July 27 HK WRAP HSI -103pts T/O -25% DoD as HK increases lockdowns
HSI -103pts (-0.4%) 24,603 HSCEI -5pts (-0.1%) 10,076 T/O HK$125.67bn (-24.6% DoD)
EUROPE Markets opened mixed FTSE & CAC opened lower and traded sideway. DAX opened higher and traded sideways; US/China tensions and a second wave of covid cases weighting on investors. US earnings also being in focus.
US Futures opened flat but rose through the day and are indicting a higher open. Dow futures currently +124pts with S&P and NDX also indicating higher.
CSI 300 Closed +23pts (+0.5%) @ 4,529 Market saw choppy trading throughout the day. Opened higher and tipped 4,550in early trades as the Industrial Profits number come in better than forecast after which it sold down before bouncing to the day high 4,558 (suggests some margin call selling) but then trended lower into lunch. PM initial sell off to the day low (4,482) before bouncing back After lunch initial selling down to 4,482 before bouncing back to PM high of 4,535, but then trended lower again before a final rally into the close. Sentiment appears fragile as US/China relations deteriorate with the US Consulate in Chengdu closing this morning. Also rising cases of covid in a number of countries, including Hong Kong and some parts of China. Property sector weak on increased curbing measures.
HSI Pre Market +204pts @ 24,909 vs +44pts ADRs @ 24,749 With E-commerce names +VE as the New HSI Tech index kicked off.Market tested the day high in early trades before selling down to 24,690 around Friday’s closing level in the first hour. It then bounced 130pts before gradually selling down into lunch at around the 24,680. PM saw initial selling down to the day low 24,527 in the fist 20 minutes and then effectively traded sideways into the close. Gold stocks were today’s star performers.Sentiment is weak with the rising number fo local covid cases and further social distancing rules which includes banning lunch ‘dine-in services’ and more mandatory mask wearing rules.
Market T/O was light despite the launch of the new Hang Seng Tech Index
EVERGRANDE (3333.HK) said it will toughen up the footfall control at its exhibition hall at 16/F, Billion Plaza II, Cheung Sha Wan for its projects EMERALD BAY and THE VERTEX from 29 July, in a bid to work with the government's anti-epidemic policy.
The Education Bureau (EDB) announced today (July 27) that all schools would continue to suspend all on-campus activities from July 29 (Wednesday) to August 16 (Sunday). Schools may consider conducting make-up classes or other learning activities online.
Wheelock Properties announced that KOKO HILLS' exhibition halls are suspended today and tomorrow for thorough cleansing as part of reinforced precautionary measures.
SINGAMAS CONT (716.HK) announced that it has delivered a mobile Polymerase Chain Reaction (PCR) laboratory for COVID-19 testing to the Shanghai Pudong Airport on 8 July.
XIAOMI-W (1810.HK)'s Mi TV announced that its shipment topped China's TV sales chart for the first half of year, ranking no. 1 for the 6th straight quarter.
Market and Pre Market News at bottom of page.
JAPAN re-opened at its lows and as worked better through the session. Closed -0.2%
S KOREA Market opened higher and rallied for most of the session but sold off into the close, the Kosdaq closed +0.8% and the Kospi closed +0.8%.
TAIWAN Market opened higher and has traded sideways/slightly lower, closed +2.3%
Short Selling HSI Monday 21.5 vs 18.4%Friday
Top Shorts Hang Seng Bank (11) 49%, China Res Land (1109) 46%, Ping An (2318) 39%, Bank of China (3988) 39%, Sands China (1928) 37%, Swire A (19) 36%, China Shenhua (1088) 34%, HK & China Gas (3) 34%, CKH (1) 34%, Petrochina (857) 33%, CCB (939) 32%, HSBC (5) 32%, Sinopec (386) 31%, MTRC (66) 30%, Galaxy (27) 29%, AAC Tech (2018) 28%, BoC HK (2388) 27%, Citic (267) 26%, Henderson Land (12) 26%, Country Garden (2007) 25%.
