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CSCI Morning News Circular - 20171114

1. Macro News

• Euro economy is heading towards a golden period. European Commission lifts 2017 GDP forecast to 2.2%. In a report on Monday, the IMF Fund said growth across the European region is having a positive spillover effect on the rest of the world. It also said those brighter prospects accounted for the bulk of the upward revision to its global outlook in October. [Bloomberg] 
• China credit growth trails estimates as deleveraging prioritised. China’s broadest gauge of new credit trailed projections and broad money growth slowed to the lowest pace since records began, signaling that the financial deleveraging campaign may be gaining traction. Aggregate financing stood at RMB1.04tn in Oct, vs estimated RMB1.1tn in a Bloomberg survey.  [Bloomberg]   
• China will likely import $24tn worth of goods in 15 years. President Xi Jinping says China is expected to import $24t worth of goods and absorb $2t FDI in the coming 15 years, Xinhua reports. China’s total investment overseas is expected to reach $2t in 15 years.  [Bloomberg]  

1. Industry News

• Shanghai sets up data trading platform in latest push to boost city’s profile as tech hub. Shanghai is building a mammoth electronic platform to trade data such as personal credit records and consumer information, as part of the city’s efforts to stay ahead of others at the forefront of technological innovation in China.  [SCMP]  
• CSRC to examine listed firms’ handling of profits at year’s end. China’s securities regulator will conduct spot checks of listed companies’ activities affecting profits as year winds down, CSRC spokesman Chang Depeng says at regular briefing.  [Bloomberg]  
• China banks assets, liabilities grow at slower pace. China banks’ end-3Q assets rise 10.9% YoY to 247.1t yuan, China Banking Regulatory Commission says on website. Total liabilities gain 10.9% to 228.3t yuan. Both asset and liability growth slowed for three consecutive quarters.  [Bloomberg] 
• Corporate News
• com rebounds from loss with hefty third-quarter profit. JD.com smashed market expectations as it reported strong profit and revenue during a seasonally slow third quarter. It posted a net profit of RMB1bn in the quarter to Sept, versus RMB467.4mn loss in same period last year, on the back of a 38.5% YoY increase in online direct sales.  [SCMP]  
• FAW-Volkswagen to recall over 1,500 automobiles in China. FAW-Volkswagen will recall 1,512 vehicles to address a malfunction of the air conditioning system. The recall, effective Nov 30, covers Audi Q5 Hybrid vehicles produced between March 10, 2012 and July 21, 2015.  [China Daily]
• China-made sports car by Saleen to hit market in 2018. United States sports carmaker Saleen is ready to make a charge into the Chinese market. Saleen's first product in China will be its entry-level sports car S1, according to Charles Wang, chairman and CEO of Jiangsu Saleen Automotive Technology Co, a joint venture established in 2009.  [China Daily] 
• Chinese internet giant Baidu’s micro loan unit seeks 786m yuan through asset-backed notes. Baidu’s micro finance unit has applied for a quota to raise up to 4 billion yuan (US$602 million) through issuing a form of securitisation, called asset-backed note, in China’s interbank bond market.  [SCMP] 
• PC Gear maker Razer surges on Hong Kong debut as Tech IPOs boom. Razer Inc. climbed 18 percent in its Hong Kong coming-out party, as the maker of gaming laptops and accessories rode red-hot demand for first-time technology share sales this year.  [Bloomberg]
• Tencent-backed Yixin jumps 30% in Gray market before debut. Yixin Group traded above HK$10 per share in gray market among institutional investors, rising more than 30% from its IPO price of HK$7.70, Hong Kong Economic Journal reports.  [Bloomberg]
• Noble Group loses key bank support as DBS cuts lending. Noble Group Ltd. lost support from one of its key banks as Singapore’s DBS Group Holdings Ltd. cut lending. DBS sold its $60mn stake in Noble’s $1.1bn revolving credit facility due in May next year, and also closed some other financing to the company.  [Bloomberg]
• Bitauto financing unit is said to price $868 million IPO at Top. Bitauto Holdings Ltd.’s car-financing unit Yixin Group Ltd. raised HK$6.8bnbillion ($868 million) after pricing a Hong Kong initial public offering at the top end of a marketed range.  [Bloomberg]
• Midea offers HK$1.85bn for remaining shares of Welling. Midea offers HK$2.06 for each of the 898.4mn shares of Welling that it doesn’t already own, according to Hong Kong exchange filing. Those shares represent about 31.37% of Welling’s issued share capital. [Bloomberg]
• Qualcomm is said to submit NXP Rrmedies to Mofcom. Qualcomm confident that remedies given to Mofcom will resolve the Chinese regulator’s concerns with the NXP Semiconductors deal, dealReporter said earlier, citing source familiar.  [Bloomberg]
• Siemens warns of ‘painful’ power unit revamp as orders sink. Siemens AG Chief Executive Officer Joe Kaeser said he’s planning sweeping cuts at the German engineering company’s power-and-gas business, setting the stage for a turnaround plan amid weak orders and a sharp drop in fourth-quarter profit. [Bloomberg]
• MGM Resorts says bookings rebounded after mass shooting. MGM Resorts International, in its first financial report since a gunman opened fire from one of its Las Vegas buildings and killed 58 people, said a short-lived wave of cancellations has ended and bookings are almost back to normal.[Bloomberg]
• Swire Pacific Sees HK$936mn offshore business impairment in 2017. The offshore market in which Swire Pacific Offshore operates has not picked up or rebounded, Swire Pacific says in filing to Hong Kong stock exchange.  [Bloomberg]
• China’s Sogou is said to raise $585 million in IPO priced at top. Sogou Inc., the Chinese search engine backed by Tencent Holdings Ltd., raised $585 million after pricing its U.S. initial public offering at the top end of a marketed range.  [Bloomberg]
• Boeing wins China orders for 300 planes worth $37 billion. China Aviation Supplies Holding Co. has agreed to buy 300 aircraft worth about $37 billion from Boeing Co. as the nation’s airlines ramp up capacity to meet rising demand.  [Bloomberg]
• China Resources Power Oct subsidiary plants electricity sales drop 14.2% YoY. China Resources Power announced that total net generation of subsidiary power plants in October 2017 decreased by 14.2% yearly to 10.1588mn MWh. Total net generation of subsidiary power plants 10M17 increased by 4.9% YoY to 130mn MWh.  [AAStocks]