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CSCI Morning News Circular - 20180322

1. Macro News

• Fed Lifts Rates, Steepens Path Through 2020 for More Hikes. Federal Reserve officials, meeting for the first time under Chairman Jerome Powell, raised the benchmark lending rate a quarter-point and forecast a steeper path of hikes in 2019 and 2020, citing an improving economic outlook. Policy makers continued to project a total of three increases this year.  [Bloomberg]   
• Philippines Opens Chinese Bond Market For Its Companies. Fresh from successfully raising 1.46bn yuan from its inaugural Panda bond issue, the Philippines has opened the door for its companies looking to borrow in the onshore Chinese bond market, according to Philippine Treasurer Rosalia de Leon.  [Bloomberg] 
• Hong Kong’s monetary authority raises city’s base lending rate to 2pc in lockstep with US move. The Hong Kong Monetary Authority has raised the city’s base lending rate by 25 basis points to 2%, making the move in lockstep with an overnight increase of a similar magnitude by the US Fed, to maintain the HKD’s peg to the US currency.  [SCMP]       

1. Industry News

• Chinese Smartphone Brands Team Up to Combat Dominance of WeChat. China’s biggest smartphone vendors are getting together for a software platform offering access to apps that can provide an alternative for WeChat’s more than 1bn users. Huawei Technologies Co., Oppo, Vivo and Xiaomi Corp. are teaming with six smaller brands for Quick App, which lets users access a range of services including mobile payments.  [Bloomberg]      
• Reform aims to make SOEs more efficient. The Chinese government has pledged to move swiftly to advance the reform and restructuring of State-owned enterprises. The reform will promote mixed ownership and encourage the inflow of foreign capital to foster more world-class, globally competitive companies.  [China Daily] 
• China CSRC Approves IPO of Ecovacs, Postpones Review of Another. China Securities Regulatory Commission approves IPO applications of Ecovacs Robotics, according to statement on CSRC website. The regulator postpones review of IPO application of Xinjiang East Universe (Group) Gas.  [Bloomberg]      
• Corporate News
• Electric Minis to be built in China, as Great Wall gears up for 1mn new-energy vehicle production. Great Wall Motors, China’s largest maker of sport utility vehicles, expects to being producing a million new-energy vehicles in the country by 2025, including electric Minis, after signing a letter of intent with German premium carmaker BMW.  [SCMP]
• PetroChina contributes to UAE oil concessions. PetroChina has contributed USD1.17bn towards two offshore oilfield concessions in Abu Dhabi. The company said it had been granted 10% interests in Lower Zakum concession and the Umm Shaif and Nasr concession.  [SCMP] 
• Chinese consortium wins contract for Bangladesh's power project. A consortium that includes China National Technical Import and Export Corporation and China National Corp. for Overseas Economic Cooperation) has been awarded a contract for a Bangladesh power plant.  [China Daily]
• 10 smartphone firms join hands to take on Tencent. The top 10 Chinese smartphone vendors, including Huawei Technologies Co Ltd and Xiaomi Corp, joined hands on Tuesday to promote technical standards for "fast apps," which are designed to compete against Tencent Holdings Ltd's mini programs.  [China Daily]
• ZhongAn online insurance seeks partners for growth. ZhongAn Online Property & Casualty, the Chinese mainland's first and largest online-only insurance technology (insuretech) company, is looking to join hands with the banking and insurance industry to build up a loyal customer base with the proactive use of blockchain technology.  [China Daily]
• ZTE invests over $3 billion on 5G products. ZTE has invested 20 billion yuan ($3.16 billion) on a 5G product base in Nanjing, in East China's Jiangsu province. The center will focus on developing 5G products and wireless devices, the company said.  [China Daily]
• Tencent Holding 4Q17 Profit Jumps 98% to RMB20.8bn, Beats Estimate Tencent Holding announced in the 4Q17 result that the company’s net profit jumped 98% year on year to RMB20.797 billion, higher than consensus of RMB16.6 billion.  [AAStocks]
• Geely Profit More Than Doubles as Chinese Shoppers Fancy SUVs. Chinese billionaire Li Shufu’s Geely Automobile Holdings Ltd. more than doubled its annual net income on rising demand in the carmaker’s home market, which is helping the tycoon to step up his overseas investments.  [Bloomberg]    
• Volvo Owner’s Chinese Unit Sees Overseas Deals Fueling Growth. Li Shufu’s Geely Automobile Holdings Ltd. expects the tycoon’s overseas bets from Daimler to Lotus and Volvo to help fuel growth as the Chinese carmaker targets new markets.  [Bloomberg]    
• Wynn CEO Says Focused on Vegas, Massachusetts and Macau. Wynn and Universal Entertainment agreed to consulting deal, CEOs of both companies said at news conference in Tokyo. Wynn CEO Matt Maddox said Wynn is focused on building in Vegas, Massachusetts and Macau.  [Bloomberg]    
• Xinhua Education Raises $166mn Pricing IPO at Midpoint. China Xinhua Education Group Co. prices 400mn shares in a Hong Kong IPO at HK$3.26 apiece, the midpoint of a marketed range, according to terms for the deal obtained by Bloomberg.  [Bloomberg]    
• HNA Sold an Unit in H.K. Building at Below-Market Price. HNA unit sold an office in Hong Kong’s Lippo Centre for HK$40m, Sing Tao Daily reports, citing the buyer. The unit is sold at HK$28,070 per sq ft, 20% below current market price, which is because the agreement was made during earlier stock market correction.  [Bloomberg]    
• Henderson China Opportunities Exits HKEX, Buys More Alibaba. Henderson China Opportunities Fund exited Hong Kong Exchanges & Clearing Ltd. from its investments and boosted its holdings in Alibaba Group Holding Ltd. in January.  [Bloomberg]    
• Pinera Government to Stay Out of Request to Block China SQM Bids. Chile’s new government said it won’t intervene in any investigation into the potential purchase of a stake in local lithium giant SQM by Tianqi Lithium Corp. and will support the verdict of antitrust authorities.  [Bloomberg]    
• PetroChina Losses From ‘National Service’ Gas Supply May Peak. PetroChina Co.’s losses from importing expensive natural gas may have peaked as China’s frenetic demand growth slows and the company seeks to raise output.  [Bloomberg]