This and previous notes can be found at asianmarketsense.com
Check out ERI-C.com for interesting research and trading analysis
HSI -1,130pts (-4.1%) 26,192 HSCEI -484pts (-4.9%) 9,355 T/O HK$268.24bn (+192% DoD)
Markets opened lower following the sell-off in much of Asia, with German Ifo data missing expectations and ahead of earnings. Auto’s weak but Resources firm. Covid cases remain a concern
Earnings out from Ryanair +3.7%, Philips +3.2% and Faurecia -4.4% warned semiconductor shortages could hurt production.
Prosus -9.6% on China’s new measures against social media and gaming titan Tencent.
Credit Suisse has agreed an out-of-court settlement with former wealth management boss Iqbal Khan over the spying scandal that led to the resignation of former CEO Tidjane Thiam.
Ifo Business Climate Jul 100.8 vs 101.7 Jun revised (F/cast was 102.5)
Ifo Current ConditionsJul 100.4 vs 99.7 Jun revised (F/cast was 101.5)
Ifo Expectations Jul 101.2 vs 103.7 Jun revised (F/cast was 103.6)
Were Dow -157pts S&P and NDX -VE in Asian time but eased to Dow -106pts ahead of a big earnings week for tech companies.
Data due New Home Sales, Dallas Fed Manufacturing Index.
Investors also watching the progress of the US infrastructure bill.
CHINA CSI 300 closed -164pts (-3.2%) @ 4,925
CSI 300 opened lower and trended through the morning to 4,928 before having an uptick into lunch. PM the selling continued down to 4,860 around 1:30pm. It then bounced back to 4,933 and then traded sideways into the close. The selling was broad based after Beijing announced clamping down on private sector Education/Tutoring and further moves against the Tech sector; raising concerns that other sectors; like Pharma and Property may see restrictions. Also worrying investors were worried as Vice Foreign Minister Xie Feng told visiting U.S. Deputy Secretary of State Wendy Sherman that some Americans seek to portray China as an “imagined enemy” and that “the China-U.S. relationship is now in a stalemate and faces serious difficulties”. Xie presented Sherman with two lists of demands, according to the official Xinhua News Agency. One was “U.S. wrongdoings that must stop” and the other was a list of “key individual cases that China has concerns with,” Xinhua reported.
Shanghai Composite -83pts (-2.3%) @ 3,467
Shenzhen Composite -398pts (-2.7%) @ 14,631
ChiNext Composite Index -75pts (-2.1%) @ 3,549
China's National Health Commission reported 76 confirmed COVID-19 cases as of yesterday (25th), with 36 of them being imported cases and the remaining 40 being local cases (39 in Jiangsu and 1 in Liaoning).
Tomorrow on the open we get Industrial Profits
HSI Pre market opened @ 26,826 -496 vs -123pts ADR’s
Market opened lower after the initial selling the market actually trended higher in the first 40 minutes to before trending lower for the rest of the day. Signs of almost panic-selling, the HSI was the worst performing major index in the region, on investors try to quantify the policy/regulatory risk concerns. China’s technology and education sector crackdown hurt investors' confidence, while traders also stay cautious ahead of possible turbulence as Fed officials resume talks this week on when and how to taper stimulus. Pessimism about lack of progress on China and U.S. holding their first high-level talks since March also weighted on sentiment.
Turnover was huge and I would imagine there was a large amount of margin call selling in the PM especially as Tencent dropped below HK$500. I would expect to see more margin call selling tomorrow morning.
HONG KONG DATA
HK reported no new local untraceable covid cases
Balance of Trade Jun HK$-40.5b vs -25.5b (F/cast was -14b)
Exports Jun +33% YoY vs +24% May
Imports Jun +31.9% YoY vs 26.5% May
Short Selling Monday 12.7% vs 15.8% Friday
Top Shorts Bud Apac (1876) 44%, Longfor (960) 40%, Sinopec (386) 38%, Ali Health (241) 38%, BankComm (3328) 36%, Hengan (1044) 36%, Ping An (2318) 33% (on -VE impact from Henan floods), Bank of China (3988) 33%, Country Garden (2007) 33%, Wharf REIC (1997) 31%, Mengniu Dairy (2319) 30%, Haidilao (6862) 29%, CK Asset (1113) 27%, NWD (17) 27%, Hang Seng Bank (11) 25%.
