual-listed companies surprisingly will not be included in the Stock Connect.
ALI HEALTH (241 HK +7.4%) reported 1HY revenue +74% YoY to 7.16b yuan. Net profit was 278.6m yuan, versus prior-year loss of 7.6m yuan.
CHINASOFT (354 HK +12%) recorded a 10m shs block trade at this morning's opening price. It announced that the company will vigorously develop the actual needs of the Internet of Vehicles (intelligent connected cars) industry in Suzhou.
*SPORTSWEAR MAKERS FIRM after CH DONGXIANG (3818 HK -1%) said its net profit jumped 4.9 times to 1.12b yuan for the first six months this year, mainly due to a change in the fair value of financial instruments, revenue for the period was unchanged at 899m yuan. ANTA (2020 HK +2.5%) LI NING (2331 HK +1%) XTEP (1638 HK +1.8%).
*HK PROPERTY WEAK as HK recorded another 80+ Covid cases today. SHKP (16 HK -1.9%) HENDERSON LD (12 HK -0.9%) NWD (17 HK -1.2%) HYSAN (14 HK -1.3%).
*PHARMA MIXED on vaccine speculations. SINOPHARM (1099 HK unch) has submitted application for general use of Covid-19 vaccine to National Medical Products Admin. 3SBIO (1530 HK +1.15) CANSINO (6185 HK +1.6%) FOSUN (2196 HK -1.8%) CSPC PHARM (1093 HK -2%).
GENSCRIPT (1548 HK +6%) rebound after weakness following the arrest of its chairman for alleged smuggling, who has resigned after the arrest.
*AUTO MAKERS WEAK on concern of authorities' investigation into EV investment programs in the industry. BYD (1211 HK -1.5%) GREATWALL (2333 HK -2%) GAC (2238 HK -1.7%).
DEALERSHIPS traded strong after YONGDA (3669 HK +4.3%) said it will boost equity stakes in two porsched dealers. ZHONGSHENG (881 HK +2.2%) HARMONY (3836 HK +1%).
*ALTERNATIVE ENERGY STRONG after China's finance minstry expanded renewable energy subsidies to potentially cover new projects. GOLDWING (2208 HK +2.2%) CGN NEW ENERGY (1811 HK +9%) COMTEC SOLAR (712 HK +12%).
Opened lower but than rallied to 26,466 before easing back 26,370 but then worked higher unto lunch. PM opened lower and traded around 26,400 level butane worked higher in the last hour to close just off the day high; +240pts (+0.9%) @ 26,537
Topix followed a similar trading pattern to close +11pts (+0.6%) @ 1,778
Coincident Index Sept 81.1 vs 79.4 Aug (F/cast was 80.8)
Leading Economic Index Sept 92.5 vs 88.5 Aug (F/cast was 92.9)
Tomorrow pre market Tokyo CPI
S KOREA BoK kept rates unchanged
Opened slightly higher but dipped into the red before working higher to 2,614 but then sold down into the red at 1pm but the worked higher to close at the day high +24pts (+0.9%) @ 2,626
Kosdaq opened higher but sold down into the red initially but then rallied back and worked higher through the day to close on the day high +9pts (+1.1% @ 875
TAIWAN opened higher an trended higher in the morning with resistance at 13,850. Eased back to just below 13,800 before working higher in the PM to close +107pts (+0.8%) @ 13,846
CONNECT FLOWS (lower DoD)
Northbound Rmb 37,418m Buy 17,129m vs 20,288m Sell
Southbound HK$ 10,623m Buy 4,297m vs 6,326m Sell
Northbound Rmb 24,975m Buy 21,552m vs 24,422m Sell
Southbound HK$ 11,783m Buy 6,222m vs 5,561m Sell
MEITUAN-W (03690.HK) +4.9%
TENCENT (00700.HK) +2.3%
PING AN (02318.HK) +1.7%
CCB (00939.HK) +1.4%
AIA (01299.HK) +1.1%
BABA (09988.HK) +0.7%
HSI & HSCEI Constituents on Move:
CPIC (02601.HK) +5.3%
SINOPEC CORP (00386.HK) +4.9%
ANTA SPORTS (02020.HK) +3.3%
HSMI & HSSI Constituents on Move:
CHINASOFT INT'L (00354.HK) + 12.3%, hitting new high
YADEA (01585.HK) +10.6%
MEIDONG AUTO (01268.HK) +3%, hitting new high
MARKET HOURS NEWS
Michael Wong: 10 Enquiries About Land Sharing Pilot Scheme So Far; Reviewed Brownfield May Supply Over 20K Public Homes. Secretary for Development Michael Wong saw higher growth potential in 450 hectares of the unplanned 776 hectares of brownfield sites in the New Territories. After the Planning Department's review of 160 hectares of the sites, Wong estimated that over 20,000 public housing units could be constructed thereon. The Development Bureau has received ten enquiries about the Land Sharing Pilot Scheme so far, he added. Successful applications will be announced timely following preliminary talks and considerations.
