HK WRAP 8 JUNE HSI Flat T/O -4% DoD, Shorts @ 19%
HSI +6pts (flat) 24,777 HSCEI -57pts (0.6%) 10,009 T/O HK$129.29bn (-4% DoD).
Warrants were 6.23% of the cash market
Europe Markets opened lower and initially worked higher but DAX and CAC failed to break above Friday’s closing levels but the FTSE managed to break above and now trading sideways in the green
US futures have had a choppy day, opened +100pts rallied up another 90pts before reversing and are now indicating a higher open +194pts with the S&P and NDX +VE too
Northbound RMB 31,165m Sell 14,815m : 16,350m Buy
Southbound HK$ 10,315m Sell 5,352m : 4,963m Buy
Northbound RMB 42,458m Sell 21,689m : 20,769m Buy
Southbound HK$ 9,683m Sell 4,403m : 5,280m Buy
Short Selling HSI Monday 18.9% vs 14% Friday
Top Shorts Wharf REIC (1997) 40%, Hang Lung Ppty (101) 38%, Hengan (1044) 38%, Ping An (2318) 36%, Bank of China (3988) 30%, Want Want (151) 29%, CLP (2) 29%, China Res Land (1109) 27%, Hang Seng Bank (11) 27%, ICBC (1398) 26%, Country Garden (2007) 25%.
CHINA General Administration of Customs of the PRC said during the first five months this year:China had RMB1.61 trillion in trades with the European Union, -4.4%YoY Trades with the U.S. totaled RMB1.29 trillion, -9.8%.It had RMB275.65 bn in cellphone exports, -5.6% yearly and Textile exports (including masks) totaled RMB406.66bn +25.5%.
HONG KONG Govt announced applications for the HK$10k can payout would start 21 Jun with the money being paid out from 8 July.
Also said some directors or executives of certain companies listed on HKEX (388.HK) who can meet the eligibility criteria may apply for exemption from the compulsory quarantine arrangement when they arrive at Hong Kong from the Mainland, subject to a pre-determined quota.
Centre for Health Protection said there were was 1 new COVID-19 case on Sunday and 1 new imported case on Monday
Financial Secretary Paul Chan wrote on his blog that negative speculations have been flooding in although the details about Hong Kong National Security Law are yet to finalize. Amid US-China grapples, the US resorted to the so-called sanction on Hong Kong in an attempt to meddle in the legislation work, of which the actual impacts will turn out to be very limited, opined Chan. Any attempt to crush Hong Kong financial system may in turn send global financial markets into a havoc or even undermine market confidence in using USD and holding US financial assets. The financial secretary remained optimistic and confident of the city being able to retain both "financial presence" and "professional talents" and to remain as an international financial hub.
JAPAN opened higher initially drifted slightly lower as GDP was better or inline with forecasts. Around midday the market saw an uptick as the Eco watchers survey came in better than expected and then the market traded sideways and ticked higher at the end. Closed +1.4%
S KOREA Opened higher but initially sold off and briefly dipped into the red before bouncing back and trading sideways around flat for the rest fo the day Kosdaq +0.5%, Kospi +0.1%
TAIWAN opened higher and trended higher in the morning then drifted lower in the PM closed +1.1%
confirmation by clinical trials and the company cannot guarantee that it will ultimately develop or market Ad5-nCoV successfully.
US President Donald Trump threatened to slap tariffs on European Union vehicles if the bloc does not lower levies on American lobsters, appointing White House trade adviser Peter Navarro in negotiations. Trump also asked Navarro to shortlist Chinese goods to hit with tariffs unless Beijing removes its duties on American lobsters.
JINMAO HOTEL-SS (6139.HK) Trading halted with effect from 9:00 a.m. on 8 June 2020 pending the release of an announcement of Jinmao Hotel and Jinmao (China) Hotel Investments and Management Limited pursuant to the Code on Takeovers and Mergers, which is inside information in nature.
Mainland China will by the end of this year build more than 600,000 5G bases in cities at the prefecture level or above, People's Daily citing MIIT.
NTES-S (9999.HK) said final offer prices for Hong Kong Public Offering have been set at HK$123 per Share, by taking into consideration the closing price of the ADSs on Nasdaq on June 4, 2020 (the latest trading day before the Price Determination Date). The gross proceeds to the Company from the Global Offering, before deducting underwriting fees and the offering expenses, are expected to be approximately HK$21.092 billion.