AFTER MARKET NEWS
MEITUAN-W (03690.HK) announced that Meituan Takeaway will set up a disaster recovery fund worth of RMB80 million in a bid to achieve faster recovery after the heavy rainstorm raked across Henan Province. The company will help affected merchants to increase orders through discount offers, consumption coupons for work resumption, and so on.
CHINA GAS HOLD (00384.HK) announced that it repurchased 2.1708 million shares of the company on the Stock Exchange today (26th), involving $51.596 million.
SINO BIOPHARM (01177.HK) announced that “Lenvatinib Mesilate Capsule” (Brand name: Fukaite), a liver cancer treatment drug developed by the group, has obtained drug registration certificate granted by the National Medical Products Administration of the PRC.
Chinese Foreign Ministry spokesman Zhao Lijian was asked at a regular press conference about Beijing's comment on the Tianjin visit by U.S. Deputy Secretary of State Wendy Sherman, reported Beijing Daily. Beijing demanded Washington to stop interfering in China's internal affairs immediately, stop harming China's interest, stop crossing the red line and playing with fire, and stop provoking group confrontations under the veil of their values, said Zhao.
VENUS MEDTECH-B (02500.HK) Positive Profit Alert announced that the total revenue approximated RMB239 million for the first half of 2021, up 134.6% year-on-year.
MOBI DEV (00947.HK) Profit Warning The unaudited consolidated net profit for the six months ended 30 June 2021 is expected to decrease by over 80% as compared to the same period of 2020, without excluding the possibility of loss.
YANZHOU COAL (01171.HK) announced that for 1H21, the production volume of saleable coal -13.41% YoY to 50.97 million tonnes; while the sales volume of saleable coal -29.99% to 51.79 million tonnes.
The Singaporean government intends to further relax the pandemic restrictions once the vaccination rate reaches 80%, including resuming quarantine-free travel from September and forming travel corridors with other countries or regions that have the pandemic under control, Singapore's Minister for Finance, Lawrence Wong expressed to the Parliament.
It is expected that S-ENJOY SERVICE (01755.HK)’s net profit for the six months ended 30 June 2021 will increase at least 45% as compared with that for the six months ended 30 June 2020 (nearly RMB189 million).
*BASE METALS OUTPERFORMED, only falling mildly on continued demand in China. CHALCO (2600 HK -0.8%) ANGANG (347 HK -0.8%) JIANGXI COPPER (358 HK -0.9%) MAANSHAN (323 HK +0.6%).
*EDUCATION PROVIDERS VERY WEAK as China announced tough rules on private education companies in the latest round of policy tightening. Companies that teach school subjects can no longer seek profits, go public or accept overseas investment under new rules, jeopardizing the existence of education groups including TAL and New Oriental Education. M&A is forbidden, as are foreign curricula and hiring abroad. NEW ORIENTAL (9901 HK -47%) HOPE EDU CH EDU (839 HK -16%) YUHUA EDU (6169 HK -20%).
*TECH & INTERNET VERY WEAK the HS Tech Index dropped more than 6%, with MEITUAN (3690 HK -14%) plunging as much as 15% intraday.
TENCENT (700 HK -7.7%) was ordered by regulators to end exclusive contracts with music copyright holders, adding to increased enforcement of anti-monopoly. Tencent controls more than 80% of “exclusive music library resources” following its 2016 acquisition of China Music Group, the State Administration for Market Regulation said Saturday. KUAISHOU's (1024 HK -12%) CEO said intends to strengthen its business expansion in the overseas market, with the target of reaching 250m active monthly users outside of China, but stock fell below IPO price for first time. JD (9618 HK -8%) ALIBABA (9988 HK -6.4%) BILIBILI (9626 HK -11.5%).
*PHARMA WEAK on speculation the sector may be the next target for regulatory tightening. CANSINO (6185 HK -7%) KINTOR (9939 HK -8%) INNOVENT (1801 HK -9.3%) WUXI BIO (2269 HK -10%).
*CHINA PROPERTY WEAK on a report that mortgage rates for first-house purchase in Shanghai will climb to 5% from the current 4.65%. SUNAC (1918 HK -7.8%) SHIMAO (813 HK -6.4%) JINMAO (817 HK -4.45).
