Aug 19 HK WRAP HSI -189pts tested 25,100, Shorts remain high as earnings released.
HSI -189pts (-0.7%) 25,179 HSCEI -112pts (-1.1%) 10,313 T/O HK$84.58bn (-33.3% DoD)
EUROPE markets opened higher following the record day in the US
US Futures Dow opened flat at +18pts and are now +30pts, S&P and NDX slightly +VE FOMC minutes will be in focus but they are not out until later in the session. Before that there is the MBA and EIA data. Covid and Stimulus discussions still over
CSI 300 Closed -72pts (-1.5%) @ 4, 741. Market opened lower and trending slightly lower in the morning with choppy trading on fears that more Chinese companies may be targeted by Trump as relations with US sour. PM saw an initial down tick but moved higher before selling down into the close. No sign of support from Team China. Caution ahead of the China Loan data pre market Thursday.
Shanghai Composite Index -1.2% @ 3,408.
Shenzhen Component Index -2.1% @ 13,481.
HSI Market opened -8pts @ 25,359 vs -200pts ADR’s to at 25,167 E-commerce names and Apple supply names mixed. HK EX (388) open -0.3% and closed -14% despite beating estimates. There was a small initial uptick but then sold down 250pts to 25,080 before bouncing, then worked bounced and worked higher to 25,250 but unable break higher and trended lower to 25,120 level before seeing a bounce to 25,190 and traded sideway there for 20 minutes before ticking higher to trade around 25,200 level into the close but saw a 20pts down tick in the closing auction.
Hengan (1044 HK) -5.4% despite rising earnings. Telcos saw weakness.
EARNINGS DUE Thursday include Hong Kong Earnings including Henderson Land (12), Bank East Asia (23), Henderson Investment (97), Xingfa (98), K Wah (98), Sinofert (297), Bank of Jinzhou (416), Cosco Chipping (517), Kerry Property (683), Tongda (698), China State Construction (830), Hisense Home Applicances (921), Sinopec Danton’s (934), China Renewable Energy (987), Huadian Power (1071), Haier (1169), AIA Group (1299), DragonMining (1712), Ping An Healthcare & Tech (1833), Stella (1836), Kaisa Prosperity (2168), Comba Telecom (2342), Tongda (2363), BOC Aviation (2588), China Overseas Property (2669), ENN Energy (2688), Champion Real Estate Investment Trust (2778), Bestway Global (3358), Parkson Retail (3368).
EARNINGS OUT Tuesday After market
CNOOC (883.HK) interim results ended June 2020. Net profit amounted to RMB10.383 billion, -65.7% yearly. EPS equaled RMB0.23. Interim DPS was HKD0.2, against HKD0.33 in the corresponding period of the previous year. During the period, oil and gas sales -29.9% yearly to RMB66.34 billion.
YUEXIU TRANSPORT (1052.HK) interim results for the period ended June 2020. The revenue -39.2% YoY to RMB840 million. It swung into loss of RMB288 million. LPS was RMB0.1722. No dividend was declared.
DURING MARKET HOURS
Out PRE MARKET
CHINA LILANG (1234.HK) interim result ended June 2020. The net profit amounted to RMB269 million, -30.8% YoY. EPS was 22.5 fen. An interim dividend of HK12 cents was declared, against HK18 cents in the corresponding period of the previous year.
HENGAN INT'L (1044.HK) interim result ended June 2020. Revenue +1.4% YoY to RMB10.928 billion. Net profit RMB2.26 billion, +20.3% annually. EPS was RMB1.899. An interim DPS of RMB1.2 was declared, against RMB1 in the corresponding period of the previous year. +VE
HK FERRY (HOLD) (50.HK) results for the six months ended June 2020. Net profit was $18.16 million, -79% yearly. EPS equaled 5 cents. Interim DPS stayed at 10 cents.
MIRAMAR HOTEL (71.HK) interim results ended June 2020. Net profit -79.6% yearly to HK$157 million. Underlying profit -45.4% to HK$229 million, with underlying EPS of HK33 cents.
HUANENG POWER (902.HK) interim results ended 30 June 2020. Net profit grew 58.1% yearly to RMB5.441 billion. EPS equaled 30 fen. No interim dividend was declared.
ROAD KING INFRA (1098.HK) results for the six months ended June 2020. Net profit was $430 million, down 50.5% yearly. EPS equaled 57 cents. Interim DPS was 20 cents.
POWERLONG (1238.HK) interim results ended June 2020. The net profit amounted to RMB2.22 billion, up 23.1% yearly. EPS was 53.6 fen. An interim dividend of HK12 cents was declared, against HK9 cents in a year ago.
CRYSTAL INTL (2232.HK) results for the six months ended June 2020. Net profit reached US$27.58 million, down 54.1% yearly. EPS equaled US0.97 cents. Interim DPS was HK3 cents.
CSTONE PHARMA-B (2616.HK) results for the six months ended June 2020. The loss narrowed to RMB671 million from RMB996 million in a year ago, with LPS of 66 fen. No interim dividend was declared.
