HK/CHINA WRAP Markets close lower on US relations and delta covid concerns.

This and previous notes can be found at asianmarketsense.com   and Substack ( Asian Market Sense )
Check out ERI-C.com for interesting research and trading analysis

HSI -274pts (-0.9%) 28,994 HSCEI -106pts (-1%) 10,757 T/O HK$146.12bn (+43.8% DoD but Monday was only half day trading also futures expiry today) 

Europe
Data
Eurozone
Consumer Confidence Jun -3.3 vs -5.1 May (F/cast was -3.3)
Economic Sentiment Jun 117.9 vs 114.5 May (F/cast was 115.9)
Industrial Sentiment Jun 12.7 vs 11.5 May (F/cast was 11.9)
Services Sentiment Jun 17.9 vs 11.3 May (F/cast was 14.5)
Consumer Inflation Expectations Jun 27.1 vs 22.2 May (F/cast was 21.5)
Germany 
Due
Inflation Rate Prelim Jun vs May (F/cast was )
France 
Consumer Confidence  Jun 102 vs 98 May revised (F/cast was 99)
UK 
Nationwide Housing Prices Jun +13.4% YoY vs +10.9% May (F/cast was +13.3%)
Nationwide Housing Prices Jun +0.7% MoM vs +1.7% May revised (F/cast was +1%)
Car Production May 934.3% vs 34,573% Apr (F/cast was 1500%)
Mortgage Approvals May 87.5k vs 86.9k Apr (F/cast was 82k)
Mortgage Lending May £6.6B vs £3B Apr revised (F/cast was £3.4B)
BoE Consumer Credit May £0.28B vs £-0.23B Apr (F/cast was £0.2B)
Net Lending to Individuals  May £6.9B vs £2.8B Apr revised (F/cast was £3B)
US Futures 
Opened Dow and S&P flat, NDX -0.1%
AHEAD
Redbook, Case-Shiller Home Price, House Price Index, Consumer Confidence, NY Fed Treasuries TIPS Purchases, API Crude Oil Stock Change.
  

CHINA
 CSI 300 closed -61pts (-1.2%) @ 5,191
CSI 300 opened lower (5,249) and sold down to 5,180 over the morning. PM bounced to 5,206 before trending lower through the afternoon.
Sentiment weak on fears about the Delta covid varient impact on Asia. News that the US House had passed a couple of anti China bills hurt sentiment.

Shanghai Composite -33pts (-0.9%) @ 3,574
Shenzhen Composite -150pts (-1%) @ 15,000
ChiNext Composite Index -13pts (-0.4%) @ 3,478

CHINA DATA
S&P Global ramped up this year's economic forecast of China from 8% to 8.3% while lowering that of some major Asian economies, including India, The Philippines and Malaysia.

S&P Global expressed that one of the most substantial economic risks the emerging economies are facing is the slow progress of vaccination programs as S&P believes the pandemic will only subside once the vaccination rate reaches a level consistent with herd immunity. The other major risk, it contended, is the robust
inflation rate in the U.S. which may prompt the Fed to tighten the monetary policy earlier and subsequently push up the dollar and render USD-denominated debts more costly.
Tomorrow pre market we get PMI data


HONG KONG

HSI  Pre market opened 29,292 + 23pts vs +93pts ADR’s Auto and E commerce +VE Li Ning weak after its strong rally Monday. Market trended lower through the morning to 29,043 at lunch.
PM opened lower and tested 29,000 for about 30 minutes and then ticked up to 29,020 but then trended lower first back to 29,000 and then sold down to 28,925 before rebounding to 29,020 level and trended lower into the close.
Sentiment impacted by covid concerns in the regions. Generally E-Commerce and Energy seeing buying interest. Weakness in Consumer, Shippers (Cosco shareholder dumping shares) and Property.

HONG KONG DATA
The Centre for Health Protection (CHP) reported 1 new imported cases today (29th). (
vs 3 imported Monday) . 

