Oct 30 HK WRAP HSI -479pts T/O +14% DoD Expect margin calls on Monday
HSI -479pts (-2%) 24,107 HSCEI -195pts (-2%) 9,760 T/O HK$151.72bn (+14% DoD)
EUROPE markets to open lower but worked higher to flat on good data but struggling to make further gains with covid and US election concerns.
GDP Growth Rate Flash Q3 +12.7% QoQ vs -11.8% Q2 revised (F/cast was +7.5%)
GDP Growth Rate Flash Q3 -4.3% YoY vs -14.8% Q2 revised (F/cast was -8%)
Inflation Rate Prel Oct -0.3% YoY vs -0.3% Sept (F/cast was -0.2%)
Inflation Rate Prel Oct +0.2% MoM vs +0.1% Sept (F/cast was +0.2%)
Core Inflation Rate Prel Oct +0.2% YoY vs +0.2% Sept (F/cast was +0.2%)
Unemployment Rate Sept 8.3% vs 8.3% Aug revised (F/cast was 8.6%)
GERMANY Retail Sales Sept +6.5% YoY vs +3% Aug revised (F/cast was +6%)
Retail Sales Sept -2.2% MpM vs +1.8% Aug revised (F/cast was -0.5%)
GDP Growth Rate Flash Q3 +8.2% QoQ vs -9.8% Q2 revised (F/cast was +7.2%)
GDP Growth Rate Flash Q3 -4.3% YoY vs -11.3% Q2 revised (F/cast was -5.8%)
FRANCE GDP Growth Rate Prel Q3 +18.2% vs -13.7% Q2 revised (F/cast was +15.1%)
Household Consumption Sept -5.1% MoM vs +2.2% Aug revised (F/cast was -0.7%)
Inflation Rate Prel Oct 0% YoY vs 0% Sept (F/cast was +0.3%)
Inflation Rate Prel Oct -0.1% MoM vs -0.5% Sept (F/cast was +0.2%)
Nationwide Housing Prices Oct +5.8% YoY vs 5% Sept (F/cast was +4.7%)
Nationwide Housing Prices Oct +0.8% MoM vs 0.9% Sept (F/cast was +0.5%)
US Futures opened -220pts but eased back to -150pts in the first hour but mid afternoon dropped to -500pts. Currently -300pts with S&P and NDX also lower. Concerns over Apple's weak after results and with no guidance; iPhone sales were down but its the quarter before the new iPhone 12 release.
Data Personal Income & Spending, PCE Price Index, Employment Cost (Index, Wages and Benefits) Core PCE Price Index, Chicago PMI, Michigan Data (Consumer Expectations, 5 year Inflation Expectations, Consumer Sentiment, Inflation Expectations, Current Conditions), Baker Hughes Oil Rig Count.
Key Earnings Chevron, Exxon Mobil
CHINA CSI 300 Closed -78pts (-1.6%) 4,695
CSI 300 opened slightly higher but sold down to 4,760 level and then bounced back, traded sideways in the band 4,776/4760 for most of the morning but then sold down to 4,753 before a bounce into lunch. After lunch the market trended lower hitting the day low (4,684) around 2:30pm and then traded sideways into the close.
Shanghai Composite Index -48pts (-1.5%) @ 3,225
Shenzhen Component Index -283pts (-2.1%) @ 13,237
ChiNext Index -44pts (-1.6%) @ 2,656
CHINA DATA None today but tomorrow we get Manufacturing PMI OCT (Sept was 51.5 and f/cast is 51.4) and Non Manufacturing PMI Oct (Sept was 55.9 and F/cast is 55.2)
HSI Pre Market Opened 24,536 -51pts vs -37pts @ 24,549 ADRs E-Commerce names were mixed, HSBC & AIA rose, Mobile was weak. Worked higher though the morning briefly breaking into the green ahead of lunch. After lunch the market sold down 511pts in an hour and then traded sideways into the close with a small uptick in the closing auction. Seemingly prompted by US futures turning more -VE on rising covid cases in Europe and US. Broad based selling, but Chinese Consumer names were hit hard. The volume increased significantly which is not a good sign on a down day
HONG KONG DATA
Rating and Valuation Department (RVD) announced that the private residential property price index hit 382.6 in September, +1.6 pts or +0.4% MoM and snapping a two-month slide. The index surged 1.2 pts or 0.3% on a YoY basis.