Govt Boosts Quality Migrant Admission Scheme's Annual Quota to 2,000 in order to enhance the city's international competitiveness, the Government has decided to increase the annual quota of the the Quality Migrant Admission Scheme (QMAS) to 2,000 from 1,000 with a view to enlarging Hong Kong's talent pool and strengthening its role as Asia's World City, said a spokesperson today.
Chinese Ministry of Industry and Information Technology has ordered Internet Society of China to enact a self-discipline treaty on telecom and internet network data security. The Internet Society of China has had 133 Chinese firms, including Alibaba, Tencent and Baidu, which entered into the treaty.The 2020 World 5G Convention kicked off in Guangzhou today.
CHINA TOWER (00788.HK) Chairman Tong Jilu said the group has constructed over 700,000 5G base station projects under contracts so far, 97% of which were built using its existing resources to achieve co-sharing.
Tencent Technology (Shenzhen) Co., Ltd. has added multiple patents to its portfolio, including "vehicle control method and device", Chinese media citing Tianyancha. Making patent applications in August 2020, the firm put forward means, devices, electronic equipment and storage media for autonomous vehicles to change roads when driving.
China Mobile Communications Group has commissioned over 385,000 5G base stations, providing 5G services across all prefecture-level cities and some key counties in China, Chinese media citing the group's President Dong Xin. The group also boasts more than 90 million 5G end-users.
NEW WORLD DEV (00017.HK) stated that Group A in the fourth round of sale of the Pavilia Farm II had been sold out as of 12:30. The 315 flats were expected to be sold out or nearly sold out today, said the developer.
The Government today (November 26) launched the emergency alert system (EAS). Government departments may disseminate important real-time messages to mobile phone users through the EAS during emergency situations that may extensively endanger lives and properties. A message is classified as either "Emergency Alert" or "Extreme Emergency Alert" according to the severity of the incident concerned.
CHINA UNICOM (00762.HK) Wang Xiaochu, Chairman, commented on the future 5G development. In the next three years (2021-2023), the carrier will have to complete the 5G network deployment, and ground 5G coverage in key districts, such as urban areas, highways, railways, key counties and large towns.
The Macau government will jointly develop a smart city with BABA-SW (09988.HK), Radio Macau reported. The relevant contract, scheduled to fall expired in June 2021, will be prolonged due to the pandemic, said the government.
Sophia Chan, Secretary for Food and Health, said the number of community testing centers will be scaled up from four to nine. As for mandatory quarantine, the Government will issue a public notice tomorrow (27th) that medical practitioners can ask patients with suspected COVID-19 to run compulsory tests based on clinical judgment. The order will be valid for 14 days. Private doctors have responded positively to the measure following the Food and Health Bureau's briefing to relevant groups and organizations, Chan added.
CAFE DE CORAL H (00341.HK) interim results ended September 2020. Revenue declined 24.3% yearly to $3.226 billion. Net profit amounted to $162 million, up 8.4% yearly. Gross profit margin sank to 4.3% from 11.7% a year ago. EPS equaled 28 cents. Interim DPS was 10 cents, as compared with 19 cents in the corresponding period of the previous year.
CHINA WATER (00855.HK) announced the interim result ended September 2020. The net profit amounted to HK$826 million, -6.2% YoY. EPS was HK51.68 cents. An interim dividend of HK15 cents was declared, against HK14 cents in the corresponding period of the previous year.
Rating and Valuation Department (RVD) announced that Private Domestic Price Index of Hong Kong came in at 380.9 in October, down 0.6% monthly, logging a half-year low. YTD, it has amassed approximately 0.4% of gains.
The Alibaba-backed Ant Group is in talks with watchdogs about injecting funds into its micro-lending business after the IPO halt, Bloomberg citing insiders. The listing plan of JD Digits is also thrown into limbo. The firms are working with regulators, according to the people.
Carrie Lam: Home Mkt 'Spicy Measures' Should Remain In Force For Now However fierce headwinds the city has been through, home prices in Hong Kong only mildly ebbed back 5-6% from the peak, which hints at insatiable rigid demands, said Chief Executive Carrie Lam. Therefore, relevant property market measures should remain intact at this moment, or latent speculation or price upsurge will put first-time homebuyers at a disadvantageous position.
Colliers responded to the latest Policy Address. For the initiative of Invigorating Island South, Colliers Head of Valuation & Advisory Services Hannah Jeong said Wong Chuk Hang has already transformed itself into a small-scale business district since the launch of South Island Line. With Wong Chuk Hang MTR Station Development Project completing in 2025, there will be adequate retail facilities in the area, Jeong said, forecasting the office rents there will further heighten by 15% in the coming five years.
