HSI -436pts (-1.7%) 25,746 HSCEI -207pts (-2.2%) 9,058 T/O HK$166.14bn (+24% DoD)
Markets opened lower but working higher.
GDP Growth Rate 2nd Est Q2 +2% QoQ vs -0.3% Q1 (F/cast was +2%)
GDP Growth Rate 2nd Est Q2 13.6% YoY vs -1.3% Q1 (F/cast was +13.7%)
Employment Change Pre Q2 +0.5% QoQ vs -0.2% Q1 revised (Consensus was +0.5%)
Employment Change Pre Q2 +1.8% YoY vs -1.8% Q1 (Consensus was +1.5%)
Claimant Count Change Jul -7.8k vs -114.8k Jun (F/cast was-180k)
Employment Change May 95k vs 25k Apr (F/cast was 75k)
Ave Earnings excl Bonus Jun +7.4% vs +6.6% May (F/cast was+7.6% )
Ave Earnings incl Jun +8.8% vs +7.4% May revised (F/cast was +8.5%)
Unemployment Rate Jun +4.7% vs +4.8% May (F/cast was +4.7%)
Labour Productivity Prel Q2 -0.5% vs +0.4% Q1 revised (F/cast was +0.3%)
Opened slightly lower Dow -24pts, with S&P and NDX also lower but sold down as Europe opened Currently Dow -148pts, S&P and NDX -0.4%. Expect caution ahead of Retail Sales and Powell speaking.
Ahead Retail Sales, Redbook, Industrial Production, Manufacturing Production, Capacity Utilisation, Business Inventory, NAHB Housing Market, Fed Chair Powell speaks, API Crude Oil Stocks.
CHINA CSI 300 closed -104pt (-2.1%) @ 4,837
CSI 300 opened lower but initially spiked to 4,967, hopes the PBOC will announce another RRR cut. But without any news it then reversed back to flat. Small bounce and traded sideways before selling down into lunch @ 4,922. It was announced that China would ban unfair online competition via technical means. PM opened lower and trended lower in waves to 4,823 before a small bounce into the close.
Laggards Semi’s, Liquor and Consumer
Leaders Brokers, Gas, Defense
Interesting to see SEC Commission Chair Gensler warns that American’s don’t know about some of the Chinese companies listed in the US as Blackrock suggests investors should add to their China weightings.
Shanghai Composite -70pts (-2%) @ 3,447 T/O US$78,361 +7.2%DoD
Shenzhen Composite -343pts (-2.3%) @ 14,351 T/O US$111,822 +1.5% DoD
ChiNext Composite Index -97pts (-2.7%) @ 3,479
Pre market opened @ 26,138 -44pts vs -74pts ADR’s Initially sold down with ecommerce under pressure. Market traded 26,070/200 for most of the morning but then news of extending quarantine measures and the draft bill on unfair online competition by technical means prompted the selling. PM saw the market sold down heavily lead lower by Ecommerce on news that the use of data and algo’s to influence consumer choice will be limited and HK EX as several Chinese companies pulled their IPO’s.
Support at 26,260 and a slight bounce before trading sideways into the close and saw a 50pt up tick in the closing auction.
Leaders AIA and Sunny Optical on earnings, Techtronics.
Laggards Tencent (reports tomorrow), HKEX, Baba, Meituan and Anta Sports.
EARNINGS due Wednesday includes: Kowloon Devel (34), HK Ferry (50), Miramar Hotel (71), Yuexiu Property (123), Geely (175), Kingdee (268), China Resources Beer (291), Cosco Shipping Int (517), Beijing North Star (588), Tencent (700), Maoye Int (848), Hengan (1044), Road King Infra (1098), MMG (1208), Tong RenTang Tech (1666), Samsonite (1910), Solomon Systech (2878), Agile Ppty (3383), China Feihe (6186), Bilibili (9626).
