HK/CHINA WRAP After mkt China Loan data out and RRR cut

This and previous notes can be found at asianmarketsense.com   
Check out ERI-C.com for interesting research and trading analysis

HSI +191pts (+0.7%) 27,345 HSCEI +63pts (+0.6%) 9,885 T/O HK$186.79bn (-9% DoD) 

Europe
Markets opened higher and trended higher,covid concerns remain but eased as UK eases quarantine rules. Strong loan data and the RRR cut in China +VE for enabling the recovery. G20 Finance meeting kicking off too.
Auto and Travel +VE
UK data due shortly Balance of Trade, Construction Output, Industrial Production , Manufacturing Production, GDP, GDP 3Mth ave, Goods Trade Balance, NIESR Monthly GDP
US Futures
Opened Dow -25pts, S&P and NDX -0.1% light on data but bounced to Dow +146pts in European time S&P +0.2% but NDX weak.  
AHEAD Wholesale Inventories, Baker Hughes Oil Rig Count 


CHINA CSI 300 closed -19pts (-0.4%) @ 5,069
CSI 300 opened lower ticked higher as PPI eased and inflation data were inline but then sold down to 5,006 by 10am on news of more companies being added to the US sanctions list. It then bounced back to 5,060 before easing lower into lunch. PM market worked higher but resistance at 5,080 and then eased back slightly into the close.
After market the it released New Loans Data, Money Supply Data and cut the RRR for banks. Concerns are that the GDP growth has slowed. As China was first into covid and first out the fact that growth maybe slowing could be a worrying precident for the global recovery.

Shanghai Composite -1.4pts (-0.04%) @ 3,524
Shenzhen Composite -39pts (-0.3%) @ 14,844
ChiNext Composite Index -15pts (-0.4%) @ 3,540

CHINA DATA
Inflation Rate Jun YoY vs +1.3% May (F/cast is +1.5%)
Inflation Rate Jun MoM vs -0.2% May (F/cast is +0.1%)
PPI Jun YoY vs 9% May (F/cast was +8.9%)
After Market
New Loans Jun CNY 2120B vs 1500B May (F/cast was 1800B)
Outstanding Loan Growth Jun +12.3% vs +12.2% May (F/cast was +12.1%)
Total Social Financing Jun CNY 3670B vs 1920B May (F/cast was 2900B)
Money Supply Jun +8.6% vs +8.3% May (F/cast was +8.5%)
PBOC announced a RRR cut of 0.5ppt

HONG KONG
HSI  Pre market opened 27,132 (-21pts) vs +5pts ADR’s  Initially ticked up to 27,200 but then sold down to 26,861 (margin calls and news of more companies to be added to US sanctions list). Then saw a rebound into the green and then worked higher with resistance at 27,370 eased back and traded sideways into lunch. PM saw the HSI test higher but resistance @ 27,450 which was tested a few times in the first hour. After about 2:20pm the market then trended lower into the close.

IPO
YESASIA HLDGS (02209.HK) opened high by over 47% to post at $4.83 on its debut day. The stock reclined after lunch and closed at $3.46, up 18 cents or 5.5% against its listing price of $3.28.
The
volume amounted to 65.73 million shares, involving $277 million. Excluding the handling fees, a book gain of $180 was reported per board lot of 1,000 shares.

HONG KONG DATA
The Centre for Health Protection (CHP) of the Department of Health (DH) announced that as of 0.00am, July 9, the CHP was investigating one additional confirmed case of coronavirus disease 2019 (COVID-19),
taking the number of cases to 11,950 in Hong Kong so far (comprising 11,949 confirmed cases and one probable case). The newly reported case is an imported case.
As a passenger flight (OZ721) operated by Asiana Airlines arriving in Hong Kong from Seoul, Korea, on July 6 had one passenger confirmed to have COVID-19 by arrival test and one passenger failed to comply with the requirement specified under the Prevention and Control of Disease (Regulation of Cross-boundary Conveyances and Travellers) Regulation (Cap. 599H), the DH thus invoked Cap. 599H to prohibit the landing of passenger flights from Seoul operated by Asiana Airlines in Hong Kong from July 10 to 23.

Short Selling Friday 13.8% vs 14.4% Thursday 
Top Shorts
HSBC (5) 51%, Sunny Optical (2382) 46%, Henderson Land (12) 42%, Country Garden (2007) 40%, Bank of China (3988) 38%, China Life (2628) 37%, Mengniu Dairy (2319) 37%, Citic (267) 37%, CLP (2) 35%, Bud Apac (1876) 32%,  ICBC (1398) 32%, ICBC (1398) 32%, AliHealth (241) 31%, BoC HK (2388) 30%, Hang Seng Bank (11) 29%, Hengan (1044) 29%, Anta (2020) 29%, BankComm (3328) 28%,   AIA (1299) 28%, China Overseas (688) 27%, CK Asset (1113) 27%, Wuxi Bio (2269) 26%,

AFTER MARKET NEWS

SUNNY OPTICAL (02382.HK) announced that the shipment
volume
of handset lens sets decreased by 27.1% YoY and 13.7% MoM to 85.816 million units in June, which was mainly due to the impact of overseas pandemic and the slowing down of domestic smartphone market demand.