PROP MGRS dived on tightening concerns, after a regulator published a statement that it aims to “notably improve order” in the market and will regulate a wide range of activities of services firms. CR MIXC (1209 HK -14%) KWG LIVING (3913 HK -16%) CHINA OVERSEAS PROP (2669 HK -14%) COUNTRY GAD SERV (6098 HK -17%).
*INSURERS WEAK, on the news that PING AN INSURANCE (2318 HK -5%) expects more than 1b yuan in total insurance payouts after rainstorms and floods in Henan Province. CH LIFE (2628 HK -3.2%) NCI (1336 HK -5%).
CH REINSURANCE (1508 HK -1.3%) expects 1H net profit to jump 55% to 65% YoY. Net profit for the 1H of 2020 was 2.47b yuan.
PICC GROUP (1339 HK -2.4%) announced that recently, the NSSF, the second largest shareholder of the Company, has disclosed the need for asset allocation and investment business, plans to sell down not exceeding 884m A shares of the Company by way of call auction or block trade.
*RESTAURANT WEAK as HAIDILAO INT'L (6862 HK -17%) expects to record 1H net profit of about 80m yuan to 100m yuan compared to last year's loss of 965m yuan over the same period. Revenue for the six months ended June 30 is expected to hit 20b yuan, a 104% rise from 9.8b yuan last year. YIHAI (1579 HK -12%) XIABUXIABU (520 HK -14%).
Market opened higher; +0.3% to a new all time high but has trended lower through the session and in the PM it traded around flat and closed flat @ 7,394. GPT Group weak having withdrawn its 2021 guidance due to continued covid lockdowns. Oil names weak. miners were firm and Wesfarmers +0.6% and ResMed +0.5% hit new highs. Lynas Rare Earths +10.6% a near nine-year high of $7.12 after a strong quarterly report
Nikkei opened higher @ 27,990 after the four day weekend it has tested the 28,000 level but failed to hold above and eased back to 27,875 before a slight bounce and then traded sideways into lunch. PM the market continued to drift lower but found support of 27,800 and ticked higher at the end to close ++285pts (+1%)@ 27,833
Topix Opened higher, tested to 1,938 but the eased back and traded around 1,930 into lunch. PM drifted slightly lower and ticked up to close +21pts (+1.1%) @ 1,926
Markets were lead higher by Hitachi Zosen and GS Yuasa. Laggards were Tokyo Eoectric and Softbank hurt by the sell off in Chinese tech/ecommerce.
Manufacturing PMI Flash Jul 52.2 vs 52.5 Jun (F/cast was 51.9)
Service PMI Flash Jul 46.4 vs 48.0 Jun (F/cast was 47)
Composite PMI Flash Jul 47.7 vs 48.9 Jun (F/cast was 47.5)
KDCA announced 1,318 new covid cases the drop atributed to less testing over the weekend but noted more cases arising outside Seoul. Tomorrow pre market we get GDP data
Kospi opened higher but initially sold down to 3,250 and then trended lower for the rest of the session to close -30pts (-0.9%) @ 3,225
Kosdaq opened higher, tested flat in early trades bounced to 1,058 and traded around there for a hour then eased lower to 1,056 for around an hour. Then sold down to 1,045 before bouncing to close -8pts (-0.8%) @ 1,048
Taiex opened slightly lower, ticked up to 17,600 in the first 20 minutes but then sold down to 17,450 over the next 90 minutes and then traded sideways before selling down in the last 30 mins to close -169pts (-1%) 2 17,404. Finance and Insurance lead the declines. Tech also weak with selling in TSMC but T/O was only US$16.27b vs US$20.12b Friday
CECC reported 11 new covid cases
Northbound RMB 77,766m Sell 41,708m vs 36,058m Buy