Short Selling Tuesday 15.4% vs 16.0% Monday 
Top Shorts 
Bank of China (3988) 35%, Hengan (1044) 35%, Country Garden (2007) 32%, AIA (1299) 30%, Ping An (2318) 30%, Petrochina (857) 29%, CK Asset (1113) 28%, Wuxi Bio (2269) 24%

AFTER MARKET NEWS

HUTCHMED (00013.HK), which is scheduled to be listed tomorrow, opened high at $49 in the gray market, up 22%; last posted $49.7, 24% higher against its listing price of $40.1, on a volume of 430,000 shares, PhillipMart data showed.

NAYUKI (02150.HK), whose shares will be listed tomorrow, opened at $21.6 in gray market, up 9.1% against the listing price of $19.8, and last stood at $20.2, up 2% against the listing price, on volume of 1.07 million shares, PhillipMart data showed.

A consortium led by BABA-SW (09988.HK) and the Jiangsu Provincial People's Government is nearing a deal to acquire a stake in Suning's retail arm Suning.com (002024.SZ),
likely relieving liquidity tightness resulted from Suning's links to EVERGRANDE (03333.HK) Bloomberg citing sources. Following the deal, Suning Holdings Group's co-founder and chairman Zhang Jindong will lose control over Suning.com, said the people.

PUBLIC FIN HOLD (00626.HK) announced that it declared
an interim dividend of HK$0.05 per share.

Secretary for Development Michael Wong announced the Land Sale Programme for fiscal second quarter (July to September 2021).
The Government will roll out two residential sites by way of tender, one at the junction of Lau Yip Street and Chung Yip Road in Yuen Long, and the other at 79 Broadcast Drive in Kowloon Tong. The sites shall offer roughly 200 flats in combination. Hong Kong housing market continues to see heated activities with the home prices poised to reach new highs. He said that the government will continue to launch new land to contain the surge of the property price. Wong added that the private property flats supply reached 7,050 units in the first half of this financial year, fulfilling already half of the full-year target; he therefore remains optimistic for achieving the full-year goal of 12,900 units.

AIA (01299.HK) announced that it has agreed to invest RMB12.033 billion through its wholly-owned subsidiary, for a 24.99% equity stake, post investment, in China Post Life Insurance Co., Ltd, a subsidiary of China Post Group Co., Ltd.
The investment will be financed on an all-cash basis from internal resources. The group’s operation of AIA Life Insurance Company Limited (“AIA China”), its wholly-owned life insurer in China, will remain entirely independent of this investment.

FAIRWOOD HOLD (00052.HK) posted an operating loss last year under business impact from the pandemic and gathering ban, said CEO Francis Lo at a press conference. However,
Lo was optimistic about the fast food chain's performance this year without concerns over further losses, citing business improvement between April and June 2021. It will cope with raw material cost hike by enhancing operating efficiency, as the group did not want to pass the buck back to consumers.
CEO Francis Lo expressed during a press conference that the company is actively mulling store opening in both China and Hong Kong. He stated that the company intends to open 12-13 stores in Hong Kong, covering both business and residential areas. As for China, Lo contended that the company targets 20 stores in GBA by the end of the year and 30 stores by the end of 2022, with new stores potentially featuring take-away service.

BYD COMPANY (01211.HK) announced that it has secured 12-meter electric bus orders from public transport operators (PTOs) in Spain and Portugal.
The carmaker plans to deliver the e-buses by the end of year.

The issuance amount of the new batch of silver bonds is raised to $24 billion, and may be lifted further to $30 billion at maximum as appropriate, the HKMA announced.
The tenor is three years with an entry fee of $10,000 per board lot. The floating rate is linked with inflation whereas the fixed rate is the guaranteed rate of return of 3.5%. Interest is payable every six months. The eligible age for subscribing the bonds is lowered to 60 from 65. The subscription period will be 20-30 July, and the bonds will be issued on 10 August. The allotment cap for each investor is $1 million, which is a maximum of 100 lots.