YUEXIU PPT-NEW (00123.HK) announced that the aggregate contracted sales of the company for the period from January to June 2021
amounted to approximately RMB47.383 billion, representing a year-on-year increase of approximately 26%.
The corresponding GFA of the accumulated contracted sales amounted to approximately 1.7916 million sq.m., representing a year-on-year increase of approximately 18%. The value of the accumulated contracted sales accounted for approximately 42% of the 2021 contracted sales target of RMB112.2 billion.

BYD COMPANY (01211.HK) announced that during 6-9 July, its Director Xia Zuo had dumped more than 9.5483 million A-shares through Centralized Bidding Trading at RMB241.66-261.5 each.

BAUHAUS INT'L (00483.HK) announced that for the three months ended 30 June 2021,
the same store sales (SSS) of the group’s self-managed offline shops dropped 17% year-over-year, with those in Hong Kong recording a 19% decrease and those in Macau recording a 11% decrease. As of 30 June this year, the number of shops in operation of the group amounted to 51, with 41 in Hong Kong and 10 in Macau.

SHUI ON LAND (00272.HK) announced that the accumulated contracted property sales
amounted to RMB12.115 billion for the first six months of 2021, an increase of 95% compared to the same period of 2020. The aggregated GFA sold for contracted property sales reached 235,800 sq. m. with the average selling price of RMB51,400 per sq. m.

Centa-City Leading Index (CCL) last stood at 186.68, -0.9% WoW .
CCL Mass last stood at 189.63, -0.72% WoW.
CCL (small-and-medium units) last reported at 187.11, -0.74% WoW.
CCL (large units) last posted at 184.42, -1.76% WoW

Regional Markets
Australia
Market opened lower and trended lower through the morning, slight support at 7,250 but bottomed at 7,226 and then traded sideways. To close -69pts (-0.9%) @ 7,273. Covid resurgence -VE for sentiment. Leaders were Energy names along with Fortescue Metals and Amcor.
IPO Silk Logistics +24% on debut 
Japan 
Nikkei opened lower at 27,740 and ticked higher before trending lower through the morning. The new state of emergency not really a surprise. At lunch was 27,467 just off the lows. PM opened higher and trading sideways around 27,600 level but then rallied into the close -178pts (-0.6%) @ 27,940
Topix traded along a similar pattern. Opened 1,897, high was 1,903 then trended lower to 1,881. PM seeing resistance at 1,890 but then rallied to close -8pts (-0.4%) @ 1,912
S Korea
KDCA reported 1,316 new covid cases; the third day of it hitting new highs; with social distancing restrictions raised in Seoul.
Kospi opened lower and initially trended lower to 3,191 in the first hour and then trading sideways but rallied from 2pm and closed -35pts (-1.1%) @ 3,218
Kosdaq opened lower but saw but saw a bounce before trending lower to 1,014 in the first hour. Then a rebound to 1,023 before trading sideways but rallied in the last hour to close -6pts (-0.6%) @ 1,029 
Taiwan
Taiex opened lower saw an early bounce but then trended lower through the session to close -205pts (-1.2%) @ 17,661 T/O was US$19.39bn
TSMC (TSM.US) announced that its operating revenue for the previous month rose 23% year-over-year to TWD148.5 billion. The total revenue for the second quarter, likewise, jumped 20% year-over-year to TWD372.1 billion, in line with the market estimate of TWD371.3 billion. 

CONNECT FLOWS   
Shanghai
Northbound RMB 58,547m Sell 29,219m vs 29,329m Buy
Southbound HK$ 23,713m Sell 10,949m vs 12,764m Buy
Shenzhen
Northbound RMB 71,483m Sell 35,775m vs 35,708m Buy
Southbound HK$ 29,291m  Sell 16,670m vs 12,622m Buy

Active Heavyweights
MEITUAN (03690.HK) +4.3%
TENCENT (00700.HK) +2%
BABA (09988.HK) -0.9%
CCB (00939.HK) -0.9%
PING AN (02318.HK) -0.6%
AIA (01299.HK) +0.4%
HKEX (00388.HK) unchanged

HSI & HSCEI Constituents on Move:
HAIDILAO (06862.HK) +10.2%
ANTA SPORTS (02020.HK) +6.9%
XIAOMI (01810.HK) +5.1%
WUXI BIO (02269.HK) +5%
KUAISHOU-W (01024.HK) -4.5%
EVERG SERVICES (06666.HK) +4%
CK ASSET (01113.HK) -3.5%
SHENZHOU INTL (02313.HK) +3.3%

HSMI & HSSI Constituents on Move:
YIXIN (02858.HK) +12.3%
COSCO SHIP HOLD (01919.HK) -10.7%
IDREAMSKY (01119.HK) +8.6%, hitting new high
YONGDA AUTO (03669.HK) +4.3%, hitting new high

MARKET HOURS NEWS
.

