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CSCI Morning News Circular - 20180409

1. Macro News

• China to fight US protectionism "at any cost". China will fight "at any cost" and take "comprehensive countermeasures" if the United States continues its unilateral, protectionist practices, a spokesperson with the Ministry of Commerce said on Friday.  [Shanghai Daily]   
• India's RBI Gives a ‘Goldilocks’ Outlook as Trade War Erupts. India’s central bank is optimistic the economy would outpace China to become the world’s fastest growing major market this year and help lure investors seeking opportunities as a global trade war brews.  [China Daily]    
• Chinese ambassador urges US to terminate 301 investigation. Chinese Ambassador to the United States Cui Tiankai  urged Washington to abandon its "unilateral and protectionist practices" and terminate the Section 301 investigation as early as possible.  [Bloomberg]   

1. Industry News

• 'All options' ready if US adds tariffs. China has made full preparations and will take all possible counteractions if the United States announces a new tariff list on Chinese imports to the US worth $100 billion, a Ministry of Commerce spokesman said on Friday night.  [Chinai Daily]    
• Hong Kong plans to overtake Nasdaq as listing destination of choice for Chinese biotech firms. Hong Kong’s stock exchange has set a goal of overtaking New York’s Nasdaq market within five years in the number of listings of mainland Chinese biotechnology firms and their market capitalisation, according to its chief.  [SCMP]    
• China's Q1 power generation up 10%. China's power generation rose 10 percent year on year in the first quarter of 2018 to 1.57 trillion kilowatt-hours, the top economic planner said Sunday. The growth was higher than a 5.9-percent increase for the full year of 2017, according to data from the National Development and Reform Commission.  [SCMP] 
• Corporate News
• Chinese online recruitment platform seeks Hong Kong IPO. Chinese online recruitment agency Liepin.com is seeking an IPO in Hong Kong. Headquartered in Beijing and founded in 2011, the platform focuses on executive talent. iepin.com had 3.9 million registered members at the end of last year, according to its prospectus.  [Shanghai Daily]      
• HNA’s planned sale of Hilton stake to bring total asset disposal to nearly US$13bn. HNA Group plans to potentially unload its entire US$6.5 billion stake in Hilton Worldwide, adding to the US$6.2bn of domestic and foreign assets it has dumped this year to repay its excessive borrowings.  [SCMP]      
• HSBC spends US$2.3bn on digital platforms, AI and new technology to reach tech savvy customers. HSBC has spent US$2.3bn on enhancing its digital capabilities globally. Between 2015 and 2017, the bank created new platforms and partnered with technology companies to serve its clients, Vivek Ramachandran.  [SCMP]      
• Shares in dairy maker rise to eight-year high after US$250m deal with Chinese conglomerate Citic. Shares in Ausnutria Dairy Corporation rose to their highest level in eight years on Friday, after the company announced that a subsidiary of multinational conglomerate Citic will become its single largest shareholder following a transfer of shares.  [SCMP]      
• China FAW Q1 exports hit 3-year high. Chinese automaker FAW Group recorded 8,236 wholesale vehicle deliveries to overseas markets in Q1, higher than that of the same period in the past two years. FAW has been actively marketing in Indonesia, the Philippines and Vietnam, making preparations for its presence in these markets.   [China Daily] 
• AIIB adopts strategy to attract private capital. The Asian Infrastructure Investment Bank is to do more to attract private capital for infrastructure investment in emerging markets. AIIB will prioritise transactions which support the bank's priorities, have a strong likelihood of generating repeat business, provide business development opportunities, employ a structure or a product that is innovative or assists in franchise development.  [China Daily] 
• JD to make $1.6n technology investment in Hunan. com will invest 10 billion yuan ($1.6 billion) in Xiangtan, Central China's Hunan province, to promote the establishment of an intelligent logistics and delivery system, as well as industrial bases involved in cloud computing and big data.  [China Daily] 
• Geely auto sales jump 39pc in 1Q. Geely Automobile said Friday its sales volume jumped 39% YoY to 386,296 units in the first quarter, around 24% of its full year target. In March, Geely sold 120,964 units, an increase of 39% over the same period in 2017, and up 10% over the month before. Its exports volume surged 194% YoY to 1,586 units. [The Standard] 
• SoftBank Borrows $8bn Backed by Alibaba Holding. SoftBank Group Corp., the Japanese technology giant, used its stake in online retailer Alibaba Group Holding Ltd. as collateral for an $8 billion loan from a group of banks in what is one of the biggest deals of its kind.  [Bloomberg] 
• Manshing Global Ends Acquisition of Producer of Cleaning Products. Manshing Global announced that it ended the MOU in relation to the acquisition of the producer of cleaning products as certain conditions precedent to the Proposed Acquisition could not be fulfilled.   [AAStocks] 
• Daqing Dairy Submits Re-listing Application to HKEX. Daqing Dairy (01007.HK)announced that the company has resubmitted a new listing application to the Stock Exchange of Hong Kong on 6 th April 2018 (the ‘‘third new listing application’’).  [AAStocks] 
• Huiyin Smartcom Postpones to Release 2017 Results. Huiyin Smartcom (01280.HK) announced that the publication of the 2017 Annual Results as well as the annual report for the year ended 31 December 2017 will be delayed. The company continued to suspend trading in shares.  [AAStocks] 
• Jewelry retailer moves to strengthen brand. Jewelry retailer Hong Kong Fook Tai Holdings is seeking an initial public offering on the growth enterprises market board, aiming to open more retail stores and improve brand recognition. It intends to increase sales in major shopping and residential areas after going public.  [The Standard] 
• Family-owned, household name eyes retail growth. HK-based Chinese tea leaves retailer Ying Kee Tea House Group is seeking HK$48.6mn in an IPO in Hong Kong. Its retail tranche was oversubscribed by 246 times. It plans to offer 90mn shares, and set its IPO price at between 48 HK cents to 54 HK cents per share. Trading in the shares of Ying Kee will start on April 16.  [The Standard] 
• NetDragon buys Edmodo. NetDragon Websoft Holdings (0777), a global firm engaged in building internet communities, yesterday said it has entered into a definitive agreement to acquire 100 percent of Edmodo for US$137.5 million (HK$1.07 billion).  [The Standard]