SMIC (00981.HK) Emphasizing the company is in normal operation has actively communicated with relative US departments, claiming customer demand was resilient with peachy orders. For 2020, SMIC raised the company's revenue growth target to 24-26%.
Smartphone shipment in Western Europe slipped 6.5% yearly to 28.8 million units in Q3 2020 under ongoing lockdown, reported IDC. By brands, XIAOMI-W (01810.HK) 's shipments +151.6% annually to 3.7 million units, being ranked third in terms of market share (up to 12.8%).
COVID-19 has made money management more difficult for the majority of people in Hong Kong and many have chosen to increase their investment in a bid to achieve their financial goals, according to Standard Chartered’s latest global survey. Two-thirds of people in Hong Kong (66%) have found managing their money more difficult since the start of the COVID-19 outbreak, said the results. To improve their financial situation, 28 per cent of respondents with at least one financial goal said they have changed their budget for daily spending. Thirty-three per cent of people in Hong Kong said they have increased investing over the past month. Across all generations, those aged between 45 and 54 are the most aggressive in terms of investing with almost half (47 per cent) saying they have allocated more money for investment.
MERDEKA FIN (08163.HK) announced that it had on 25 November placed the Order through Merdeka Securities for the application to subscribe for 500,000 EVERG SERVICES (06666.HK) shares with a total application money of approximately HK$4.92 million.
PRE MARKET NEWS
Not in this mornings report
Escalating China-India tensions are impacting the Apple and XIAOMI-W (01810.HK) product imports from China, Reuters learnt from insiders. The Bureau of Indian Standards typically used to process the customs clearance within 15 days, but the watchdog is taking two months or even longer now. Earlier, India had also tightened investment from China and imposed a ban on more than 100 Chinese apps. The affected companies included TENCENT (00700.HK), BABA-SW (09988.HK) and ByteDance.
Tech magnates who breach new EU antitrust rules may be subject to penalty or even break-up of their European businesses, Reuters citing the digital chief Thierry Breton. The bloc will two weeks later present draft rules known as the Digital Services Act (DSA) and Digital Markets Act (DMA), likely to affect U.S. giants, such as Google, Apple, Amazon, Facebook and Microsoft
As the Chief Executive floated the Invigorating Island South initiative in her Policy Address, MTR CORPORATION (00066.HK) will hand in the South Island Line (West) project proposal by the end of year. The project rollout will hinge on the timing of Wah Fu Estate residents' moving out, and the construction cost is still unknown, Hong Kong Economic Journal citing government sources.
SANDS CHINA LTD (01928.HK) has seen a slow hotel occupancy recovery since the resumed Macau-China custom clearance under Individual Visit Scheme, Macao Daily quoting from the group's President Wilfred Wong. He is confident that the occupancy rate will hit 40% or higher in December, ahead of November's performance. "The Londoner" is slated for opening in early February 2021, Wong revealed.
European banks may need to set aside more money in response to bulging bad-loans after government pandemic support ends, the European Central Bank wrote in its Financial Stability Review. Asked about rumours that the ECB will possibly allow revival of dividend payment next year, Vice President Luis de Guindos answered that this is not a must.
EVERG SERVICES (06666.HK) recorded roughly $4.9 billion in margin quota from eight brokers, representing roughly two times of over-subscription in the public offering, after its margin subscription closed yesterday, local media reported.
Separately, CHINA RES MIXC (01209.HK), whose IPO started yesterday, has recorded 2.3-time over-subscription for now.
ICBC (01398.HK) (601398.SH) inked a strategic cooperation agreement with National Oil and Gas Pipeline Company in Beijing. ICBC Chairman Chen Siqing said the bank persists in servicing real economy as its anchor and fostering the high-quality growth of National Oil and Gas Pipeline Company, fully harnessing the bank's advantages.
DONGFENG GROUP (00489.HK) announced that VOYAH middle-and-large smart electric SUV, the Company’s high-end new energy brand, rolled off the pre-production line officially, which is estimated to be launched globally in December and enter the market by the third quarter of 2021.
ALI HEALTH (00241.HK) announced the results for the six months ended September 30, 2020. The company swung into net profit of RMB283 million, against the loss of RMB1.1 million over a year-ago period. The EPS equaled 2.17 fen. No interim dividend was declared.
EMPEROR INT'L (00163.HK) announced results for the six months ended September 2020. Loss deepened to $990 million from $519 million a year ago. LPS equaled 27 cents. Interim DPS was 1.2 cents.
EMPEROR E HOTEL (00296.HK) announced results for the six months ended September 2020. Loss was $142 million, against $177 million in net profit a year ago. LPS equaled 12 cents. Interim DPS was 1.5 cents.