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CSCI Morning News Circular - 20180321

1. Macro News

• China ‘to be punished with US$60billion in annual tariffs on Friday, increasing risks of trade war’. US President Donald Trump is preparing to impose a package of US$60bn in annual tariffs against China, following through on a long-time threat that he says will punish Beijing for intellectual property infringement and create more American jobs.  [SCMP]   
• China Pledges Action on Tech Transfer as Trump Plans Tariff Hit. China made further promises to protect the intellectual property of foreigners investing in its economy, addressing a long-standing grievance as U.S. President Donald Trump plans new tariffs aimed at Beijing.  [Bloomberg] 
• EU Offers U.K. ‘Improved’ Equivalence for Financial Services. The European Union will consider offering the U.K. “improved equivalence” for financial services after Brexit, according to the bloc’s latest negotiating guidelines, a system Britain has rejected as “wholly inadequate.”  [Bloomberg]       

1. Industry News

• China Welcomes Oversea-Listed Internet Cos.’ A-Share Listing. The authority has asked govt departments to improve policies to facilitate domestic listing of overseas-listed Chinese internet companies and innovative startups,Premier Li Keqiang says at a briefing after the closing session of the National People’s Congress.  [Bloomberg]      
• China CBRC Targets Higher Growth in Loans to Small Cos. China targets higher y/y growth in some loans to small companies than overall bank loan growth, according to a statement from China Banking Regulatory Commission. CBRC also targets y/y growth in number of loans to small companies. [Bloomberg] 
• Analysts See Higher Chance for PBOC to Hike Rates. PBOC may hike benchmark lending and deposit rates soon due to narrower spread between Chinese and U.S. treasury yields, higher Chinese inflation and better-than- expected economy, China Securities Journal reports.  [Bloomberg]      
• Corporate News
• Ping An Insurance to double dividend as profit soars 43 per cent. Ping An Insurance (Group) has reported a better-than-expected net profit growth of 43 per cent and said it will double its dividend payment. The insurer reported a net profit of 89.088bn yuan (US$ 14.075bn) last year, up from 62.4bn yuan in 2016.  [SCMP]
• Aramco is mulling an IPO on Saudi exchange before making its much-anticipated global debut. Saudi Arabia’s state-owned oil giant Aramco is expected to list public shares on the Saudi domestic stock market in second half of this year, but a potential international listing could come later, according to sources familiar with the situation.  [SCMP]    
• China’s Zhaojin Mining investing in technology to get ‘smart’ in search for gold. Zhaojin Mining Industry, one of China’s largest gold producers, plans to spend 120mn yuan this year on technology to enable “smart and automated” operations at some of its mines, as part of a long-term strategy to counter rising labour costs.  [SCMP]  
• CMPort to acquire 50% share of Newcastle port. Shareholders of China Merchants Port Holdings Company Limited (CMPort) agreed at a meeting on Monday to buy a 50 percent share of the Port of Newcastle in a move to expand to Australia.  [China Daily]    
• China's flag carrier to start daily Beijing-Dubai flights from March. China's flag carrier Air China said Monday that it will increase the flights between Beijing, the Chinese capital, and Dubai of the United Arab Emirates (UAE) from five a week to daily service from March.  [China Daily]    
• Chinese automaker to launch new SUV, pickup in Mexico. Automaker JAC Motors is seeking a 20% increase in sales in Latin America, as it introduces new models in the region. In 2018, JAC aims to reach the sales target of 30,000 units across Latin America, David Zhang, the company's deputy GM, told the Xinhua News Agency.  [China Daily]        
• Samsonite to expand retail presence with e-commerce website. Global luggage maker Samsonite International SA plans to launch its own e-commerce website while expanding its bricks-and-mortar retail presence in the Chinese mainland to increase direct-to-consumer sales.  [China Daily]    
• Didi to raise $1.6bn via ABS to help car leasing. Didi Chuxing, China's largest ride-hailing company, announced on Monday that it has received a no-objection letter from the Shanghai Stock Exchange to raise 10 billion yuan ($1.6 billion) through the issuance of asset-backed securities.  [China Daily]    
• R&F profit skyrockets 204pc. Mainland developer Guangzhou R&F Properties said its net profit last year spiked 204 percent to 21.42 billion yuan (HK$26.53 billion) on revenue of 59.28 billion yuan, which is up by a modest 10 percent. The board has proposed a final dividend of 0.77 yuan per share.  [The Standard]    
• Clear skies for Sunny Optical. Sunny Optical Technology recorded a 128.3 percent surge in net profit for the year ended December 31, 2017, to 2.90 billion yuan (HK$3.59 billion), and will continue accelerating its business transformation and upgrade. A final dividend of 0.661 yuan was declared.  [The Standard]  
• SOHO China Full Year Revenue 4.8% Above Estimates. SOHO China reported revenue for the full year that was 4.8% above the average analyst estimate. FY revenue 1.96 billion yuan, estimate 1.87 billion yuan (range 1.56 billion yuan to 2.15 billion yuan). The company did not propose final dividend.  [Bloomberg]    
• China Literature Won’t Rule Out Chance to Issue CDR, HKET Says. The company is watching development of CDR and won’t rule out the chance to follow other internet companies to tap mainland market, Hong Kong Economic Times reports, citing co-CEO Liang Xiaodong in a press conference.  [Bloomberg]  
• Ping An to Buy HK$2.68bn China Traditional Chinese Medicine Shrs. Ping An Life Insurance, a unit of Ping An Insurance, agreed to subscribe 604.3m China Traditional Chinese Medicine shares at HK$4.43 apiece, China Traditional Chinese Medicine said in statement to Hong Kong stock exchange.  [Bloomberg]  
• Most Kwai Chung IPO HK Retail Offer 2,900x Oversubscribed. Most Kwai Chung will overtake Magnum to become the most oversubscribed IPO if it gets HK$5.4bn more subscription. Most Kwai Chung is offering 67.5mn shares at HK$1-HK$1.2 apiece in HK listing; public offering will close on March 21 and trading expected to begin on March 28.  [Bloomberg]  
• Link REIT Could Repurchase More Shares Post Property Disposal. Link REIT is likely to repurchase more shares in 1H, given its disposal of 17 malls for HK$23bn completed on February 28.The landlord has conducted a strategy review and concluded that capital recycling would remain the most efficiency way to sustain its growth trajectory.  [Bloomberg]
• Shanshui Cement Says Chairman Stephen Liu Resigns. Li Liufa has been appointed as the chairman and an executive director, Shanshui Cement says in Hong Kong stock exchange filing. CEO Li Heping and Vice Chairman Li Zhiqiang also resigned. Zhu Linhai has been appointed as an executive director.  [Bloomberg]