GDP Growth Rate Adv Q3 -3.4% YoY vs -9% Q2 (F/cast was +1.7%)
GDP Growth Rate Adv Q3 +3% QoQ vs -0.1% Q2 (F/cast was +1.5%)
Centre for Health Protection said there were 7 new COVID-19 cases in Hong Kong today (vs 3 Thursday) 1 unknown and 6 imported.
SHORT SALES Friday 7.2% vs 21% Thursday
Top Shorts Henderson (12) 34%, Galaxy Ent (27) 33%, Hang Seng Bank (11) 31%, HSBC (5) 31%, MTRC (66) 30%, Swire Pac A (19) 28%, HK & China Gas (3) 27%.
AFTER MARKET NEWS
Hang Seng Indexes Company Limited introduced the Fast Entry Rule for early inclusion of sizable new listings in the Hang Seng China Enterprises Index (HSCEI) outside regularly scheduled index reviews. The new rule is effective immediately.
ANT GROUP (06688.HK), closing IPO today's noon, was over-subscribed by approximately 390 times, according to market sources. Its H shares were subscribed by approximately 1.55 million retail investors, breaking the record high made by ICBC (01398.HK)'s IPO in 2006 when 970,000 people subscribed. ANT GROUP's IPO froze capital of $1.3 trillion, toppling the record of NONGFU SPRING (09633.HK) which had frozen over $670 billion this year.
HKEX (00388.HK) announced the consultation results on corporate weighted voting rights (CWVR), which allows the companies listed in the US to return to Hong Kong market with WVR, while permitting corporate entities to benefit from WVR. The Exchange stated that it would launch a separate consultation on the matter. The Exchange plans to consult the market on proposals to normalize the eligibility requirements that apply to Greater China Issuers that do not have WVR structures and seek to secondary list. The Exchange is currently considering whether these issuers should: meet the same expected market capitalisation requirements as non-Greater China Issuers at listing as set out in the JPS; and not have to demonstrate that they are an “Innovative Company”. It hoped to publish a consultation paper soon on a review of its dual-primary and secondary listing regimes as a whole.
CGS (06881.HK) results for the first nine months of 2020. Net profit amounted to RMB5.65 billion, +46.38% yearly.
ICBC (01398.HK) the third-quarter net profit -4.7% yearly to RMB79.885 billion, with an EPS of RMB0.22.
The Hong Kong Monetary Authority announced the results of the residential mortgage survey for September 2020. The number of mortgage applications in September +13.3% MoM to 12,288. The results of its survey on residential mortgage loans (RMLs) in negative equity at end-September 2020. The estimated number of RMLs in negative equity increased to 199 cases at end-September 2020 from 127 cases at end-June 2020. These cases were related to bank staff housing loans or RMLs under mortgage insurance programme, which generally have a higher loan-to-value ratio.
CRRC (01766.HK) result for the first three quarters of 2020. The net profit amounted to RMB6.793 billion, down 19.2% yearly. EPS was RMB0.24.
HTSC (06886.HK) results for the first nine months of 2020. Net profit amounted to RMB8.839 billion, +37.24% YoY
CM BANK 3Q Net Profit +0.7% YoY to RMB26.815B EPS was RMB1.05.
ABC (01288.HK) third-quarter net profit -4.6% yearly to RMB56.501 billion, with an EPS
of RMB0.15. Operating income ballooned 4.9% annually to RMB159.437 billion in the period.