Southbound HK$ 38,225m Sell 20,183m vs 18,041m Buy
Northbound RMB 91,059m Sell 49,106m vs 41,954m Buy
Southbound HK$ 36,069m Sell 20,130m vs 15,939m Buy
MEITUAN (03690.HK) Short selling $1.69B; Ratio 8.230% closed at $235.6, down 13.8%
TENCENT (00700.HK) Short selling $2.25B; Ratio 5.477% closed at $490, down 7.7%
BABA (09988.HK) Short selling $1.99B; Ratio 23.557% closed at $192.1, down 6.4%
PING AN (02318.HK) Short selling $1.12B; Ratio 32.998% closed at $67.7, down 5%
HKEX (00388.HK) Short selling $814.82M; Ratio 13.089% closed at $500, down 4%
AIA (01299.HK) Short selling $511.54M; Ratio 21.163% closed at $92.85, down 2.2%
HSI & HSCEI Constituents on Move:
JD HEALTH (06618.HK) Short selling $1.19B; Ratio 51.995% closed at $83.75, down 17.1%
HAIDILAO (06862.HK) Short selling $560.72M; Ratio 29.305% closed at $34.7, down 16.7%
CG SERVICES (06098.HK) Short selling $473.58M; Ratio 17.120% closed at $59.55, down 16.6%
NTES (09999.HK) Short selling $693.10M; Ratio 20.237% closed at $150, down 13.3%
EVERG SERVICES (06666.HK) Short selling $47.53M; Ratio 7.843% closed at $5.78, down 12%
KUAISHOU-W (01024.HK) Short selling $371.21M; Ratio 21.107% closed at $114, down 12%
ALI HEALTH (00241.HK) Short selling $339.99M; Ratio 37.576% closed at $12.42, down 11.5%
SMIC (00981.HK) Short selling $184.22M; Ratio 3.984% closed at $24.15, up 10.3%
WUXI BIO (02269.HK) Short selling $764.13M; Ratio 16.827% closed at $117, down 9.8%
SUNAC (01918.HK) Short selling $138.81M; Ratio 13.784% closed at $21.8, down 7.8%
JD (09618.HK) Short selling $912.49M; Ratio 35.705% closed at $267.2, down 7.8%
EVERGRANDE (03333.HK) Short selling $34.31M; Ratio 7.409% closed at $6.71, down 7.6%
BIDU-SW (09888.HK) Short selling $271.78M; Ratio 29.830% closed at $160, down 6.9%
SHIMAO GROUP (00813.HK) Short selling $43.51M; Ratio 15.662% closed at $16.28, down 6.4%
SANDS CHINA LTD (01928.HK) Short selling $75.08M; Ratio 11.444% closed at $27.6, down 6.3%
HANSOH PHARMA (03692.HK) Short selling $43.96M; Ratio 42.417% closed at $27.65, down 5.1%
CHINA FEIHE (06186.HK) Short selling $90.91M; Ratio 17.276% closed at $15.78, down 4.8%
GALAXY ENT (00027.HK) Short selling $148.98M; Ratio 14.185% closed at $54.35, down 4.7%
SINO BIOPHARM (01177.HK) Short selling $96.84M; Ratio 16.974% closed at $6.67, down 4.6%
CHINA RES BEER (00291.HK) Short selling $74.26M; Ratio 11.734% closed at $62.25, down 4.3%
BYD COMPANY (01211.HK) Short selling $518.53M; Ratio 16.402% closed at $217.8, down 4.1%
CPIC (02601.HK) Short selling $47.17M; Ratio 15.967% closed at $22.55, down 4%
CM BANK (03968.HK) Short selling $271.09M; Ratio 33.789% closed at $60.3, down 4%
LONGFOR (00960.HK) Short selling $160.61M; Ratio 39.567% closed at $41.55, down 3.9%
COUNTRY GARDEN (02007.HK) Short selling $80.49M; Ratio 31.887% closed at $7.97, down 3.4%
CSPC PHARMA (01093.HK) Short selling $118.92M; Ratio 16.360% closed at $10.42, down 3.3%
CHINA LIFE (02628.HK) Short selling $152.92M; Ratio 20.282% closed at $13.12, down 3.2%
CHINA RES LAND (01109.HK) Short selling $41.61M; Ratio 7.657% closed at $30.45, down 3.2%
XINYI SOLAR (00968.HK) Short selling $98.76M; Ratio 13.954% closed at $15.24, down 3.1%
HSMI & HSSI Constituents on Move:
SCHOLAR EDU (01769.HK) Short selling $1.36M; Ratio 1.731% closed at $1.38, down 45.5%
KOOLEARN (01797.HK) Short selling $45.73M; Ratio 9.253% closed at $3.94, down 33.4%
TIANLI EDU (01773.HK) Short selling $6.72M; Ratio 3.521% closed at $1.82, down 29.2%
