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CSCI Morning News Circular - 20180313

1. Macro News

• Minister assesses trade motives of China, US. China has no intention to start a trade war with the United States and will not initiate one, but the country can cope with any challenge and will defend its national interests, China's top commerce official said.  [Bloomberg]   
• China calls for fair treatment on its overseas investment. China's top SOE regulator called on other countries to treat Chinese investment fairly and equally. "It's understandable that all countries conduct investigations into foreign investment, but they should give equal treatment to all foreign investors, not discriminate," Xiao Yaqing, head of SASAC said.  [China Daily] 
• China Seen Slowing Spending on Belt and Road Energy Projects. China’s thirst for overseas energy investments is slaking, at least by one tally. The nation’s financing for so-called Belt and Road Initiative energy projects dropped 28%t to $14.3bn last year from $19.9bn, according to data released Monday by Boston University’s Global Development Policy Center.  [Bloomberg] 

1. Industry News

• HK stocks climb to two-week high as US job report adds to growth optimism. Hong Kong stocks rallied to a two-week high on optimism of further global growth after the US’ latest labour report showed the American economy continued to gather pace without the risk the Federal Reserve will accelerate the pace of raising its interest rates.  [SCMP] 
• Central SOEs' debt level is stable, says SASAC. China's central SOEs have reported a stable level of debt over the past year, while the government's main task this year still will be to reduce corporate leverage, lower debt ratio and ward off risks, Xiao Yaqing, head of the State-owned Assets Supervision and Administration Commission said. [China Daily]      
• China Financial Sector Opening-Up to Boost Reform. Chinese regulators are gradually implementing policy and revising rules in respect to financial sector opening-up, Ouyang Changqiong, deputy head of Securities Association of China, says in interview with Bloomberg.  [Bloomberg]    
• Corporate News
• Audi, FAW ink deals to rev up China presence. German carmaker Audi AG has inked deals to create two new companies with its existing Chinese partner FAW Group to better tap into business opportunities in China, the world's largest car market.  [China Daily] 
• Dongfeng Peugeot-Citroen sales stall on brand confusion. Following a series of management reshuffles and a slow start in the world's largest market, Dongfeng Peugeot-Citroen Automobile's sales in China barely made it past the half-way mark of their 2017 target, resulting in substantial losses for the joint venture carmaker.  [China Daily] 
• Container shipper OOIL returns to profit. Orient Overseas (International) returned to profit for the full year ended December 31, 2017, posting earnings of US$137.6mn, from a loss of US$219.2mn in 2016. Revenue was US$6.10bn compared with US$5.29bn in 2016.  [The Standard] 
• China AgBank to Raise up to 100bn Yuan From A-Share Sale. China Agriculural Bank plans to raise up to RMB100bn from A-share sale. The board plans to sell up to 27.5b A shares, it says in filing to Hong Kong stock exchange. Proceeds to be used to replenish the CET 1 capital.  [Bloomberg] 
• China’s Mystery Russia Oil Partner Seen Delaying $9bn Deal. CEFC China Energy Co.’s planned $9 billion purchase of a stake in Russian oil giant Rosneft PJSC has been delayed, according to a Chinese rating agency, citing discussions with the Chinese company that’s recently come under scrutiny.  [Bloomberg] 
• Deutsche Bank to Raise Up to EU1.8bn in Asset Manager IPO. Deutsche Bank AG plans to raise as much as 1.8bn euros ($2.2 billion) in an initial public offering of its asset-management unit, a key pillar of the German lender’s turnaround strategy.  [Bloomberg] 
• Agile Expects FY Net to Rise More Than 150% on Year. The company expects FY Net to rise by more than 150% year on year, citing revenue increase from property sales and higher gross profit margins, it says in filing to Hong Kong stock exchange.  [Bloomberg] 
• China Xinhua Education Seeks Up to $188mn in Hong Kong IPO. China Xinhua Education Group Ltd. offers 400m shares at HK$2.83 to HK$3.69 apiece in Hong Kong initial public offering, according to terms for the deal obtained by Bloomberg.  [Bloomberg] 
• Orient Overseas Confident of Completing Cosco Deal by Mid Year. Things are proceeding "nicely" in terms of getting various regulatory approvals, Orient Overseas Int’l CFO Alan Tung says. "It’s only been 8 months. Actually in terms of multi-national M&A deals, this is probably on the shorter end of the range,” Tung says when asked about timetable of getting MOFCOM approval.  [Bloomberg] 
• Melco Sees China New Rules No Impact on Macau Casino Rev. Melco Resorts & Entertainment Chairman Lawrence Ho expects the proposed National Supervision Law won’t affect Macau’s gaming revenue, Teledifusão de Macau reports.  [Bloomberg] 
• China Yunnan LGFV Says It Seeks to Diversify Business, Financing. Yunnan Communications Investment & Construction Group Co., a local government financing vehicle, will explore ways to diversify its business and sources of funding, according to chairman Qiu Jiang.  [Bloomberg] 
• China’s WM Motor Open to U.S. IPO, Shrugging Off Trade Tensions. China’s WM Motor Technology Co., set to take on Tesla Inc. with an electric SUV going on sale this year, is open to holding an initial public offering in the U.S. as its founder shrugs off a potential trade war between the world’s two biggest economies.  [Bloomberg] 
• Citic Sees Up to $1nn Impairment on Sino Iron Project. Citic Ltd. estimates it will take an impairment of $800 million to $1 billion in 2017 accounts after reviewing the value of its Sino Iron project. The charge is a non-cash accounting item that will reduce the company’s 2017 reported profit, China’s biggest conglomerate said.  [Bloomberg] 
• ZhongAn Online Proposes Domestic Share Conversion Procedures. ZhongAn Online P&C Insurance proposes amendments to articles of association in view of the changes in regulatory requirements and its actual situations, it says in filing to Hong Kong stock exchange.  [Bloomberg]
• Middle East’s Biggest Bank Aims to Double Foreign Investor Limit. Qatar National Bank is seeking to nearly double its foreign ownership limit as the biggest lender in the Middle East and North Africa by assets diversifies. The bank will seek approval to increase non-Qatari ownership to 49% from 25% at an yet-to-be scheduled extraordinary general assembly.  [Bloomberg]