HSI -46pts (-0.2%) 28,412 HSCEI -61pts (-0.6%) 10,641 T/O HK$120.88bn (-20.4% DoD)
FTSE and CAC opened slightly higher and trading sideways just above flat. DAX closed. No data due but a special meeting of the European Council at which Covid-19, the environment and EU-U.K. relations are set to be discussed.
Expect light volumes with a number of markets closed for Whit Sunday in Germany, Switzerland, Denmark, Norway, Belgium and Austria.
Ryanair trading around flat after one of its planes was forced by Belarus president to land in Minsk.
Opened mixed in Asian time Dow +44pts, S&P flat NDX -0.1% but now Dow +145pts S&P and NDX +VE
Data due Chicago Fed National Activity Index
Fed Speakers Atlanta Fed President Raphael Bostic Noon
Kansas City Fed President Esther George After Market
Earnings: Lordstown Motors
CHINA CSI 300 closed +21pts (+0.4%) 5,156
CSI 300 opened slightly better and trading around flat for the first 25 minutes but then sold down to 5,090 level before working back to flat at lunch time. PM open saw a brief rally before pulling back to Friday’s closing level. It then traded sideways for about 35 minutes before working higher for the last hour to close at the day high.
Shanghai Composite +11pts (+0.3%) @ 3,497
Shenzhen Composite +89pts (+0.6%) @ 14,507
ChiNext Index +28pts (+0.9%) @ 3,133
None Next data from China is on Thursday when it announces Industrial Profits
Pre market opened @ 28,418 -41pts vs -102pts ADR’s
Market then rallied to 28,444 in the opening minutes before selling down to 28,195 level which it tested a few times before working better into lunch 28,342. PM opened higher but saw resistance at 28,400 until around 3:15pm when it managed to break above but only to 28,426 before easing lower into the close and then ticked lower in the closing auction.
E-commerce names weak; Phama mixed and consumer names seeing some weakness.
HSI index review additions +VE
Leaders CSPC Pharma +4.4%, Techtronics +3.3%, Sino Bio +3.2%, Bud Apac +2.1%, BoComm +1.8%
Laggards Xiaomi -2.9%, Ali Health -2.1%, Haidilao -1.8%, Geely -1.7%, Meituan -1.5%, Baba -1.4%, SHKP -1.3%
HONG KONG DATA
The Centre for Health Protection (CHP) reported 1 new covid case and 2 uncertain cases (vs 5 Sunday)
Short Selling Monday 20.1% vs 13.1% Friday
Top Shorts Henderson Land (12) 58%, ICBC (1398) 47%, Hengan (1044) 41%, AIA (1299) 40%, Petrochina (857) 40%, Bank Comm (3328) 38%, Shenzhou Int (2313) 37%, CK Asset (1113) 34%, Ping An (2318) 34%, Sunny Optical (2382) 32%, BOC (3988) 31%, MTRC (66) 31%, Anta Sports (2020) 30%, SHKP (16) 29%, China Life (2628) 28%, Sands China (2628) 28%, HK & China Gas (26%), Bud Apac(1876) 26%, Hang Seng Bank (11) 26%, AAC Tech (2018) 26%, Wuxi Bio (2269) 26%, Ali Health (241) 25%.
AFTER MARKET NEWS
SHENZHEN INVEST (00604.HK) announced the contracted sales figure of April to be around RMB700 million, -38.3% YoY while the contracted sales area being around 32,071 square meters -27.2% YoY. The total contracted sales figure for the first four months this year is around RMB4.687 billion.
KUAISHOU-W (01024.HK) announced the first quarter result ended March 2021. The revenue rose 36.6% year on year to RMB17.019 billion. The loss widened to RMB57.75 billion from RMB30.492 billion in the corresponding period of the previous year. LPS was RMB20.31.
SEA TO SKY at Lohas Park, the joint development project between CK ASSET (01113.HK) and MTR CORPORATION (00066.HK), will begin to offer 171 units this Friday (28th), including 145 three-bedroom units and 26 four-bedroom units, all being sea-view units. The project has already sold 1,251 units, cashing in over $13.7 billion, and has already obtained occupation permit last month.