The package two of The Southside atop Wong Chuk Hang station, co-developed by KERRY PPT (00683.HK), SINO LAND (00083.HK) and MTR CORPORATION (00066.HK), was named "La Marina".
The residential project will be divided into two towers, offering a total of 600 units. The material date would be in August 2023.

AlipayHK announced to set up a consumption voucher experience hall in Olympian City with its strategic partner Sino Group, aiming to introduce the shopping experience of AlipayHK and its major spending aspects to the general public.
AlipayHK expressed that it covers over 100,000 merchants at the moment; with the extra rewards, it hopes to stimulate the spending appetite of the public and foster sustainable local consumption.

PETROCHINA (00857.HK) (601857.SH)'s owner CNPC will prioritize and depend on technology when it comes to business development, stressed CNPC Chairman Dai Houliang at a leading group meeting. In addition, the group will keep beefing up efforts in tackling tech problems concerning new energy and new materials.

MARKET SECTORS.
*COMMODITIES WEAK. Crude futures fell ahead of Thursday’s OPEC+ with expectation they will boost production in August. Plus raised concerns that the covid delta could hurt global demand SINOPEC (386 HK -4%) PETROCHINA (857 HK -4.1%).
BASE METALS WEAK on fears of a slowdown in recovery pace due to a new round of virus outbreak and further Chinese action to talk down prices. CHALCO (2600 HK -4.3%) JIANGXI COPPER (358 HK -2%) ZHAOJIN (1818 HK -3%).
*HK PROPERTY WEAK Despite good local demand; local sentiment turned cautious. CH OVERSEAS LAND offers 106 additional units in its residential project One Victoria in Hong Kong’s Kai Tak area, at an average price of HK$24,302 per sq. foot, 5.8% higher than the previous batch. The sale is expected to start this weekend; it’s reportedly 16x oversubscribed.
CK ASSET (1113 HK +0.4%) HENDERSON (12 HK -1.5%) SHKP (16 HK -1%).
SINO LAND (83 HK -1.9%) announced yesterday it will invest S$339m (HK$1.99b) to acquire a 40.33% stake in Hua Qing Holdings, which holds the Shanghai HQREM and the underlying property after GIC Private withdrew investment.
*PHARMA WEAK after WUXI APPTECH (2359 HK -1.9%) announced to sell 23m JW THERAPEUTICS (2126 HK -13%) shares at HK$28.50 each, an 8.1% discount to Monday’s close of HK$31. FRONTAGE (1521 HK -2%) WUXI BIO (2269 HK -1.4%) PHARMARON (3759 HK -1.6%) VIVA BIO (1873 HK -2.8%).
*AUTOS WEAK as HUAWEI reiterated that the company has no intention to become a shareholder or investor of any automobile companies and that such decision is made after careful consideration. GEELY's (175 HK -1%) recent Shanghai listing withdraw is seen to delay its EV expansion. GREATWALL (2333 HK -2.3%), EVERGRANDE EV (708 HK -1.2%) GAC (2238 HK -1.3%) BYD (1211 HK +0.7%).
*CONSUMER BRANDS MIXED after L'OCCITANE (973 HK +3%) announced their annual net profit by end-March rose nearly 33% to 154.58m euros, driven by online sales. It declared a final dividend of 0.03687 euros/shr, rising by 65.5% YoY and suggesting a payout ratio of 35%.
Japanese golfing equipment company HONMA (6858 HK +6.1%) posted an annual net profit that ended March of 1.86b yen, compared to a loss of 732.41m yen for the prior year.
*HOTPOT CHAINS FIRM as valuations turned attractive. HAIDILAO (6862 HK +9.6%) YIHAI INTL (1579 HK +5.5%) XIABUXAIBU (520 HK +4.5%).
*OTHER MOVERS:
HK will ban passenger flightsfrom the U.K. starting Thursday, labeling the region "extremely high risk", right after CATHAY PAC (293 HK -1.8%) forecasts reduced monthly cash burn in H2.
CHINA GAS (384 HK -6.3%) Net profit to end March +14% YoY to HK$10.48b.
HSBC (5 HK -1.5%) traded on Reuters report that some large SOEs are reportedly blacklisting the bank as the central govt is disappointed with HSBC's actions in Hong Kong and the Huawei incident. HSBC has also lost about 33% of its bond team as a result. -VE

