June 29 HK WRAP -250pts with T/O +38% and Shorts rising
HSI -249pts (-1%) 24,301 HSCEI -96pts (-1%) 9,758 T/O HK$133bn (+38.4%)
EUROPE opened flat/lower but then trending higher in choppy trading
US Futures Opened -175pts as Asian trading started worked their way back to flat as Europe opened and currently indicating +150pts.
Market and Pre Market News at bottom of page.
Short Selling HSI Monday 16.5% vs 14.7% Friday
Top Shorts Hang Seng Bank (11) 57%, Galaxy Ent (27) 40%, Henderson Land (12) 36%, Hengan (1044) 36%, Sino Land (83) 34%, MTR (66 HK) 34%, CLP (2) 32%, Wharf REIC (1997) 32%, Sunny Optical (2382) 31%, Petrochina (857) 31%, China Shenhua (1088) 30%, Sands China (1928) 30%, Hang Lug PPT (101) 29%, China Unicom (762) 26%, HK & ChinaGas (3) 25%, Mengniu Dairy (2319) 25%.
*CHINESE BANKS MIXED. PBOC to implement new monetary tools to make sure liquidity reaches the real economy. The central bank said it will increase the proportion of smaller company, credit and manufacturing loans, and continue to lower lending rates. CCB (939 HK +1%) BOC (3988 HK -0.7%) CMB (3968 HK +0.7%) ABC (1288 HK -1.2%).
*CHINA BROKERS WEAK on the news that China plans to offer brokerage licenses to commercial banks, as the country is trying to foster big-sized brokerages amid the opening up of its finance market to global firms, as well as promote an international expansion of its brokerage industry. HAITONG (6837 HK -4.4%) CITIC SEC (6030 H K-4.7%) HUATAI SEC (6886 HK -3.5%) CGS (6881 HK -4.4%) GF SEC (1776 HK -3.3%).
*AUTO MAKERS WEAK China's May auto imports and exports -10% MoM said CAAM. Import and export volume totalled US$8.33b last month, -36.9% YoY. Imports -47.2% YoY to US$3.78b, Export -24.6% YoY to US$4.55b. GAC (2238 HK-5.6%) GEELY (175 HK-2.8%) DONGFENG (489 HK-4.7%).
*PHARMA/MED MIXED rotation from recent flyers to those with more certain prospects. CANSINO (6185 HK +0.6%) coronavirus vaccine gets China military drug approval. It is reported that its recombinant novel coronavirus vaccine received military specially-needed drug approval for one year on June 25.
SINOPHARM (1099 HK +0.7%) says 2nd Covid vaccine found to be safe in testing. 3SBIO's (1530 HK -0.3%) Sunshine Guojian gets FDA clinical drug trial approval for anti-IL-4RA monoclonal antibody.
*IPOs HYGEIA HEALTHCARE (6078 HK +40%) KANGJI MED (9997 HK +99%) on debut.
*E-COMMERCE WEAK on concern of rising completion
ALIBABA (9988 HK -2.4%) successfully published another Sango-based CCG named Sango Fantasy World.
TENCENT (700 HK +0.2%) is testing twitch-line game-streaming service in the US. It held its annual game conference on 27 June and disclosed major updates for nine of its existing game titles. It also displayed over 50 games in its pipeline.
MEITUAN (3690 HK -2%) JD.COM (9618 HK -2%) NETDRAGON (777 HK -3.9%).
*TECH & COMPONENTS WEAK on concerns over deteriorating China/US relations. SMIC (981 HK -7%) and HUA HONG (1347 HK -5.3%) after recent rally on STAR Board listing news.
AAC (2018 HK -2.1%) SUNNY (2382 HK -2.3%) TONGDA (698 HK -6.2%) as China retaliates on US visa restrictions on some Chinese officials, announced imposing visa restrictions on some US individuals who are linked with HK troubling making.
*HK PROPERTY WEAK ahead details on the national security law on HK.
CK ASSET (1113 HK -1.5%) has released 238 flats in the third price list of Sea to Sky in Lohas Park at an average HK$16,599 psf after discounts and 4.9% higher than the first price list, after selling nearly all 462 flats offered in the first two batches.
HYSAN DEVELOPMENT (14 HK -1.8%) warns it may record loss for the 6 months through June.
SHKP (16 HK -1.7%) NWD (2909 HK -3.9%) HENDERSON LD (12 HK -1.4%).
*HK RETAILERS MIXED. LUK FOOK (590 HK +3.8%) rebound on speculation the worst may be over, after it reported net profit -42% YoY for the year ended March 31 to HK$866m, as the Sino-US trade tensions, social unrest in Hong Kong and the coronavirus pandemic weighed on sales in HK and Macau.
CHOW TAI FOOK (1929 HK -1%) SASA INTL (178 HK -3.2%) BONJOUR (653 HK +3.6%) GIORDANO (709 HK -3%) I.T. (999 HK -1.7%).
*GAS PROVIDERS WEAK brokers downgraded CHINA GAS (384 HK -8.6%), after it reported net profit +12% YoY for the year ended March 31 to HK$9.19b.ENN ENERGY (2688 HK -1.4%) CR GAS (1193 HK -3.5%).
