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CSCI Morning News Circular - 20180320

1. Macro News

• Germany Steps Up Push to Foil Tariffs With Washington Talks. German Chancellor Angela Merkel is intensifying efforts to thwart a trade war with the U.S.,sending a close ally to Washington for critical talks aimed at defusing a tit-for-tat on tariffs that could undermine the European country’s export-driven economy. [Bloomberg]   
• Tourism features among growth drivers in China. China's tourism is showing strong growth and emerging as a new driving force for the world's second-largest economy. The industry contributed 9.13 trillion yuan to China's GDP, accounting for 11 percent of economic output, according to preliminary statistics.  [China Daily] 
• China’s New Monetary Chief Says He’ll Keep to Zhou’s Reform Path. China’s incoming central bank governor, Yi Gang, signaled that he’ll push to maintain the course of financial liberalization set by his predecessor Zhou Xiaochuan. "The main task is that we should implement prudent monetary policy, push forward the reform and opening-up of the financial sector, and maintain the stability of the entire financial sector," Yi told reporters.  [Bloomberg]       

1. Industry News

• ‘China’s Alan Greenspan’ steps down as central bank chief after more than 15 years at the helm. Zhou Xiaochuan, the governor of China’s central bank for more than 15 years, has officially retired from his office, ending an extraordinary long central banking career in which he became known as “China’s Alan Greenspan”.  [SCMP] 
• Dozens of U.S. Business Groups Warn Trump Against China Tariffs. The U.S. Chamber of Commerce and 44 other associations are urging President Donald Trump not to impose sweeping tariffs in response to China’s trade practices, warning the action would “trigger a chain reaction of negative consequences for the U.S. economy.”  [Bloomberg]      
• China Banks Plan Record Convertible Bonds on Regulator Scrutiny. China’s banks are planning record issuance of yuan-denominated convertible bonds as they get ready for regulatory changes intended to rein in financial risks.  [Bloomberg]    
• Corporate News
• CNPC to build 8 gas storage facilities in SW China. China National Petroleum Corp plans to build eight gas storage facilities with a total capacity of 21bn cubic meters. The gas storage facilities, located in Southwest China's Sichuan province and Chongqing municipality, will cost more than 21bn yuan.  [China Daily]    
• Home appliance maker embraces intelligent equipment. Gree, a major Chinese home appliance maker, is ramping up efforts in intelligent manufacturing by setting up unmanned factories and using industrial robots in a variety of production cycles, as part of its broader push to upgrade the country's manufacturing industry.  [China Daily]    
• GAC Honda to recall imported vehicles over faulty airbag. GAC Honda, the joint venture between Honda and Guangzhou Automobile Group, will recall 50 imported vehicles due to defective airbags, according to China's top quality watchdog.  [China Daily]    
• Guangzhou R&F Properties posts 21.4b yuan income. Guangzhou R&F Properties said net profit for 2007 increased by 204 percent to 21.42 billion yuan. Revenue was up by 10 percent to 59.28 billion yuan for the year ended December 31, 2017. The developer proposed a final dividend of 0.77 fen per share.  [The Standard]    
• Country Garden plans separate listing of services unit. Mainland China property developer Country Garden Holdings announced the company plans to spin-off and separately list the property management business, Country Garden Services Holdings Company on the main board.  [The Standard]    
• Coal capacity cuts bite into China Resources Power profit. Power plants operator, China Resources Power Holdings (0836) reported today net profit for the full year 2017 fell by 40 percent to HK$4.62 billion, or by HK$3.08 billion. The company recommend a final dividend of HK$0.75 per share for 2017.  [The Standard]    
• Great Wall Looking at 5-6 Locations for U.S. Factory, Wang Says. Great Wall is looking at five or six locations for the site of its U.S. factory and has yet to make a decision, General manager Wang Fengying says on the sidelines of the National People’s Congress in Beijing.  [Bloomberg]
• Tongda Group FY Net Income HK$1.01B vs HK$1B Year Earlier. FY revenue HK$8.56b vs HK$7.83b year earlier, according to statement to Hong Kong stock exchange dated March 19. FY gross profit margin 26.1% vs 24.1% year earlier. Proposes final dividend per share of 3.8 H.K. cents vs 3.2 H.K. cents year earlier.  [Bloomberg]
• StanChart’s Winters Sees A Few Bumps Through Rate Normalization. There will be interesting challenges such as market corrections through interest rate normalizaiton, which will be healthy, Standard Chartered CEO Bill Winters speaks at a conference in Hong Kong.  [Bloomberg]
• HNA's Global Property Selloff Spreads to Back Home in China. HNA Group Co. is planning to sell properties including office buildings and hotels across China, according to people familiar with the matter, as the embattled conglomerate scrambles to repay its debts.  [Bloomberg]
• BYD Proposes to Issue No More Than 10B Yuan of ABS. BYD Proposes to Issue No More Than 10B Yuan of ABS. The company’s ABS will have a maturity term of no more than 3 years, according to a filing to the Hong Kong exchange.  [Bloomberg]
• Galaxy to Get Philippine Casino License This Month. Macau-based Galaxy Entertainment will sign a contract for its provisional Philippine gaming license this month, GMA News Online reported on March 16, citing Andrea Domingo, chairman at the Southeast Asian nation’s gaming regulator.  [Bloomberg]
• Sinopec Unit Gets Contracts From Zhongke for Chemical Project. Sinopec Engineering signs engineering, procurement and construction contracts with Zhongke (Guangdong) Refining & Chemical Co. to build its petrochemical project in Zhanjiang, according to filing with Hong Kong stock exchange.  [Bloomberg]  
• Alibaba puts top executive in charge of Lazada in Southeast Asia push. Alibaba Group put one of its top executives in charge of Lazada Group, the leading online commerce operator in Southeast Asia, as the Chinese tech giant accelerates its expansion into a region with more than 600 million consumers.  [Bloomberg]  
• Swire Properties Signs Deal With WeWork in Hong Kong Development. Swire Properties Ltd. has signed an agreement with WeWork Cos. to lease four floors providing about 55,000 square feet in a commercial tower in Taikoo Shing, the first deal between the co-working space provider and a major listed Hong Kong developer.  [Bloomberg]