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CSCI Morning News Circular - 20180410

1. Macro News

• Economic picture continuing to improve. China's industrial output expanded 7.2 percent year-on-year for the first two months, one percentage point higher than the growth rate recorded in December 2017 and 0.9 of a percentage point higher than the growth rate achieved over the same period in 2016, National Bureau of Statistics data showed. [SCMP]   
• China's foreign exchange reserves rise in March. China's foreign exchange reserves edged up 0.27% from a month earlier to $3.1428tn at the end of March, the People's Bank of China said. The increase reversed a slight decline seen in February. Previously, the forex reserves gained for 12 consecutive months between February 2017 and January 2018. [China Daily]    
• Austria expects more infrastructure cooperation with China under B&R Initiative. A rare collective visit by the Austrian heads of state and govt to China is expected to generate multiple agreements on economy cooperation, and progress in future collaboration over infrastructure projects under the Belt and Road Initiative, an Austrian minister has told Xinhua.  [Bloomberg]   

1. Industry News

• Saudi Exchange: Can Handle USD100B Aramco Listing. Saudi Arabia’s stock exchange Chief Executive Khalid al-Hussan indicated in a Reuters interview that he estimated smooth listing of the national oil firm Saudi Aramco, backed by influxes of foreign funds.  [AAStocks]    
• China's power consumption surges fastest over past five years in first two months. China’s power consumption rose the fastest over the past five years during January and February as industrial growth accelerated, the National Development and Reform Commission said.  [Shanghai Daily]    
• Fund Flows Slow in India as Stock Tremors Spurs Risk Off Mood. Inflows into Indian equity funds in March were the smallest in 13 months as some investors sold before a tax on stock holdings took effect from April 1 and volatility returned to markets worldwide.  [Bloomberg] 
• Corporate News
• Evergrande’s US$15.9bn fare on the technology bandwagon. China Evergrande Group announced a 100bn yuan (US$15.9bn) foray into the country’s hi-tech industry. The company said it would invest over 10 years in biotech, aeronautics and astronautics, integrated circuit, quantum technology and artificial intelligence.  [SCMP]
• Banks foster new growth driver. Listed large and medium-sized Chinese commercial banks are trying hard to foster new drivers of growth. China Construction Bank Corp recently announced that its personal consumer loans reached 192.7bn yuan ($30.6 billion) as at the end of 2017, up a whopping 157% YoY.  [SCMP]
• CRRC hard at work on 'intelligent' trains. CRRC Corp Ltd. is expected to roll out an "intelligent" train during the 2022 Winter Olympic Games, according to the company's chairman. "The prototype train is 'smart' in all areas, from technology to design to management," Liu Hualong, chairman of CRRC, said at a panel discussion during the Boao Forum for Asia Annual Conference 2018 on Monday.  [SCMP]
• BMW flagship store launched on JD e-commerce platform. BMW has launched a targeted e-commerce store focused on bringing customers a better user experience, while also directing online customers to brick-and-mortar stores to benefit the brand's dealers.  [SCMP]
• Audi to launch 10 new energy vehicle models in China by 2022. The Sino-German auto JV FAW-Volkswagen will roll out an additional ten Audi new energy vehicle models in China by 2022, the company said. Audi plans to roll out 16 new models, including the new generation Q5L and China-produced Q2L, in China this year.  [SCMP]
• Alipay fined $28,551 by central bank. Alipay has been fined 180,000 yuan ($28,551) by the central bank. According to the website of the People's Bank of China Hangzhou Central Sub-branch, irregularities were mainly found in three sections: consumers rights, product promotion and personal information protection.   [SCMP]    
• Chinese Estates Holdings & Tang Shing Bor Family Jointly Develop Industrial Building. Tang Shing-bor's family together with Stan Group announced for the formation of a JV with Chinese Estates Holdings on the development of an industrial building at 14-18 Ma Kok Street, Tsuen Wan. The aggregate GFA is more than 120,000 sq. ft.  [AAStocks]
• Moody's Affirms ABC (1288.HK) LT Deposit Rating A2; Revises Outlook to Positive. Moody's announced ABC's long-term and short-term deposit ratings were affirmed at A2 and P-1 respectively. The baseline credit assessment was also affirmed and adjusted at baa3. The outlook on the bank's long-term deposits was upgraded from stable to positive.  [AAStocks] 
• HSBC Holdings Appoints Malaysia CEO as Asia-Pacific One-Belt-One-Road Biz Manager. HSBC Holdings announced that Malaysia CEO Mukhtar Hussain was appointed to the newly created position of head of Belt and Road initiative in Asia Pacific, effective from 1 July.  [AAStocks] 
• HSBC Sets up Innovation Tech Biz Team in Guangdong, HK. HSBC announced that the bank has recently established business finance teams in Guangdong and Hong Kong specializing in servicing innovation technology enterprises under the backdrop of steady promotion of Guangdong-Hong Kong-Macao Greater Bay Area construction.  [AAStocks]  
• Ant Financial fined for triple breach. The payment affiliate of e-commerce giant Alibaba Group has been fined 180,000 yuan (US$28,571) by the central bank for failing to properly inform customers during product promotions and mishandling their personal financial information.  [Shanghai Daily]        
• ICICI Bank Board Is Divided Over CEO Kochhar's Future. The board of India’s ICICI Bank Ltd., which less than two weeks earlier expressed full faith in Chief Executive Officer Chanda Kochhar, is divided over whether to ask her to step down as federal authorities investigate allegations of impropriety over loans made to Videocon group.  [Bloomberg] 
• Unigroup to Invest $100bn in Chip Making in 10 Years. Tsinghua Unigroup currently expects that it can raise 370b yuan funding for the plan, which can be used for 5 years’ investment, China News Service reports, citing company chairman Zhao Weiguo as saying.  [Bloomberg] 
• Pou Sheng Says Proposed Privatisation Rejected at Court Meeting. Pou Sheng Says Proposed Privatisation has been rejected; proposal has lapsed and shares to resume trading in Hong Kong on Tuesday, Pou Chen Corp. and Pou Sheng International say in a joint statement Monday.  [Bloomberg] 
• China's CGN a major player in global clean energy markets. China General Nuclear Power Corporation’s first photovoltaic power project in Malaysia, for which construction started last month, is expected to be operational in Mar-19, said He Yu, chairman of CGN.  [China Daily]