CONNECT FLOWS (Significantly lower Monday)
Northbound Rmb 52,055m Sell 27.935m : 24,119m Buy
Southbound HK$ 11,486m Sell 6,020m : 5,467m Buy
Northbound Rmb 73,184m Sell 35,441m : 37,743m Buy
Southbound HK$ 14,635m Sell 6,116m : 8,519m Buy
Industrial Profits (YTD) Jun -12.8% YoY vs -19.3% May (F/cast was -17%)
Showing signs of recovery but before the recent spike in cases)
Centre for Health Protection said there were 145 additional COVID-19 cases in Hong Kong today; 142 were locally transmitted. The department currently has 59 cases of unknown origin.
Balance of Trade Jun HK$-33.3b vs -13.7b May (F/cast was -15b)
Exports Jun -1.3% vs -7.4% May
Imports Jun -7.1% vs -12.3% May
Imports dropped mostly due to lower purchases of non-metallic mineral manufactures (-51.1%); miscellaneous manufactured articles (-29.1%); and photographic apparatus, equipment and supplies, optical goods, watches and clocks (-43.8%).
Exports went down as sales declined for miscellaneous manufactured articles (-29.7%); non-metallic mineral manufactures (-35.4%); articles of apparel & clothing accessories (-45.4%) and photographic apparatus, equipment and supplies, optical goods, watches and clocks (-37.3%).
HKEX (388.HK) -1.8%
TENCENT (700.HK) -1.5%
CCB (939 HK) +1%
AIA (1299.HK) +0.7%
PING AN (2318.HK) -0.3%
HSI & HSCEI Constituents on the move
FOSUN INTL (656.HK) -3.9%
CHINA RES BEER (291.HK) +3.3%
HSMI & HSSI Constituents on the move
COMEC (317.HK) -14.3%
SD GOLD (1787.HK) +12.4%, hits new high
HUABAO INTL (336.HK) -10.1%
CNBM (3323.HK) +10.1%
E-HOUSE ENT (2048.HK) +4.9%, hits new high
*HANG SENG TECH INDEX debut today with backdated prices, tracking the 30 largest tech companies listing in HK, including TENCENT (700 HK -1.5%), ALIBABA (9988 HK unch), MEITUAN (3690 HK -3%), and XIAOMI (1810 HK -3%). Tracking the gauge this year would have returned 47% for investors, versus a loss of 12% for the Hang Seng Index. The tech measure dropped 1.2% today
*CHINA PROPERTY WEAK on news of more curbing measures. China's Dongguan tightens home purchase, non-resident buyers of existing homes in the southern Chinese city must have continuous social security payment record for at least 1 year. The city also bans resale of homes bought within the past 3 years.
SUNAC (1918 HK -2.3%) SHIMAO (813 HK -2.5%) R&F (2777 HK -2%) YUEXIU (123 HK -2.7%).
*HK PROPERTY WEAK across the boarding amid Covid-19 worries.
SHKP (16 HK -1%) sold 105 of 108 units offered at Regency Bay on Saturday;
HENDERSON LAND (12 HK -1.4%) NWD (17 HK -2.4%) CKA (1113 HK -1%). LINK REIT (823 HK -0.7%) has agreed to buy an office building in London for HK$3.68b, as it diversifies beyond core HK and mainland China markets.
FORTUNE REIT (778 HK +0.7%) reported 1H revenue -2% YoY and net property income dropped 4% YoY in the period. DPU was down 14%YoY to HK$22.60 cents, due to distributable income being down by 3%YoY, payout ratio cut to 90% from 100% in 1H19.
*GOLD MINERS STRONG Gold prices climbed to an all-time high Friday as investors sought safety in the precious metal amid rising U.S.-China tensions and lingering fears over the coronavirus pandemic. August futures contract edged up by 0.4% to settle at US$1,897.50 per ounce, marking gold’s sixth straight day of gains. ZIJIN (2899 HK +6.4%), ZHAOJIN (1818 HK +8.8%) CHINAGOLD (2099 HK +6.6%).
*RETAILERS MIXED on profit-alerts.
POU SHENG (3813 HK +0.6%) expects interim net profit to fall more than 90% YoY, affected by the Covid-19 outbreak.