HONG KONG DATA
HK reported 3 new covid cases; a woman working at The Wing and 2 imported cases
SHORT SELLING Tuesday 14.3% vs 14.4% Monday
Top shorts Shenzhou Int (2313) 40%, Haidilao (6862) 39%, Bank of China (3988) 38%, Ali Health (241) 37%, CK Asset (1113) 37%, Country Garden (2007) 34%, Bud Apac (1876) 33%, Hang Lung Ppty (101) 32%, MTR (66) 31%, NWD(17) 30%, Hengan (1044) 28%, Bank Comm (3328) 28%, CCB (939) 28%, HKEX (388) 28%, Mengniu Dairy (2319) 25%, Ping An (2318) 25%, Wharf REIC (1997) 25%.
AFTER MARKET NEWS
SHK PPT (00016.HK) laid out the third price list for Wetland Seasons Bay Phase 1, a residential project at No. 1 Wetland Park Road, said Deputy Managing Director Victor Lui. 215 units were offered at a discounted price of around $4.717-9.724 million each, representing an average price of $15,018 per sq.ft. The developer also unveiled the sales arrangement for the first log, where a total of 350 units will go on sale this Saturday (21 August).
SHENZHEN INVEST (00604.HK) Short selling $1.55M; Ratio 9.967% issued a positive profit alert. The Group is expected to record a significant increase in net profit for the first half of 2021 of approximately 300% as compared to the same period last year.
New Zealand's Prime Minister Jacinda Ardern declared a three-day national lockdown after a local Covid infection was reported for the first time since February. Auckland and Coromandel, where the infected person had visited, will go into a seven-day lockdown.
*FINANCIAL HKEx (388 HK, -2.9%) as several Chinese stocks suspend plans to list in HK. Tencent Music Entertainment Group’s plans to sell up to $5b in shares while acquiring a listing in Hong Kong by the end of 2021 are now on hold.
*TECHNOLOGY The Hang Seng Technology Index fell >3%; Bilibili (9626 HK, -7.6%) its share price continued new record low; NetEase (9999 HK, -5.4%) and Baidu (9888 HK, -4.8%)
Sunny Optical (2382 HK, +0.5%) Stock opened -6% and U turned to +7% from mgmt call at 10am.
*CHINA PROPERTY China Evergrande Group founder Hui Ka Yan has stepped down as chairman of the conglomerate’s onshore property unit. Hui is no longer chairman of Hengda Real Estate, according to the website of the government-run National Enterprise Credit Information Publicity System. Zhao Changlong was named as the new chairman. Evergrande (3333 HK, -4.3%), Evergrande Property Service (6666 HK, -8.7%) Evergrande NEV(708 HK, -5%)
*INSURERS AIA (1299 HK +3.1%) after numbers this morning, new business value grew a faster-than-expected 29% in the first half, led by Southeast Asia.
Market opened lower and has trended lower through the session before finding support around the 7,500 level and then worked slightly better for the last two hours to close -72pts (-0.9%) @ 7,511. Partly due to a number of key stocks going ExDiv today but also a number of companies trading lower after earnings; Sims Metal, Breville, Santos, Dexus, Sezzle, ARB, and Magellan. BHP -1.4% down at $51.33 ahead of its earnings report this afternoon. CBA lower; ex Div and misconduct news.
Oil names lower on demand concerns after the weak China data, but gold and iron names +VE A2 Milk opened strong on M&A hopes with talk Nestle looking but sold off after spiking at noon.
RBA minutes taken in the stride of the market.
Laggards Financials, Materials
Leaders Communication Services and Industrials.
Government extending its State of Emergency.
Nikkei opened higher rebounding from Monday’s sell down and initially spiked to 27,750 but then sold back down to 27,630 and then trended lower 27,540 before a small bounce into lunch. PM opened lower and trading around flat until the last 30 minutes when it sold down to close -99pts (-0.4%) @ 27,425
Leaders Shippers, Pharma, Food, Insurers, Trading Co’s
Laggards Iron/Steel, Oil/Coal, Property, Financials.
Topix traded in a similar pattern to close -9pts (-0.5%) @ 1,916
Very low turnover; Oban effect.