MTR CORPORATION (00066.HK)announced that the bid for Lohas Park Phase 13 was secured by a consortium of SINO LAND (00083.HK), KERRY PPT (00683.HK), K. WAH INT'L (00173.HK) and CHI MER LAND (00978.HK)
BOC (03988.HK) announced that the 3Q20's net profit -1.6% yearly to RMB44.794 billion with an EPS of RMB0.14. The operating income grew 2.3% yearly to RMB143.319 billion. For 1-3Q20, the net profit -8.7% yearly to RMB145.711 billion. The operating income +3.2% yearly to RMB430.302 billion.
SA SA INT'L: Interim Loss May Expand to $230-300M After taking into account the preliminary estimated provision for the impairment of HK$30 million to HK$70 million on right-of-use assets and property, plant and equipment, SA SA INT'L (00178.HK) expects to record a loss of approximately HK$230 million to HK$300 million for the six months ended 30 September 2020, compared with a loss of HK$36.5 million for the corresponding period last year.
R&F PROPERTIES (02777.HK) result for the first three quarters of 2020. The net profit amounted to RMB4.122 billion, -9.1% YoY. EPS was RMB1.18.
BOCHK 1-3Q Operating Profit Before Impairment Allowances -3.9% YoY to $31.322B
BANKCOMM (03328.HK) first three quarters of 2020, net profit -12.4% YoY to RMB52.712 billion. EPSwas RMB0.65.
Centa-City Leading Index (CCL) last printed at 176.84, -0.01% weekly.
The CCL was depressed significantly by the fluctuation of luxury housing prices.
CCL (large units) -1.48% weekly to 170.5. The volatility of luxury property prices broadened, with the relative index jumbling between 170-180.
Among the CCL in four districts, upswing was reported in three districts last week and downswing in one district. This week, rises were tracked in all four districts, being the first time in 23 weeks. Centraline noted green shoots on housing market with bottom-out prices.
*PETROCHEMS WEAK Oil fell another 4% to its lowest since June, and Brent slid to a five-month low, on fears of demand destruction from tighter lockdown measures due to rising Covid cases in Europe and US.
PETROCHINA (857 HK -0.5%) Q3 net profit surged more than 3.5 times to 40.05b yuan, following losses in the first two quarters.
CH OILFIELD (2883 HK -5.9%), CNOOC (883 HK -2%) SINOPEC (386 HK -0.7%).
*BANKS WEAK Post-earnings selling.
CCB (939 HK -2.9%) said its Q3 profit fell over 4% YoY to 68.21b yuan.
ICBC (1398 HK -3.1%) BOC (3988 HK -2.4%) CMB (3968 HK -3.9%).
STAN CHART (2888 HK -4.7%) despite posted a better-than-expected Q3 profit and saying it could restart shareholder returns next year.
HSBC (5 HK -1.2%) HANG SENG BANK (11 HK -1.3%).
*HK PROPERTY WEAK Despite a broker upgrade as the tender for the 13th and final phase of Lohas Park in Tseung Kwan O attracted nine bids vs 35 expressions of interest received in September. The site, which could potentially accommodate 2,550 flats, is valued at HK$8.51b-HK$15.47b or HK$5,500-HK$10,000/ buildable sqft.
CK ASSET (1113 HK -1.2%) NWD (17 HK -0.9%) SINO (83 HK -1.7%).
*CHINA PROPERTY FIRM KWG's (1813 HK +1.6%) property management arm KWG LIVING (3913 HK) closed at HK$6.08 vs its IPO price HK$7.89.
SHIMAO SERVICES (873 HK), the property management unit of SHIMAO GROUP (813 HK -0.7%), closed at HK$16.6 same as IPO price.
China's regulators have stepped up efforts to rein in local developers, requiring some of the largest real estate firms to disclose details on financing on a monthly basis. EVERGRANDE (3333 HK +4.7%) jumped following share buyback.