IDREAMSKY (01119.HK) Short selling $17.21M; Ratio 2.600% closed at $6.16, down 22.9%
AK MEDICAL (01789.HK) Short selling $86.68M; Ratio 28.382% closed at $10.6, down 20.3%
BAOZUN-SW (09991.HK) Short selling $3.94M; Ratio 21.632% closed at $65.95, down 20.2%
YUHUA EDU (06169.HK) Short selling $31.21M; Ratio 10.603% closed at $4.6, down 19.7%
SHIMAO SERVICES (00873.HK) Short selling $51.82M; Ratio 7.520% closed at $17.82, down 19.5%
HOPE EDU (01765.HK) Short selling $34.41M; Ratio 14.649% closed at $1.34, down 18.3%
CHINA KEPEI (01890.HK) Short selling $7.84M; Ratio 10.263% closed at $4.38, down 18.3%
JINKE SERVICES (09666.HK) Short selling $17.62M; Ratio 6.542% closed at $46, down 18.1%
CATHAY EDU (01981.HK) Short selling $1.85M; Ratio 2.388% closed at $3.66, down 17.8%
CIFI ES SERVICE (01995.HK) Short selling $59.70M; Ratio 18.983% closed at $15.02, down 17.5%
WISDOM EDU INTL (06068.HK) Short selling $7.23M; Ratio 17.693% closed at $1.54, down 17.2%
CHINA EDU GROUP (00839.HK) Short selling $44.97M; Ratio 4.870% closed at $12.9, down 15.8%
KWG LIVING (03913.HK) Short selling $14.02M; Ratio 8.586% closed at $6.95, down 15.7%
VENUS MEDTECH (02500.HK) Short selling $24.79M; Ratio 18.225% closed at $49.25, down 14.7%
CHINA OVS PPT (02669.HK) Short selling $14.95M; Ratio 5.910% closed at $6.93, down 14.4%
SUNAC SERVICES (01516.HK) Short selling $112.27M; Ratio 17.634% closed at $19.38, down 13.9%
OCUMENSION-B (01477.HK) Short selling $5.63M; Ratio 7.448% closed at $21.8, down 13.8%
XIABUXIABU (00520.HK) Short selling $28.59M; Ratio 17.283% closed at $6.76, down 13.8%
S-ENJOY SERVICE (01755.HK) Short selling $14.08M; Ratio 7.904% closed at $17.64, down 13.5%
JXR (01951.HK) Short selling $30.48M; Ratio 3.029% closed at $13.3, down 13.4%
SIHUAN PHARM (00460.HK) Short selling $22.82M; Ratio 4.248% closed at $2.45, down 13.1%
JACOBIO-B (01167.HK) Short selling $1.98M; Ratio 8.015% closed at $18.16, down 12.9%
MOBVISTA (01860.HK) Short selling $1.86M; Ratio 2.026% closed at $6.98, down 12.6%
HYGEIA HEALTH (06078.HK) Short selling $128.21M; Ratio 8.803% closed at $72.2, down 12.5%
YEAHKA (09923.HK) Short selling $6.37M; Ratio 5.242% closed at $37.4, down 12.5%
ALPHAMAB (09966.HK) Short selling $63.48M; Ratio 15.698% closed at $23.2, down 12.5%
FRONTAGE (01521.HK) Short selling $4.68M; Ratio 5.220% closed at $6.16, down 11.7%
NEW HIGHER EDU (02001.HK) Short selling $19.07M; Ratio 8.795% closed at $3.81, down 11.6%
MINSHENG EDU (01569.HK) Short selling $59.76K; Ratio 1.078% closed at $1.08, down 11.5%
GENSCRIPT BIO (01548.HK) Short selling $45.00M; Ratio 3.799% closed at $32.25, down 11.3%
TIMES NEIGHBOR (09928.HK) Short selling $27.10M; Ratio 29.008% closed at $5.2, down 11.1%
3SBIO (01530.HK) Short selling $34.57M; Ratio 10.172% closed at $6.98, down 11%
WEIMOB INC (02013.HK) Short selling $87.56M; Ratio 8.540% closed at $9.67, down 11%
JW THERAP-B (02126.HK) Short selling $11.84M; Ratio 11.480% closed at $20.2, down 10.8%
CR MEDICAL (01515.HK) Short selling $6.20M; Ratio 5.778% closed at $6.77, down 10.8%
JOY SPREADER (06988.HK) Short selling $1.50M; Ratio 3.448% closed at $2.59, down 10.4%
MAPLELEAF EDU (01317.HK) Short selling $4.28M; Ratio 11.065% closed at $1.58, down 10.2%
MAOYAN ENT (01896.HK) Short selling $9.83M; Ratio 17.927% closed at $10, down 10.1%
DFZQ (03958.HK) Short selling $3.33M; Ratio 2.317% closed at $6.71, up 5.7%, hitting new high
MARKET HOURS NEWS.
