10 July HSI Closed -483pts T/O -6% DoD Shorts 20%
HSI -483pts (-1.8%) 25,727 HSCEI -241pts (-2.2%) 10,541 T/O HK$194.56bn (-5.9% DoD)
EUROPE opened lower but working higher all markets in the green on surprisingly good Italian and French Industrial Data.
US Futures opened flat initially drifted higher in Asian time but sold off late in the session; current Dow futures -200pts
Market and Pre Market News at bottom of page.
Short Selling HSI Friday 20.4% vs 20.5% Thursday (High considering it was a falling market and the uptick only rule)
Top Shorts Hang Seng Bank (11) 54%, China Res Land (1109) 34%, MTRC (66) 34%, Wharf REIC (1997) 33%, HSBC (5) 31%, Ping An (2318) 31%, HK & China Gas (3) 30%, Petrochina (857) 30%, Henderson Land(12) 30%, AAC Tech (2018) 29%, NWD-New(17) 29%, AIA (1299) 27%, China Overseas (688) 27%, CCB (939) 27%, CNOOC (883) 27%, BoC HK (2388) 27%, SunnyOptical (2382) 26%, Mengniu Dairy (2319) 26%, China Unicom (762) 25%.
Northbound Rmb63,770m Sell 32,706m : 31,002m Buy
Southbound HK$ 21,318m Sell 10,040m : 11,278m Buy
Northbound Rmb90,818m Sell 46,753m : 44,064m Buy
Southbound HK$ 17,269m Sell 7,839m : 9,430m Buy
CHINA after lunch Vehicle Sales Jun +11.6% YoY vs 14.5% May (F/cast was 14%)
After China Market closed
New Yuan Loans Jun CNY 1810b vs 1480b May (F/cast was 1800b)
Outstanding Loan Growth Jun 13.2% YoY vs 13.2% May (F/cast was 13.3%)
Total Social Financing Jun CNY 3430b vs 3190b May (F/cast was 3250b)
M2 Money Supply Jun 11.1% YoY vs 11.1% May (F/cast was 11.2%)
Centre for Health Protection said there were 38 additional COVID-19 cases starting from yesterday, of which 6 were imported infections and 32 were local contractions. 9 of the confirmed local infections were of unknown origin, while 10 were associated with previous cases, and 11 were linked to Ming Chuen House in Shui Chuen O Estate.
JAPAN opened lower despite good PPI data the concerns over the rise in covid-19 cases and news of a new virus in Kazakhstan capped the upside. Traded sideways lower in the afternoo. Closed -1.1%
S KOREA opened lower and saw some further selling initially before a small bounce back. Kosdaq bounced back to flat but the trended lower. Kospi less of a bounce back but again traded lower Closed Kosdaq flat -0.01% and Kospi -0.8%.
TAIWAN Opened flat but sold down, then worked slowly back towards flat but failed to get then and drifted lower in the PM. Closed -1%
TSMC announced that operating income amounted to TWD120.88 bn in June 2020, up 28.8% MoM and 40.8% YoY.
Inland Revenue Department's Stamp Office announced 251 residential transactions involved with Ad Valorem Stamp Duty (AVD) in June, up 50 or 24.9% monthly. The duty amounted to $501.2 million, up 5.2% monthly, setting a seven-month high.
TENCENT (700.HK) plans to acquire shares of LEYOU TECH H (1089.HK) with SONY as its potential rival, Bloomberg citing insiders. TENCENT and LEYOU TECH H are now having negotiations, which will likely involve the TENCENT-backed CENTURY HUATONG (002602.SZ) as well as IDREAMSKY (1119.HK) according to sources. The transaction has not been finalized yet.
SA SA INT'L (178.HK) was notified that one of its shops at MOSTown in Ma On Shan had a cashier staff diagnosed with COVID-19. The involved shop was closed immediately for thorough disinfection and cleansing to ensure safety of staff and customers. The second store to have to close. -VE
Macau Secretary for Social Affairs and Culture Ao Ieong U announced that the mutually recognized health code program between Hong Kong and Macau should be shelved given the grave coronavirus situation in Hong Kong, Radio Macau reported.Secretary for Education Kevin Yeung will declare an early summer vacation for all schools, as local media quoted from inside sources.
Harbour BioMed announced the recent completion of its US$103mn Series C financing, led by Hudson Bay Capital, Country Garden Venture Capital, OrbiMed, GTJA Investment Group and Sage Partners.
At lunchtime Hong Kong added at least 30 initially confirmed COVID-19 cases today, over 10 of which were residents at Shui Chuen O Estate in Sha Tin, according to the media. Professor David SC Hui at CUHK, also an expert of the Government's Anti-epidemic Steering Committee, told a radio program that the transmissibility of COVID-19 is multiple-time overshoot of previous waves of outbreak given genetic transmutation of the coronavirus since the transmission from Europe to Asia at end-March. The Professor advised to suspend the upcoming Book Fair as people should not be loosened up before an effective vaccine debuts. Yet if the government decides to go ahead with the organization, it should have anti-plague measures well in place.
