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CSCI Morning News Circular - 20180309

1. Macro News

• Malaysia Central Bank Holds Benchmark Rate as Inflation Eases. Malaysia’s central bank kept its benchmark interest rate unchanged as expected, after inflation eased and an early rate hike this year helped to bolster the currency. Bank Negara Malaysia left the overnight policy rate at 3.25 percent, it said in a statement in Kuala Lumpur.  [Bloomberg]
• China Warns of ‘Justified and Necessary Response’ to Trade War. China’s Foreign Minister Wang Yi vowed a “justified and necessary response” to any efforts to incite a trade war, in the country’s most forceful response yet to U.S. President Donald Trump’s threatened trade actions.  [Bloomberg] 
• BRICS 1Q GDP and 2Q CPI Forecasts Steady. The median first-quarter GDP growth forecast for the BRICS countries was unchanged from the past week at 5.7%, whilst the median forecast for second-quarter inflation in the BRICS countries was unchanged from the past week at 3.0% on YoY basis, according to Bloomberg surveys.  [Bloomberg]      

1. Industry News

• China Power Producers Jump on Policy Outlook, Easing Coal Prices. Chinese power companies jumped on Thursday as the government’s annual energy sector guidance Wednesday was seen as positive for independent power producers. Regulators adopted softer tone over capacity cuts on coal-powered electricity in the 2018 guidance compared with last year.  [Bloomberg]    
• China Mulls Dual-Class Shares as Exchange Head Proposes Changes. Wang Jianjun, GM of the Shenzhen Stock Exchange, wrote in a motion to the legislature published on Thursday that China should change its company law to clear legal barriers for the adoption of dual-class shares.  [Bloomberg]    
• EU extends duties on stainless steel pipes from China. The European Union has extended its anti-dumping duties, ranging from 48.3 percent to 71.9%, on seamless pipes and tubes of stainless steel from China for further five years, the EU official journal said.  [China Daily]    
• Corporate News
• Foxconn gets Shanghai’s nod in record time to raise US$4.3bn in initial public offer. Foxconn Industrial Internet, a unit of the world’s biggest contract manufacturer whose products include Apple’s iPhones, was put on the fast track for securing the nod by China’s securities regulator to raise capital through an initial public offering.  [SCMP]  
• Evergrande issues positive profit alert, saying 2017 net income should rise ‘4 to 5 times’ from last year. China Evergrande Group issued a positive profit alert on Thursday, saying that it expected a “substantial increase” in 2017 net profit, in the order of “four to five times that of last year”, thanks to reductions in interest expenses and other factors.  [SCMP]  
• Dongfeng to mass-produce self-driving cars by 2020. Chinese carmaker Dongfeng Motor Corp is planning to mass-produce self-driving cars by 2020, which is part of the company's larger goal of ensuring a smart future, said a top executive.  [China Daily]  
• Sanpower unit selling controlling stake in House of Fraser. The British department store chain House of Fraser intends to sell its majority stake to another company from China. Less than four years after buying the well-known British store, Nanjing Xinjiekou Department Store Co is selling a 51% stake to tourism development co. Wuji Wenhua.  [China Daily] 
• Chinese company files more European patent applications than any other. Huawei filed 2,398 patents, more than second and third placed Siemens and LG. Other Chinese companies that filed a large number of patent applications in 2017 included ZTE, e-commerce company Alibaba, mobilephone maker Xiaomi, and automotive maker BYD.[China Daily] 
• GAC Says Doesn’t Rule Out Ties With Fiat Chrysler on Capital. Guangzhou Automobile Group Co. doesn’t rule out possibility of cooperation with Fiat Chrysler on capital front in the future, GAC Chairman Zeng Qinghong says in Beijing.  [Bloomberg]   
• Lee & Man Paper Bought Back 7.49mn Shares for HK$66.1M March 7. Lee & Man Paper Manufacturing paid HK$8.70-HK$8.98 apiece for the shares, representing 0.166% of issued share capital, according to statement to Hong Kong stock exchange dated March 7.  [Bloomberg]   
• HNA Record Bond Rally Clouded as S&P Sees 35% Chance of Default. Debt-laden Chinese conglomerate HNA Group Co. has managed to shore up confidence among bond investors, but a record rally in its securities last month is overshadowed by worries about its crippling debt levels.  [Bloomberg]   
• HSBC Plans to More Than Double Staff at China Securities Venture. HSBC Qianhai Securities Ltd., the first foreign majority-owned securities joint venture in China, expects to more than double the size of its team in the next four years as it sees economic growth continuing to attract investments to the country.  [Bloomberg]   
• MMG Says Actively Seeking New Growth in Latin America, Africa. The company aims to seek new opportunities and achieve new growth with global metals demand growing and supply to remain limited, MMG Ltd. Chairman Guo Wenqing says in an earnings statement.  [Bloomberg]   
• Unfazed by Trade Tension, Sanpower Sees More Biotech Deals. Unperturbed by prospects for a China-U.S. trade war and heightened scrutiny over outbound investments, Chinese conglomerate Sanpower Group will continue its hunt for health-care acquisitions in the U.S. and Europe.  [Bloomberg]   
• HNA Innovation Sells China Dragon Sec. Shares for 49.9mn Yuan. HNA Innovation sold 14.7m shares of China Dragon Securities to a venture capital fund in Gansu province at 3.4 yuan each, according to a filing to Shanghai stock exchange. The Deal aims to help optimise company’s asset structure and vitalide existing assets.  [Bloomberg]    
• Wynn Resorts Details Macau Operating Data for January-February. Wynn Macau casino January-February adjusted property Ebitda was $137m-$143m vs $109m for the same period last year, according to Wynn Macau Ltd.’s extract of Wynn Resorts statement to Hong Kong stock exchange.  [Bloomberg]    
• Wynn Resorts Plans to Lift Quarterly Dividend to $0.75/Share. Wynn Resorts plans to increase dividend beginning in 1Q 2018, according to Wynn Macau’s extract of Wynn Resorts’ filing to Hong Kong stock exchange. The increase will result in a dividend rate of $3.0 per share for the year.  [Bloomberg]    
• Shimao Property Proposes Issue of Yuan Senior Notes. Principal amount and other terms haven’t been determined, Shimao Property says in Hong Kong stock exchange filing. The company plans to use proceeds to refinance existing debts and for business development and other general corporate purposes.  [Bloomberg]    
• Beijing Capital Land Outlook Revised to Stable at Moody’s. Beijing Capital Land outlook revised to stable from negative, affirms Ba3 corporate family rating. It says outlook revision reflects expectations of sustained improvement to credit metrics, based on better GPM, revenue growth and prudent debt mgmtt over the next 12-18 months.  [Bloomberg]