The project's model flats will be open from tomorrow (25th)
SINO BIOPHARM (01177.HK) announced the first quarter result ended March 2021. The revenue rose 16.4% year on year to RMB7.243 billion. The net profit amounted to RMB1.913 billion, up 118.5%. EPS was 10.19 fen. A quarterly dividend of HK2 cents was declared, flattish yearly.
Fitch raised the viability ratings of the six major Chinese state-owned banks to factor in progress achieved in China's financial reforms in recent years and the resilience of the Chinese economy in face of pandemic headwinds. The rating agency upgraded the viability ratings of BANK OF CHINA (03988.HK), CCB (00939.HK) and ICBC (01398.HK) to "bbb", and the viability of PSBC (01658.HK) and ABC (01288.HK) to "bbb-". The viability rating of BANKCOMM (03328.HK) was upgraded to "bb+".
The outlook for the six banks was Stable.
Market opened slightly lower but seen choppy trading, inital up to 7,042 level then down to 7,024 before rallying to test 7,060 then back to 7,035 before testing down to 7,015 around 1pm. Then worked back to test 7,050 and trade sideways to close +16pts (+0.2%) @ 7,046. Resources were weak but Gold seeing interest; helped I think by the bitcoin/crypto sell off. Kogan rebounded from Friday’s sell off and Commonwealth Bank tested new highs.
Nikkei opened lower but rallied to 28,584 in the first 20 minutes and then drifted lower through the morning with selling accelerating into lunch; 28,375. PM opened 28,455 but drifted lower to close +47pts (+0.2%) @ 28,365
Topix traded in a similar pattern high was 1,921 closed +8pts (+0.4%) @ 1,913
KDCA reported 538 new covid cases below 600 for a second day but investors remain cautious ahead of the BoK interest rate announcement Thursday. The slide in crypto names likely to have impacted retail investors. Trading volume was moderate. Foreigners were net sellers. Laggards Tech & Bio weak, Leaders Banks & Telcos.
Kospi opened slightly lower and saw initial choppy trading for the first hour. After 10:15am the market trended lower to the 3,140 level which is tested a few times before trading back to 3,155 but unable to break above. Then sold back down to 3,140 and traded sideways to close -12pts (-0.4%) @ 3,144
Kosdaq opened lower and sold down to 952 in the first 20 minutes before a bounce but then drifted lower to close -17pts (-1.8%) @ 948
Taiex opened lower but trended higher through the morning to test 16,400 around 11:35am but failed to break out and dropped back into the red before working better to 16,342 and then traded sideways to close +36pts (+0.2%) @ 16,338
CECC reported 590 new covid cases (5 imported and 256 were a backlog of confirmed tests over the past week). Govt has expressed its "deep displeasure" at not getting invited to this year's World Health Assembly (WHA) and being excluded from the decision-making body of the World Health Organization (WHO) for a fifth consecutive year. They also reiterated the government's stance over China's false claim that "appropriate arrangements have been made for Taiwan's participation in the WHO." "The People's Republic of China (PRC) has never governed Taiwan, yet it continues to make distorted interpretations of U.N. General Assembly Resolution 2758 and World Health Assembly Resolution 25.1, repeatedly misleading the international community," Wu said.
Only Taiwan's elected government can represent Taiwan's people in the WHO, Wu said, and he urged the WHO to maintain "a professional and neutral stance, reject China's political interference, and allow Taiwan to join WHO meetings, mechanisms, and activities."