*MACAU CASINOS WEAK SJM (880 HK -1.6%) reported a Q3 net loss of HK$1.03b vs a profit of HK$738m a year ago. Net gaming revenue in Q3 -89.6% to HK$841m.
MELCO (200 HK -2.3%) GALAXY ENT (27 HK -2.7%) SANDS (1928 HK -2.7%).
MGM CHINA (2282 HK +5.3%) jumped as its October EBITDA turned positive, despite it reported Q3 net revenue -94% YoY to $47m, missing estimates.
*TECH & COMPONENTS MIXED Fifth Plenum says China will focus on building the nation's own core technology as the U.S. tries to curb its expansion.
SMIC (981 HK +3.4%) HUA HONG (1347 HK +0.5%) FIT HON TENG (6088 HK -8.2%). BYDE (285 HK -8.9%) reported nine-month net-profit rose more than four times to 4.33b yuan. The company didn't specify the factors leading to result changes.
*AUTOS MIXED post earnings.
BYD (1211 HK -1.6%) Q3 net income +40.7% YoY to 1.75b yuan.
GAC (2238 HK +1.8%) reported Q3 net income 2.68b yuan, +89% YoY
GREATWALL (2333 HK -2.5%) BRILLIANCE (1115 HK -3.65).
*BREWERS WEAK BUDWEISER APAC (1876 HK -1.7%) Q3 net profit +26% YoY to US$316 million, while revenue +2.2% to US$1.82b. TSINGTAO (168 HK- 7.4%) reported a 15.2% increase in its nine-month net profit, mainly due to a drop in credit impairment losses, but revenue remained weak due to the lingering impact of Covid-19 pandemic.
JAPAN opened lower; pre market data was mixed but with US futures weak the market trended lower through the morning to a low of 23,118 before seeing a small ounce into lunch. Opened higher after lunch and trading sideways until around 1:30pm when the market sold off to close at the day low -1.5% @ 22,977
Pre Market Data
Unemployment Rate Sept 3% vs 3% Aug (F/cast was +2.9%)
Jobs/Application ratio Sept 1.03 vs 1.04 Aug (F/cast was 1.1)
Tokyo Core CPI Oct -0.5% YoY vs -0.2% Sept (F/cast was -0.4%)
Tokyo CPI Oct -0.3% YoY vs -0.2% Sept (F/cast was -0.4%)
Industrial Production Prel Sept +4% MoM vs +1% Aug (F/cast was +2.5%)
Industrial Production Prel Sept -9% YoY vs -13.8% Aug (F/cast was -10%)
During Market hours
Housing Starts Sept -9.9% YoY vs -9.1% Aug (F/cast was -8.3%)
Construction Orders Sept -10.6% YoY vs +28.5% Aug (F/cast was +16%)
S KOREA Pre market data was better than expected but markets still opened lower.
Kospi trended lower until about 1:30pm but then saw increased selling to close just off the day low -2.6% @ 2,267
Kosdaq Opened lower but traded sideways in choppy trading for the first 90mins before succumbing to selling pressure and trended lower to 805, traded sideways for a hour but then sold down in the last hour and closed just off the day low -2.6% @ 793
Pre Market Data
Industrial Production Sept +8% YoY vs -3% Aug (F/cast was +1.1%)
Industrial Production Sept +5.4% MoM vs -0.7% Aug (F/cast was +0.9%)
Retail Sales Sept +4.4% YoY vs +0.3% Aug (F/cast was +3.9%)
Retail Sales Sept +1.7% MoM vs +3% Aug (F/cast was +0.3%)
Manufacturing Production Sept +8.3% YoY vs -3.1% Aug (F/cast was +1.1%)
Construction Output Sept +6.3% YoY vs -9.4% Aug (F/cast was +1%)
TAIWAN opened lower sold down to 12,557 after 20 minutes of trading. Bounced back to 12,612 level and has traded around there until 1:30pm when it sold down into the close to finish -0.9% @ 12,546.
