HK CHINA WRAP Team China in action but T/O light

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HSI +217pts (+0.8%) 28,231 HSCEI +125pts (+12%) 10,557  T/O HK$160.9bn (-14.75% DoD)

DAX and FTSE opened higher and trading sideways in the green. CAC opened flat and trading around yesterday’s close
Earnings out from 
EDF, Allianz, Bayer, Commerzbank, TUI Group and RWE.
Commerzbank higher in early trade after the German lender beat first-quarter profit expectations and hiked its full-year revenue outlook.
UDG Healthcare, rocketed after announcing that private equity firm Clayton, Dubilier & Rice had agreed to buy the company for £2.6 billion ($3.7 billion).
Ambu very weak after reporting a fall in quarterly earnings.
ABN Amro weak reported a Q1 net loss of 54 million euros ($66 million) after a substantial money laundering fine.
Ubisoft weak after warning that profits may fall this financial year
Industrial Production Mar +10.9% YoY vs -1.8% Feb (F/cast was +11.5%)
Industrial Production Mar +0.1% MoM vs -1.2% Feb (F/cast was 1%)
Inflation Rate Final Apr 2% YoY vs +1.7% Mar (F/cast was +2% )
Inflation Rate Final Apr +0.7% MoM vs +0.5% Mar (F/cast was +0.7%)
Inflation Rate Final Apr +1.2% YoY vs +1.1% Mar (F/cast was +1.3%)
Inflation Rate Final Apr +0.1% MoM vs +0.6% Mar (F/cast was +0.2%)
Balance of Trade Mar £-2B vs -0.9B Apr revised (F/cast was -6.1B)
GDP Growth Rate Prel Q1 -6.1% YoY vs -7.3% Q4 (F/cast was -5.6%)
GDP Prel Q1 -1.5% QoQ vs +1.3% Q4 (F/cast was -1.4%)
GDP Mar +2.1% MoM vs +0.7% Feb revised (F/cast was +1.5%)
GDP Mar +1.4% YoY vs -7.8% Feb revised (F/cast was +1%)
GDP 3mth Ave Mar -1.5% vs -1.7% Feb revised (F/cast was -1.4%)
Business Investment Prel Q1 -11.9% QoQ vs +5.9% Q4 (F/cast was +3.2%)
Business Investment Prel Q1 -18.1% YoY vs -7.4% Q4 (F/cast was -4.4%)
Industrial Production Mar +1.8% MoM vs +1% Feb (F/cast was +1.2%)
Industrial Production Mar +3.6% YoY vs -3.5% Feb (F/cast was +2.9%)
Manufacturing Production Mar +4.8% YoY vs -4.2% Feb (F/cast was +4%)
Manufacturing Production Mar +2.1% MoM vs +1.5% Feb revised (F/cast was +1.2%)
Construction Output Mar +6% YoY vs -3.3% Feb revised (F/cast was +1.5%)
Construction Orders Mar -13.3% YoY vs -13% Feb revised (F/cast was +1.8%)
Goods Trade Balance Mar vs Feb (F/cast was )
NIESR Monthly GDP Tracker Apr +1.3% vs -1.5% Mar (F/cast was +1.1%)
US Futures 
Opened opened in Asia Dow -30pts S&P -0.12% and NDX-0.14% But fell through the day to Dow -133 points, now -111pts helped by Europe, S&P 500 futures -0.4% and Nasdaq 100 -0.6%
Tech and re-opening names remain weak
Wendy’s +VE beat estimates, FuboTV very strong after earnings, EA +VE beat, Wolverine World Wide -VE missed Vizio weak despite beating, Lemonade weak

MBA Mortgage Applications +2.1% vs -0.9% prior and 30 yr Mortgage Rate 3.11% vs 3.18%
Ahead Inflation Rate, Core Inflation Rate, EIA Oil Report, Monthly Budget Statement
Earnings: Wendy’s, Fossil, Bumble, Allianz, Jack in the Box, Vroom, Sonos, Bayer, 1Life Healthcare

CHINA CSI 300 closed +22pts (+0.4%) 5,045
CSI 300 opened lower but rallied to 5,030 in early trades then trades around yesterday’s clsoed until mid morning but then sold down to 5,004 before a bounce into lunch. PM opened lower but working higher currently +25pts (+0.5%) @ 5,048  
Team China at their best; making China the regional out performer. The PBoC downplayed inflation concerns and promised to maintain sufficient liquidity in its Q1 monetary policy implementation report published late Tuesday. It also said that higher global commodity prices have little impact on domestic consumer inflation.

