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CSCI Morning News Circular - 20180314

1. Macro News

• China capable of meeting 6.5% annual growth target this year. After the 2018 Government Work Report was delivered to the first session of the 13th National People's Congress, ministries elaborated that China is confident it will meet its 6.5% annual growth target this year, with more efforts to implement supply-side reforms and further promote economic opening up.  [China Daily]   
• Asia Pacific 2Q CPI Forecast Steady. The median forecast for second-quarter inflation in the Asia Pacific was unchanged from the past week at 2.4 percent on a year over year basis, according to Bloomberg surveys which are calculated based on the estimates available for the countries in the region.  [Bloomberg] 
• China joins top ranks in field of 5G technology. China has joined the top ranks in the field of 5G technology, transforming from a follower to a global innovator to gain a lead in the uphill battle for the next generation of mobile communication technology.  [China Daily] 

1. Industry News

• Hong Kong Exchange, MSCI Are Said to Plan New Asian Futures. Hong Kong Exchanges & Clearing Ltd. Is working with index compiler MSCI Inc. to create futures contracts that would track hundreds of Asian companies, a broadening of the bourse’s offerings as it looks to build its derivatives business.  [Bloomberg] 
• China Announces Plan to Merge Banking, Insurance Regulators. China announced plans to merge regulators responsible for $43 trillion of financial assets, creating a new body with enhanced oversight of its banking and insurance industries.  [Bloomberg] 
• India, China Exports Most at Risk From Currency Strength in Asia. Exports from India and China are the most likely to be harmed by currency strength,or boosted by weakness,among Asian economies, underscoring the two giant’s sensitivity to the swings of foreign exchange markets.  [Bloomberg]      
• Corporate News
• AgBank plans US$16.8b recapitalisation drive alongside China banking regulatory move. The Agricultural Bank of China announced the biggest replenishment of capital by a Chinese company with its 100bn yuan (US$15.8bn) stock sale, the same day the regulator cleared the way for financial institutions to use new methods for raising funds.  [SCMP]
• China Poly merger to drive overseas expansion. China Poly Group Corp said its merger with Sinolight Corp and China National Arts and Crafts Group last year has given the company more momentum to expand its business abroad. The merger enables Poly to further diversify its investment landscape and extend the scope of business abroad as Sinolight and CNACGC.  [China Daily]
• Unicom's reform progress may encourage other SOEs to follow suit. As China United Network Communications Group Co Ltd presses ahead with its 78bn yuan ($12.3bn) mixed-ownership reform, its progress is likely to encourage other State-owned enterprises to follow suit, experts said.  [China Daily] 
• China’s Top Wind Utility Adds Least New Capacity Since 2009. China Longyuan Power Group Corp., the nation’s biggest developer of wind farms, last year saw the lowest addition of new wind capacity since its initial public offering in 2009, according to data compiled by Bloomberg.  [Bloomberg] 
• China Longyuan Hopes Curtailment Will Drop to ~7%. China Longyuan hopes the company’s curtailment rate will drop to around 7% in 2018 after 10.43% last year and 15.76% in 2016, President Li Enyi tells reporters in Hong Kong. The company plans to add 1-1.2GW of new capacity in 2018, of which 0.3GW will be from offshore.  [Bloomberg] 
• China's ICBC Ordered by Fed to Boost Money-Laundering Safeguards. Industrial & Commercial Bank of China Ltd has been ordered by the Federal Reserve to bolster its protections against money laundering. The Fed found “significant deficiencies” in safeguards at the Chinese bank’s New York branch, the U.S. regulator said in an enforcement order released Tuesday.  [Bloomberg] 
• A $31bn Trading Halt Has Left HNA Investors Trapped. Seven listed units of HNA have halted their shares for seven weeks or more. The suspensions, which affect $31 billion of equity, have prevented minority shareholders from selling at a time of mounting financial stress for the aviation-to-hotels conglomerate.  [Bloomberg]  
• Sinochem Is Said to Eye $2bn H.K. IPO of Oil Unit. Sinochem Group has invited banks to pitch for roles in a proposed Hong Kong listing of its key oil assets, Reuters reports. The group’s energy unit will likely include its oil refining, oil trading, storage, logistics, distribution and retail businesses.  [Bloomberg] 
• New Sports Group Seeks $105m in Hong Kong Share Placement. New Sports Group Ltd. offers 1.63b new shares at HK$0.50 apiece in placement. Proceeds will be used to settle outstanding consideration for an acquisition, repay debt, develop sports stadium operations and related training business, as well as for general working capital.  [Bloomberg] 
• Kuwait Hasn’t Backed Out of Venture With Sinopec. Sinopec is leading construction of refinery project with Kuwait Petroleum Corp., according to Wu Xiwei, general manager of Sino-Kuwait Refining Co., says in interview in Beijing on the sidelines of the National People’s Congress.  [Bloomberg] 
• HNA Agrees to Dispose of Assets to Sunac Unit for $300 Million. HNA Group Co. agreed to sell parts of its business to a unit of billionaire Sun Hongbin’s Sunac China Holdings Ltd. for 1.9 billion yuan ($300 million) as the Chinese conglomerate scrambles to repay its debt.  [Bloomberg] 
• SF Holding to Form Cold-Chain Venture With Havi Group in China. The joint venture, to be controlled by SF Holding, will focus on cold-chain logistics and will also operate some of Havi’s existing logistic business in China, Hong Kong and Macau, according to statement from SF.  [Bloomberg] 
• China EV Battery Maker CATL 2017 Net Income Rises to 3.97b Yuan. Contemporary Amperex Technology full-year net income 3.97b yuan vs 3.02b yuan year ago, according to updated preliminary IPO prospectus submitted to China Securities Regulatory Commission.  [Bloomberg] 
• Shanshui Cement Unable to Secure Loans to Pay 2020 Bond Coupon. China Shanshui Cement Group is unable to further secure interest-free loans from Tianrui Group to promptly pay $18.75 million of interest due March 12 on its 2020 bonds, it says in a Hong Kong exchange filing.  [Bloomberg] 
• Ant Financial Consumer Lending Is Said to Reach $95 Billion. Ant Financial’s consumer lending has reached at least 600 billion yuan ($95 billion) despite the affiliate of Alibaba Group Holding Ltd. facing a tougher environment for securitizing its loans.  [Bloomberg] 
• China AgBank FY Preliminary Net 193B Yuan. Agricultural Bank of China 2017 net interest margin 2.28%, the bank says in preliminary earnings statement. End-2017 non-performing loan ratio 1.81%. Financial data prepared in China accounting standard.  [Bloomberg]