After Market GDP Growth Rate Adv Q3 +3.33% vs -0.58% Q2 (F/cast was +2%)
CONNECT FLOWS (Higher DoD)
Northbound Rmb 44,451m Buy 24,194m vs 20,257m Sell
Southbound HK$ 16,613m Buy 6,289m vs 10,324m Sell
Northbound Rmb 60,207m Buy 30,971m vs 29,235m Sell
Southbound HK$ 14,629m Buy 6,369m vs 8,260m Sell
HKEX (00388.HK) -3.4%
AIA (01299.HK) -3.4%
BABA (09988.HK) -3.1%
MEITUAN-W (03690.HK) -3%
CCB (00939.HK) -2.6%
TENCENT (00700.HK) -2.3%
PING AN (02318.HK) -1.2%
HSI & HSCEI Constituents on the move
MENGNIU DAIRY (02319.HK) -5.9%
CHINA RES BEER (00291.HK) -5.1%
CHINA UNICOM (00762.HK) -4.4%
CHINA LIFE (02628.HK) -4.1%
SHENZHOU INTL (02313.HK) -3.9%
WH GROUP (00288.HK) -3.8%
CM BANK (03968.HK) -3.5%
GUANGDONG INV (00270.HK) +3.4%
CSPC PHARMA (01093.HK) -3.2%
CITIC (00267.HK) -3.2%
HSMI & HSSI Constituents on the move
SUNCITY GROUP (01383.HK) +20.6%
FUYAO GLASS (03606.HK) +14.9%, hitting new high
KERRY LOG NET (00636.HK) +1.4%, hitting new high
MARKET HOURS NEWS
XIAOMI-W (01810.HK)'s sales kept rising in Hong Kong despite a downhill retail sales market for 1H20, with total revenue growth of 29.38% YoY, revealed Janine Luo Yan, operation head for Hong Kong and Taiwan. Particularly, the 1H handset shipment in Hong Kong and non-handset sales revenue burgeoned around 12% YoY and 42.6% YoY in the city.
ANT GROUP (06688.HK)’s IPO closed today's noon (30 October). As at 11 am, its H-share IPO registered almost 1.47 million subscribers, breaking the record high made by ICBC (01398.HK)'s IPO in 2006 when 970,000 people subscribed. ANT GROUP became the most-subscribed IPO for H shares. ANT GROUP's IPO frozen nearly $1.3 trillion of capital, equivalent to approximately 388 times of over-subscription, taking the crown of "capital-frozen king".
PETROCHINA (00857.HK)'s management said during the teleconference that the group harvested improvement across various segments in 3Q20. With more effective plague control in China, higher demand fueled by further economic recovery and nearing winter season, the management voiced optimism for 4Q20's business.
IDC: Samsung Tops 3Q Handset Shipment Chart; XIAOMI-W Ranked 3rd for 1st TimeBy brands, Samsung reclaimed the top handset shipment position in 3Q20, with shipment growing 2.9% YoY to 80.4 million units, according to IDC's report. Huawei came in second, with shipment falling 22% YoY to 51.9 million units. It was followed by XIAOMI-W (01810.HK), with shipment rising 42% YoY to 46.5 million units.
ByteDance has pulled most of TikTok's US and non-US traffic from Fastly by the end of 3Q20, revealed Fastly. The is likely a response to a potential prohibition of US firms being able to work with TikTok, Fastly citing publicly available information.
Canalys: XIAOMI-W Ranked 3rd on 3Q Global Handset Shipment Chart for 1st Time.Samsung topped the global smartphone shipment chart in 3Q20, with shipment growing 2% YoY to 80.2 million units, according to Canalys' report. XIAOMI-W (01810.HK) came in third for the first time, with shipment rising 45% YoY to 47.1 million units.