CONNECT FLOWS (lower vs Friday)
Northbound Rmb 37,948m Sell 18,688m vs 19,260m Buy
Southbound HK$ 14,796m Sell 7,520m vs 7,276m Buy
Northbound Rmb 50,403m Sell 24,545m vs 25,859m Buy
Southbound HK$ 17,132m Sell 7,611m vs 9,521m Buy
MEITUAN (03690.HK) -1.5%
BABA (09988.HK) -1.4%
HKEX (00388.HK) -0.7%
CCB (00939.HK) +0.3%
TENCENT (00700.HK) -0.2%
AIA (01299.HK) -0.2%
PING AN (02318.HK) -0.1%
HSI & HSCEI Constituents on Move:
JD HEALTH (06618.HK) -6.3%
HANSOH PHARMA (03692.HK) -5.4%
CSPC PHARMA (01093.HK) +4.4%, hitting new high post earnings
NTES (09999.HK) -4%
TECHTRONIC IND (00669.HK) +3.3%
SINO BIOPHARM (01177.HK) +3.2%
KUAISHOU-W (01024.HK) -3.2%
HSMI & HSSI Constituents on Move:
FOSUN TOURISM (01992.HK) +13.8%, hitting new high
ALPHAMAB (09966.HK) +13.7%, hitting new high
AKESO (09926.HK) +10.3%, hitting new high
SHINEWAY PHARM (02877.HK) +3.9%, hitting new high
MARKET HOURS NEWS.
ND PAPER (02689.HK) has kick-started the 5th paper product price hike for May, reported National Business Daily. For instance, prices of "Sea Dragon" linerboard and corrugated paper will be raised by RMB250/ton from 24 May. Quite a lot of small and medium-sized paper mills in Mainland China are following suit, the report said.
MGM CHINA (02282.HK) President, Strategic & CFO Kenneth Feng had higher expectations on tourist spending during the summer vacation, reported Radio Macau. Feng believed Macau's GGR will edge up along with increasing Mainland tourist arrivals, supposing Chinese residents would be willing to travel amid a well-contained epidemic. Equally, he saw notable GGR recovery trends for the first five months of 2021.
Beijing Jingdong Century Information Technology Co., Ltd. was fined RMB300,000 for breaching paragraph 1 of Article 8 of China's Anti-Unfair Competition Law, according to Beijing Economic-Technological Development Area Management Committee (BDAC) and Qichacha's sources. Operators are not allowed to deceive and mislead consumers using false or misleading commercial publicity materials.
Robert Shiller, a Nobel laureate and economics professor at Yale University, told CNBC that a market bubble is forming, with particular concern over housing, stock and crypto markets. He even cited a "wild west" mentality among investors in these fields.
Shiller is also worried about the recent housing boom, adding actual home prices have never been this high.
XIAOMI-W (01810.HK) has hired 5,000 university students, marking the first large campus recruitment in 11 years since the foundation of the group, revealed Chairman Lei Jun on his personal Weibo. Lei stressed that nurturing youngsters is the top task of the company.
The Securities and Futures Commission (SFC) has concluded an online campaign which simulated the experience of being drawn into an investment scam. The campaign is part of the SFC’s ongoing efforts to alert the public about the use of online platforms to defraud investors. Online investment scams may involve stock market manipulation and those who get caught up in them can suffer substantial losses, said Ashley Alder, the SFC’s Chief Executive Officer. Investors should stay vigilant and make informed investment decisions rather than relying on stock tips circulating in chat groups or on social media platforms.
SUNSHINE OIL(02012.HK) announced first quarter result ended March 2021. The turnover of petroleum sales, net of royalties, declined 96.2% year on year to CAD144 thousand. The loss narrowed from CAD41.711 million in the corresponding period of previous year to CAD2.751 million. LPS was CAD0.02. No dividend was declared.
CSPC PHARMA (01093.HK) released the quarterly results for the three months ended 31 March 2021. The total revenue added 9.9% yearly to RMB6.734 billion. Net profit hiked 26.9% yearly to RMB1.472 billion. EPS was 12.29 fen.
Macau visitor arrivals reached 794,800 in April 2021, up 5.3% monthly and 71 times yearly, data from Statistics and Census Service showed.
CICC Names Shrs Subject to Major Fund Inflow/ Outflow Post-HSI QoQ Review
Stocks│Potential fund inflow (US$)│days needed
CG SERVICES (06098.HK)│214M│2.5
BYD COMPANY (01211.HK)│217M│0.81
XINYI SOLAR (00968.HK) │102M│0.8
MEITUAN-W (03690.HK) │786M│0.62
BABA-SW (09988.HK) │385M│0.5
WHARF REIC (01997.HK│4.4M│0.22
Stocks│Potential fund outflow (US$)│days needed
HK & CHINA GAS (00003.HK)│17.7M│0.55
TECHTRONIC IND (00669.HK)│44.2M│0.6
HSBC HOLDINGS (00005.HK)│112.8M│0.7
SHK PPT (00016.HK) │44.2M│0.81
Huawei expresses that they have never invested in any automobile manufacture company and have no intention to do so in the future, whether through equity holding or equity participation. Any reports indicating that Huawei is manufacturing automobiles or investing in the automobile manufacture industry should be treated as untrustworthy rumors. The company states that "No Automobile Manufacture" has been a long-term strategy established since 2018 and there is no change to that strategy.