Tokyo Electron +VE post results, Gungho Online strong on share buyback, Ajinomoto +VE defensive.
Asics weak; post Olympic selling. Freee KK continued selling post earnings. Mazda announced; halting production at 2 plants due to heavy rain.
Government announced 1,373 new covid cases and that 44.9% of the population have had at least one jab. KakaoBank +14% ahead of earnings due after market.
Kospi re-opened lower tested higher but only to 3,180 level then trended lower through the morning with support at 3,135 level around 12:30 and then worked sideways to close -28pts (-0.9%) @ 3,143
Foreigners remain sellers, especially of Tech. Insurance and Healthcare +VE. Weakness in Battery plays after a fatal NIO ES8 crash and Tesla probe.
Kosdaq traded in a similar pattern; closed -30pts (-2.9%) @ 1,011
Taiex opened slightly lower and tested Monday’s closed but failed and then trended lower, some support around 16,800 but that failed around 11am and trended lower to close just off the day low @ 16,661. Light T/O continues. Index has broken below both the 60 DMA and 120 DMA key supports and prompting further technical selling. Foundry names +VE but Paper and Cement the laggards.
T/O was US$10.63 bn vs US$11.95bn Monday
CECC reported 18 new covid cases (14 imported)
Northbound RMB 61,493m Sell 30,452m vs 31,042m Buy
Southbound HK$ 19,003m Sell 10,654m vs 8,349m Buy
Northbound RMB 72,159m Sell 35,637m vs 36,552m Buy
Southbound HK$ 21,252m Sell 11,839m vs 9,413m Buy
BABA (09988.HK) Short selling $1.41B; Ratio 18.937% closed at $171.8, down 4.8%
TENCENT (00700.HK) Short selling $631.86M; Ratio 3.345% closed at $435, down 4.1%
MEITUAN (03690.HK) Short selling $513.19M; Ratio 10.566% closed at $213.6, down 3.5%
AIA (01299.HK) Short selling $556.09M; Ratio 13.266% closed at $96.95, up 3.1%
HKEX (00388.HK) Short selling $1.10B; Ratio 27.693% closed at $474.8, down 2.9%
PING AN (02318.HK) Short selling $607.34M; Ratio 25.151% closed at $67.25, down 1.8%
CCB (00939.HK) Short selling $425.75M; Ratio 27.877% closed at $5.64, unchanged
HSI & HSCEI Constituents on Move:
EVERG SERVICES (06666.HK) Short selling $7.57M; Ratio 2.470% closed at $6.42, down 8.7%
ENN ENERGY (02688.HK) Short selling $92.48M; Ratio 22.965% closed at $166.1, down 6.2%
WUXI BIO (02269.HK) Short selling $423.09M; Ratio 10.279% closed at $113.7, down 6%
BIDU-SW (09888.HK) Short selling $334.92M; Ratio 33.070% closed at $138.7, down 5.5%
NTES (09999.HK) Short selling $263.87M; Ratio 27.295% closed at $129.1, down 5.4%
JD (09618.HK) Short selling $340.38M; Ratio 17.144% closed at $250, down 5.2%
KUAISHOU-W (01024.HK) Short selling $213.51M; Ratio 16.142% closed at $71.15, down 4.7%
JD HEALTH (06618.HK) Short selling $207.45M; Ratio 54.093% closed at $70.8, down 4.6%
CG SERVICES (06098.HK) Short selling $40.43M; Ratio 5.267% closed at $58.5, down 4.6%
ANTA SPORTS (02020.HK) Short selling $96.81M; Ratio 6.677% closed at $162, down 4.5%
SANDS CHINA LTD (01928.HK) Short selling $49.20M; Ratio 10.511% closed at $24, down 4.4%
EVERGRANDE (03333.HK) Short selling $38.07M; Ratio 17.139% closed at $5.29, down 4.3%
PETROCHINA (00857.HK) Short selling $126.79M; Ratio 23.422% closed at $3.22, down 3.9%
HANSOH PHARMA (03692.HK) Short selling $25.75M; Ratio 32.178% closed at $24.75, down 3.7%
GEELY AUTO (00175.HK) Short selling $405.69M; Ratio 13.201% closed at $25.6, down 3.6%
HAIDILAO (06862.HK) Short selling $113.74M; Ratio 39.357% closed at $29.95, down 3.2%
GALAXY ENT (00027.HK) Short selling $104.72M; Ratio 23.092% closed at $47.6, down 3.2%
TECHTRONIC IND (00669.HK) Short selling $276.48M; Ratio 14.227% closed at $172.8, up 0.5%, hitting new high
HSMI & HSSI Constituents on Move:
DONGYUE GROUP (00189.HK) Short selling $164.52M; Ratio 11.479% closed at $16.1, down 13.8%
CHINASOFT INT'L (00354.HK) Short selling $41.60M; Ratio 5.498% closed at $14.08, down 12.1%
NH HEALTH (06606.HK) Short selling $13.76M; Ratio 33.474% closed at $49.85, down 11.1%
CHINA LIT (00772.HK) Short selling $333.24M; Ratio 47.055% closed at $64.65, down 10.6%
CIMC ENRIC (03899.HK) Short selling $25.52M; Ratio 9.609% closed at $11, up 1.3%, hitting new high
RESULTS at lunchtime
CHINA STATE CON(03311.HK) announced interim result ended June 2021. The revenue rose 29.9% year on year to HK$36.371 billion. The net profit amounted to HK$3.5 billion, up 20.8% year on year. EPS was HK69.42 cents. An interim dividend of HK20 cents was declared against a dividend of HK17 cents in the corresponding period of the previous year.
CHINA OVS PPT(02669.HK) Short selling $2.30M; Ratio 33.701% announced interim result ended June 2021. The revenue rose 50.7% year on year to HK$4.296 billion. The net profit amounted to HK$393 million, up 40.4% year on year. EPS was HK11.96 cents. An interim dividend of HK3 cents was declared, against a dividend of HK2.2 cents in the year-ago period.
MARKET HOURS NEWS
Hengda Real Estate Group made changes on its business registration today (17th), according to the online business source. The Group's Chairman name was changed from Hui Ka Yan to Zhao Changlong, whereas the general manager and legal person also changed from Ke Peng to Zhao Changlong. The above shakeups are normal after the termination of A-share comeback of EVERGRANDE (03333.HK) through the blank-check SPG (000029.SZ) , EVERGRANDE was quoted as saying by 21st Century Business Herald, and do not involve changes in specific management structure and equity.
AIA (01299.HK) achieved a 16% growth in value of new business (VONB) for its domestic customer segment in the first half of 2021, expressed Jacky Chan, regional chief executive at the company. Although there is less sales from mainland tourists since the border has not been reopened, mainland tourists have been to Macau for insurance purchase with the Macau border having resumed before, Chan said. The related businesses make up about one-third of Macau's business. Chan contended that he believes Chinese clients will return to Hong Kong after the border reopened and that the company has been undergoing various preparation works to meet the projected demand from the Chinese visitors once the travel resumes.
The Centre for Health Protection (CHP) received a report on a initially confirmed Covid case yesterday (16th), involving a 47-year-old female who worked at Cathay Pacific lounge of Hong Kong International Airport. With her specimen tested L452R (Delta) mutant strain, the patient has not been inoculated with any vaccine. Since her infection source remains unknown, the CHP and Hospital Authority will host a press conference to illustrate on her case this afternoon (17th), local media cited sources.
Chinese automobile companies have achieved another new record peak in auto exports in July 2021, with NEV accounting for 31.5% of the total automobile exports, according to data from China Association of Automobile Manufacturers (CAAM).
SUNNY OPTICAL (02382.HK) Short selling $492.09M; Ratio 22.814% ’s For the six months ended 30 June 2021, the shipment volume of handset lens sets, vehicle lens sets and handset camera modules, increased by approximately 11.1%, 82.0% and 34.5% respectively compared to the corresponding period of last year, expressed the company's CEO Sun Yang. Sun added that the full-year growth guidance for handset lens sets, vehicle lens sets and handset camera modules have been set at around 5-10%/ 30-35%/ 20-25% respectively.