Chief Executive Carrie Lam, visiting the transitional housing project "Nam Cheong 220" at Nam Cheong Street, Sham Shui Po yesterday (29 October), said she had pledged in last year's Policy Address that the Government will build 10,000 transitional homes in coming three years, and for that she had raised the target higher to 15,000 early this year. She also retained more construction expenditure for the project at $5 billion, up from $2 billion. So far, the land parcels that the Government had seized should be enough to provide 12,700 units, Lam said.
Cathay Pacific Airways Flight Attendants Union urged CATHAY PAC AIR (00293.HK) to improve the new contract terms and extend the deadline of signing new contracts, yet no response from the company has been received so far. The Union Chairwoman Zuki Wong condemned the airline of being inconsiderate with the excuse of poor financial condition. Given unfavorable situation to the employees, the Union is applying for an assembly nearby the airport to voice out their demands. The staff will not meet with the airline management for the time being, but will keep contacts via email.
PRE MARKET NEWS
Not in this mornings report
CKH HOLDINGS (00001.HK)'s Husky Energy announced the 3Q20 results. It posted a loss of CAD7.081 billion, versus a profit of CAD273 million over a year ago. The non-cash impairments were CAD6.7 billion, related to lower oil price and reduced capital investment.
HSBC spokesman said ANT GROUP (06688.HK)’s IPO subscription received overwhelming response as the number of applications and the amount of IPO loans logged the record highs of the bank. Separately, BOC HONG KONG (02388.HK) said it received IPO subscription in an amount of over $100 billion, adding both the subscription amount and the number of applicants hit new highs in recent year.
Ant Group (688688.SH) registered 5.155 million valid A-share subscribers through online issuance, setting an all-time high of Sci-tech Innovation Board (SSE STAR Mkt). The A-share IPO online subscription approximated RMB19.05 trillion, notching a record high.
MGM CHINA (02282.HK) announced that its controlling shareholder, MGM Resorts International, released its unaudited results. For 1-3Q20, MGM CHINA posted a total revenue of $2.734 billion, down 83.99% yearly. Its total adjusted EBITDA reported a loss of $1.739 billion, versus a profit of $4.625 billion over a year ago.
TSINGTAO BREW (00168.HK) results for 1-3Q20. It reported a net profit of RMB2.978 billion, up 15.2% yearly, with an EPS of RMB2.204.
LIFESTYLE INT'L (01212.HK) the Group exchanged with an independent third party a non-binding heads of terms, pursuant to which the Group agreed to purchase from the seller of a commercial property in London, the United Kingdom at the agreed price. Pursuant to the Heads of Terms, the Group also agreed to enter into a sales and leaseback arrangement with the seller in respect of leasing out the Property to the seller following completion.
GANFENGLITHIUM (01772.HK) results for 1-3Q20. It reported a net profit of RMB330 million, up 0.4% yearly, with an EPS of 25 fen.
PSBC (01658.HK) results for 3Q20. It reported a net profit of RMB19.186 billion, up 13.5% yearly, with an EPS of 22 fen.
BYD COMPANY (01211.HK) results for 3Q20. It recorded a net profit of RMB1.751 billion, up 13.6 times yearly, with an EPS of 62 fen. The company expected to post a net profit of RMB4.2-4.6 billion for 2020, up 160%-185%.
CHINA VANKE (02202.HK) results for the third quarter of 2020. The net profit amounted to RMB7.355 billion, up 14.9% yearly. EPS was 63.3 fen.
CICC (03908.HK) results for 1-3Q20. It reported a net profit of RMB4.891 billion, up 55.8% yearly, with an EPS of RMB1.11.
CITIC BANK (00998.HK) results for 3Q20. It reported a net profit of RMB11.377 billion, down 8.6% yearly, with an EPS of 21 fen.
CCB (00939.HK) results for the third quarter of 2020. The net profit amounted to RMB68.206 billion, down 4.1% yearly. EPS was 27 fen.