Leaders Medical beauty, autos, agricultural planting, semiconductors, and coal miners
Laggards electricity, military industry, property, and tourism

Shanghai Composite+21pts (+0.6%) @ 3,463
Shenzhen Composite +98pts (+0.7%) @ 14,065
ChiNext Index +39pts (+1.3%) @ 2,993

After market
New Yuan Loans Apr CNY 1470 B vs 2730 B Mar (F/cast was 1850 B)
Outstanding Loan Growth Apr +12.3% vs +12.6% Mar (F/cast was +12.5% )
Total Social Financing Apr CNY 1850 B vs 3340 B Mar (F/cast was 2470 B)
M2 Money Supply Apr +8.1% vs +9.4% Mar (F/cast was +9.5%)

Pre market opened @ 28,207 +60pts vs +143pts ADR’s On higher than normal initial T/O which suggests margin selling and short covering taking place.
Traded up to 28,100 in early trades then sold down to 27,980 before boucing back to test the highs around 28,160 level but then sold down to 27,900 at lunch. PM open back at 28,000 and working higher through the afternoon to close at the day high but on light T/O
Tech lead the rally but upside capped on concerns that the global recovery primed by Central Bank and Governmental action, is now going to face faster inflation as commodities and costs rally.

The Centre for Health Protection (CHP) reported 2 new covid cases
 (vs 1 Tuesday)

Short Selling Wednesday 17.3% vs 13.9% Tuesday 
Top Shorts
  CK Assets (1113) 55%, Country Garden (2007) 48%, Henderson Land (12) 47%, Bank Of China (3988) 45%, NWD (17) 43%, Wharf REIC (1997) 43%, Hengan (1044) 42%, BoComm (3328) 36%, Shenzhou Int (2313) 28%, ICBC(1398) 32%, CKH (1) 32%, CCB (939) 32%, BoC HK (2388) 31%, HSBC (5) 30%, Bud Apac(1876) 30%,
MTRC (66) 30%, AAC Tech (2018) 29%, Power Assets (6) 28%, SinoBioPharm (1177) 27%, Sunny Optical (2382) 26%, HK & China Gas (3) 25%

It is outdated now to propose again the merger between POWER ASSETS (00006.HK) and its parent CKI HOLDINGS (01038.HK), said POWER ASSETS Chairman Canning Fok
at the shareholders' meeting today (12 May), local press reported. Fok furthered that they will not reconsider such idea for the time being.
BOSSINI INT'L (00592.HK) announced that for the quarter ended 31 March 2021,
the Group’s revenue from continuing operations decreased by 11% to HK$218 million year-on-year. Furthermore, the Group is preparing for a major brand revamp with redefined image, product segmentation and pricing, accompanied with the adoption of the right online and offline distribution channels.
PING AN (02318.HK) announced the initial close of Ping An Voyager Partners, LP, a growth stage venture fund that will make investments in fintech, healthtech and related businesses around the world.
Targeted at institutional investors, Voyager Partners has secured approximately US$200 million in commitments toward its planned US$475 million offering.
Danone is disposing through Goldman Sachs Group of 387.5 million shares in MENGNIU DAIRY (02319.HK) at a placing price of $38.95-39.8 each, representing a 5-7% discount
to today's closing price $41.9, for a maximum cash consideration of around $15.42 billion, the market rumored.
HKTV (01137.HK) announced the launch of a new 1-hour delivery option
“HKTVexpress” on “HKTVmall” in cooperation with smart logistics platform Zeek.
Customers are now opened for placing orders in partnering shops located within 2 kilometres of the delivery address on “HKTVexpress” within HKTVmall app, and that the items will be delivered by Zeek in one hour.
At CKI HOLDINGS (01038.HK)'s AGM today, Chairman Victor Li said the company's share price is undervalued,
as the value of its businesses and assets in Britain, Canada, Australia, China and Hong Kong remains yet to be priced in, cited Ming Pao. Its stock price only reflects the value of water, power and gas distribution and POWER ASSETS (00006.HK) in the UK. The infrastructure conglomerate will hopefully carry out more M&A activities when the pandemic goes muted, disclosed Li.
The Financial Secretary, Paul Chan, attended a webinar to update the Canadian political and business community on Hong Kong's edge and competitiveness as an international financial centre, its active role in national development and the ample opportunities for Canadian businesses.
In the past two years, Chan has not seen any significant fund outflow from Hong Kong's banking system. On the contrary, a total inflow of US$50 billion into the Hong Kong dollar system had been recorded as at the end of last year. Hong Kong's status as an international financial centre remains solid and its competitiveness remains strong.
The Government announced the launch of a new batch of inflation-linked retail bond (iBond), with a target issuance size of HK$15 billion. Paying interest once every six months at a rate linked to inflation in Hong Kong, subject to a minimum rate of 2 per cent.

