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CSCI Morning News Circular - 20180510

1. Macro News

• China calls for joint efforts with Japan, S. Korea to accelerate FTA, RCEP negotiations. Premier Li Keqiang said on Wed that China, Japan and South Korea should accelerate the negotiations for a trilateral Free Trade Agreement and achieve the Regional Comprehensive Economic Partnership at an early date so as to promote the building of an East Asian Economic Community.  [Shanghai Daily]  
• IMF raises 2018 GDP growth forecast for Asia, Hong Kong. The IMF raised its forecast for Asia's economic growth to 5.6%, and that for Hong Kong to 3.6%, according to a report it released Wed. The report stated that the economic outlook for Asia and the Pacific remains strong, and the region continues to be the most dynamic of the global economy. [China Daily]    
• K. Retail Misery Endures as Sales Decline Most on Record. The woes afflicting U.K. retailers continued in April, with sales dropping and demand for staff easing. A 3.1 percent decline in total sales, while distorted by the timing of Easter, was the sharpest since the survey began in 1995.  [Bloomberg]    

1. Industry News

• MSCI to adjust list of A-share firms in indices. Index provider MSCI Inc will announce the semi-annual adjustment of its equity indices next week, which will change the representation of Chinese stocks in the MSCI system before the official inclusion of China's A shares into its emerging market index on June 1.  [China Daily]    
• Investors plow 1.3 trillion yuan via Bond Connect. Bond Connect recorded significant growth since launch, the Hong Kong Exchanges and Clearing reported. Trading through Bond Connect in the first quarter reached 162.6 billion yuan, an increase of 7 percent compared to the fourth quarter of 2017, HKEx said.  [The Standard]    
• HKEx predicts higher northbound turnover from MSCI A share inclusion. The Hong Kong Exchanges and Clearing said today the inclusion of China A shares in MSCI Inc’s Emerging Markets Index in June is expected to further stimulate northbound turnover through the Stock Connect.  [The Standard]       
• Corporate News
• China bitcoin miner Canaan Creative ditches US for Hong Kong IPO. Canaan Creative, China’s second-largest bitcoin mining hardware maker, is planning to seek an IPO in HK instead of the US, which if successful would make it the first blockchain-related company to list on the city’s bourse. It is seeking to raise as much as US$1bn for its IPO.  [SCMP]
• WeDoctor raises US$500mn in private share sale, valuing company at US$5.5bn. WeDoctor Holdings, an online health care services provider backed by Tencent Holdings, has completed a US$500mn private share sale, in the second major equity financing deal in China’s nascent “health-tech” sector in three weeks.   [SCMP]  
• ZTE suspends smartphone sales, after-sale services to comply with US ban. ZTE Corp, China’s biggest publicly traded telecommunications equipment provider, has halted sales of its consumer products and related services after the US government last month banned the sale of American technology to the company.  [SCMP]  
• Tencent expands UK presence with collaboration in cultural industries. Tencent will work with British institutions in the cultural and creative fields as part of a partnership with the UK amid cooling relations between China and the US. The company signed a MOU with the UK Department of International Trade on Wednesday in London.  [SCMP]  
• InterContinental doubles down on China, targets high-end hotel brands. InterContinental Hotels Group is doubling down on the China market and plans to acquire or develop more luxury brands to compete against other hospitality giants, according to its chief executive for the country.  [SCMP]  
• Xiaomi investors question US$100bn IPO valuation. It’s not entirely clear whether potential buyers are balking at the initial $100 billion number for the smartphone maker, or whether bankers and executives are seeking to temper expectations so Xiaomi can enjoy a higher first-trading-day pop.  [SCMP]    
• CRRC sets up freight train subsidiary. CRRC Corp. on Wed set up its freight train subsidiary in Qiqihar city. Xu Zongxiang, executive director of CRRC Corp., said the parent co would support CRRC Qiqihar Co. to upgrade its core competitiveness and become the world's first-class freight train supplier and equipment manufacturer.  [China Daily]
• China's truck manufacturing giant opens first assembly plant in Algeria. China's truck manufacturer Shaanxi Automobile Group on Tuesday inaugurated its first assembly plant in Algeria, as part of a joint venture with its Algerian partner Mazouz Trade Group.  [China Daily]
• CNCEC signs contracts with Kinshasa worth nearly 2.6b euros. China National Chemical Engineering Group Co., Ltd. (CNCEC) said Wednesday that it has signed engineering contracts worth 2.565 billion euros (about $3.05 billion) with Kinshasa, capital of the Democratic Republic of Congo.  [China Daily]        
• WuXi AppTec raises $902.62mn in Shanghai IPO. China's leading global contract research outsource provider WuXi AppTec, successfully listed on the main board of the Shanghai Stock Exchange on Tuesday, marking the nation's first unicorn enterprise to get IPO approval on the A-share market. WuXi AppTec raised 5.74bn yuan in the IPO. [China Daily]       
• US companies invited to join AIIB projects. The Asian Infrastructure Investment Bank is welcoming US companies to join its infrastructure projects. "We encourage American companies to participate in the competitive bidding and export equipment and services to the countries who need them," Jin Liqun, president of the AIIB, said.  [China Daily]
• HKEX 1Q Net Profit Up 49% YoY to $2.56bn, Setting All-time High. HKEX announced that the 1Q net profit advanced 49% yearly to $2.562 billion, hitting a new high. Basic EPS equaled $2.07. EBITDA climbed 45% yearly to $3.215 billion.  [China Daily]       
• AIA Signs Long-term Strategic Partnership Agreement with WeDoctor. AIA announced that the company entered into a long-term strategic partnership agreement with and acquired equity interests in WeDoctor, backed by Tencent.  [AAStocks]       
• HSBC Holdings Commences Repurchase up to US$2bn. HSBC Holdings nnounced that it will commence a share buy-back of HSBC’s ordinary shares of US$0.5 each for up to a maximum consideration of US$2 billion. The purpose of the Buy-back is to reduce HSBC’s outstanding Ordinary Shares.  [AAStocks]
• Victor Li Feels No Big Change in Succeeding CKH Holdings Chair Soon. Li Tzar Kuoi, Victor, soon to succeed as the Chairman of CKH Holdings, said he don't think there will be great changes in succeeding the post with more than 30 years of working experiences in the group, when being asked about his view at the AGM of CK Holdings and HKElectirc-SS.  [AAStocks]
• Vodafone in 18.4bn euro takeover of Liberty Global assets. Telecom giant Vodafone has agreed to buy Liberty Global's operations in Germany, the Czech Republic, Hungary and Romania in a deal valued at 18.4bn euros as the industry moves toward "next-generation'' technology carrying voice, data and video over a single network.  [The Standard]