HKMA said Hong Kong has seen many big IPOs recently, while HKMA had undertaken HKD selling orders for three times since last Friday. HKD was close to the Strong-side Convertibility Undertaking, and the spot USD T/T rate was last at 7.7505.
HSBC HOLDINGS (5.HK) Chairman Mark Tucker warned Britain that the bank may be subject to reprisals in China if the Government bans Huawei kits, the Telegraph reported. Tucker had explained the issue in private representations to British Prime Minster Boris Johnson's adviser, said the report.
MS CONCEPT (08447.HK) PROFIT WARNING. The Group was expected to record an unaudited consolidated loss of approximately HK$3.1 million for the year ended 31 March 2020, as compared to a profit of approximately HK$8.2 million in last year.
SOMERLEY CAP (8439.HK) PROFIT WARNING For the year ended 31 March 2020, the Group was expected to record an after-tax loss in the range of HK$7 million to HK$8 million (2019: after-tax profit of HK$9.5 million).
GRAND MING (1271.HK) annual results for the year ended 31 March 2020. Net Profit for the year $33.83 million, -77.3% yearly, with an EPS of 4.8 cents. Final dividend of 4 cents per share was recommended. Bonus issue of one new share credited as fully paid for every one share held was proposed. SINO-OCEAN GP (3377.HK) said that it transferred 50% stake in JV Company Sino-Ocean Bangbang Real Estate to the substantial shareholder Dajia Life Insurance. It was expected that the Consideration shall be no more than RMB50 million. Upon completion of the Disposal, the Group will no longer hold any equity interest in the JV Company.
VEEKO INT'L (1173.HK) PROFIT WARNING expecting the Group to record a loss of approximately HK$230-300 million for the year ended 31 March 2020 as compared to a loss of approximately HK$79 million recorded last year.
FULLSHARE (607.HK) said it placed up to 422 million shares of ZALL SMARTCOM (2098.HK) at $0.78-0.82 per share, a 1.3%-6.49% premium over the closing price as quoted on the last trading day (5 June). Assuming all the Zall Placing Shares are placed out at the maximum Placing Price, the maximum gross proceeds of the Placing will be $346 million. It is estimated that an unaudited gain before taxation of approximately $24.6 million will be recorded in respect of the Placing.
SUNAC (1918.HK) May 2020, Group contracted sales value RMB45.18 billion, +1.8% yearly.
LUEN THAI (00311.HK) PROFIT WARNING. For the four months ended 30 April 2020, it recorded a loss of around US$10.7 million as compared to a profit of around US$1.8 million for the four months ended 30 April 2019. This is mainly attributable to the impacts of the COVID-19 outbreak.
SHANGRI-LA ASIA (69.HK) PROFIT WARNING expecting that the Group may report a loss for the six months ending 30 June 2020, as compared to a profit attributable to equity shareholders of USD115 million for the corresponding period in 2019, due mainly to the severe business disruptions caused by the COVID-19 pandemic to the operations of the Group’s hotel properties.
SUGA INT'L (912.HK) PROFIT WARNING expecting the profit attributable to owners of the Company for the year ended 31 March 2020 to decrease between 40% to 60% as compared to approximately HK$55.6 million for the year ended 31 March 2019.
GEELY AUTO (175.HK) announced May Group total sales volume was 108,822 units, +20% YoY (+3% MoM)
DONGFENG GROUP (489.HK) May production 265,536 (+12.5% YoY) and sales 264,523 (+17.6%) vehicles volume.
SJM Deborah Ho, the daughter of Stanley Ho and his first wife Clementina Angela Leitao, filed a Caveat at the Probate Registry of Hong Kong High Court Friday. That may mean the division of Probate has not obtained consensus among Ho's families, which may spark a probate lawsuit as a result.
*PETROCHEMS STRONG Oil jumped WTI +5.7% BRENT +5.8% ahead of OPEC+ weekend meeting which agreed to extend current curbs but only for a month; as a number of countries are keen to see the price rise. Crude led a recovery in China’s energy imports, rising to a record and fuelling hopes of a rebound in industrial and consumer activity in China. CNOOC (883 HK +2.1%) CH OILFIELD (2883 HK +8.8%) ANTON OIL (3337 HK +3.3%).
