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CSCI Morning News Circular - 20171009

1. Macro News

• World Bank ups forecast for growth. The World Bank raised China's growth forecast for 2017 and 2018, citing an improved external environment and strong domestic demand. The bank now expects China's economy to expand by 6.7% in 2017, up from an April projection of 6.5% and, for 2018, 6.4% instead of 6.3%.  [China Daily]  
• US jobs shrink for first time in seven years as Hurricanes Irma and Harvey pound the economy. US employment fell in Sept for the first time in seven years as Hurricanes Harvey and Irma left displaced workers temporarily unemployed and delayed hiring, the latest indication that the storms undercut economic activity in the third quarter.  [SCMP] 
• Mongolia asks IMF to resume economic bail-out. The newly appointed prime minister of Mongolia has asked the International Monetary Fund to continue its 5.5-billion-U.S.-dollar economic bail-out program for his cash-strapped country. [The Standard]  

1. Industry News

• China beats U.S. in renewable spending for 22 quarters. China has opened up a vast advantage over the U.S. in renewable-energy spending since 2013, Bloomberg New Energy Finance’s quarterly Clean Energy Investment Trends report shows.  [Bloomberg] 
• Hong Kong SFC to start investor IDs from early next year. Hong Kong’s Securities and Futures Commission plans to start an investor identification mechanism requiring real-name registration beginning from early next year,Hong Kong Economic Journal reports.  [Bloomberg] 
• China National Day holiday retail, catering sales rise 10.3%. China’s retail sales and restaurant receipts during the Oct. 1-8 National Day holidays rise 10.3% from a year earlier to 1.5 trillion yuan, according to a statement posted Sunday on the Ministry of Commerce’s website.  [Bloomberg] 
• Corporate News
• HSBC to seek BOE’s nod for John Flint as CEO. HSBC Holdings Plc selected John Flint, head of retail banking and wealth management, to be the new chief executive officer and has asked the Bank of England for permission to make the appointment, the Sunday Times reported.  [Bloomberg] 
• Noble Group explains why gas sale earned less than anticipated. Noble Group Ltd., the commodity trader struggling to avoid a default, has set out why it received millions of dollars less from the sale of its North American gas and power unit than the company had previously indicated.  [Bloomberg] 
• Fosun-backed Sisram’s overallotment 1.96% of offer share. Over-allotment option partially exercised on Oct. 8 for aggregate 2.1m Sisram shares, or 1.96% of total number of offer shares initially available, according to filing to Hong Kong stock exchange.  [Bloomberg] 
• Singyes Solar proposes issue of USD-denominated senior notes. Aggregate principal amount, offer price and interest rate will be determined through book building, according to statement to Hong Kong stock exchange. Proceeds to be used for refinancing existing debt, general working capital purposes.  [Bloomberg] 
• Macau casinos drop as Golden Week visitor numbers disappoint. Macau casino shares slumped amid growing concern that business during Golden Week may not live up to optimistic projections due to fewer-than-expected tourists to the gambling hub.  [Bloomberg] 
• Chinese internet giant Sina digs in over proxy battle with US shareholder Aristeia. The acrimonious proxy battle between Chinese internet company Sina and one of its major shareholders, US investment manager Aristeia Capital, is looking more like it will have to be resolved in a vote at Sina’s annual general meeting (AGM), with no indications a compromise is in sight.  [SCMP] 
• Fosun completes Gland Pharma acquisition. Shanghai Fosun Pharmaceutical Group has completed the acquisition of a 74% stake in India’s Gland Parma for USD1.09bn. The unit, which is also listed in Hong Kong, had wanted to buy a 86% stake for USD1.26bn.  [SCMP]  
• HKEX commences proceedings to delist Qunxing Paper Holdings. HKEX has commenced proceedings to delist troubled paper maker Qunxing Paper Holdings Co, the bourse announced on Friday. “The exchange has decided to commence procedures to cancel the company’s listing under Rule 6.01(4) on the ground it’s no longer suitable for listing”. [SCMP] 
• ZhongAn shares soar nearly 60pc since trading debut last week, pumped up by appetite for ‘sexy’ fintech. Shares in Hong Kong’s biggest ever listed financial technology (fintech) company surged further on Friday, extending their gains since trading started last Wednesday to nearly 60 per cent. [SCMP] 
• Xinyi Glass CEO raises stake. Xinyi Glass announced that on Oct 4 the group's chief executive officer Mr. Tung Ching Sai purchased another 2mn shares of the company at an average price of $7.78 per share, involving the amount of $15.56mnn.   [AAStocks]  
• HNA Group says it recruits 115 talents from Hong Kong. HNA Group announced that as of present the new round of International Talent Program (ITP) has recruited 115 fresh graduate students in Hong Kong, among which 72 are domestic students.  [AAStocks]  
• Hong Kong regulator SFC orders loss-making medical firm to suspend trading. The Securities and Futures Commission has ordered the Hong Kong stock exchange to suspend loss-making pharmaceutical firm New Ray Medicine International Holding from trading in the latest regulatory action by the securities watchdog to maintain “market integrity”.  [SCMP] 
• StanChart said to be investigated over US$1.4bn Indonesian cash transfers from Guernsey to Singapore. Regulators in Europe and Asia are believed to be investigating Standard Chartered over the role staff may have played in transferring US$1.4bn of private bank client assets from the English Channel Island of Guernsey to Singapore, before new tax transparency rules were introduced.  [SCMP]
• Hong Kong’s CLP seeks acquisitions to diversify, expand in India. Hong Kong’s largest power utility CLP Holdings Ltd. is scouting for more renewable power projects in India at a time when conventional generators are coping with stranded projects and under utilization.  [Bloomberg]
• Geely Auto's Lynk & Co 01 design released; Available for Sale in 4Q17. An article on Sina Auto said four design styles of Geely Auto’s Lynk & Co 01 were shown. The report said Lynk & Co 01 will be introduced in 4Q17 in Mainland China and in the future in the rest of the world.  [AAStocks]
• Evergrande grants share options. Evergrande has granted share options to 7,994 senior and mid-level mgmt personnel, which subject to acceptance of the options by the Grantees, will enable the grantees to subscribe for an aggregate of 740mn new shares of US$0.01 each in the share capital, representing approximately 5.7% of the issued share capital. [AAStocks]