BABA-SW (09988.HK) announced that the company's Alibaba Cloud has co-established Alibaba Cloud Innovation Center - BMW Startup Garage Joint Innovation Base with BMW Group's BMW Startup Garage China, and has kick-started operation in Shanghai Jinqiao Economic and Technological Development Zone last Thursday (20 May). Harnessing their respective advantages and resources, both parties will help Chinese technology start-ups to further strengthen the scale of innovation.
BABA-SW (09988.HK)'s shareholder(s) placed 14.2 million shares of the company at $206 per share, representing a discount of approximately 1% to the closing price as quoted on the last trading day, cashing in $2.93 billion, Bloomberg reported.
A Government spokesman said that with regard to one confirmed case of COVID-19 in Liwan District of Guangzhou, the Hong Kong Special Administrative Region Government and the Guangdong Provincial Government are assessing the situation. Currently, Jinlong Huixin Building, Longjin Street, Liwan District of Guangzhou has been classified as a medium risk place, while Guangdong Province is not classified as a medium risk place. The current arrangements under the Return2hk Scheme (the Scheme) remain unchanged at this stage. Should there be any adjustments, announcement will be made separately in due course.
Chief Executive Carrie Lam noted the EU's vaccine passport launch in July. Concerning future traveling arrangements with other regions, She believed the HKSAR government will require outbound Hongkongers to get vaccinated in order to be free of infection during their trips.
PRE MARKET HOURS NEWS
JD LOGISTICS (02618.HK) was eventually subscribed by roughly 1.373 million applicants, with $573.1 billion in frozen capital and public offering over-subscribed by around 715 times, said market rumors.
NEW HOPE SERV (03658.HK), to be listed tomorrow (25th), was priced at $3.8, the lower limit of the offer price range $3.8-4.7. It was over-subscribed by 3.75 times in the public offering. One-lot (1,000 shares) success rate was 50.01%.
BABA-SW (09988.HK)'s cloud-computing unit finds it harder and harder to win Chinese government contracts amid keener sector competition and stricter government regulation, WSJ citing insiders. A major client ByteDance has stopped storing overseas business data on Alibaba Cloud in recent months, buying servers from BABA-SW instead.
China's waste paper recycling prices are shooting up rapidly. The average DDU price of yellow paperboard hit RMB2,140/ton in April 2021, up around 25% year-on-year as CCTV finance cited data. Some Chinese paper leaders are attempting to lay out production capacity in foreign countries with rich forest and timber resources. Multiple paper makers have announced to pause production since March due to rocketing pulp raw material prices.
GCL NEWENERGY (00451.HK) announced that the Company has been informed by its controlling shareholder GCL-POLY ENERGY (03800.HK) about the purported exercise of security interests over the Pledged Shares by the Lender. A total of 865 million Pledged Shares of GCL NEWENERGY had been purportedly forfeited on or around June 2020.
GCL NEWENERGY said the exercise of security interests over the Pledged Shares by the Lender would not have any material impact on the business operation of the Company.
The State Council's Financial Stability and Development Committee convened its 51st meeting last Friday (21 May) to study the priority for financial space in the next stage. The meeting was presided over by Chinese Vice Premier Liu He, who pointed out Beijing's aim to step up financial activity regulation on platform companies and crack down on bitcoin mining and trading.
Chinese cryptocurrency exchanges may start refreshing their businesses following the State Council's crackdown on bitcoin mining and trading. Cryptocurrency exchange Huobi's Huobi Mall has decided to suspend the provision of mining machines and related services to Chinese users in compliance with Beijing's latest sector regulatory policy, according to a screenshot circulating online yesterday.