*INSURERS STRONG after PING AN (2318 HK+0.6%) signed a strategic cooperation agreement with the Shenzhen govt to participate in the city's public housing construction until 2035.
CHINA LIFE (2628 HK +3.3%) NCI (1336 HK +2%) CHINA TAIPING (966 HK +2.7%) CPIC (2601 HK +4%).
*HK PROPERTY FIRM Good weekend sales (despite the awful weather). Centaline recorded 13 secondary transactions at ten blue-chip housing estates over the weekend, +18% WoW with secondary home prices rising now for four consecutive weeks. SHKP (16 HK+0.7%) this weekend sold 192 units and so far has collected about HK$4.5b after selling 680 out of 699 units of Wetland Seasons Park Phase 2. It hopes to get pre sale consent for phase 3 shortly.HENDERSON (12 HK +1.6%) NWD (17 HK +1.5%) CKA (1113 HK +1.3%).
HANG LUNG GROUP (10 HK -1%) and HANG LUNG PROP (101 HK -0.1%) issued a profit warning.
*CHINA PROPERTY MIXED following more fund-raising moves.
CIFI (884 HK +6%) following a 185m new shs placement at HK$6.28 or 1.26% discount to previous closing.
VANKE (2202 HK -1.5%) SHIMAO (813 HK -4.8%) LONGFOR (960 HK -1.7%). SUNAC CHINA's (1918 HK -0.14%) May contracted sales +1.8% YoY to 45.18b yuan.
*E-COMMERCE WEAK ahead of this year's biggest e-commerce HK listing, JD.COM, seeking to raise US$4.1b; HK trading is expected to start on June 18thNETEASE (9999 HK) to raise US$2.7b in HK stock offering, priced at HK$123/shr, to begin trading on June 11.MEITUAN (3690 HK -3.2%) TENCENT (700 HK -1.3%) ALIBABA (9988 HK unch) CH LITERATURE (772 HK -2%). Would suggest investor rotating rather than all new money coming into the sector.
*TECH & COMPONENTS MIXED after FoxConn (2038 HK -3.2%) sees 1H net loss bigger than $83.8M loss year ago. profit warning and that China/US tensions that may disrupt global supply chains, but optimism on China's 5G development offers some support to the sector.
ZTE (763 HK +1.1%) TONGDA (698 HK -2.1%) AAC (2018 HK +1.5%) HUA HONG (1347 HK +3.5%).
*AUTOS FIRM following sales data.
BYD (1211 HK +1.5%) sold a total of 124,903 units of vehicles during the first five months this year, a YoY drop of 34%. The company's total mobile sales last month was 31,821 units, with 11,325 new energy vehicles and 20,496 oil-fueled vehicles.
DONGFENG MOTOR (489 HK +0.2%) May vehicle sales +17.6% YoY to 264,523 units.
GEELY (175 HK+1.7%) May vehicle sales +20% YoY to 108,822 units.
DEALERSHIPS MIXED selective interest amid recovery optimism. YONGDA (3669 HK +4.2%) BAOXIN (1293 HK +1%) ZHONGSHENG (881 HK +0.75%).
*PHARM/BIOPHARM WEAK profit-taking from the vaccine rallies. CANSINO BIO (6185 HK -6.5%) says has rights to make, commercialize Ad5-nCoV, refuting recent media reports which said the COVID-19 vaccine Ad5-nCoV, that the company jointly developed with a research team led by top epidemiologist Chen Wei will be put into mass production.GENSCRIPT (1548 HK -7.3%) declares special dividend of HK$114.9m. 3SBIO (1530 HK -3.1%) INNOVENT (1801 HK -1.4%).
*EXPORTERS FIRM on the surprisingly strong US jobs report and China trade numbers: YUE YUEN (551 HK +6.3%) NEXTEER (1316 HK +16%) VTECH (303 HK +3.8%).
GOME (493 HK +10%) jumped to the highest since Nov 2015, after Gome and Gree co-hosted a live-stremaming event Saturday which reportedly generated sales of more than 450m yuan.
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