Regional Markets
Australia
Market opened lower, with futures -VE on covid lockdowns, a number of REIT’s going Ex Div and miners weak. Initially support at 7,260 before trending down to 7,240 around noon but then worked better through the afternoon after NSW announced financial support measures.  Kathmandu -4.1% warned it would not reach its predicted full-year sales and profit forecasts due to the NSW and WA lockdowns
Closed -6pts (-0.08%) @ 7,301
Tomorrow we get RBA Gov Lowe speaking in the morning and Private sector credit data later.
Japan
Pre market unemployment was worse than expected although the jobs ratio was unchanged. Then Retail sales data was not as bad as expected. 
Nikkei opened lower at 28,927 but dropped to 28,900 level and traded sideways lower but ticked up at the end to close -235pts (-0.8%) @ 28,813
Topix opened lower traded around 1,950 in the morning session PM dipped to traded around 1,945 level and closed -16pts (-0.8%) @ 1,950 
Data out pre market 
Unemployment May +3% vs +2.8% Apr (F/cast was +2.8%)
Jobs/Applications Ratio May 1.09 vs 1.09 Apr (F/cast was 1.09)
Retail Sales May +8.2% YoY vs +11.9% Apr revised from +12% (F/cast was +8%)
Retail Sales May -0.4% MoM vs -4.6% Apr revised from -4.5% (F/cast was +1.9%)
Tomorrow we get Industrial Production
S Korea
Trading volumes were moderate US$12.6bn, Foreigners and Institutions net sellers. Retail buyers. Laggards Steel, Financials, Auto and Tech on Delta covid virus concerns
Kospi opened higher but dipped to 3,290 level in the first 30 mins and then traded around that level bfore trended lower to 3,280 around 2pm and traded sideways currently -17pts (+0.5%) @ 3,285 Kosdaq opened higher at 1,020 and worked higher to 1,026 around midday. Around 12:35pm it sold down to the opening level before rebounding; currently +4pts (+0.4%) @ 1,022
KDCA announced 595 new covid cases to midnight Monday (+94 DoD)
Tomorrow we get Industrial & Manufacturing Production, Retail Sales, Construction Output.
Taiwan
Taiex opened higher and rallied to 17,713 in early trades before reversing into the red at 17,579 then bounced to 17,650 then trended lower to 17,500 around 11:45am before rebounding to the morning highs before easing back to close +7pts (+0.04%) @ 17,598 T/O was US$21.18bn vs US$15.8b Monday.
CECC reported 54 new covid cases, all domestic, another monthly low.
After market another 4.9 earthquake hit this time Northeastern Taiwan
 

CONNECT FLOWS 
(Northbound connect will be closed Wednesday and Southbound closed Thursday when HK closed). 
Shanghai
Northbound Rmb 48,929m Sell 25,827m vs 23,102m Buy 
Southbound HK$ 16,756m  Sell 9,105m vs 7,651m Buy
Shenzhen
Northbound Rmb 59,782m Sell 30,098m vs 29,684m Buy 
Southbound HK$ 18,869m Sell 9,206m vs 9,663m Buy

Active Heavyweights
PING AN (02318.HK) -1.6%
MEITUAN (03690.HK) -1.5%
BABA (09988.HK) -1.2%
HKEX (00388.HK) -1.1%
TENCENT (00700.HK) -0.8%
CCB (00939.HK) -0.8%
AIA (01299.HK) -0.1%

