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CSCI Morning News Circular - 20180308

1. Macro News

• S. Said to Weigh Broad Curbs on Chinese Imports, Takeovers. The Trump administration is considering clamping down on Chinese investments in the U.S. and imposing tariffs on a broad range of its imports to punish Beijing for its alleged theft of intellectual property.  [Bloomberg]   
• China Is Said to Ease Bad-Loan Provision Rules to Support Growth. China is relaxing bad loan provisioning requirements for banks in an effort to stimulate economic growth. The China Banking Regulatory Commission has issued a notice lowering the bad-loan coverage ratio to a minimum 120% from the previous 150%.  [Bloomberg] 
• EU Said to Mull Tariffs Against U.S. Steel, T-Shirts, Jeans. European Commission has proposed retaliatory tariffs on imports of U.S. steel, apparel, textile and footwear, selected industrial goods, according to draft list seen by Bloomberg. Total worth of imports subject to tariffs is EU2.8bn.  [Bloomberg]      

1. Industry News

• HKEX to Introduce Hang Seng China Enterprises Index ETF Futures. HKEX to introduce Tracker Fund of Hong Kong and Hang Seng China Enterprises Index ETF futures April 9,according to statement on HKEX website. Commission levy for new futures to be waived for first 6 months.  [Bloomberg]    
• Saudi Bourse Courts Foreigners as It Readies for Oil Giant’s IPO. The exchange, known as Tadawul, aims to boost foreign ownership of equities to as much as 25% in at least the next two years from about 4%, CEO Khalid Al Hussan said in an interview in London.  [Bloomberg]    
• China Feb. New Loans May Fall to Below 1T Yuan. Feb. New loans may have decreased due to Spring Festival holiday, and social aggregate financing should also be limited by new financial regulatory measures, China Securities Journal reports, citing experts including Minsheng Banking Chief Researcher Wen Bin.  [Bloomberg] 
• Corporate News
• Didi joins BAIC to build new-energy vehicles. Didi Chuxing has teamed up with BAIC Group to build next –generation new-energy vehicles. The move is part of a broader partnership between the two companies to spur the development and adoption of new-energy vehicles on the mainland.  [SCMP]   
• Geely Auto Feb. Sales Volume 110,243 Units, up 24% YoY. Geely Auto’s Jan.-Feb. sales volume amounted to 265,332 units, up 38% year on year, Geely Auto says in Hong Kong stock exchange filing. Sales volume of “LYNK & CO 01” was 4,012 units in February.  [Bloomberg]    
• B & S Intl’s H.K. IPO Retail Portion 2,600x Oversubscribed. About 50,000 retail investors applied for subscription of B & S International’s Hong Kong IPO, Hong Kong Economic Times reports. Food and beverage company B & S International is offering 100m IPO shares at HK$0.80-HK$1.00 apiece; trading expected to begin March 14.  [Bloomberg]    
• Country Garden Jan.-Feb. Contracted Sales 123.8bn Yuan. Country Garden says gross floor area of contracted sales was about 13.62m square meters in the two-month period, according to a Hong Kong stock exchange filing. Numbers include sales with its joint ventures and associates.  [Bloomberg]
• Cosco Shipping Targets More Port Purchases After Orient Overseas. China Cosco Shipping Corp., the nation’s top sea-freight carrier, is looking to buy more port-related assets following its $6.3 billion takeover of Orient Overseas International Ltd., Chairman Xu Lirong said.  [Bloomberg]
• HNA Airport Group Keen to Work With Local Government on Airport. The company is “very keen to get involved in the Danzhou airport if the Hainan provincial government needs us,” Liao Hongyu, chairman of HNA Airport Group, says in an interview with Bloomberg News.  [Bloomberg]
• ChemChina Is Said to Plan $6 Billion Dollar, Euro Bond Issue. China National Chemical Corp. plans to raise as much as $6 billion-equivalent through dollar and euro-denominated bonds to repay a bridge loan related to its $43 billion acquisition of Swiss agrochemicals firm Syngenta AG.  [Bloomberg]
• HNA Airline Fuel Cutoff Looms Over Unpaid Bills. HNA Group Co.’s flagship airline business received an ultimatum from a state-backed fuel supplier to settle its overdue bills or have deliveries cut off within days, Mingtiandi reported, citing a formal notice issued to the carrier.  [Bloomberg]   
• HNA Unit to Make HK$1.5B Non-Cash Commitment to Investment Fund. HNA-owned Hong Kong International Construction Investment Management agrees to make a non-cash capital commitment to an investment fund, according to a Hong Kong stock exchange filing.  [Bloomberg]
• Daimler Says Future Deals With Geely Hinge on China Partner BAIC. Daimler AG said future collaboration with its new largest shareholder Li Shufu will hinge on keeping the manufacturer’s existing Chinese partner on board. Li held initial talks with Daimler Chief Executive Dieter Zetsche, discussing the potential to work together to solve some of the challenges in the shift to electric, self-driving cars.  [Bloomberg]
• Hengten Networks Sees 2017 Unaudited Net Profit Rising 20 Times. Hengten Networks cites “rapid growth” of internet community home unit, as well as contribution from new Internet-materials-logistics business, according to a Hong Kong stock exchange filing.  [Bloomberg]
• Shui On Land to Set up JV for Redevelopment Project in Shanghai. Unit to set up joint venture with Founder Securities for potential investment in an urban transformation and redevelopment project in Shanghai’s Qingpu district, Shui On Land says in Hong Kong stock exchange filing.  [Bloomberg]
• China Renaissance’s Bao Sees Hong Kong Listing Likely for Xiaomi. The most likely listing venue for Xiaomi Corp. is Hong Kong “for sure,” China Renaissance Partners founder Fan Bao said in an interview with Bloomberg TV. Bao said he expects the IPO to be one of the most high profile of the year, “so let’s knock on wood that it’ll go well”.  [Bloomberg]
• HNA Sells $1.24 Billion Stake in Hilton Spinoff Park Hotels. HNA Group Co. sold $1.24 billion of Park Hotels & Resorts Inc. shares as the once-acquisitive Chinese conglomerate accelerates its disposal of assets to repay debts. HNA sold 34.5 million shares at $25.75 a share, or 1.5 percent below the stock’s latest closing price.  [Bloomberg]
• Shandong Refining Group to Apply for 10M Tons Fuel Export Quota. China’s Shandong Refining Energy Group is considering applying for a total 10m tons in fuel export quotas for this year, according to Li Xiangping, chairman of group as well as Shandong Dongming Petrochemical.  [Bloomberg]
• Cathay Pacific’s Fuel-Hedging Bets Have Gone Awry Again. Cathay Pacific Airways Ltd. Cathay’s fuel-hedging losses are expected to reach HK$6.45bn ($823mn) in 2017, according to the median estimate in a Bloomberg News survey of four analysts, the fourth straight year of deficits.  [Bloomberg]