GIORDANO (709 HK -1.8%) sees 6-month loss to by HK$170m-HK$180m as business as hurt by the pandemic.
EMBRY HOLDINGS (1388 HK +1%) expects interim net loss of HK$45m, said 2Q sales fell 30% due to temporary retail suspensions amid virus outbreak.
*JEWELERS FIRM as gold and silver prices keep climbing. LUK FOOK (590 HK +2.4%), CHOW TAI FOOK (1929 HK +1.1%) CHOW SANG SANG (116 HK +0.4%) TSL (417 HK +1.1%).
*PHARMA MAKERS WEAK as investors continue to take profit from the outperforming sector.
SINOPHARM GROUP (1099 HK +0.3%) to acquire 100% stake in Chengda Fangyuan Pharmaceutical Group Co. for 1.86b yuan via public tender. Chengda Fangyuan had 1,507 stores in 19 cities at the end of 2019. ASCENTAGE (6855 HK -8.4%) GENESCRIPT (1548 HK -5.7%) CANSINO (6185 HK -1.7%) 3SBIO (1530 HK -3.8%).
CNBM (3323 HK +10%) after unveiling a restructuring plan of cement assets with Shenzhen-listed subsidiary Xinjiang Tianshan Cement.
TAI HING (6811 HK -2.5%) and TSUI WAH (1314 HK -3.5%) as both lunch and dinner dine-in are banned in HK.
JD.COM (9618 HK +0.9%) is planning to spin off its online medical consulting e-commerce platform for pharmaceutical products platform, JD Health, to list in Hong Kong, raising at least US$1b.
Sinopec announced at a briefing held recently in Beijing that it has over 30,000 gas stations, making it the second largest transport energy infrastructure network in world.
Huawei has axed its India revenue target for 2020 by up to a half to US$350-500 million, the Indian Economic Times reported. The Chinese tech giant is sinking 60-70% of its Indian workforce, which does not involve the R&D and global service centre.
The Executive Council passed the full-day dine-in ban on eateries, which will take effect from Wednesday (29 July), as local media cited sources. Also to tighten gathering ban to 2 persons from 4. Both for the next 7 days. Also to promote WFH for the next 7 days and residents to stay home. Mask wearing now for All public places and no exceptions for smokers who are called on to quit!
Smartphone sales in China -17% YoY but +9% QoQ in the second quarter of 2020, as Counterpoint wrote in a report. During the period, 5G devices accounted for a third of the smartphone sales.
Bitcoin price surmounted US$10,000 on Sunday, being the first time since early June. The price last stood at US$10,226.83, according to coindesk.com.
Intel has reached a deal with TSMC over 180,000 6nm chips for delivery next year, Chinese media citing rumours. AMD has also inked an agreement with the Taiwanese semiconductor giant that will boost its order for 7 and 7+nm chips to 200,000, said the report.
JINMAO HOTEL-SS (6139.HK) interim results ended June 2020. Loss attributable to the Holders of Share Stapled Units amounted to RMB157 mn, vs RMB166 mn of profit in a year ago's period. Loss per Share Stapled Unit equaled 7.86 fen. There was no distributable income recorded for the six months ended 30 June 2020. Accordingly, the group has resolved not to make an interim distribution for the six months ended 30 June 2020 to the Holders of Share Stapled Units.
Gold price set a historical high amid escalating tensions between China and the US, whose consulate closures have rattled investors and prompted fund flows to risk-aversion assets. Gold spot price surged 1.57% to an all-time high US$1,931.87, once peaking at US$1,944.71. The yellow metal is also riding on monetary easing worldwide.
Overnight HIBOR last posted at 0.04435%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.25393%, marking a 1-month low.
HKTVmall's parent HKTV (1137.HK) saw increased interest today in early trades as the Government will purportedly announce a footfall cap for wet markets and supermarkets today.
Apple's contract manufacturer Foxconn has been assembling iPhone 11 units in a factory near Chennai, India, TechCrunch citing sources. The first batch of locally-assembled iPhone 11 devices has been shipped to retail stores, but the current production yield is limited. Apple is interested in expanding production in India to reduce reliance on China, a source said.