FLAT GLASS (6865 HK +9.2%) hopes of increasing demand, after the total size of 2020 state subsides for solar power generation were greater than expected.
COSCO SHIP ENERGY (1138 HK -8%) as crude oil in floating storage remains 289% higher than a year ago.
SHANDONG WEIGAO (1066 HK +6.9%) rallied following posting a 60m shares block trades at HK$15.07, a discount of 6.9% from today's open
Northbound RMB34,799m Sell 18,131m : 16,688m Buy
Southbound HK$18,606m Sell 9,444m : 9,162m Buy
Northbound RMB47,42m Sell 23,702m : 23,719m Buy
Southbound HK$15,322m Sell 7,236m : 8,087m Buy
CHINA No data but out Sunday
Industrial Profits (YTD) May -19.3% vs -27.4% Apr F/cast was -22%.
Better than forecast +VE; an improving trend +VE, and follows the trend seen in the Industrial Production Data. BUT partly due to a fall in purchase prices and with the recent resurgence of covid-19 cases in June PLUS the fact that the recent Retail Sales data was -VE, so the upside of this data is limited.
Centre for Health Protection said there were no new local covid-19 cases today but it was investigating four additional confirmed casesAfter Market Total Exports Value May -7.4% YoY vs -3.7% YoY in April 2020 to $317.6 bn,. (F/cast was -5.5%)Average wage rate for all the selected industry sections surveyed, March +2.2% YoY in nominal terms.
About 56% of the companies reported increase YoY in average wage rates 39% of the companies recorded decrease in average wage rates YoYThe remaining 5% reported virtually no change in average wage rates.
After discounting the changes in consumer prices as measured by the Consumer Price Index (A), the overall average wage rate for all the selected industry sections surveyed decreased by 0.3% YoY in real terms.
A Government spokesman noted that overall wages continued to increase in nominal terms in March 2020 over a year earlier, but the rate of increase decelerated further to the slowest in close to a decade as the threat of COVID-19 seriously disrupted a wide range of economic activities. After discounting for inflation, overall wages declined slightly in real terms over a year earlier.
JAPAN Opened lower and sold down before rebounding but dropped again after lunch and traded sideways before a final dip at the end to close -2.3%
S KOREA Opened lower Kospi then worked higher for the first 90 minutes before reversing. Kosdaq trading sideways for the first 90 minutes but then sold down. Both traded sideways in the PM to close Kosdaq -2.1%, Kospi +1.9%
TAIWAN Opened lower and drifted lower in the morning but then traded sideways to close -1%
strike comprehensive digital cooperation in product innovation, new product R&D, IoT application and other fields. The partnership with Galanz is one of the initiatives to boost new consumption, tap new markets, and accelerate digital upgrade of the home appliance industry, said BABA-SW.
XIAOMI-W (1810.HK) posted a car silhouette poster titled "Make a car? We are serious!" on Weibo earlier, sparking concerns over the firm setting foot icarmaking. However, XIAOMI-W clarified it had no intention to build vehicles; instead, it is going to launch a smart remote control car model.
KINTOR PHARMA-B (9939.HK) announced that Suzhou Kintor Pharmaceutical, a wholly-owned subsidiary of the Company, and JD Healthcare entered into a framework agreement pursuant to which the parties will embark on in-depth collaboration in respect of the sales and marketing of Pyrilutamide (KX-826) on the online pharmaceutical retail platform JD Pharmacy operated by JD Healthcare.
Indian Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal reprimanded Manu Kumar Jain, Managing Director of XIAOMI-W (1810.HK) India, for hurting the sentiments of millions of Indians and dishonoring the sacrifice of Indian soldiers by stating that the boycott China sentiment only exists on social media and that XIAOMI-W's local business has not been affected.
ORIENTAL WATCH (398.HK) annual result ended 31 March 2020. The net profit amounted to HK$100 million, down 27.4% yearly. EPS was HK17.59 cents.DPS totaled HK13 cents (against HK21.5 cents a year ago), including final DPS of HK8 cents and special DPS of HK5 cents.
CANSINOBIO-B (6185.HK) announced that, the Recombinant Novel Coronavirus Vaccine (Adenovirus Type 5 Vector) (Ad5-nCoV), a vaccine jointly developed by the Company and Beijing Institute of Biotechnology, Academy of Military Medical Sciences, had received Military Specially-needed Drug Approval with a valid period for one year from Health Bureau of the Logistics Support Department of the Central Military Commission on June 25, 2020.
US Commerce Secretary Wilbur Ross said the country is recovering from the pandemic with some little interruptions. He suggested the economic revival may be pushed back from the third quarter to the fourth quarter, and it is crucial for the recovery to be driven by consumer spending.
PRC Warns of US that its actions may jeopardized 1st Phase Trade Deal if the US outs pressure on China over affairs China considers to be off limits including matters concerning Hong Kong, Taiwan, etc., reported WSJ. Yang Jiechi, Director of the Office of the Central Commission for Foreign Affairs, had listed such issues during his meeting with US Secretary of State Mike Pompeo, according to the report.
KING FOOK HOLD (280.HK) +0.005 (+1.852%) announced the results for the year ended 31 March 2020. Net profit grew 6.4 times yearly to $5.692 million with EPS of 0.62 cents. A final dividend of 0.2 cents was declared.