Chinese media previously reported that TENCENT (00700.HK) Short selling $343.00M; Ratio 3.631% is mulling to launch a touchless payment method on WeChat -- "palm-scanning payment", and is currently running internal tests. In response to relevant reports, TENCENT expressed that the company has not yet started the internal testing process on the new feature and has no plan for application at the moment, reported Sina Tech.
The China Association of Automobile Manufacturers (CAAM) is soliciting opinions on the group standard for building shared battery-swap stations for electric PVs. The Association also suggests co-sharing battery-swap platforms as well as battery replacement devices going ahead.
U.S. Securities and Exchange Commission Chair Gary Gensler issued a warning in respect of the potential risks involved in investing in Chinese companies. Gensler remarked that as U.S. investors possess only insufficient amount of information about certain U.S.-listed Chinese companies, the SEC has demanded to halt temporarily the applications of IPOs of shell companies that Chinese firms use to list shares in the U.S., requiring relevant companies to provide additional disclosure regarding the company's structure.
In view of the Expert Committee's advices and external epidemic development, Chief Executive Carrie Lam said the Government will later today make announcement on tightened policy on quarantine period for people returning to Hong Kong from foreign places. Under which, quarantine period will not be shortened based on positive antibody, whilst such period will not be less than 14 days.
China's State Administration for Market Regulation (SAMR) has opened public consultation on the Regulations of the Prohibition of Unfair Competition on the Internet, Chinese media reported.
The consultation tabled that internet operators should not hinder or disrupt the normal operation of network products or services legally provided by other operators through hijacking, interference and malicious incompatibility, leveraging data, algorithms and other technical means to affect users' choices.
Tencent Music Entertainment Group (TME.US) would fully accept Chinese regulators' policy, Executive Chairman Cussion Kar Shun Pang was quoted as saying. While a significant online subscription impact from copyright rules seemed unlikely, he believed China's watchdog would be willing to promote the health development of the music industry.
Provisions on banning "big data swindling" have been introduced to the draft Personal Information Protection Law, which will be submitted to the Standing Committee of the National People's Congress (NPCSC) for third reading today, reported Xinhua News Agency.
It is stipulated that there shall be no differential treatments when personal information handlers carry out automated decision-making using the information.
TENCENT (00700.HK)'s "PUBG Mobile" became the top mobile game in July with the highest download volume, mainly on the back of the relaunched "Battlegrounds Mobile India" in India which tracked
outstanding download performance, according to a report published by Sensor Tower. "Count Masters" trailed behind in second place, generating 24.4 million downloads in July.
PRE MARKET NEWS
Public Security Police Force of Macau revealed last night that, on Sunday (15 August), the number of inbound visitors amounted to approximately 9,000, down 42.4% compared to the previous day. The number of outbound visitors likewise dropped 41% and amounted to around 8,900.
Tencent Music Entertainment Group (TME.US) 's profit recorded over 2Q slumped 12% to RMB827 million. Diluted earnings per ADS was RMB0.66, higher than the estimate of RMB0.62. Total revenues were RMB8.01 billion, up 15.5%, shy of the estimate of RMB8.13 billion.
The company's online music paying users reached 66.2 million over the period, increasing by 41%.
(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
CKH HOLDINGS (00001.HK) announced that the company has agreed with Ooredoo Q.P.S.C. (“Ooredoo”) to extend the period to pursue negotiations on a potential transaction to combine PT Hutchison 3 Indonesia, a subsidiary of the company, and PT Indosat TBK, a subsidiary of Ooredoo, on an exclusive basis until midnight, Hong Kong time, on 23 September 2021, which will be the final such extension.
The parties continue to progress their discussions, but additional time is needed to finalise definitive documents and, once finalised, to seek their respective internal corporate approvals. Pending and subject to finalisation of definitive agreements and the required corporate approvals, no decision has been taken to proceed with any transaction.