The State Administration for Market Regulation and six other Chinese authorities jointly issued their guidance opinions on online catering service platforms' responsibility to practically protect the rights and interests of food delivery riders. Accordingly, it is stipulated that these platforms must not assess the performance of delivery riders based on the strictest means.
HARMONY AUTO (03836.HK) announced to donate RMB10 million to Zhengzhou in Henan province, in hope to aid the disaster relief works and rebuilding of the affected areas.
Financial Secretary Paul Chan stressed at a seminar that biotech R&D is one of Hong Kong's innovation and technology strengths, citing the ingrained biomedical and healthcare technology research by universities across the city. On another note, InnoHK has lured a batch of top-notch scientific research institutions to set foot in Hong Kong and help the city evolve into a global scientific research cooperation center, he added.
Lo Iek Long, Macau's Secretary for Health expressed, that the recently reported local asymptomatic COVID-19 case in Zhuhai signals the increased risk of community outbreak in Macau, thus urged Macau's citizens to receive vaccination as soon as possible, reported Radio Macau.
U.S. Defense Secretary Lloyd Austin is set to visit Southeast Asia this week, anticipating to fortify Washington's ties with the region to cope with China-related issues, reported foreign media.
Tencent Cloud's VooV Meeting launched a new feature to enable its users to participate in video conferences through Internet browsers on any devices without having to install additional application, with the aim to provide smoother online working experience to its users.
Tencent Cloud added that the numbers of the international and Hong Kong users of VooV Meeting jumped 26% and 29% respectively over 1H21.
HSBC Insurance is reported to reboot its insurance business in Macau once the travel between China and Macau is resumed, in order to capture the sales opportunities brought by the Chinese visitors.
HSBC Insurance Hong Kong's CEO Edward Moncreiffe responded that the group has always valued the Macau market greatly and that it believes the market could realize the growth potential under the development of the GBA.
EDVANTAGE GROUP (00382.HK) announced that, for the nine months ended 31 May 2021, the Group’s revenue increased by 47.9% year-on-year to RMB901 million, a record high since its listing. Chief operating officer, Liu Wenqi, expressed that China's new regulations target only subject-related tutoring institutions and that the group focuses mainly on higher education and vocational training and has been operating in compliance to the government's policies. Liu added that the company is not particularly worried about the policy risk, remarking that several favorable policies have been introduced under the National 14th Five-Year Plan with no restrictions placed on the M&A in the higher education and vocational training sector.
PCCW (00008.HK) announced that on July 26, 2021, the company and the Buyer, PowerDC Holdco Pte. Ltd, entered into the share purchase agreement, pursuant to which the company agreed to sell its Data Center Business for the Purchase Price of US$750 million. The sale by the Group of its Data Center Business to the Buyer continues the Company’s strategy of unlocking shareholder value in the Group. Carrier neutral colocation services is a distinct business from HKT, Media and Solutions businesses. The proposed divestiture of the Data Center Business will allow the Company to better focus and strengthen its core service and product offerings and create more value for its customers and shareholders.
Xi Jinping, General Secretary of the Central Committee of the Communist Party of China (CPC), had given important flood control and disaster relief instructions, according to a notice from National Development and Reform Commission (NDRC). The highest-level emergency response shall be initiated immediately under extreme weather events and other extraordinary circumstances, ordered Xi. All schools, construction projects, business operations and transportation must be suspended if necessary, he added.
TENCENT (00700.HK) had earlier applied for registration of trademark "WeLoan", categorized as financial property management, as Tianyancha.com revealed.