HSI & HSCEI Constituents on Move:
HAIDILAO (06862.HK) +8.7%
XINYI SOLAR (00968.HK) +5.7%
CHINA GAS HOLD (00384.HK) -5.5%
SINOPEC CORP (00386.HK) -4.6%
PETROCHINA (00857.HK) -4.1%
CG SERVICES (06098.HK) +3.8%, hitting new high
NTES (09999.HK) +3.7%
CHINA RES BEER (00291.HK) -3.1%

HSMI & HSSI Constituents on Move:
STELLA HOLDINGS (01836.HK) +14.7%, hitting new high
JW THERAP-B (02126.HK) -13.9%
CHINA EAST EDU (00667.HK) -12.4%
CGN NEW ENERGY (01811.HK) +9.2%, hitting new high
SHIMAO SERVICES (00873.HK) +5.1%, hitting new high
SUNAC SERVICES (01516.HK) +3.6%, hitting new high

MARKET HOURS NEWS
.

CLP HOLDINGS (00002.HK) announced the launch of the CLP Retro-Commissioning Charter Programme, inviting business customers to take part in training funded by HK$1 million from the CLP Community Energy Saving Fund to improve the energy efficiency of buildings and help Hong Kong become a low-carbon smart city in the long run.

Deutsche Bank's CIO reported to maintain this year's 8.7%
GDP growth forecast for China,
believing the Chinese economy will be supported by the steady growth on exports and the reviving consumption, while axing India's GDP forecast for 2021 from 11% to 10%. The bank contended that, in coming 12 months, the return rates of Asian stock markets, except Japan, are expected to outperform those of the markets of developed regions. In particular, Deutsche Bank favors the Chinese and South Korean stock markets and deemed that the recent correction in the Chinese stocks provides an optimal window for long-term investors to purchase.

Douyin's official account announced to focus on tackling the improper behavior of wooing underage users to top-up and tipping effective today and to further enhance the punishment for such behavior, so as to protect the rights of minors, reported Chinese media. For users violating said rules, Douyin will designate punishment accordingly; and depending on the seriousness of the violation, some users could face a permeant ban on their accounts.

HSBC HOLDINGS (00005.HK) has lost a third of the employees in the team in charge of the Chinese state-owned enterprises debt capital market and the latest departures came from John Hai and Jiang Song, two managing directors who covered clients of Chinese investment-grade issuers including SOEs, reported Bloomberg. HSBC, the report stated, has been gradually losing out on the USD bond deals with its SOE clients ever since it became entangled in the lawsuit of Huawei's Deputy Chair Meng Wanzhou in late 2018.

EVERGRANDE (03333.HK) announced to have reduced its interest-bearing indebtedness from last year's peak of about RMB870 bn to about RMB570 bn at the moment, successfully fulfilling the company's Chairman Hui Ka Yan's previous promise of cutting the total amount of debt to below RMB600 billion by the end of June.

Savills published the latest report on Hong Kong Offices. Grade A office rents dropped 2.6% QoQ in 2Q21, slimmer than the 3.5% slide as marked in 1Q21, given loosening market sentiment during the quarter, office downsizing and less abandoned leases. In the quarter, rents in Central, Wan Chai/ Causeway Bay and Hong Kong Island East fell by 2.8%, 3% and 2.6% respectively. The overall rents on Hong Kong Island shed 2.8% QoQ, the lightest quarterly decline since 1Q20. Meanwhile, Kowloon rents inched down 2.4% during the quarter. The report furthered the overall office vacancy rate continued to rise to 9.3% with vacant floor area of 5.7 million square feet, mainly driven by the supply increase from Hong Kong Island.

