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CSCI Morning News Circular - 20180406

1. Macro News

• China strikes back with additional 25 per cent tariffs on 106 US imports as all-out trade war edges ever closer. Beijing’s response came just hours after the United States Trade Representative Office released details of Chinese imports worth about US$50bn that it planned to hit with 25% tariffs, with the emphasis on industrial and hi-tech goods.  [SCMP]   
• Fed Officials Warn That Tariff Brawl Clouds Interest-Rate Path. Federal Reserve officials warn an escalating trade dispute between the U.S. and China is adding an unwelcome layer of doubt to an otherwise bright economic outlook, though it’s premature to say what the fallout means for jobs, inflation or monetary policy.  [Bloomberg] 
• Trump Threat Spurs India, South Korea to Cut Trade Surpluses. India and South Korea were among a handful of nations worldwide that narrowed their trade surpluses with the U.S. in 2017 by raising imports of U.S. goods, long before Trump announced tariffs aimed at offsetting the U.S. deficit and balancing trade with partners.  [Bloomberg] 

1. Industry News

• S. Trade Gap Widens for Sixth Month Ahead of Trump Tariffs. The U.S. trade deficit widened by more than forecast to a fresh nine-year high in Feb amid broad-based demand for imports, ahead of Trump administration tariffs. The gap increased 1.6% in Feb to $57.6bn, vs. median estimate of economists for $56.8bn, Commerce Department data showed Thursday.  [Bloomberg]   
• China's massive debt pile to stabilise, economists predict. China’s total debt will be 260% of GDP at end of 2018, the same as it was 12 months earlier, according to the median estimates of 21 economists surveyed by Bloomberg in March. In nominal terms, that would mean the growth in debt is slowing to roughly the same pace as the economy.  [SCMP]      
• China Is Said to Ban Coal Imports at Some Ports From April 1. China’s customs authorities instructed some ports to stop coal imports starting April 1 as part of a national order. Some wharves in the southeastern province of Fujian have been ordered by government to stop handling imports.  [Bloomberg] 
• Corporate News
• Anbang Insurance gets US$10bn rescue bailout from Beijing after ex-chair Wu Xiaohui admits fraud. China will inject 60.8bn yuan (US$9.7bn) into the beleaguered Anbang Insurance Group to ensure its solvency after ex-chairman Wu Xiaohui admitted fundraising fraud and embezzlement involving more than US$1bn.  [SCMP] 
• China’s Country Garden makes first foray into London with £400mn residential project. Country Garden has bought a plot of land in London, its second major overseas foray after Beijing’s crackdown on capital flight sent sales at its Malaysian mega project tumbling.  [SCMP] 
• Ctrip joins car-hailing cavalcade. Ctrip, China's largest online travel agency, has become the latest entrant to the nation's booming car-hailing market, notching up the already intense competition involving Didi Chuxing, Meituan-Dianping, amap.com and other major players.  [China Daily]   
• Huawei launches OpenLab in Paris to help boost domestic companies' digital transformation. Huawei has launched Paris OpenLab as part of its plan to create an open system offering innovative solutions to pave the way for digital transformation and promote industry ecosystem development, it said in a statement on Wednesday.  [China Daily]
• Daimler Holders Seeking Clarity on Li's Role Get Few Answers. The company is open to explore joint projects with Li Shufu provided they don’t interfere with plans of its existing Chinese partners, Chief Executive Officer Dieter Zetsche said. He signaled that any of these projects might be largely confined to the world’s biggest car market.  [Bloomberg] 
• CATL Gets CSRC Approval for A-share Listing. Contemporary Amperex Technology received approval from China securities regulator for A-share listing,21st Century Business Herald reports。The company expects to raise 13.1b yuan in Shenzhen IPO, according to updated preliminary IPO prospectus.  [Bloomberg] 
• Li & Fung Says Special Dividend Payable After Divestment. The company says a special dividend of 47.6 Hong Kong cents per share will be paid after completion of strategic divestment of product verticals business on April 3, according to Hong Kong stock exchange filing.  [Bloomberg] 
• Chinese Estates Held About 6.5% of Evergrande as of End-Feb. Chinese Estates has spent ~HK$13.2 billion buying 857.5 million Evergrande shares in open market since April 2017, according to statement to Hong Kong stock exchange.  [Bloomberg]  
• Hanergy Files Document to H.K. Regulator to Seek Suspension Lift. Hanergy Thin Film Power submitted disclosure document to Hong Kong’s Securities and Futures Commission on April 4 as one of the two trading resumption requirements by the regulator, according to statement to Hong Kong stock exchange.  [Bloomberg] 
• Meituan Is Said to Buy Bike Startup in $3.4bn Deal. Meituan Dianping, the Chinese food review and delivery giant, is acquiring Mobike in a deal that values the three-year-old bike-sharing startup at about $3.4bn. 65% of the purchase will be in cash, mostly to Mobike management, and 35% will be in stock so Mobike investors become Meituan shareholders.  [Bloomberg] 
• ASM Pacific to Buy Tokyo Electron’s Unit for $90mn. ASM Pacific agreed to buy TEL NEXX Inc. from Tokyo Electron, according to statement to Hong Kong stock exchange. TEL NEXX operates the back end of line advanced packaging electrochemical deposition and physical vapor deposition equipment and process business.  [Bloomberg] 
• Moody's reviews China Huiyuan Juice for downgrade. Moody's Investors Service has placed China Huiyuan Juice Group Limited's (Huiyuan) B1 corporate family and senior unsecured ratings under review for downgrade.  [Bloomberg] 
• CRRC Corp Jan.-March Contract Value About 48.7bn Yuan. CRRC Corp Jan.-March’s contract value accounted for 23.1% of the group’s 2017 revenue under Chinese accounting standards, according to a statement to the Shanghai stock exchange.  [Bloomberg] 
• China AgBank Gets Approval to Sell Up to 40bn Yuan Bonds. China’s banking regulator and central bank agreed to allow Agricultural Bank of China to issue as much as 40b yuan of tier-2 capital bonds in interbannk bond market,according to an exchange filling.  [Bloomberg] 
• Yuexiu Property Sets Up $3B Guaranteed Medium Term Note Program. Subsidiary established $3b medium term note program that may be issued from time to time, Yuexiu Property says in Hong Kong stock exchange filing. Proceeds will be used for refinancing of existing debts and for general corporate purposes. [Bloomberg]