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CSCI Morning News Circular - 20180329

1. Macro News

• Trump tries to enlist French, German support over China trade disputes. President Donald Trump spoke on Tuesday to European leaders about working together to counter China’s alleged unfair trade practices, the White House said. Trump and German Chancellor Angela Merkel “discussed joining forces to counter China’s unfair economic practices and illegal acquisition of intellectual property”, the White House said in a statement.  [Bloomberg]   
• S. Said to Weigh Emergency Law for China Investment Crackdown. The Trump administration is considering a crackdown on Chinese investments in technologies the U.S. deems sensitive by invoking a law reserved for national emergencies, among other options.  [Bloomberg]   
• China Feb. Intl Service Trade Deficit $27.3bn. February service trade income was $15.9 billion and expenditure was $43.2bn, State Administration of Foreign Exchange says in a statement. Feb. international cargo and service trade surplus $7bn.  [Bloomberg]       

1. Industry News

• Chinese SOEs profits rise 25.3% in Jan-Feb. Chinese State-owned enterprises reported solid profit growth in the first two months of 2018 as the economy kicked off the year with better-than-expected performance, official data showed Wednesday. Combined SOE profits rose 25.3% YoY to 367.3bn yuan ($58.5bn) for the Jan-Feb period.  [China Daily]   
• Asia, Europe, Africa to connect power grids by 2035. Asia, Europe and Africa expect to take the lead in connecting their power grids by 2035, according to a report on Wednesday. According to the first Global Energy Interconnection Backbone Grid Roadmap, 18 main interconnected grids will be gradually established around the globe.  [China Daily]      
• China, U.S. Trade Barbs Over Who Is Threatening Trade System. The U.S. shot back at China’s assertion that Donald Trump was undermining the World Trade Organization with his decision to impose $50 billion worth of tariffs on Chinese products.  [Bloomberg] 
• Corporate News
• BYD net profit down 20% in 2017. China's leading new energy automaker BYD posted a 19.5% decline in net profits last year amid "significantly reduced" subsidies for new energy vehicles and a sales slump in petrol vehicles. BYD forecast that its first-quarter net profits are expected to fall 75.24 to 91.75% to between 50mn and 150mn yuan.  [China Daily]
• Alibaba bets on connected devices as pillar for growth. Alibaba Group said it plans to build a network of 10bn on connected devices within next 5 years as part of a push to expand its business in the so-called Internet of Things. “Our vision is to build an intelligently connected world through transformative IoT technologies,” Simon Hu, president of Alibaba Cloud, said in a statement.  [SCMP]
• China’s BYD Posts Profit Drop on Falling Gasoline-Car Demand. BYD Co. reported a 20 percent drop in annual profit on declining demand for its gas-guzzler models amid the country’s push for new-energy vehicles. The automaker’s net income fell to 4.07 billion yuan ($648 million), it said in a statement to the Shenzhen stock exchange.  [Bloomberg]
• China Huishan Dairy Placed Into First Delisting Stage. China Huishan Dairy is required to submit a viable resumption proposal to the Stock Exchange of Hong Kong at least 10 business days before the Sept. 26 expiry of the first delisting stage.  [Bloomberg]
• Chenming Paper to Sell of Up to 6B Yuan Short-Term Comm. Papers. Proceeds to be used for replacing bank borrowings, replenishing working capital, according to statement to Hong Kong stock exchange.The company is to seek shareholders’ approval at a meeting on May 31.  [Bloomberg]
• Shimao’s Hui Confirms Buying 20% Stake in CK Asset’s Tower. Shimao Property Chairman Hui Wing Mau confirmed he had agreed to acquire a 20% holding in The Center in Hong Kong from Li Ka-shing’s CK Asset, South China Morning Post reports.  [Bloomberg]
• Legend Holdings Applies For H-Share Full Circulation. Legend Holdings has applied for H-share full circulation and expects to be in the first batch of companies being approved for the pilot scheme, Hong Kong Economic Journal reports, citing President Zhu Linan.  [Bloomberg]
• Fosun Earnings Climb to Record, Fueled by Gains From Investments. Fosun International Ltd.reported profit climbed 28 percent to a record last year on the back of higher earnings from financial services and returns from investments. Net income increased to 13.2 billion yuan in 2017, compared with 10.3 billion yuan the previous year.  [Bloomberg]
• Vanke Vows Prudence as China Property No Longer One-Way Bet. China Vanke Co., the nation’s largest listed residential developer, vowed prudence in its property purchases, with a key executive saying that housing is no longer a one-way bet.  [Bloomberg]
• Huawei Unveils iPhone X Challenger as U.S. Criticism Piles Up. Huawei Technologies Co. introduced its challenger to Apple Inc.’s iPhone X and Samsung Electronics Co.’s Galaxy S9, amid the company’s fallout with U.S. retailers, wireless carriers and government officials.  [Bloomberg]
• Air China Bets on Easing Caps on Ticket Prices to Boost Earnings. Air China Ltd. said the government’s move to relax restrictions on fares will help boost earnings after reporting a 6 percent increase in profit last year. Net income in 2017 rose to 7.24 billion yuan ($1.1 billion), boosted by a stronger local currency.  [Bloomberg]
• AgBank May Grow Risk Assets on Fundraising Plan, President Says. Agricultural Bank of China’s President Zhao Huan said he’s confident that shareholders and regulators will approve its planned private placement. It will have a minimal impact on capital market, Zhao says at a briefing on full-year earnings in Beijing.  [Bloomberg]
• China CSRC Approves Listing of Wuxi AppTec. The securities regulator approved China listing application of Wuxi AppTec at a review meeting, 21st Century Business Herald reports. March 31, 2017, WuXi AppTec Said Planning to Seek $2.9 billion in China IPO.  [Bloomberg]
• Panca Mitra Seeks to Raise About $100mn From IPO in June. Panca Mitra Multiperdana to sell as much as 30% stake in IPO and plans roadshow to Singapore, Hong Kong,Thailand and Malaysia, Iwanho, vice president director at RHB Sekuritas Indonesia, tells reporters in Jakarta.  [Bloomberg]
• ICBC prepared for new regulation. The new asset management regulation will not have much impact on Industrial and Commercial Bank of China Limited, as China's largest commercial lender by assets has made preparations, the president of the bank said.  [The Standard]