For Hang Seng New Consumption Index, the number of constituents is fixed at 50 companies, 10 of which carry the highest weightings: BABA-SW (09988.HK), MEITUAN-W (03690.HK), TECHTRONIC IND (00669.HK), BYD COMPANY (01211.HK), LI NING (02331.HK), ANTA SPORTS (02020.HK), GEELY AUTO (00175.HK), SHENZHOU INTL (02313.HK), JD-SW (09618.HK) and GALAXY ENT (00027.HK). For Hang Seng Shanghai-Shenzhen-Hong Kong New Consumption Index, the number of constituents is fixed at 50 companies, with 3 out of 10 carrying the highest weightings being HK stocks: MEITUAN-W, BYD COMPANY and TECHTRONIC IND. Hang Seng Indexes Company launched today the Hang Seng New Consumption Index and Hang Seng Shanghai-Shenzhen-Hong Kong New Consumption Index.
Facebook (FB.US) 's CEO Mark Zuckerberg expressed his vision to transform Facebook from a social media network into a metaverse company over the coming five years. Metaverse refers to a concept of online world where users could play games, work or communicate in a virtual environment.
China's Ministry of Commerce (MOC)'s vice minister Wang Shouwen expressed during a press conference that the "negative list for cross-border services trade in Hainan" will foster reform and innovation on financial services while further opening the economic playing field to foreign parties, by measures such as permitting overseas individuals to apply and set up securities or futures accounts, reported China Securities Journal.
TSMC's CEO C. C. Wei forecast the global wafer production output value to stretch by 20% this year, while emphasizing he is confident that TSMC's USD-denominated revenue growth rate this year will surpass the 20% of the chip manufacture sector. Mark Liu, chairman of TSMC, disclosed that the company is pondering the possibility of setting up a chip plant in Germany but the project is still at a preliminary stage, reported Chinese media. Liu added that TSMC will carry on with the due diligence on the proposed chip fab in Japan, and that the final decision will depend on the customers' demand.
Rumor that XIAOMI-W (01810.HK) will set up a standalone option
plan for employees regarding its auto business, and that Xiaomi car company will ground in Beijing or Shanghai. In response to the above rumor, the company's PR general manager Wang Hua clarified that all market rumor was untrue, adding only official disclosure prevails.
Tencent has started introducing 5G technology into e-sports events, while including 5G e-sports standards for the e-sports plan in Guangdong-Hong Kong-Macau Greater Bay Area, said Yan Yuan, an expert engineer of Tencent Cloud's Communication 5G unit.
Ministry of Industry and Information Technology (MIIT) initiated the reform project targeting the Internet industry, with the aim to achieve an open, safe and disciplined market environment and to foster high-quality development among the industry. The reform project will concentrate on rectifying misbehavior in four aspects including market order disturbance, users' rights violation, data security threat and violation of resource and quality management regulations.
In a meeting, Chinese Vice Foreign Minister Xie Feng told U.S. Deputy Secretary of State Wendy Sherman that China-US relations had slipped into an impasse with grave difficulties because some Americans were treating China as an "imaginary enemy".
ZTE announced on Weibo that a new model of 5G smartphone featuring the under-display camera technology -- ZTE Axon30 will be launched during the product release conference scheduled at 7 pm tomorrow (27th).
More than 100 new homes were transacted at the weekend. K&K Property's SkyeHi launched 79 units in first log yesterday, selling over 40 units immediately. As for the second-hand market, Centaline's ten major housing estates tracked 18 deals, up 20% weekly amid a vibrant market.
Following the pronouncement of resolving the housing problem in Hong Kong from Xia Baolong, director of the Hong Kong and Macau Affairs Office, Financial Secretary Paul Chan responded that tackling the housing issues, which have been a substantial hinderance of Hong Kong's development, will be the top priority of the government. Chan remains adamant that the problems induced by the lack of land space in Hong Kong will be alleviated and managed, while stressing that Hong Kong must leave the sub-divided ripped homes behind by 2049 as China strives towards its second centenary goal.
PING AN (02318.HK) announced that it had received more than 46,000 insurance claims linked with Henan's heavy rains as of 13:00 on 23rd July, with estimated payout of over RMB1 billion.
PRE MARKET HOURS NEWS
Financial Secretary Paul Chan expressed that with the Hong Kong government making progress in fighting the pandemic, the economy has registered significant improvement heading into 2021 with last quarter's GDP up by 7.9%. Chan expects the 2Q GDP to also record a positive growth. Chan calls for the citizens who are not yet vaccinated to receive vaccination as soon as possible, so as to create a better condition for economic recovery.
Secretary for Labour and Welfare Law Chi-kwong expressed during a radio program that the unemployment rate in Hong Kong has seen improvement in recent days but reaching full employment will require a longer period of time. Law remarked that the overall trend is in a positive direction and predicted further decrease in the new jobless rate scheduled to be released next month.