FAIRWOOD HOLD (00052.HK) announced annual result ended March 2021. The revenue declined 12.7% year on year to HK$2.646 billion. The net profit amounted to HK$154 million, up 152.4% yearly. EPS was HK118.59 cents. A final dividend of HK60 cents was declared, against HK50 cents in the year-ago period

BABA-SW (09988.HK)'s Ali Cloud will partner with the Chinese financial data platform JINGDATA to launch "cloud financing" services.
The new service will utilize the exclusive investor resources from the series of companies of BABA-SW and JINGDATA's edges on big data and professional services in investment and financing, to help small-mid, and micro scaled businesses to achieve efficient financing by enabling them to connect with a vast amount of investors in a short period of time.

TRIP.COM-S (09961.HK) announced to have formed a strategic alliance with JINMAO Hotel under CHINA JINMAO (00817.HK) which would entail partnering on brand marketing and membership collaboration. TRIP.COM-S expressed that the membership systems between the company and JINMAO Hotels will be open to each other, realizing an enlarged user base and richer resources of product and service for both parties.


Jidu Auto, an EV venture between Geely Group and BIDU-SW (09888.HK), has recently hired former Cadillac executive Frank Wu to lead Jidu's design studio, reported Chinese media. Wu had worked for General Motors' Cadillac brand for seven years, being the force behind the Cadillac CT6 model and the Escala concept car.

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), announced to the Executive Board her proposal to appoint Bo Li as Deputy Managing Director, effective August 23, 2021. He will succeed Tao Zhang, who steps down on August 22. Li is currently Deputy Governor of the People's Bank of China (PBOC).

Hainan Jimu Venture Capital and Hangxin Venture Capital were established on 28 June, each with a registered capital of RMB1 billion, reported Chinese media. The above companies are wholly-owned by XIAOMI-W (01810.HK), according to shareholders' information.

Overnight HIBOR last posted at 0.04446%, according to HKAB. Meanwhile, the 1-Month HIBOR related to mortgage rate last stood at 0.10042%, marking a 1-month high.

Director of Macau Government Tourist Office, Maria Helena de Senna Fernandes, expressed her wish for the COVID-19 outbreak in Guangdong to be under control while remaining optimistic on the recovery of the visitor figures during Summer holiday, believing it to be able to return to the level in April and May.
She added that the annual visitor number is projected to be approximately 7-8 million.

Qualcomm (QCOM.US) expressed that the company is expecting to work with over 40 telecommunication operators and equipment suppliers, which have agreed to use a faster variant of 5G technology developed by Qualcomm.
Qualcomm named technology as "millimeter wave" which uses a higher frequency than normal 5G networks. Participating vendors include China Unicom and Deutsche Telekom.

The U.S. Commerce Secretary Gina Raimondo expressed during a Reuters interview, that she wishes the Congress to grant the USD52 billion funding on chip R&D and production before going into recess in August. Raimondo added that the leaders of both Senate and the House of Representatives do not seem to be differing too much on the chip funding, and stated that she plans to discuss the means of fundraising with House Speaker Nancy Pelosi soon.

Several major Chinese corporates have listed internal guidance, forbidding them from applying loans from HSBC HOLDINGS (00005.HK), including China Baowu Steel Group, which issued a black list of 60 banks which are deemed as high-risk, reported Reuters. Reuters' research has also found that 9 state-owned enterprises have completely severed or cut back their partnership linkage with HSBC, among which is China Energy Engineering Group Co., Ltd, whose international projects were once guaranteed by HSBC.

PRE MARKET HOURS NEWS

23 million shares of JW THERAP-B (02126.HK) were dumped by the firm's major shareholder WUXI APPTEC (02359.HK) at a placing price of $28.5-29.15, representing a 6%-8.1% discount
to JW THERAP-B's closing price yesterday (i.e. $31), Bloomberg citing sales document. WUXI APPTEC cashed in as much as $670 million in the deal.

CHAOJU EYE CARE (02219.HK)'s international placing reported over-subscription of multiple times,
market sources said. It introduced investors including long-term funds, sovereign funds and health industry funds.