MEITUAN-W (03690.HK) announced that the company had entered into strategic partnership with Shanghai Jinshan People's Government to push for the rollout of China's first urban low-altitude logistics demonstration center.

Supported by the $5,000 electronic consumption voucher scheme, along with prospect of travel resumption, Hong Kong's GDP
growth in 2021 may outrun the previous estimates of 3.5%-5.5%, said the Financial Secretary Paul Chan.
Chan commented during an interview that the electronic voucher itself is predicted to lift the GDP by around 0.7%. Combined with the reward programs launched by the payment platforms, it is believed to be able to effectively boost the economy.

XIAOMI-W (01810.HK) has recently acquired the auto-driving technology company DeepMotion, introducing a team of around 20 people to the company, reported Chinese media, citing sources. According to its official website, DeepMotion was founded in July 2017, focusing mainly on cutting-edge AI technologies and autopilot solutions.

TENCENT (00700.HK) has invested RMB45 billion in building a Yangtze River Delta A.I. supercomputing center to be put into operation recently, Sina Tech citing Dowson Tong, the giant's Senior Executive Vice President and President of Cloud and Smart Industries Group.
It announced officially its smart industry headquarter in Hefei commenced operation and integrated the first batch of enterprises of the smart AI eco-system. The Hefei HQ will be concentrating on three major projects, namely the AI R&D center, the cloud industry eco base and the Yangtze River Delta smart computing center, harboring over 3,000 researchers, and is expected to realized an operating revenue of no less than RMB5 billion in four years.

China's Financial Stability and Development Committee met with EVERGRANDE (03333.HK) Chairman Hui Ka Yan in Beijing before the ruling party's 100th anniversary celebration on 1st July, urging Hui to solve the firm's debt problems as soon as possible, Bloomberg citing sources.

HENDERSON LAND (00012.HK) secured the old building project in Yiu Tung Street, Sham Shui Po through forced auction at the base price of $524 million. The project, located at 9-14 Yiu Tung Street with a GFA of around 7,725 sq.ft., comprises three four-storey composite buildings aged nearly 70 years.

As of the day before yesterday (7 July), the vaccination rate in Hong Kong was approximately 36.4% and has a promising prospect to reach 50% by around August and September, given the current progress, said Secretary for Food and Health Sophia Chan.
Chan, however, remarked that the rate has to reach at least 70% to be considered sufficient and that the period from now until the end of next month is the critical window to receive vaccination.

XIAOMI-W (01810.HK) has recently acquired the auto-driving technology company DeepMotion, introducing a team of around 20 people to the company, reported Chinese media, citing sources. According to its official website, DeepMotion was founded in July 2017, focusing mainly on cutting-edge AI technologies and autopilot solutions.

Macao will resume the 7-day-NAT-effectiveness arrangement from tomorrow (10th) for border reopening with Guangdong, regardless of whether the entrant is vaccinated or not, Macao Daily News reported. As to the timing for Macao-Hong Kong border reboot, Macao health department said they still have to observe the epidemic of Hong Kong in short term, adding it is quite hard to decide on border adjustment based on the number of zero-case days.

Polestar, the Swedish EV brand under Zhejiang Geely Holding Group and Volvo Car, is in talks with SPAC Gores Guggenheim, Inc. (GGPI.US) to go public through a merger, Bloomberg citing insiders. The combined company is expected to be valued at around US$25 billion after merger. However, the parties have not reached any agreement yet.

MEITUAN-W (03690.HK) plans to achieve the large-scale commercial use of Meituan drones in roughly five years, revealed senior vice president and drone unit head Mao Yinian. The newly launched drones and the new generation of unmanned vehicles debuted in April 2021 will complement human distribution going ahead, he furthered.

Chinese sporting technology company Keep has canceled its U.S.
IPO plan, reported Financial Times,
citing people familiar with the matter. Backed by Softbank and TENCENT (00700.HK), Keep originally expected to raise as much as USD500 million through the IPO, the report added.

PRE MARKET HOURS NEWS
The HKSAR Government condemns the so-called "continuation of the national emergency with respect to Hong Kong" announced by the White House
, describing it as a continuation of the United States (US)' blatant interference in the internal affairs of the PRC.
Such despicable actions taken by the US have achieved nothing but harmed the relations and common interests between the PRC and the US, and that of the HKSAR and the US, causing damage to the companies and people of the US, a Government spokesman said. It is regretful, though not inconceivable, that the new US administration has chosen to continue this wrongful path.