MAXICITY (08216.HK) announced the results for the first quarter ended 31 March 2021. Net profit fell 31.1% yearly to HK$5.404 million. EPS equaled HK1.4 cents.

MSCI announced the semi-annual index review results for MSCI Global Standard Indexes. Accordingly, shares of CHOW TAI FOOK (01929.HK) and Futu Holdings Limited (FUTU.US) will be added to MSCI Hong Kong Index, while shares of ASM PACIFIC (00522.HK) and PCCW (00008.HK) will be removed from the index.
For MSCI Global Standard Indexes; 11 shares will be added to and three shares will be removed from MSCI Hong Kong Small Cap Index.
For the MSCI Global Standard Indexes; 60 shares will be added to and 21 shares will be removed from MSCI China Index.
For the MSCI Global Standard Indexes; 45 shares will be added to and 25 shares will be removed from MSCI China Small Cap Index.
A number of shares will also see their weighting change; most lower.
All changes will take place as of the close of May 27 (Thursday).
Oil higher overnight on shortage fears after Colonial Pipeline closed. Aftermarket API showed US crude stockpiles fell by 2.53 million barrels slightly more than exepcted CNOOC (883 HK +0.3%) PETROCHINA (857 HK +0.3%)
Copper touched an all-time high, then pared gains, supported by risks of mine-supply disruptions in Chile; ANGANG (347 HK +0.9%) MAANSHAN (323 HK +0.5%), But CHALCO (2600 HK -1.4%) and JIANGXI COPPER (358 HK -1.2%) dropped on profit-taking.
*SHIPPING WEAK They have been rallying and the Baltic Dry Index rose to 3,240 points on Monday, to just below its near 11-year high. FT article sets out the case for the rally to continue driven by the commodities rally. Products such as soybeans and logs are competing with traditional mainstays of coal and iron ore. SITC (1308 HK -9%) COSCO SHIP PORT (1199 HK -5.1%) PAC BASIN (2343 HK -4.5%).
*CHINESE BANKS WEAK ahead of lending data which came out after market; much weaker than F/casts but in line with recent PBoC guidance that loans should not increase this year. CCB (939 HK -0.3%) ICBC (1398 HK -0.4%) ABC (1288 HK -1%).
*E-COMMERCE/INTERNET FIRM after hitting a 6 month low.
ALIBABA (9988 HK +6%) surged ahead of earnings on Thursday
GARTNER report ranked ALIBABA's Cloud #1 on cloud computing ability. HENGTENG NETWORK (136.HK +16%) said its Pumpkin Movie APP added 4.156m paid subscribers in April.
WEIMOB (2013 HK +8.4%) announced contineud rapid growth in its digital commerce business.
JD.COM (9618 HK +5.2%) BILIBILI (9626 HK +6.7%) MEITUAN (3690 HK +2.5%) TENCENT (700 HK +2.4%)
*TECH & COMPONENTS STRONG as XIAOMI (1810 HK +6%) on reports it will be removed from US. Blacklist in lawsuit settlement.
SUNNY OPTICAL (2382 HK +1.7%) April Lens shipments +11.3% YoY to 120m units. But volumes fell by 5.3% MoM. ZTE (763 HK +2.2%) HUA HONG (1347 HK +4.8%) SMIC (981 HK +3.5%) BYDE (285 HK +3.3%).
*AUTOS STRONG April retail passenger vehicle sales +12.4% YoY and wholesales increased +10.8%.
BYD (1211 HK +4.9%) board approves spinoff of semicon unit on ChiNext, which was proposed in Dec 2020.
GEELY (175 HK +2%) GREATWALL (2333 HK +2.3%).