In a statement, NTES-S (09999.HK)'s NetEase Cloud Music showed resolute support for SAMR's administrative penalty and pledged to actively fulfill platform obligation under legal and compliant operation. The giant will not ink internet music label exclusivity agreements with upstream rights holders, while striving to boycott the price-gouging of music licensing fees.
HAIDILAO (06862.HK) announced that the Group is expected to record a net profit of approximately RMB80 million to RMB100 million for the six months ended June 30, 2021, as compared to the net loss of the Group for the six months ended June 30, 2020 of approximately RMB965 million. Though the Company turned the loss into profit in the first half of 2021 compared to the first half of 2020, such performance still did not meet the expectations of its management. It reflected that the internal management and operation of the Company still need to be corrected and improved.
DASHAN EDU (09986.HK) announced that the PRC government has recently circulated the Opinion on Further Alleviating the Homework and After-school Training Workload of Students in Compulsory Education Stage for implementation. The Opinion sets out the policy guidance on, among others, further tightening of regulations on the after-school tutoring sector. It is still unclear how the local authorities will interpret and implement the policy under the Opinion. The Group will wait for further government instructions and adjust its business model to comply with the policy changes accordingly. Further, the Group is planning to diversify its business portfolio by commencing the Expanded Businesses, which to the management’s belief, are not the targets of rectification under the Opinion. The managements of the Group believe that with the proper adjusted business model for its Existing Businesses and the Expanded Businesses, the Group will be able to meet the challenges posed by the new policy.
NEW ORIENTAL-S (09901.HK) announced that on July 24, 2021, China’s official state media, including Xinhua News Agency and China Central Television, reported the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring (AST) for Students in Compulsory Education, issued by the General Office of the CPC Central Committee and the General Office of the State Council. The Company will follow the spirit of the Opinion and comply with relevant rules and regulations when providing educational services. The Company is considering appropriate compliance measures to be taken, and expects such measures to have material adverse impact on its afterschool tutoring services related to academic subjects in China’s compulsory education system. The Company will proactively seek guidance from and cooperate with the government authorities in connection with its efforts to comply with the Opinion and any related rules and regulations.
KOOLEARN (01797.HK) announced that on 24 July, China’s official state media, including Xinhua News Agency and China Central Television, announced the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education, issued by the General Office of the Chinese Communist Party Central Committee and the General Office of the State Council. The Opinion contains high-level policy directives about requirements and restrictions related to online and offline after-school tutoring (AST) services. The Company will follow the spirit of the Opinion and comply with relevant rules and regulations when providing educational services. The Company is considering appropriate compliance measures to be taken, and expects such measures to have material adverse impact on its AST services related to academic subjects in China’s compulsory education services.
FANTASIA (01777.HK) and COLOUR LIFE (01778.HK) have jointly announced possible business spin-off and separate listings.
FANTASIA is considering to seek a separate listing of its business of property management of commercial and integrated mixed-use properties and commercial operational services on the
Main Board of the Stock Exchange.
COLOUR LIFE is considering to seek a separate listing of its business of property management of commercial and integrated mixed-use properties on the Main Board of the Stock Exchange.
Arriving in Tianjin, U.S. Deputy Secretary of State Wendy Sherman is set to meet with Chinese Foreign Minister Wang Yi and Foreign Vice-minister Xie Feng. Sherman is expected to restate Washington's welcome to competition with Beijing providing a level playing field to ensure both sides will not veer into conflict, reported foreign media.
China's Central Office and the General Office of the State Council issued opinions on easing the homework and after-school tutoring burden for students in the compulsory education phase, reported Xinhua last Saturday. China will probe into and handle unqualified off-campus tutoring institutions which have set up centers without approval. Equally, tutoring institutions for curriculum subjects will be strictly banned from listing, financing and capital operation.
The series of crackdown on Chinese companies which were seeking listing in the U.S. market from the Chinese government will bring widespread impact on the market while signaling that the U.S. and China have entered into the early stage of a cold war, economist Stephen Roach expressed during a CNBC interview. Roach added that the worsening relationship between the U.S. and China will inevitably have severe implications for American companies and its investors as they will not be able to fully sever themselves from China when everything goes through a global supply chain.