Macau officials have stated that the scheme to reopen the border between Macau and Hong Kong for vaccinated persons is flexible for adjustment as they continued to monitor closely the two recent confirmed cases with the same source in Hong Kong, indicating that the measures could potentially be carried out even if Hong Kong did not record no local cases for 28 days straight, reported Macao Daily. The officials added that the primary consideration for them is whether there is any local community cases which might lead to another wave of community outbreak.

Huachen Automotive Group has been in touch with several prospective investors since entering bankruptcy restructuring, as Chinese media learnt from insiders. The Group may complete bankruptcy restructuring in September 2021 should things run smoothly.
On another note, Shen Tiedong has been appointed as the Group's Chairman, replacing Yan Bingzhe according to WeChat sources.

HKMA's Exchange Fund Investment Office appointed Francis Chu, currently the office's Chief Operating Officer, to serve as Deputy Chief Executive with effect from Thursday (1 July),
Bloomberg citing HKMA's internal filings. Albert Goh, the office's Deputy Chief Investment Officer (Public Markets) and Head of External Managers, will be promoted to be Chief Investment Officer of External Managers.

NAYUKI (02150.HK)'s Hong Kong public offering was over-subscribed by 431.03 times.
The company fixed its offer price at $19.8, being the upper limit of the offer price range $17.2-19.8. One-lot (500 shares) success rate was 8%. The share was expected to be listed tomorrow (30 June).

Officials from the Federal Reserve remained strongly skeptical about issuing a central bank digital currency,
as the majority of USD transaction is already digitalized. Vice chairman of the Fed, Randal Quarles expressed that, a digital currency for the central bank will warrant extensive critical analysis and that the virtual currency will have to fulfil a demanding standard and prove to have immense potential advantages that outweigh the risks for it to be considered. What they are missing is that if China launches its one and distributes the architecture to other countries that is a way to reduce the use of the USD in Asia and which is a stated aim of the Chinese.

ZPMC (600320.SH) announced that it intended to grasp the opportunity to unload no more than 55.6111 million shares of COSCO SHIP HOLD (01919.HK) (601919.SH) through call auction, block trading or other means.

Macau's Novel Coronavirus Response and Coordination Centre held a press conference yesterday.
Asked about convenient steps to reopen the Guangdong-Hong Kong-Macau borders, Tai Wa Hou, Medical Director of Conde S. Januario Hospital, said Guangdong and Macau have begun talks on whether the NAT result validity of vaccinated persons should be extended in view of an easing epidemic in Guangzhou. Both sides have reached a preliminary consensus to appropriately extend the NAT report validity of those receiving at least one dose of Covid vaccine.

The Stock Exchange of Hong Kong Limited under HKEX (00388.HK) announced that Financial Reporting Council (FRC) Transaction Levy is calculated at 0.00015% per side of the consideration of a transaction with effect from 1 January 2022.
The Levy is applicable to all sale and purchase of securities (admitted to trading, listed, or approved to be listed on the Exchange) recorded on the Exchange or notified to the Exchange. There is no FRC Transaction Levy on securities market making transactions, sales and purchases of China Connect Securities through the use of the China Connect Service by a China Connect Exchange Participant, or stock option transactions.

The results of 5th Centralized Drug Procurement has been announced and did not differ greatly from the tentative results announced on 23 June, reported Chinese media.
61 types of drug products have been picked, involving 251 products from 148 different companies, with a 56% average price drop on all the tentatively selected drug products.

CATL (300750.SZ) announced that it had clinched a deal with Tesla,
agreeing that it would supply lithium-ion power battery products to the latter between January 2022 and December 2025.

Rumor has it that BANK OF CHINA (03988.HK) (601988.SH) suspended part of its second-hand home loan business in Guangzhou,
and fully shelved the first-hand and second-hand home loan operations in Foshan. Bank of China's Guangdong Branch replied the news was inaccurate, cited by Securities Times.