Regional Markets   
Market trended lower through the morning but found support around 7,015 (-1%) level at midday and bounced to 7,057 but then retested the morning support before working back to close -52pts (-0.7%) @ 7,045.
CBA released Q3 update good results but sold down with the rest of the market.
Quatas annonced delaying the start of international flights inline with the governments inoculation plans
Tech names saw interest following the pattern seen on the Nasdaq.
Building Permits Mar +17.4% MoM vs 20.1% Feb (F/cast was 17.4%)
Nikkei opened higher and tested 28,800 in inital trades but reversed after about 15mintues and sold down to 28,400 level and then traded sideways into lunch. PM sold down to 27,888 before bouncing back to 28,200 and trading sideways to close -461pts (-1.6%) @28,148
Topix traded in a similar fashion to close -28pts (-1.5%) @ 1,878
SoftBank Group swung into profit of JPY4.99 trillion (roughly US$45.86 billion) for the fiscal year ended 31 March.
Nissan Motor announced that loss narrowed to JPY448.6 billion (roughly USD4.12 billion) during the year ended March 2021. it forecast a JPY60 billion (roughly USD550 million) in annual loss this year.
Pre marketData
Foreign Exchange Reserves Apr $1378.5b vs $1368.5b Mar
Later we got
Coincident Index Mar 93.1 vs 89.9 Feb (F/cast was 90.4))
Leading Economic Index Mar 103.2 vs 98.7 Feb (F/cast was 98.2)
Kospi opened flat but started selling off after 25 mintues to 3,172 bounced to 3,190 but then continued selling down to 3,138 then bounced to 3,166 before easing, to close -48pts (-1.5%) @ 3,162 
Kosdaq traded in a similar pattern low was 959 and closed -12pts (-1.2%) @ 967
Data pre market
Unemployment Rate Apr 3.7% vs +3.9% Mar (F/cast was +3.9%)  
Taiex open flat sold down to 16,245 and bounced to test Tuesday close a couple of times before trending lower to 15,700 (@ 11:15am) and then legged it down to15,165 and bounced back to 15,500 in 20 minutes. Then worked higher to close -681 pts (-4.1%) @ 15,902
The Taiwanese authority has raised the pandemic alert to Level 2, effective today through 8 June, after reporting seven local cases yesterday, a mark of community outbreak. It said it might even move it to level 3 and ban all indoor gatherings with more than five participants, effective today, in view of the rampant outspread. After market it reported 16 local cases of novel coronavirus, among which three stemmed from untraceable origins.
President Tsai Ing-wen calmed the public by disclosing that Taiwan remains rich in anti-pandemic items with a well-established medical system.

CONNECT FLOWS (significantly lighter flows)
Northbound Rmb 41,136m   Sell 20,317m vs 20,820m Buy
Southbound HK$  16,572m  Sell   5,533m vs  11,038m Buy
Northbound Rmb 45,069m   Sell 23,000m vs  22,069m Buy
Southbound HK$  16,969m  Sell 6,332m vs  10,637m Buy

Active Heavyweights
BABA (09988.HK) +6.1%
MEITUAN (03690.HK) +2.5%
TENCENT (00700.HK) +2.4%
AIA (01299.HK) -1.1%
PING AN (02318.HK) -0.9%
HKEX (00388.HK) +0.7%

HSI & HSCEI Constituents on Move:
XIAOMI (01810.HK) +6.1%
JD (09618.HK) +5.2%
NTES (09999.HK) +5.1%
BIDU-SW (09888.HK) +4.2%
KUAISHOU-W (01024.HK) +4%
LONGFOR (00960.HK) -3.5%
SMIC (00981.HK) +3.5%
HANSOH PHARMA (03692.HK) -3%
BOC HONG KONG (02388.HK) +1%, hitting new high

HSMI & HSSI Constituents on Move:
HENGTEN NET (00136.HK) +16%
XTEP INT'L (01368.HK) +14.4%
VESYNC (02148.HK) +14.3%
AUSNUTRIA (01717.HK) +12.9%
ALPHAMAB (09966.HK) +11%
HOPSON DEV-100 (00754.HK) +6.4%, hitting new high
CHINA COAL (01898.HK) +2.9%, hitting new high
TOWNGAS CHINA (01083.HK) +1.8%, hitting new high
XINYI GLASS (00868.HK) +1.6%, hitting new high