Hong Kong Airlines had on 8 July notified its bondholders that it will defer payment of US$24.33 million in semi-annual interest payments for its US$683 million perceptual bonds due on July 26, South China Morning Post reported. Redemption of notes is not highly possible, said the creditors.
IDC said during Q2 2020, the traditional PC shipment, comprising desktops, notebooks, and workstations, totaled 72.3 million devices, +11.2% YoY
Gartner reports that during Q2 2020, global PC shipments totalled 64.8 million devices, +2.8% YoY
TENCENT (700.HK) announced the roll-out of an AI drug discovery platform "Smart Cloud Drug" to help users save time and cost in seeking potentially active drugs. On the platform, ten R&D projects are in operation, including virtual screening and property prediction for anti-COVID-19 cure.
Hong Kong investigated at least 14 initially diagnosed COVID-19 cases last night (9 July), sources said. Leisure and Cultural Services Department announced that children's playground and road safety towns will be closed from 11 July due to the latest development of COVID-19. The number of entrants for public swimming pools will be lowered as well, the Department said.
BYD COMPANY (1211.HK) is poised to spin off its semiconductor business for listing on Sci-tech Innovation Board in Shanghai or ChiNext in Shenzhen, Reuters' IFR quoted people familiar with the matter. The automaker is now in talks with a financial advisor.
ALI HEALTH (241.HK)'s substantial shareholder Innovare Tech placed 137 mn shares of the company at $22.65-22.85 each, cashing in $3.1-3.13 billion, as local media cited a sales document. The placing price represented a discount of 3%-3.8% to the closing price of $23.55 as quoted yesterday. Innovare Tech is a subsidiary of YF Capital, which was co-founded by BABA-SW (9988.HK) Founder Jack Ma and his friend David Yu.
The World Health Organization (WHO) updated its guidance, saying it could not rule out the possibility that the COVID-19 virus can be transmitted through air particles in indoor crowded spaces. WHO also advised the public to avoid overcrowding and ensure adequate ventilation indoors and appropriate social distance.
HENDERSON LAND (12.HK) will readopt flexible working or work-from-home measures from today (10 July) for 14 days until 24 July, as local media cited Vice Chairman Colin Lam Ko-yin's internal memo. HENDERSON LAND's office will open as usual under normal operation, according to the notice.
China Foreign Exchange Trade Center announced, on 10 July, the central parities in the interbank forex market of transaction currencies, including the dollar against CNY, are as follows: USD/CNY = 6.9943, up 142 bps from yesterday's central parity.
In BABA-SW (9988.HK)'s annual report, Chairman-cum-CEO Daniel Zhang extended his appreciation to investors for their continued help, support and trust in the group amid intense global uncertainty due to the unexpected endurance of the COVID-19 pandemic. During this past fiscal year, despite the impact of the pandemic, BABA-SW still delivered US$1 trillion in GMV. Their next goal is to serve more than 1 billion consumers in China and facilitate more than RMB10 trillion of consumption on their platforms in the next five years, furthered Zhang.
ESPRIT HOLDINGS (330.HK) said that it had on 8 July received a written requisition from North Point Talent, the second largest shareholder, made pursuant to Bye-law No. 58 of the Memorandum of Association and New Bye-laws of the Company, whereby the Requisitionist requested the Company to convene a special general meeting to consider and transact multiple businesses. The company has resumed share trading today (10 July).
Chinese Embassy in Kazakhstan issued a notice, citing a Kazakhstan media that three places have recorded notably higher incidence of an unknown pneumonia since mid-June. So far, almost 500 people have been infected and over 30 critically ill. In 1H20, the disease caused over 1,700 deaths; and in June alone, 628 people died, including Chinese citizens. The Embassy furthered that the unknown pneumonia had a much higher death rate than COVID-19, for which local health department conducted study.
SA SA INT'L (178.HK) disclosed that a worker from its branch at Domain Mall, Yau Tong had tested positive for novel coronavirus. In order to guarantee the safety of workers and customers, the store will be shut down for 14 days with immediate effect for thorough sterilization and disinfection. All staff at the said branch and other workers who had contracted the diagnosed worker will be subject to a 14-day home isolation, stated the cosmetic chain retailer.
As USD/ HKD triggered the Strong-side Convertibility Undertaking during New York trading hours, the HKMA undertook a selling order of US$257 million to inject HK$1.992 billion into the market. The balance of the banking system of Hong Kong will increase to HK$180.289 billion next Monday (13 July).
CPIC (2601.HK) 1 Jan - 30 Jun accumulated gross premium income of CPIC Life RMB138.347 bn -0.06% YoY and CPIC P/C RMB76.928 bn +12.1% YoY