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CSCI Morning News Circular - 20180419

1. Macro News

• IMF ups China growth forecast. The IMF raised its growth forecast for the Chinese economy and global economy but warned of medium-term risks and the danger posed by escalating trade tensions. The World Economic Outlook report released by the IMF forecast China's growth at 6.6% in 2018 and 6.4% in 2019, both up 0.1ppt from its last report in October 2017.  [Chinai Daily]   
• Chinese Govt raises $800bn in fiscal revenue in Q1. The Chinese government raised 5.05tn yuan ($803.35bn) in fiscal revenue in the first quarter, up by 13.6% YoY. The total fiscal expenditure was 5.099tn yuan, up by 10.9 percent, the Ministry of Finance said.  [China Daily]    
• Japan trade surplus with US climbs to US$65bn. Japan has reported that its trade surplus with the U.S. grew nearly 6% in the fiscal year through March. The Finance Ministry said the trade surplus with the U.S. totaled 6.999tn yen, marking the first increase in two years, as growing exports of cars and other machinery offset rising imports of gas, coal and other major products.  [The Standard] 

1. Industry News

• Automaker equity cap to be scrapped. China plans to phase out the equity cap on automotive JVs by 2022. The current 50% cap on foreign equity, put in place in 1994, will be removed this year for companies that produce NEVs and special-purpose vehicles, the NDRC said.[China Daily]    
• HKMA buys HK$5.1mn to support local currency. Hong Kong Monetary Authority stepped in the currency market for the tenth time since April 12, buying $5.1bn Hong Kong dollars to support the weak local currency. Six-month HIBOR and 12-month HIBOR increased to 1.61179% and 2.12756% respectively, a new high since 2009 financial tsunami. [The Standard]    
• China puts duties on American grain sorghum. China has decided to impose provisional anti-dumping measures on grain sorghum imported from the U.S., the MOC said in preliminary anti-dumping ruling. Grain sorghum importers will be required to pay deposits with Chinese customs calculated based on a rate of 178.6%.  [China Daily]    
• Corporate News
• Alibaba eyes self-driving vehicles. China's largest e-commerce conglomerate Alibaba Group Holding Ltd confirmed on Tuesday that it has been working on autonomous driving technologies, as the country's three major internet giants all tap into the cutting-edge segment.  [China Daily]
• Alibaba expands presence in internet-powered medical services. Alibaba has signed an agreement to partner with Xi'an International Medical Investment Co Ltd to offer internet-powered medical services, according to a statement released by the latter.  [China Daily]    
• Marriott, Alibaba to launch new booking portal. The joint venture formed by China's e-commerce giant Alibaba and the world's largest hotel group Marriott International eight months ago will put an exclusive booking portal online next week, said Marriott in Shanghai.  [China Daily]    
• Lenovo will incorporate AI into all businesses. Lenovo Group will ramp up resources to inject artificial intelligence into all of its businesses this year. Yang Yuanqing, CEO and chairman, said the co. will strive to maintain strong profitability in its PC business, and step up its push to seek progress in mobile phone businesses in 2018.  [China Daily] 
• US regulator move forces ZTE to withhold results.  ZTE Corporation announced yesterday a delay in publication of 2018 first quarterly report scheduled today, pending an assessment on the impact of the activation of denial order by the Bureau of Industry and Security of the United States Department of Commerce on the company.  [The Standard]   
• New Zealand says HNA deal knocked back over excess debts, cash squeeze. HNA Group's heavy debts that are "substantially in excess'' of its assets as well as liquidity issues led New Zealand’s Overseas Investment Office to prevent the Chinese company from acquiring Australia and New Zealand Banking Group's asset finance and investment business UDC Finance, a report says.  [The Standard] 
• Sunac China raises more capital for troubled LeEco units. About seven mainland companies including Sunac China Hldgs, Tencent Hldgs, JD.com, and Suning Hldgs will take part in the latest round of funding of LeEco-backed venture New Leshi Zhijia, which manufactures TVs, as well as film production company Le Vision Pictures.  [The Standard] 
• Alibaba takes durian on board in Thai deal. Alibaba will sign four memorandums of understanding, one of which will commit the company to promoting Thai rice and durian in the Chinese market through its platform, Thai newspaper, Bangkok Post reported, citing the country’s Industry Minister Uttama Savanayana.  [The Standard] 
• Alibaba to invest US$716 million in Huitongda Network Co to develop rural areas. Alibaba Group said it will invest 4.5 billion yuan (US$716 million) in Huitongda Network Co, a rural e-commerce subsidiary of Jiangsu Five Star Appliances Co, to drive sustainable development of rural areas.  [Shanghai Daily]    
• Chinese funds pour US$1.4bn into US biotechnology firms in the first three months of the year. Chinese investors are pumping money into US drug start-ups as Beijing seeks to become a global leader in new medicines, adding to a flood of cash flowing to groundbreaking health firms.  [SCMP]     
• ZTE replaced chief compliance officer after company admitted to lying to US government. The company removed Cheng Gang, a senior vice-president, from his roles as chief compliance officer and chief legal officer, according to an internal human resources notice dated March 8 that was seen by the South China Morning Post. [SCMP] 
• Didi Chuxing to accept cashless payments in Hong Kong cabs for first time. Chinese ride-hailing giant Didi Chuxing announced on Wednesday that it will from now on accept cashless payments for the first time in the city, allowing passengers to pay by Visa, Mastercard or American Express on its mobile app.  [SCMP]     
• Elaine Wynn demands sweeping top-level change at US casino giant Wynn Resorts as scandal-hit ex-husband retreats from firm. US casino giant Wynn Resorts is facing a top-level shake-up after the ex-wife of its scandal-hit former chief executive Steve Wynn demanded sweeping changes in the boardroom to improve corporate governance.  [SCMP]    
• HSBC launches overseas payment service for Chinese students at international universities. HSBC launched its International Education Payment Service, aimed at Chinese students studying abroad, on Wednesday. The bank is the first foreign lender to offer such a service to technology savvy users in mainland China.  [SCMP]  
• Ant Financial Said to List on A & H Share Mkt with Valuation US$150bn. Capital increase and share expansion are underway at Ant Financial, with a valuation of US$150 billion, finance.sina.com.cn cited a document. Concurrently, the company has also basically finalized the plan to list on A and H share markets.  [AAStocks]