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CSCI Morning News Circular - 20180424

1. Macro News

• German Growth Momentum Rebounds After First-Quarter Slowdown. Growth in Europe’s largest economy unexpectedly picked up in April, reversing a slowdown at the start of the year. A Purchasing Managers’ Index for manufacturing and services rose to 55.3 from 55.1, IHS Markit said on Monday.  [Bloomberg]   
• China Seeks to Have ’First-Class’ Investment Banks. China will promote stock connects with overseas markets, according to a commentary in China Securities Journal. China seeks to have “first-class” investment banks and asset-management institutions. Conditions are mature for China to further open its capital market.  [Bloomberg]    
• Chinese enterprises in Israel creat association to seek better ties, further cooperation. The Chinese enterprises in Israel have formed an association, with the aim of providing a platform for them to seek further development in Israel and play an active role in boosting the bilateral ties.  [China Daily] 

1. Industry News

• Sino-Dutch economic cooperation highlighted at forum in Rotterdam. Over 100 enterprises and governmental agencies from China and the Netherlands joined an economic cooperation forum in Rotterdam Friday to share insights and explore new opportunities.  [China Daily]    
• China to commercialize 5G technology by second half of 2019. China will apply 5G technology to terminal devices as early as the second half of 2019, leading to the primary commercialization of the technology in the near future, according to an official with the Ministry of Industry and Information Technology.  [China Daily]          
• Hainan restricts property ownership options for non-locals, after throwing doors open to visa-free entry. Beijing imposed restrictions on the purchase of property in Hainan on Sunday night, about a week after it announced an ambitious free-trade zone plan for the island, which is also known as “China’s Hawaii”.  [SCMP]
• Corporate News
• CGN Power’s Yangjiang No. 5 Reactor Gets Fuel-Loading Approval. CGN Power’s Yangjiang No. 5 reactor, which uses China’s home-developed CPR-1000 design, received fuel-loading approval April 17 from regulator National Nuclear Safety Administration, according to a statement on the administration’s website.  [Bloomberg]  
• Legend Holdings Selected for Free-Floating H-Share Pilot. China’s securities regulator has selected real estate conglomerate Legend Holding Corp. as the first participant in the Hong Kong stock market's full-circulation pilot program, which allows non-tradeable shares held by big shareholders to float freely.  [Bloomberg]  
• China’s ZTE Takes Measures to Follow U.S. Export Ban. ZTE says it has been taking measures to follow U.S. Commerce Department’s export restriction, according to a statement to the Stock Exchange. ZTE has established a compliance committee led directly by company president.  [Bloomberg]  
• Li & Fung to Redeem Subordinated Perpetual Securities on May 25. Li & Fung to redeem in whole its outstanding $500mn subordinated perpetual capital securities issued on Nov. 8, 2012 at their principal amount together with any accrued distribution, according to statement to Hong Kong stock exchange.  [Bloomberg]  
• ASM Pacific to Receive Boost from Tel Nexx, Amicra Deals. ASM Pacific Technology can broaden its product mix and expand in several booming market segments following its acquisitions of Tel Nexx and Amicra Microtechnologies, according to CICC.  [Bloomberg]  
• Good Doctor Is Said to Seek Valuation of Up to 9.38x 2019 Sales. Ping An Healthcare & Technology Co., known as Ping An Good Doctor, is approaching investors with a valuation of 8.69 times to 9.38 times estimated 2019 sales as it markets its Hong Kong IPO.  [Bloomberg]  
• Ping An’s Good Doctor Attracts GIC, Khazanah to $1.1 Billion IPO. Ping An Good Doctor, a unit of China’s biggest insurer by market value, attracted cornerstone investors including GIC Pte and Khazanah Nasional Bhd. to a Hong Kong initial public offering that could raise as much as $1.1 billion.  [Bloomberg]
• Mercedes, Audi and Volvo tie up with Alibaba to connect Genie smart speaker. Daimler, Audi and Volvo are the first global car brands to adopt Alibaba Group’s voice-activated assistant Tmall Genie, it announced on Monday. Tmall Genie competes with Amazon’s Echo and Apple’s HomePod in the fast-growing market for smart speakers.  [SCMP]
• Lenovo may get bumped off the Hang Seng Index. Lenovo Group is increasingly at risk of being dropped from Hong Kong’s benchmark equity index as its shares tumble more than any other technology company in the world. The company has fallen 56% since being added to the Hang Seng Index in March 2013, wiping out USD5.8bn in value. [SCMP]
• Valuations of ZTE slashed on US sanction. Mainland funds have reduced valuations of ZTE Corp after Washington banned US companies from selling components to the telecommunications equipment maker for seven years, a move the firm said threatened its very survival.  [SCMP]
• Tencent Music plans IPO for second half of 2018. Tencent Music Entertainment Group, China's largest music-streaming company, is planning to file an initial public offering for the second half of 2018, following the successful debut of the company's European counterpart, Spotify Technology SA, The Wall Street Journal reported on Sunday. [China Daily]  
• BAIC Group to export waves of electric vehicles to Mexico. BAIC Group is exporting its electric cars into Mexico to be used as taxies starting from June as part of the Stateowned carmaker's efforts to go global, according to a senior executive at its subsidiary in charge of international business.  [China Daily]  
• FAW charges startup Byton's new energy drive with strategic partnership. Next generation automobile startup Byton and FAW Group entered into a partnership on Friday in Beijing, to cooperate in the development of NEVs. FAW is a strategic investor in Byton, and the two sides have possibilities to work together in R&D, manufacturing and services.  [China Daily]  
• China Life Signs Strategic Cooperation Agreement with JD. China Life Insurance (Group) Co. entered into a comprehensive strategic cooperation agreement with JD. Both parties will focus on the all-round strategic cooperation for sectors including e-commerce, Internet financial business, product development and marketing, data and technology and corporate financial business.  [AAStocks]
• Legend Holding Approved Participation in H Share Full Circulation Pilot Project. Legend Holding announced that the Company received the approval from China Securities Regulatory Commission (CSRC) on the application to participate in the H share full circulation pilot project.  [AAStocks]
• Vision International targets HK$60mn in IPO. Vision International, an apparel supply chain management services provider, started book building yesterday, aiming to raise up to HK$60mn. The company plans to issue a total of 250mn shares at a price range of between 20 HK cents to 24 HK cents per share.  [The Standard]