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CSCI Morning News Circular - 20180425

1. Macro News

• China Concerned Trade and Debt Risks Could Hit Economic Growth. China’s leaders are signaling concern that growth in the world’s second-largest economy could slow due to trade and financial risks,and that they’re prepared to tweak policy to avoid a sharp deceleration, economists said.  [Bloomberg]   
• China Stocks Get Adrenaline Shot From Policy Easing Signals. Chinese stocks got a much-needed shot in the arm Tuesday, gaining the most in two months amid signs the government is willing to ease its tightening campaign to avoid an overly sharp economic slowdown.  [Bloomberg]    
• Hainan, China’s Hawaii, to use HK as gateway for fundraising, IPOs. Hainan, the southernmost Chinese island that Beijing plans to transform into a hub for gambling and foreign investments, aims to strengthen ties with Hong Kong in 10 areas such as setting up a pilot district to boost trade services and help companies with their IPOs and fundraising activities in the city.  [SCMP] 

1. Industry News

• Abu Dhabi’s Finance Hub, Shanghai’s Bourse Plan New Exchange. Abu Dhabi Global Market and Shanghai Stock Exchange signed a MoU to establish an exchange in Abu Dhabi called “Belt and Road," according to a statements on ADGM’s website.  [Bloomberg]         
• Fixed-asset investment posts stable growth in Q1. China's fixed-asset investment showed stable growth during the first quarter this year, playing a vital role in optimizing supply structure, cultivating new engine and strengthening areas of weakness in people's livelihood.  [China Daily]    
• Record Chinese Fuel Exports Rattle World’s Top Oil Buyers. China, the world’s top oil consumer shipped a record 457,903 barrels a day of gasoline and 572,735 barrels a day of diesel last month, according to the General Administration of Customs data.  [SCMP]
• Corporate News
• China Coal Miners Rally as Domestic Prices Bounce. Yanzhou Coal Mining Co. was among the top gainers in the MSCI Asia Pacific Index and led advances among Chinese coal miners as domestic prices of the fuel rose for first time in almost 3 months. Yanzhou Coal rose as much as 7.9 percent in Hong Kong.  [Bloomberg]  
• China’s Hainan to Encourage Cos. to Seek H.K. Listing. Hainan province will also support local companies to sell bonds in Hong Kong, according to a Hainan Daily report posted on the provincial government’s website. Hainan will support local companies to borrow from banks in Hong Kong.  [Bloomberg]  
• Li Ning 4Q18 Trade Fair Orders Rise in ‘Low-Teens’ on Year. Same-store sales under Li Ning point-of-sales for the quarter ended Mar 31 rose in “low-teens” on year. In terms of channels, retail and wholesale saw a “low-teens” growth and ”mid-single-digit” increase respectively, while e-commerce virtual stores business saw a “high-thirties” growth.  [Bloomberg]  
• Wynn Resorts Responds to Recent Elaine Wynn Shareholder Letter. The Company is continuing the positive momentum that has accompanied its recent initiatives and is focused on the future.  The Board is working in an orderly fashion to refresh its composition, with three new experienced and distinguished directors being named last week.  [Bloomberg]  
• BAIC Motor 1Q Net Income Rises 17.5% on Year to 1.6 billion Yuan. BAIC Motor’s operating income for the three-month ended March increased 9.3% year on year to 39.8 billion yuan, according to a statement to the Hong Kong stock exchange.  [Bloomberg]  
• Guangzhou Auto, Didi Chuxing’s Unit to Cooperate on Smart EV. Guangzhou Auto, Didi Chuxing’s new energy auto platform signed a framework agreement to cooperate on development and manufacturing of smart electric vehicles, according to a statement to Shanghai Stock Exchange.  [Bloomberg] 
• Kaisa Group Sells $330mn Tap of USD 2020 Bond at 96.622. Chinese property developer Kaisa Group Holdings priced a $330m tap of its 7.25% 2020 bond at 96.622 cents on the dollar on Monday, according to Bloomberg data. The new notes will be fungible with the existing notes in 40 days.  [Bloomberg] 
• Saudis Said to Delay Bourse IPO on Hope MSCI Will Lift Valuation. Saudi Arabia is delaying the IPO of its stock exchange on hopes that a potential MSCI Inc. upgrade could boost its value. The Tadawul, as the Middle East’s biggest stock exchange is known, has pushed back plans to sell shares to 2019 at the earliest, from this year.  [Bloomberg] 
• Hong Kong’s MTR Corp nears partnership to develop properties for China’s ‘largest landlord’. Hong Kong’s rail operator plans to develop property above train stations for China Railway Corp. in China, a move that will further export its business model across the border.  [SCMP]  
• Xiaomi takes low-cost TVs to India. The Beijing-based consumer electronics maker shipped more than 9 million smartphones in the first three months to India, a 155 per cent gain over the year-earlier period and translating to a 31% market share, according to Canalys, the research firm. That compares with Samsung’s below 7.5mn units.  [SCMP]
• ZTE promises to protect staff and clients' interests. ZTE Corp promised to protect the legitimate rights of staff members and shareholders after a ban by US Dept. of Commerce. It also pledged to shoulder responsibilities to global clients, consumers, partners and suppliers and insist on independent innovation in core technologies, news reported.  [SCMP]
• China's CRRC to produce 200 train cars for Argentina. China's rolling-stock maker CRRC Corp. has secured a train deal for 200 cars and related parts from Argentina, the third train order won from the country, a CRRC-affiliated company said Tuesday.  [China Daily]   
• Tencent Pictures sets up film distribution subsidiary. Tencent Pictures, the film unit of Chinese tech giant Tencent, has set up a distribution subsidiary aiming to boost its influence on cinemas. The new company's business will run independently and will not be limited to content backed by Tencent.  [China Daily]   
• com says 100 Chinese brands defected from Alibaba. JD.com said that over 100 Chinese brands defected last year due to pressure from its main rival, an assertion Alibaba and some brands have contested. The exodus appears to have had a lasting impact.  [The Standard] 
• Chalco to add capacity, earnings drop by 19.4pc. Aluminum Corporation of China (2600) first quarter net profit dropped by 19.4% YoY to 308.64mn yuan (HK$383.54mn). Revenue fell by 10.47% to 36.67bn yuan. The group has plans to add 1 million tons capacity for electrolytic aluminum this year.  [The Standard]