The Centre for Health Protection of the Department of Health yesterday (August 16) said that it is investigating a preliminary positive local case of COVID-19 from an unknown source involving the L452R mutant strain. The case involves a 47-year-old female patient who lives at Mei Yat House in Yat Tung Estate in Tung Chung, and who worked as an airline lounge staff member at Hong Kong International Airport.
The government has made restriction-testing declaration for Mei Yat House last night. As of 2 am today, 1,609 residents have been tested and no confirmed cases has been found.
The Chinese government has secured a stake and a board seat in Beijing ByteDance Technology, the key Chinese subsidiary of ByteDance, The Information citing insiders. Tianyancha data showed that Beijing ByteDance Technology had sold a 1% stake to Wang Tou Zhong Wen (Beijing) Technology, which is held by three SOEs, on April 30.
AIA (01299.HK) unveiled the interim results for the six months ended 30 June 2021. Value of new business (VONB) of US$1.814 billion was up by 22% compared to the first half of 2020 on a constant exchange rate (CER). On an actual exchange rates (AER), the VONB rose 29% yearly. According to brokers' forecast as compiled by our reporters earlier, the VONB may range US$1.669-1.757 billion on AER. IFRS net profit increased by 47.7% to US$3.245 billion compared with the first half of 2020. EPS was US$0.27. Interim dividend increased by 8.6% to HK38 cents per share.
STANCHART (02888.HK) announced yesterday (16th) that it has repurchased 1.2866 million shares at a weighted average price of GBX459.0775 per share, involving GBP5.9067 million.
Sinopharm Wuhan Institute of Biological Products Co., Ltd. expressed that its R&D team has tracked outstanding progress in developing vaccine targeted the Delta variant, using the technological platform of inactivated vaccine, reported Yangtze River Daily.
China's Minister of Foreign Affairs Wang Yi spoke with the U.S. Secretary of State Antony Blinken on phone upon invitation yesterday, mainly focusing on the situation in Afghanistan and exchanging opinions on Sino-US relations, reported Xinhua News Agency. On one hand, Wang suggested China and the U.S. should coordinate and collaborate with each other amid endless global challenges and pressing regional hotspot issues. On the other hand, Blinken hoped both sides could gradually overcome their notable differences in a constructive way going ahead.
A-LIVING (03319.HK) unveiled the results for the six months ended 30 June 2021. The net profit amounted to RMB1.142 billion, up 50.7% YoY. EPS was 85 fen. No interim dividend was declared.
LINGBAO GOLD (03330.HK) announced the interim results for the six months ended 30 June 2021. The revenue slumped 13.7% YoY to RMB2.214 billion. Net profit amounted to RMB51.59 million, up 82.8%.
was RMB6 cents. No interim dividend was declared.
MODERN LAND (01107.HK) announced the interim results for the six months ended 30 June 2021. Net profit was RMB448 million, up 12.4% yearly. EPS equaled 16 fen. Interim DPS was HK4.81 cents.
PING AN (02318.HK) Short selling $227.07M; Ratio 22.008% announced that the accumulated gross premium incomes of the four subsidiaries of the Company for the first seven months of 2021 was RMB477.536 billion, down 5.2% year-on-year.
CKH HOLDINGS (00001.HK)’s statement disclosed that on August 16, the company repurchased its 300,000 shares on the Stock Exchange at a price ranging $57.5-58.1 per share, involving a total of approximately $17.35 million. Year to date, CKH HOLDINGS has repurchased a total of 11.582 million shares, accounting for 0.3003% of the company's share capital.
SUNNY OPTICAL (02382.HK) Short selling $492.09M; Ratio 22.814% announced the interim results for the six months ended 30 June 2021. The revenue amounted to RMB19.833 billion, up 5.1% YoY. The net profit for the period surged 53.7% to RMB2.688 billion. EPS was RMB245.92 cents. No interim dividend was declared.