Tencent Technology (Shenzhen) made public a patent named "AI-based autonomous driving method, device, equipment, medium and vehicles", the application date of which was January 2021, reported Chinese media.
The "travel bubble" scheme with Singapore is starting as scheduled from 26 May where appropriate, said Edward Yau, Secretary for Commerce and Economic Development.
The number of unlinked cases in Hong Kong averaged 0-0.1 over the past 14 days, while Singapore reported none despite the lately increasing caseload, furthered Yau.
COVID variants from India were discovered in 44 countries, said the WHO.
The B.1.617.1 and 1.617.2 variants appear to be transmitting more easily across India, according to a WHO research.
Sophia Chan, Secretary for Food and Health, in a written reply to lawmakers, stated that as at May 10, about 1.77 million doses of COVID-19 vaccines had been administered to members of the public. The Government is looking into the case and arrangement for providing vaccination to non-Hong Kong residents who have stayed in the city for a period of time, and would make and announce the decision at an appropriate time, disclosed Chan.
The U.S. Department of Defense (DOD) unveiled a status report that it had agreed to reach a peaceful settlement with XIAOMI-W (01810.HK) on their litigation. The Pentagon ousted XIAOMI-W from the list of "Communist Chinese military companies", as the investment ban on the company had been suspended and that the DOD had decided not to appeal the ruling.
NEW HOPE SERV (03658.HK), predicted to be listed on 25 May, was fully subscribed in international placing, IFR citing insiders.
India confirmed 348,400 more Covid cases over the past 24 hours, according to local health ministry's data. The death toll surged by 4,205 to 254,200. On another note, Moody's lowered the FY22 GDP growth forecast on India from 13.7% to 9.3%.
XIAOMI-W (01810.HK) announced that Mi Music has entered into cooperation with Tencent Music Entertainment Group (TME.US)'s QQ Music to create splendid audio experience for its users.
SANDS CHINA LTD (01928.HK)'s hotels tracked a 90% average occupancy rate during the May Day holiday, Macao Daily News learnt from the group's President Wilfred Wong. Per capita gambling consumption is springing up, contributing to a more satisfactory recovery pace for GGR than for tourist arrival. The average hotel occupancy rate approximated 60% in April and has stayed around this level afterwards, he added.
BlackRock CCB Wealth Management a wealth management joint venture among BlackRock, CCB (00939.HK) and Temasek, received a license from China Banking and Insurance Regulatory Commission (CBIRC) to start business in China.
U.S. President Biden announced an extension to the 2019 executive order signed by Trump barring U.S. firms from using telecommunications kits made by manufacturers deemed to pose a national security risk, an action widely believed to target Huawei.
XINYI GLASS (00868.HK) CEO and Executive Director Tung Ching Sai purchased 152,000 shares of the Group on May 10, involving around $3.9824 million.
India's smartphone shipment ballooned 18% year-over-year to 38 million units for 1Q21, down 14% from that in 4Q20, according to IDC's report.
By brands, XIAOMI-W (01810.HK) topped the local shipment chart with a 27.2% market share. Its shipment volume burgeoned 3% annually to 10.4 million units in the period.
Qatar Petroleum is in talks with PETROCHINA (00857.HK) and SINOPEC CORP (00386.HK) and others about investment in the US$28.7-billion North Field expansion project, industry sources were quoted as saying by Reuters.
CTEG (01363.HK) 0.000 (0.000%) announced that it had on 7 May received a letter from the Stock Exchange, stating that the Listing Committee has decided to cancel its listing under the Listing Rules. It is currently considering and evaluating the Delisting Decision and seeking professional advice as to the appropriate course of action. The Company will consider lodging a request for review of the Delisting Decision before 17 May.
BYD COMPANY (01211.HK) announced that the Board has approved to adopt the 2020 Share Option Incentive Scheme of BYD Semiconductor, a subsidiary of the Company. The Scheme is conditional upon the approval of the shareholders of the Company at the extraordinary general meeting.

After the Government announced that it had purchased the broadcasting rights to Tokyo Summer Olympics, the independent commentator David Webb wrote
that this move set a dangerous precedent, against the Government's commitment to not interfering in the market.
The Shanghai Stock Exchange and the Korea Exchange have executed a memorandum of understanding on closer cooperation, under which the two exchanges will establish ETF mutual market access between China and South Korea and explore a fostered tie on index and bonds.
BYD COMPANY (01211.HK) (002594.SZ) announced that the Company intended to spin off its controlled subsidiary BYD Semiconductor for listing on the ChiNext board of the Shenzhen Stock Exchange.
REF HOLDINGS (01631.HK) announced that it sold 15,000 shares of TENCENT (00700.HK) on market through the Stock Exchange last trading day (11 May) for a total consideration of approximately $8.61 million. The estimated confirmed gain was about $2.64 million.
WEIMOB INC (02013.HK) announced that its Digital Commerce business maintained rapid growth in the first quarter. The revenue from Subscription Solutions represented an increase of over 100% as compared to the corresponding period of last year.
SH PHARMA (02607.HK) announced the Proposed Non-public Issuance of a maximum of 187 million and 665 million A Shares to controlling shareholder Shanghai Shangshi and independent third party Yunnan Baiyao, respectively, at the Issue Price of RMB16.87 per Share. The proceeds are expected to be no more than RMB14.384 billion.
LIFESTYLE INT'L (01212.HK) announced that it subscribed for the 11.7% notes due 2025 in the aggregate principal amount of US$80 million of KAISA GROUP (01638.HK)
AUSNUTRIA (01717.HK) announced Q1 results ended March 2021. Net profit amounted to RMB331 million, up 23% yearly.