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CSCI Morning News Circular - 20171120

1. Macro News

• Malaysian economy expands at fastest pace in more than 3 years. Malaysia’s economy grew at the fastest pace in more than three years in the third quarter, supported by resilient domestic demand and a manufacturing sector that’s benefiting from booming global trade.  [Bloomberg] 
• India’s First Moody’s upgrade in 14 years bets on reforms. Moody’s Investors Service raised India’s sovereign rating for the first time since 2004, overlooking a haze of short-term economic uncertainties to bet on the nation’s prospects from a raft of policy changes by Prime Minister Narendra Modi.  [Bloomberg] 
• China, Canada are said to ready trade talks. Canadian PM Justin Trudeau will travel to China next month to launch free trade talks, Canada’s National Post newspaper reported. The move would see Canada launch negotiations with China while already in talks with the U.S. and Mexico on a modernised North American Free Trade Agreement.  [Bloomberg]  

1. Industry News

• Shanghai’s state-owned businesses in 800bn yuan push to restore city’s economy. Businesses controlled by Shanghai’s municipal government have pledged to plough RMB800bn annually into industries like hi-tech manufacturing in the next five years in the city’s latest push to regain its status as the mainland’s economic juggernaut.  [Bloomberg] 
• China to press on with drive to cut bloated steel capacity. China vowed to press on with a campaign next year to cut surplus capacity and stop shuttered mills from returning to market, in a move that may bolster the global industry. Policy makers will “conscientiously” implement measures to resolve overcapacity in iron and steel, the MIIT said. [Bloomberg]
• CBRC tightens rules for commercial banks. China's top banking regulator has drafted a regulation on equity management for commercial banks to tighten controls on financial risk and combat illegal activities. The CBRC started soliciting public opinion on the interim regulation on equity management, which would impose stricter supervision on major shareholders of commercial banks.  [SCMP]  
• Corporate News
• Wanda wants US$5b from single buyer for five offshore assets as China reins in investments abroad. Chinese conglomerate Dalian Wanda Group is offering to sell all five of its large-scale projects in Britain, the US and Australia to a single buyer for an estimated US$5 billion, as Beijing tightens control over companies’ offshore investments.  [SCMP]
• GAC unveils intelligent network terminal. Guangzhou Automobile Group Co launched an in-car intelligent network terminal product, in association with Tencent Holdings Ltd. Various varieties of its vehicles in the near future will be equipped with the terminal as the company steps up its efforts to develop more internet-based vehicles. [China Daily]  
• Consumer confidence grows in domestic formula brands. China Feihe Int’l has seen sales of its high-end infant milk formula products grow 200% in 1H17 over the same period last year, an indicator that Chinese consumers have gradually recovered their confidence in domestic baby formula milk brands.  [China Daily] 
• BYD signs green bus deal with Argentine province. BYD will provide 50 pure electric buses to the Argentine province of La Rioja to help with its green development. The fleet of buses are part of a series of new energy solutions BYD inked with La Rioja on Thursday at the China Hi-tech Fair 2017 in Shenzhen, South China's Guangdong province.  [China Daily]   
• Adidas to shift IT operations from Hong Kong to Shanghai. German sportswear giant Adidas is planning to relocate its information technology operations from Hong Kong to Shanghai as part of a strategy to bolster its business on the mainland. The relocation is expected to cause some job losses in Hong Kong.  [SCMP]
• Huishan Dairy says it is preparing for provisional liquidation. The company’s board has instructed its Cayman legal advisors to prepare documents to place the company into provisional liquidation, according to a Hong Kong exchange filing.  [China Daily]
• Baidu may divest global assets, shift focus to AI. Internet giant Baidu Inc is considering spinning off its international division, as it focuses more on prioritising artificial intelligence as a growth driver. The Beijing-based company is aiming to reposition itself as a leader in artificial intelligence.  [China Daily]
• Toyota to re-enter electric vehicles starting in China From 2020. Toyota Motor Corp. will introduce electric vehicles in China from 2020 and is considering selling battery-powered autos developed by its local partners under the Japanese marque as Beijing prepares to tighten environmental regulations.  [Bloomberg]
• China State Construction Intl unit proposes issue of USD notes. Amount and terms and conditions haven’t been determined, according to statement Hong Kong stock exchange. Proceeds to be used to repay and/or refinance existing debts, to finance new and existing projects, for general corporate purposes.  [Bloomberg]
• Jiayuan Intl to buy property assets for combined 2.45bn yuan. Jiayuan International unit agreed to buy Yangzhou Yurun Property Development from Jiangsu Dehua Property Development, according to statement to Hong Kong stock exchange.  [Bloomberg]
• China Dairy flagged by Muddy Waters prepares for liquidation. China Huishan Dairy Holdings Co., the Hong Kong-listed company targeted by short sellers including Muddy Waters Capital LLC, is preparing for provisional liquidation in a move that could protect its assets as it negotiates with creditors.  [Bloomberg]
• Boeing sees huge demand for wide-body aircraft. Boeing Co said that by 2020, it will deliver its first B777X aircraft, the latest addition to its family of twin-aisle airplanes, and a more fuel-efficient and powerful version of current B777-300ER. It said it’s bullish on China's demand for wide-body planes, fueled by China' growing int’l flights market.  [China Daily]  
• Baidu to roll out production of self-driving cars next year. Baidu will start the production and trial operation of self-driving vehicles in mid-2018 in collaboration with Xiamen King Long United Automotive Industry Co, the company’s CEO and chairman, Robin Li, said. And production of more bus models will start in 2019.  [Shine] 
• Germany's Wacker plans US$24m expansion in China. German chemicals producer Wacker will invest 20mn euros  in China to expand production and step up research to tap growing demand for high-value chemicals. By 2H18, Wacker aims to increase silicon rubber capacity of its plant in Zhangjiagang, Jiangsu Province by several thousand tons.  [Shine]   
• COFCO Group's E-commerce platform COFCO Womai passes listing hearing. COFCO Group's online e-commerce platform COFCO Womai has passed the listing hearing, as revealed by market sources. It plans to raise about USD200mn initially. The company will initiate its IPO as early as end Nov or early Dec.  [AAStocks]  
• Alibaba seizes land in Nanjing; proposes to be headquarter in Jiangsu. Alibaba Group won the bid of a land parcel in Nanjing with RMB800 million, which is proposed to be used as the headquarter of the company in Jiangsu, as reported by cnstock.com.   [AAStocks]