KINGDEE INT'L (268.HK) interim results ended June 2020. The company swung into loss of RMB224 million, against net profit of RMB110 million in a year-ago period. LPS equaled 6.87 fen. No interim dividend was declared.
NEXTEER (1316.HK) results for the six months ended June 2020. Net profit was US$1.30 million, down 99% yearly. EPS equaled US0.1 cents. No interim dividend was declared.
KINGSOFT (3888.HK) interim results ended June 2020. It recorded a net profit of RMB9.158 billion (including the net gain on deemed disposal of Kingsoft Cloud of RMB9.096 billion), compared with loss of RMB1.483 billion over a year ago. EPS was 6.7 fen. No interim dividend was declared.
HKEX (388.HK) interim results ended June 2020. Net profit $5.233 billion, +0.5% YoY and beating $4.913-5.201 billion in consensus. EPS equaled $4.15. DPS was $3.71, as compared with $3.72 in the corresponding period of the previous year. During the period, EBITDA +1% yearly to $6.706 billion. In its interim report, mentioned that the ADT of equity products traded on the Stock Exchange were +33% yearly to $100 billion; and the ADT of DWs, CBBCs and warrants traded on the Stock Exchange reduced 23% yearly to $17.5 billion. The total ADT traded on the Stock Exchange added 20% to $117.5 billion.
AFTER MARKET NEWS
Li Ka-shing and Victor T K Li through Li Ka Shing Foundation Limited acquired a total of 750,000 shares in CK ASSET (1113.HK) at the average price of HK$42.665, HK$42.6428 and HK$42.74 per share on 13, 17 and 18 August 2020. As a result, the deemed interests of Li Ka-shing increased from 35.33% to 35.36% and Victor T K Li increased from 35.4% to 35.42%.
TENCENT (700.HK)'s WeChat Mini Game team revealed that the monthly active user base ballooned 16% in 1H20 from 2H19, with an 18% period-on-period commercial monetization growth.
India's largest telecommunications operator Bharti Airtel is planning to ditch the equipment of Huawei and ZTE (763.HK) in its 5G trials and will turn to Nokia and Ericsson instead, sources quoted as saying by India's The Economic Times. It was reported that Chinese vendors including Huawei were amongst the first who applied for 5G trials.
SSY GROUP (2005.HK) announced that Abidol, one of the products of the Group, was included in the “Diagnosis and Treatment Program for Novel Coronavirus Infected Pneumonia (Trial Version 8)” by the National Health Commission of the PRC on 18 August 2020. The Diagnosis and Treatment Program reconfirmed that Abidol was used in antiviral treatment.
The US and China remain yet to schedule another high-level trade negotiation, said White House Chief of Staff Mark Meadows. US Trade Representative Robert Lighthizer will remain in touch with his Chinese counterpart, furthered Meadows.
Centa-Salesman Index (CSI) last printed at 44.28, -0.53 pts WoW, said Centaline Property. The index stabilized by jumbling around 45. Deals in the second-hand market were turning vibrant upon a gradually muted coronavirus situation. Wong foresaw a lighter mood among front-line agents, measuring the CSI to test upward to the critical point of 50.
Market and Pre Market News at bottom of page.
JAPAN opened lower but good Trade data pre market has saw the market work higher into lunch. Opened a day higher after lunch and trended lower to 23,100 level and then traded sideways to close +0.26%
S KOREA Markets opened higher and Kospi has trended slightly lower on covid to close +0.5% at 2,360 level. Kosdaq has traded sideways in choppy trading through the morning and worked higher in the PM to close at its high +2.3% at 819 level
TAIWAN Opened higher in good local results but trended lower to flat around 11am when it saw a small uptick but then resumed its downward trend in the PM to 12,778 before a small bounce to close -0.57% at 12,800.
Short Selling HSI Wednesday 20.5% vs 23.4% Tuesday
Top Shorts Power Assets (6) 46%, Sino Land (83) 43%, CLP (2) 42%, Want Want (151) 42%, China Res Land (1109) 40%, China Shenhua (1088) 39%, HK & China Gas (3) 37%, CCB (939) 36%, ICBC (1398) 32%, CITIC (267) 30%, Mengniu Dairy (2319) 30%, Hang Seng Bank (11) 30%, HSBC (5) 28%, Hengan (1044) 28%, China Mobile (941) 27%, CNOOC (883) 26%, Ping An (2318) 26%, BOC HK (2388) 26%, China Unicom (762) 26%, PetroChina (857) 25%, Country Garden (2007) 25%, MTRC (66) 25%.
Northbound Rmb 31,318m Sell 16,766m : 14,552m Buy
Southbound HK$ 7,344m Sell 4,125m : 3,219m Buy
Northbound Rmb 38,247m Sell 21,083m : 17,163m Buy
Southbound HK$ 8,477m Sell 4,258m : 4,219m Buy
CHINA No data but Thursday pre market Prime Loan Rate 1 and 5 year.