For the reconstruction of Towers 1 and 8 of Pavilia Farm III, co-developed by NEW WORLD DEV (00017.HK) and MTR CORPORATION (00066.HK),
the banking industry is still digesting the news while taking an initially positive stance towards the matter, said Ivy Wong Mei-feng, managing director of Centaline Mortgage Broker. Since the large developers are recognized by banks and they have made appropriate response, banks are expected to facilitate the case with flexibility.

TGOOD (300001.SZ) announced that its controlled subsidiary Teld (also known as Telaidian) had received the Notice of Administrative Penalty from the State Administration for Market Regulation (SAMR).
Teld and DiDi's indirectly wholly-owned arm Huidi Tianjin established Xiaoju TELD (Qingdao) New Energy at a capital of RMB100 million in February 2018. Failing to report to SAMR before securing a business license, however, the JV had violated Article 21 of the Anti-Monopoly Law which constituted the concentration of business operators without lawful declaration.
Subsequently, SAMR fined each of Huidi Tianjin and Teld RMB500,000. The JV had ceased operation in July 2019.

Alipay launched a "senior mode", with enlarged fonts, logos and simplified control panel; promotions
and other less used features will likewise be removed, in order to minimize the disturbance to elderly users, announced Ant Group.

Ricacorp has set up a task force speedily to address the partial reconstruction of Pavilia Farm III atop Tai Wai Station which is co-developed by NEW WORLD DEV (00017.HK) and MTR CORPORATION (00066.HK),
said Willy Liu, the property agency's chief executive of Ricacorp. The company hoped that a comprehensive cross-departmental collaboration could help out the affected customers of the project. Since the developers are acting swiftly and giving appropriate response, Liu expected most buyers to continue with the related transactions.

Chinese e-commerce retailer and wholesale solution provider UNQ HOLDINGS (02177.HK) announced its allotment results, pricing the shares at the bottom end of the listing price at $11.86.
As its public offering section was oversubscribed by 24.45x, the final number of offer shares under the Hong Kong public offering has been increased to 30% of the total number of offer shares after reallocation. One-lot (200 shares) success rate is 53%. The stock is scheduled to be listed next Monday (12 July).

Pfizer Inc. (PFE.US) plans to seek the U.S. Food and Drug Administration (FDA) to authorize the public injection of a booster dose of its COVID-19 vaccine within the next month
, as clear evidence has shown an increased risk of reinfection six months after inoculation as well as a widening spread of the highly contagious Delta variant of the virus.

NEXT DIGITAL (00282.HK) announced that Chow Tat Kuen, Royston has tendered his resignation as an executive director, the chief operating officer
, a member of the executive committee and remuneration committee and the company secretary of the company; while Hung Chi Keung, Dennis has tendered his resignation as the chief financial officer. Cheung Kim Hung has also resigned as an executive director, the chief executive officer and a member of the executive committee and nomination committee of the company and his other positions within the group. All took effect from 30 June 2021.

The Chinese pearlescent pigment producer GLOBAL NEW MAT (06616.HK) announced that the company has made a downward
offer price adjustment.
Accordingly, the final offer price has been set at $3.25 per offer share which is 7.67% below the bottom end of the indicative offer price range. The estimated net proceeds is reduced to approximately $879 million.

China's National Medical Products Administration (NMPA) expressed during a State Council press conference to expedite the progress of launching innovative drugs and drugs in desperate demand for clinical tests.
Following the approval for a batch of new drugs with outstanding quality and immense clinical value to go public, NMPA said that they will continue to revamp the management of clinical testing and optimize its review system.

China's State Administration for Market Regulation (SAMR) attached great importance to media report that some online shops are selling fabricated quality check reports
, and hence requested Taobao, Pinduoduo and other platforms to perform their responsibilities under the law and take immediate action accordingly against the online shops that are selling such reports.

HKTV (01137.HK) announced that the Gross Merchandise Value (GMV) on Order Intake for June
was HK$493 million, up 14.4% yearly but down 4.1% monthly.

SIHUAN PHARM (00460.HK) announced that, on 8 July, the Company repurchased a total of 3 million shares
of the Company on market at an average price of HK$2.7126 per Share. The aggregate purchase price paid was approximately $8.14 million.

GREATWALL MOTOR (02333.HK) announced that the total production and sales volume of the Company for the first half of 2021
reached 604,659 units and 618,211 units, respectively up 54.6% and 56.5% YoY.

XIAOMI-W (01810.HK)'s statement disclosed that the company repurchased 7.75 million shares on the Stock Exchange on 8 July at prices of $25.20-25.45 per share, involving approximately $197 million. YTD, the company bought back a total of 7.75 million shares, being 0.03% of the company's share capital.