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CSCI Morning News Circular - 20180212

1. Macro News

• China inflation rate cools in Jan. China’s consumer inflation cooled to 1.5% in Jan, in line with economists’ forecasts, official data showed on Friday. The CPI had been expected to moderate from a 1.8% gain in Dec. The PPI rose 4.3% YoY, also cooling from the previous month’s rise of 4.9%, the National Bureau of Statistics said on its website.  [SCMP]   
• China State Councilor Calls for More Cooperation With U.S. China and U.S. should discuss more cooperation on energy, infrastructure and Belt and Road initiative, Chinese State Councilor Yang Jiechi says during talks with U.S. Secretary of State Rex Tillerson, according to foreign ministry statement.  [Bloomberg]    
• BRICS 1Q CPI Forecast Steady in Past Week; Russia Seen at 3%. The median forecast for first-quarter inflation in the BRICS countries was unchanged from the past week at 2.9 percent on a year over year basis, according to Bloomberg surveys.  [Bloomberg]   

1. Industry News

• China Is Said to Revive QDLP Outbound Investment Scheme. China has resumed the Qualified Domestic Limited Partnership plan after a two-year halt, granting licenses to about a dozen global money managers. Foreign fund managers with newly awarded quotas will be able to raise money in China for investment overseas under the scheme for the first time since late 2015.  [Bloomberg]   
• US telecom dreams turn sour. Companies from China may find the going tough in the U.S. telecommunications market as national security concerns have derailed their local expansion plans, industry analysts said. The comments came after China's Huawei Technologies Co Ltd suffered another setback in the country and the US government said it was planning to nationalise the construction of 5G.  [China Daily] 
• K. May Propose Listed Co. Spinoff With Dual-Class Shares. Hong Kong may propose allowing listed companies to spin off their “new economy” units with dual-class shares as part of its consultation on the share structure issue, Hong Kong Economic Journal reports.  [Bloomberg] 
• Corporate News
• CGN Power Proposes Shenzhen Offering of Up to 5.05b A Shares. CGN Power Co. proposes issuing up to 5.05b A shares in Shenzhen, according to a statement to the Hong Kong bourse on Sunday. Proceeds will mainly be used to build nuclear power plants, as well as to replenish working capital and reorganize capital structure.  [Bloomberg]
• Vico International Postpones Hong Kong Initial Public Offering. Vico International Holdings has decided to postpone its Hong Kong share offering and listing, according to a Hong Kong stock exchange filing.The company needs more time to address inquiries from regulators.  [Bloomberg]   
• Vico International Postpones Hong Kong Initial Public Offering. Vico International Holdings has decided to postpone its Hong Kong share offering and listing, according to a Hong Kong stock exchange filing.The company needs more time to address inquiries from regulators.  [Bloomberg]   
• CNOOC Limited to Become a Component of Hang Seng China Enterprises Index. CNOOC Limited is pleased to announce that the Company will become a component of the Hang Seng China Enterprises Index ("HSCEI"), effective from 5 March 2018.  [Bloomberg]   
• CSPC Pharma’s Paclitaxel for Injection Gets China Registration. CSPC Pharmaceutical’s paclitaxel for injection has been granted drug registration approval by China Food & Drug Administration, according to statement to Hong Kong stock exchange.  [Bloomberg]   
• Evergrande Bought H.K.’s Grand Finance Group Unit China Evergrande acquired Hong Kong-based Grand Investment (Securities) and Grand Investment (Futures) in mid-January from William Lee Tak-Lun, Ming Pao reports, citing public data.  [Bloomberg]   
• China Eastern Plans 120bn Yuan of Debt Financing Instruments. China Eastern will apply for issuing up to 120b yuan debt financing instruments, including short-term, medium-term notes, perpetual notes, according to exchange filling. [Bloomberg]
• Merlin Swire to Be Chairman of Swire Pacific, Swire Properties. John Robert Slosar will retire as chairman and director of Swire Pacific, Swire Properties and Hong Kong Aircraft Engineering Company with effect from July 1, the companies say in a joint statement to Hong Kong stock exchange. [Bloomberg] 
• Dongfang Electric Says CSRC Approved Revamp of Company. Dongfang Electric Co. received notice from China Securities Regulatory Commission that its reorganization had been unconditionally approved, co. says in a filing to Hong Kong stock exchange.  [Bloomberg]  
• R&F Sees More Than 190% Profit Gain; Cites Wanda Hotel ‘Bargain’. Guangzhou R&F Properties Co. expects 2017 profit to increase by more than 190 percent, mainly due to a non-recurring gain from the “bargain” purchase of hotel assets, co. says in filing to Hong Kong’s stock exchange.  [Bloomberg]  
• Hopewell Holdings Says Certain Disposal Conditions Fulfilled. Hopewell Holdings reports fulfillment of certain disposal conditions related to sale of Hopewell Highway Infrastructure to Shenzhen Investment International Capital Holdings.  [Bloomberg] 
• Razer Inc. Buys Additional 15% Stake in MOL Global for $15mn. Razer unit bought 10.1m MOL Global shares at c.$1.48 apiece from MOL.com. Acquisition to allow Razer to grow virtual credits platform under zGold by allowing it to gain further access to MOL Global’s network of customers and partners; deepen existing partnership beyond virtual credits into areas such as e-payment solutions.  [Bloomberg] 
• China’s HNA Reverses Buying Binge With $4bn Selling Spree. HNA Group Co. is selling a raft of buildings across the U.S. as the once-voracious acquirer looks to cut its massive debt. The company also is looking to sell commercial properties in Chicago, San Francisco and Minneapolis. All told,the properties are valued at $4bn.  [Bloomberg] 
• Wanda Group Turns From Loser to Winner in China’s Bond Market. Dalian Wanda Group Co.’s asset sales have turned its bonds from losers to winners in China’s local debt market, by boosting confidence the conglomerate will be able to service its debt.  [Bloomberg] 
• Belarus Set to Receive 1.75b Yuan Loan From China’s Exim Bank. Belarusian government seeks preferential 15-year loan from China’s Export-Import Bank for an agriculture project in 2018-2023, cabinet of ministers says on website.  [Bloomberg] 
• PetroChina Says Holder Issued Exchangeable Bonds Coupon at 1.40%. The controlling holder China National Petroleum Corp. has completed the issuance of 20b yuan exchangeable bonds, according to a statement to Hong Kong stock exchange.  [Bloomberg]