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CSCI Morning News Circular - 20180509

1. Macro News

• China-US trade talk to continue. China and the U.S. will continue their trade talks next week in Washington to seek a solution that will be "great for everybody", White House Press Secretary Sarah Sanders said on Monday. China's top economic advisor and the vice-premier will be coming to Washington next week to continue the discussion with the US team.  [China Daily]  
• Argentine Central Bank Holds Key Interest Rate at 40 Percent. Argentina’s central bank held its key interest rate at 40 percent, the world’s highest, as it seeks to prevent a further slide in the peso and runaway inflation. The 7-day repo was held at 40 percent, the central bank said on its website.  [Bloomberg]  
• China's trade surplus with US widens by nearly 44% in April. China's trade surplus with the U.S. in April widened by 43.8% from March to US$22.19bn, reversing four consecutive months of decline, according to data from China Customs. China’s exports, denominated in USD, rebounded more strongly than expected in April by 12.9% YoY. [Shanghai Daily]    

1. Industry News

• China's foreign trade up 8.9% in first 4 months. China's goods trade rose 8.9% YoY to 9.11tn yuan in the first 4 months of this year, customs data showed Tues. China's goods exports rose 6.4% YoY to 4.81tn yuan in Jan-Apr period, while imports grew 11.7% to 4.3tn yuan, resulting in a trade surplus of 506.24bn yuan, which narrowed by 24.1%.  [Shanghai Daily] 
• China's total outbound investment jumps in Q1. China's outbound direct investment including financial and non-financial sectors registered rapid growth in the first quarter, according to official data. All-industry ODI totaled $28.2bn, up 16.2% YoY, according to data from the MOC and the State Administration of Foreign Exchange.  [China Daily]    
• Global investors buy China stocks at fastest pace ever as MSCI inclusion draws closer. Foreign fund managers are fully geared up for ploughing their money into China’s equities in the run-up to the integration of the nation’s US$7.5 trillion market into the global benchmarks next month.   [SCMP]       
• Corporate News
• Lenovo Group Merges Computer & Cellphone Biz. As reported by the Mainland media, Lenovo Group's Chairman and CEO Yang Yuanqing announced today for the formation of Intelligent Devices Group, which will merge the current computer business with PCSD and MBG.   [AAStocks]       
• Great Wall Motor April Sales Volume Up 11.8%; Output Up 1.9%. Great Wall Motor announced that in April, the sales volume reached 81,800 vehicles, up 11.79% year on year; production volume reached 83,400 vehicles, up 1.85% year one year.   [AAStocks]       
• China’s JD.com sees sales growth slow despite topping estimates. JD.com reported its slowest quarterly revenue growth since listing, indicating China’s second-largest e-commerce company is feeling the heat from mounting competition in an increasingly saturated domestic market.  [SCMP] 
• Japan's Takeda to buy Shire in record US$62.5bn deal. Drug giant Takeda on Tuesday said it would buy Irish pharmaceuticals firm Shire in a deal worth US$62.5bn, the biggest foreign takeover ever by a Japanese firm. The deal, which will create one of the world's top 10 drug companies, caps a lengthy courtship by Takeda of its larger rival as it seeks to expand overseas.  [Bloomberg] 
• ICBC-AXA Life to set up asset management. ICBC-AXA Life Insurance Company will set up a joint venture asset management company, the first after President Xi Jinping's call to further open up China's insurance sector at the recent Boao Forum.  [Bloomberg] 
• Xiaomi valuation cut back. Xiaomi's latest valuation is between US$70bn and US$80bn, which is lower than the expected value of US$100 billion (HK$780bn), the Wall Street Journal reported. The smartphone maker filed an initial public offering application last week, and will go public in Hong Kong under the new listing rules.  [The Standard] 
• Alibaba purchases South Asia's largest e-commerce platform Daraz Group. Alibaba Group acquired the entire share capital of Pakistan's top and South Asia's largest e-commerce platform Daraz Group, a statement said Tuesday. The purchase, for an undisclosed sum, will make Daraz a wholly owned component of Alibaba.  [China Daily] 
• BYD teams up with UK's Arsenal. The Premier League team signed a long-term marketing contract with Chinese electric vehicle manufacturer BYD company, based in Shenzhen, Guangdong province, a year after the first team visited China on a pre-season tour.  [China Daily] 
• Kweichow Moutai's general manager Li Baofang selected as new chairman. Kweichow Moutai Co Ltd, China's signature high-end spirit maker, announced on Sunday night that Li Baofang, the current general manager, will be appointed the chairman of the group, and Yuan Renguo will step down as chairman.  [China Daily] 
• BYD to make 500 electric dump trucks for Shenzhen companies. China's leading electric vehicle makerBYD Co Ltd on Tuesday signed a contract for 500 electric dump trucks for construction companies in Shenzhen, Guangdong province, marking its largest sales order of its kind.  [China Daily] 
• Banks fined for financial violations. China's banking and insurance regulator recently fined three commercial banks, China Merchants Bank, Shanghai Pudong Development Bank and Industrial Bank Financial Leasing Company for improper practices in wealth management.  [China Daily] 
• Chinese biotech firm WuXi AppTec listed on Shanghai. WuXi AppTec made its debut on the Shanghai Stock Exchange Tuesday, marking the first Chinese unicorn firm to be listed domestically. Its stock price surged 43.98% to reach 31.1 yuan/shr shortly after the stock market opened and remained at the upper limit for IPO share price growth for the rest of the trading time.  [China Daily] 
• Foxconn 'eyes semiconductor field'. Foxconn Technology Group is reportedly ramping up efforts to develop its thriving semiconductor business, but industry insiders say it may still be difficult for the electronics manufacturing giant to enter the chip design sector.  [China Daily] 
• BMW targets Chinese customers with launch of latest premium mid-size SUV. Following the debut of the all-new BMW X3 at Auto China 2018 in Beijing, the German automaker's Chinese JV, BMW Brilliance, announced the model's recommended retail price of 399,800 to 585,800 yuan with orders being taken nationwide as of April 26.  [China Daily] 
• Apple denies overcharging consumers over in-app purchases. The US tech giant Apple has denied that it is taking advantage of the large number of iOS users in China and overcharging them when they have in-app purchases, reports Chinanews.com.  [China Daily]

US reproductive health companies eye China's huge ART market. US reproductive health companies are keen to venture into the "huge and very underserved" Assisted Reproductive Technology market in China whose infertile population will reach 40 million by 2020.  [China Daily]