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CSCI Morning News Circular - 20180319

1. Macro News

• US largest business lobbying group warns Trump against potential tariffs on China. US Chamber of Commerce, the largest business lobbying group in the country, on Thursday warned President Donald Trump not to impose sweeping tariffs on Chinese imports, as it would hurt American businesses and consumers.  [China Daily]   
• Sri Lankan PM calls for greater trade, economic cooperation with China. Sri Lankan Prime Minister Ranil Wickremesinghe on Thursday called for greater economic and trade cooperation with China and hoped China's assistance and aid would benefit more ordinary people in the island country.   [China Daily]   
• China-Singapore cooperation on Belt and Road Initiative yields concrete results. The cooperation between China and Singapore on the Belt and Road Initiative has yielded concrete results, the newly-appointed Chinese Ambassador to Singapore Hong Xiaoyong said.   [Bloomberg]  

1. Industry News

• The gloves are off in Hong Kong’s fight with mainland exchanges for global fundraising crown. The stock exchanges of Shanghai and Shenzhen are pulling out all stops in offering themselves as the preferred destination for new-economy companies to raise capital, upping the ante in their competition with Hong Kong for the global crown in IPOs.  [SCMP] 
• Foreign investment sees growth momentum. Foreign direct investment into the Chinese mainland from Singapore, South Korea and the United States jumped 62.9 percent, 171.9 percent and 56.8 percent year-on-year respectively in the first two months of 2018, the Ministry of Commerce said.  [China Daily]      
• China Banks Step Up to Lead Australian Syndicated Loan Deals. Chinese banks are taking a bigger role in the Australian syndicated loan market as they take on more structuring and underwriting of deals, rather than just being lenders as in the past.  [Bloomberg]    
• Corporate News
• ZTE sharpens focus on 5G after earnings recovery in 2017. ZTE plans to intensify its 5G mobile development efforts after returning to profit last year. Its chairman said in a regulatory filing that the company expected “an accelerated process of 5G commercialisation” as 4G mobile network operators start to push forward network upgrades. [SCMP]
• Chip giant Qualcomm caught between Washington and Beijing. Chip maker Qualcomm, blocked last week from a takeover bid amid national security fears, was already walking a Pacific tightrope: it has government and defence contracts in the United States, but two-thirds of its revenue come from China.  [SCMP]
• China’s Huawei to drive cloud services with launch of three data centres in HK. Huawei launched on Thursday three new data centres in Hong Kong, which will serve as the infrastructure for new cloud services geared for the int’l market. The company said the facilities will support Hong Kong, mainland Chinese and companies from overseas to expand and deliver their cloud services globally.  [SCMP]  
• ZTE reports revenue over 100b yuan in 2017. Chinese telecommunications company ZTE reported full-year operating revenue of 108.8 billion yuan ($17.2 billion) last year, according to the company's annual report released Thursday. It marked a yearly increase of 7.5 percent, the report said. [China Daily]      
• Dongfeng Motor plans to more than double overseas sales by 2020. Dongfeng Motor Corporation expects to more than double its overseas sales in the next three years, as it seeks to expand its presence in overseas market. Dongfeng Motor aims to seize larger market share in the emerging economies and enter the United States and European markets. 
• Seven out of ten new Audi SUV models to be produced in China. German carmaker Audi will launch 10 new SUV models for the Chinese market in the coming five years, seven of which will also be produced locally, Audi Chief Executive Rupert Stadler said at an annual press conference.  [China Daily]   
• Ping An sees synergy among group units. Ping An Bank, a unit of Ping An Insurance, is teaming up with other units of the group to further tap the retail market this year, its chairman Xie Yonglin said. The company is exploring more ways to consolidate the business operations to upgrade the retail business.  [China Daily]       
• Guangzhou R&F Declined HNA’s Approach for Hong Kong Site. Guangzhou R&F was approached by HNA Group earlier for its Hong Kong land, but R&F declined, Radio Television Hong Kong reports, citing an interview with R&F Executive Director Zhang Li.  [Bloomberg]    
• Sands China Proposes Final Dividend HK$1.00 per Share. The dividend will be paid on June 22 to holders whose names appear on the register of members of the company on June 4, the company says in a filing to the Hong Kong stock exchange.  [Bloomberg]    
• Baidu to Invest In Skyworth Digital Subsidiary Coocaa. Skyworth Digital’s stake in subsidiary Coocaa will be diluted to 64.32% from 71.89% after Baidu unit injects 1.01b yuan into Coocaa, according to statement to Hong Kong stock exchange.  [Bloomberg]    
• Bank of China Taipei Is Said to Discuss Plan for Formosa Bonds. Bank of China Taipei branch is sounding out underwriters for a potential Formosa bond sale, with the issuance size initially set at 3bn yuan, , people familiar with the matter said. Plans for a sale aren’t finalized, said the people.  [Bloomberg]    
• China State-Run TV Gala Targets Volkswagen’s SUV Engine Problem. China’s state-run broadcaster said German auto giant Volkswagen AG failed to properly handle Chinese customer complaints about water entering the engine of its Touareg SUVs due to a design flaw.  [Bloomberg]    
• Boeing’s an Early Casualty as Investors Dig in for Trade War. The steep erosion in Boeing Co. shares last week are reflecting a broader angst as investors turn their attention to President Donald Trump’s trade policy.  [Bloomberg]    
• Broadcom First-Quarter Sales, Forecast Get Lift From Brocade. Broadcom Ltd. reported a 29% jump in first-quarter sales and forecast a revenue gain of almost 20% in the current period, underscoring its dependence on acquisitions to sustain growth and shield earnings from the volatility of chip orders from big customers.  [Bloomberg]    
• GCL-Poly Profit Misses Estimates as Solar-Wafer Prices Decrease. GCL-Poly Energy Holdings Ltd., the world’s biggest maker of solar wafers, reported an annual profit that fell short of estimates as prices of products slumped and research and development costs increased.  [Bloomberg]    
• Hang Seng CEO Sees Banks Weighing Rate Rises Later This Year. Hong Kong banks may only start considering raising interest rates in the second half of this year as the weakening local currency isn’t a good enough reason to push them to take action sooner, according to the chief executive officer of one of the city’s biggest lenders.  [Bloomberg]