Macao Government had carried out nucleic acid tests for a total of 25,000 casino frontline workers from SANDS CHINA LTD (1928.HK) and SJM HOLDINGS (880.HK), who were all tested negative for novel coronavirus, as Conde S. Januario Hospital told Macao Daily. Macao's current maximum screening capacity is 16,000 tests per day, said the report, while the Government is capable of boosting the screening capacity in light of the demands.
Chinese soybean imports from Brazil hit a a record high in June, driven by demand revival as China's pig herd recovers following the African swine fever outbreak, Reuters citing China's customs data. China imported 10.51 million tonnes of Brazilian soybean last month, up 91% yearly.
COUNTRY GARDEN (2007.HK) has offered to grant to two executive directors, namely YANG Zhicheng and SONG Jun of 189,400 and 291,300 share options respectively, at a subscription price of $10.16 per share.
China yesterday confirmed 61 additional cases of novel coronavirus infection, including 57 local transmission cases, National Health Commission reported. There were 44 nil-symptom patients.
Centaline's ten major housing estates tracked 8 deals at weekend, down 2 deals or 20% WoW hitting a 16-week low since early April. Citizens stayed home at the weekend under tighter gathering ban, while some owners shut off their units, deeply affecting second-hand flat viewing activities, said Louis Chan, Asia-Pacific Vice Chairman and Managing Director for Residential Sales at Centaline.
WANDA HOTEL DEV (169.HK) Trading halted with effect from 9:00 a.m. on 27 July 2020 pending the publication of an announcement in relation to a very substantial disposal by the Company.
ESPRIT HOLDINGS (330.HK) said that Martin WECKWERTH has resigned as an Independent Non-executive Director of the Company. The Company has failed to meet the Stock Exchange's requirement of appointing independent non-executive directors representing at least one-third of the Board. The Board is endeavouring to identify suitable candidate to fill the vacancy as soon as possible.
CANSINOBIO-B (6185.HK) said it entered into a promotional services agreement with Pfizer, pursuant to which the Company authorized Pfizer to exclusively promote its Groups A, C, Y and W135 meningococcal conjugate vaccine product Menhycia in China during the Cooperation Period. The Company shall pay the service fee to Pfizer according to the achievement of the promotion target of each year as prescribed in the Agreement.
Hong Kong Stock Exchange was notified by Goldin Equities Limited of its suspension of trading from 24 July 2020 on the Exchange until further notice.
White House Economic Advisor Larry Kudlow told CNN that the U.S. economy is on the whole "very positive" and expected that "a V-shaped recovery" is coming. He also said a new round of coronavirus relief package is coming with the U.S. government to distribute US$1,200 to each citizen and lengthen the federal eviction moratorium that will bar landlords from evicting the tenants who fail to pay rents,
The U.S. is set to embrace "a very big rebound" in the third quarter, said Treasury Secretary Steven Mnuchin in a Fox News interview, who reiterated the estimate for 17% YoY growth.
Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer will hold talks next month to assess the implementation of the phase-one China-US trade deal inked in early 2020, SCMP citing sources. Although China has notably boosted purchases of US farm goods in recent months, the purchasing scale is way short of its pledges under the deal in wake of plague.
Link Asset Management Limited announced that it has agreed to acquire The Cabot, 25 Cabot Square, based on agreed property value of GBP380 million (HKD3.7685 billion). LINK REIT will fully fund the investment through internal resources as well as new facilities with the intention to fully hedge any foreign exchange fluctuations. Upon completion, its pro-forma adjusted ratio of debt to total assets will rise from 17.8% to 19.2%, based on its consolidated financial position as at 31 March 2020. Transaction due to complete 25 August
Hong Kong on Sunday added 128 new covid cases
Weaver Network (603039.SH) announced that shareholder Jin Kun Wei intended to transfer a 5% stake in the Company to Tencent Industrial Investment Fund by way of an agreement.
In response to the US authority breaking into the Chinese Consulate General in Houston after emptying, China expressed acrimonious dissatisfaction and staunch objection, saying she had lodged serious representations to the US. Chinese Ministry of Foreign Affairs (MoFA) said China will take appropriate and necessary actions in this regards.