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CSCI Morning News Circular - 20180404

1. Macro News

• S. Tariff List Aims at Technology China Wants to Dominate. The U.S. proposed imposing 25 percent tariffs on about $50 billion worth of Chinese-made products,focusing on high-tech items from semiconductors to lithium batteries while seeking to minimize the impact on American consumers.  [Bloomberg]   
• Australia Holds Interest Rate as Lower Currency Aids Outlook. Australia left interest rates unchanged amid currency weakness that could help spur growth and hasten inflation’s return toward its target. Reserve Bank of Australia Governor Philip Lowe and his board kept the cash rate at a record-low 1.5% for a 20th straight month on Tuesday, with markets and economists expecting no change in policy until next year.  [Bloomberg]    
• China State Think Tank See 1Q GDP Growth at 6.8%. China’s 1Q GDP growth rate may be at same level of 4Q last year, Shanghai Securities News reports, citing Chinese Academy of Social Sciences. Growth of China’s exports and industrial production may slow in March, the report says.  [Bloomberg]   

1. Industry News

• Expanded listing reforms in progress, says HKEX chairman. HK Exchanges and Clearing may expand its listing reform to allow more flexible structure technology companies to list, according to outgoing chairman Chow Chung-kong. The State Council announced on Friday the launch of the China Depository Receipt (CDR) scheme to attract tech giants.  [SCMP]   
• K. Factories Sustain Growth After Entering ‘Softer’ Phase. U.K. manufacturing maintained its pace of expansion in March, though there was a sharp slowdown in new orders. IHS Markit said its monthly Purchasing Managers Index was at 55.1, up from 55 in February and better than economists had forecast.  [Bloomberg]      
• Mainland Feb Insurance Premium Income Drops 18.5 YoY. CIRC announced in its statistics that primary insurance premium income dropped 18.48% YoY to RMB970.344bn in Feb 2018, of which property and casualty primary insurance premium income gained 17.65% YoY to RMB194.632bn and life insurer primary insurance premium income lost 24.31% YoY to RMB775.711bn.  [AAStocks] 
• Corporate News
• Alibaba boosts reach with deal for Travel Frog. Alibaba Group Holding Ltd on Monday announced a strategic partnership with Japanese game developer Hit-Point, granting Alibaba exclusive rights to publish the free-roaming mobile game Travel Frog in the Chinese mainland.  [China Daily] 
• Sinopec to increase clean energy capacity. China Petroleum& Chemical Corp has pledged to increase its share of clean energy production capacity to more than 50 percent within six years, through increasing its output of natural gas, shale gas and related facilities.  [China Daily] 
• Lenovo investment unit bets big on smart internet sector. Lenovo Capital and Incubator Group, a subsidiary of Chinese tech company Lenovo Group, is ramping up efforts in smart internet investments as the company seeks new business potential.  [China Daily] 
• CITIC subsidiary to provide banking services in Xiongan New Area. China CITIC Bank Corp Ltd, the banking unit of conglomerate CITIC Group Corp, said it plans to provide banking services in the Xiongan New Area. "CITIC has been eyeing opportunities in the Xiongan area to get involved in the construction of the zone, which is of great significance to the country," said its chairman Li Qingping.  [China Daily] 
• In phone call, ZTE dials up 5G success. ZTE Group announced that it has succeeded in making the first phone call enabled by 5G technologies as Chinese smartphone makers scramble to work on 5G in hopes of applying this next-generation mobile communication technology to their products as soon as possible.  [China Daily] 
• Walmart looking to expand retail footprint in China. Walmart Inc. is looking to make further inroads in China's burgeoning retail market by expanding services to busy Chinese families through omni-channels, an expanded hypermarket network, more high-end membership stores and supermarket formats, a top official said.  [China Daily]   
• China’s top three developers see sales slow in first quarter. The sales momentum of China’s “big three” developers, Country Garden, China Evergrande Group and China Vanke, slowed considerably, with each enjoying mixed fortunes compared with the same time last year.  [SCMP]       
• Fosun Pharma chief cites Huawei as model for overseas expansion. The head of Shanghai Fosun Pharmaceutical says it is aiming to become the “Huawei of the pharmaceutical industry”. “We will also accelerate our push in research and development (R&D),” said Fosun Pharma’s chairman Chen Qiyu.  [SCMP]      
• China Mobile Gets LTE/4G Digital Cellular Mobile Service Permit. China Mobile’s parent company received that operating permit today from the Chinese government, China Mobile Limited says in a statement issued by the Hong Kong stock exchange.  [Bloomberg]   
• Lenovo Group Repurchased $713.8mn of 4.70% Notes Due 2019. Lenovo accepted and repurchased validly tendered 2019 notes in aggregate principal amount of $713.8mn,according to statement to Hong Kong stock exchange. Accepted notes were canceled by co. on March 29.  [Bloomberg]   
• PetroChina Says Wang Dongjin Has Resigned as Vice Chairman. Wang Dongjin resigned as vice chairman, director and president with immediate effect, PetroChina says in a statement to the Hong Kong stock exchange. Wang has confirmed that he has no disagreement with the company.  [Bloomberg]
• COFCO Property to Buy Stake in Joy City for 14.8bn Yuan. COFCO Property will buy stake in Joy City from Vibrant Oak Ltd., according to statement to Hong Kong stock exchange. Upon completion, Cofco Property will hold controlling interest of 64.18% in Joy City.  [Bloomberg]
• ZhengTong Auto Plans to Buy Back Shares in Open Market. China ZhengTong Auto Services considers “the recent share prices significantly deviated from its intrinsic value” and proposes to buy back shares in open market at appropriate time effective immediately, according to statement to Hong Kong stock exchange.  [Bloomberg]
• China’s GCL, SoftBank Plan $930mn Solar Venture in India. A Chinese energy conglomerate and SoftBank Group Corp. signed a $930mn agreement to produce and sell solar equipment in India. Golden Concord Group Ltd. will invest in a 40% stake in the JV, with Japan’s SoftBank taking the rest. [Bloomberg]
• Xiaomi CEO Calls China’s Plan to Lure Tech Listings ‘Excellent’. China’s trial program for encouraging technology giants like Alibaba Group Holding Ltd. to list their shares at home is drawing positive early reviews, a sign their stocks may soon be available in the world’s most populous country.  [Bloomberg]
• Alibaba, JD.com May List Shares in China as Early as 3Q. Domestic listings of Alibaba and JD.com are expected as early as 3Q by issuing Chinese depository receipts,Yicai.com reports. Regulators are studying details of CDR program announced.  [Bloomberg]