Centre for Health Protection said there were 26 additional COVID-19 cases in Hong Kong today; (vs 36 cases Tuesday). 23 locally transmitted with 8 of unknown origins.
After Market Unemployment Jul 6.1% vs 6.2% Jun (F/cast was 6.3%)
The overall Comprehensive Social Security Assistance (CSSA) caseload in July showed a drop of 789 cases, -0.3% MoM
The total CSSA caseload at the end of July stood at 226,000, with a total of 321,000 recipients.
Unemployment cases -1.3% to 18,400 cases. However, the figure was still +56.5% YoY. The number of applications of unemployment cases -48.6% to 937 cases in July 2020, representing continuous drops since April 2020, i.e. a drop of 45.3% from the peak of 3,957 cases in April 2020 to 2,164 cases in May 2020 and a further drop of 15.8% to 1,823 cases in June 2020.
HKEX (388.HK) -1.4%
TENCENT (700.HK) -1.2%
CCB (939.HK) +1%
PING AN (2318.HK) -0.8%
AIA (1299.HK) -0.4%
HSI & HSCEI Constituents on the move
CHINA UNICOM (762.HK) -7.7%
SUNNY OPTICAL (2382.HK) -6.9%
HENGAN INT'L (1044.HK) -5.4%
CHINA LIFE (2628.HK) -4.5%
ENN ENERGY (2688.HK) -4.1%
HSMI & HSSI Constituents on the move
POWERLONG (1238.HK) +13.5%, hitting new high
HUANENG POWER (902.HK) +11.8%
CIMC (2039.HK) +7.5%, hitting new high
KWG GROUP (1813.HK) +3.9%, hitting new high
Patrick Ryan, a technical program manager at TikTok, is preparing to file a lawsuit against U.S. President Donald Trump's ban of the company's US operations with an executive order, challenging whether the President has the power given by constitution to ban a company to operate in the US, foreign news media reported. Up to 1,500 TikTok and ByteDance employees will be affected if TikTok's operations are banned after the given deadline, Ryan stated.
The Buildings Department announced that it had approved 23 building plans in June, with six on Hong Kong Island, nine in Kowloon and eight in the New Territories. Of the approved plans, 11 were for apartment and apartment/commercial developments, four were for commercial developments, six were for factory and industrial developments, and two were for community services developments.
XIAOMI-W (1810.HK) announced that its turnover exceeded RMB8.5 billion across all platforms during its 8.16 10th anniversary campaign.
State Power Investment Corporation (SPIC) and BABA-SW (9988.HK) have reached a consensus over the building of smart cities, application of digitalisation techniques and establishment of data platform after deep discussions. The two sides are expected to leverage their own advantages and co-create greater value by connecting big data with energy.
Chris Chan, the owner of FANCL in Asia ex-Japan, has tapped Morgan Stanley to initiate a sale, which may fetch up to US$1 billion, as Reuters learnt from people with knowledge of the matter. The skin care brand's Asian business reported roughly US$60-70 million in EBITDA over the past two years, said the insiders.
PRE MARKET NEWS
Chinese buyers bought 195,000 tonnes of U.S. corn, said the U.S. Department of Agriculture. China had purchase 1.937 million tonnes of U.S. corn, said the department on 30 July.
KINGSOFT (03888.HK) regarding the US plan to sour scrutiny on Chinese concepts CFO Yuk Keung Ng said during a conference call that such move not only affects Chinese concepts but also US local companies. Kingsoft's series of companies listed in the US or Kingsoft-invested companies will pay close heed to the related development in future, and make corresponding proposals under appropriate conditions and circumstances. As to mobile games, Ng said there are new game launches in almost every month since mid-2020, voicing confidence that the product line will be vibrant in 2H20. Coupled with promising profit from online games, the game outlook of the company will be underpinned for the full year.
JD-SW (9618.HK) announced that its JD Health has launched an online family doctor service called "JD Family Doctor”. Xin Lijun, Vice President of JD-SW and CEO of JD Health, said the platform will provide services for 50 million families in the coming five years.
TENCENT (700.HK)'s Tencent Cloud said its online meeting tool "VooV Meeting" registered almost 150% increment of daily active users worldwide in 2Q20, with work-from-home practice becoming more common.
DATANG RENEW (1798.HK) announced a planned disposal of 15% equity interest in Datang Corporation Hong Kong Company to the controlling shareholder China Datang Corporation at a consideration of RMB9.3816 million.
China Foreign Exchange Trade Center announced, on 19 August, the central parities in the interbank forex market of transaction currencies, including the dollar against CNY, are as follows: USD/CNY = 6.9168, up 157 bps from yesterday's central parity and hitting a record high since 23 January.
CSMALL (1815.HK) PROFIT WARNING -VE, expecting a net loss of RMB15 million to RMB25 million for 1H 2020, as compared to a net profit of approximately RMB41 million for the six months ended 30 June 2019.