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CSCI Morning News Circular - 20180523

1. Macro News

• Argentina, IMF Begin Talks on Rescue Package. The Executive Board of the International Monetary Fund commenced negotiation on rescue plan for Argentina. IMF said the negotiation will start with a request of exceptional access Stand-By Arrangement which is a loan tool of IMF allowing member states to obtain large credit line.  [AAStocks]  
• Bank Indonesia to Step Up Intervention as Currency, Bonds Slide. Indonesia’s central bank pledged to continue its intervention in the currency and bonds market to ease volatility, and said it will boost forex liquidity as the rupiah slumped to a fresh 31-month low. [Bloomberg]  
• A.E. to Allow 100% Business Ownership to Foreign Investors. The United Arab Emirates plans to allow full foreign ownership in companies and grant long-term visas to some investors and professionals as the second-biggest Gulf economy seeks to attract more investments.  [Bloomberg]  

1. Industry News

• Airlines' Q1 profits gain high altitude. Major airlines in China reported strong 1Q earnings growth as surging travel demand and yuan appreciation helped offset adverse factors. "Despite the oil price rise, major airlines posted positive growth in 1Q, fueled by continuing high demand from the market," said an aviation industry analyst.  [China Daily]    
• China eyes steady coal prices with increased supply. China's coal prices are expected to remain stable and will not soar with increased supply and regulatory efforts, an official for China's top economic planner said. Adequate stocks of coal in power plants, improved coal transport, and consumption of more clean energy will also prevent a surge in coal prices, said the official.  [China Daily]     
• China's steel prices recover on rising demand. Steel prices in China are showing signs of recovering as market demand picked up in April, but continued excessive supply in the industry will keep a lid on price rises in the long run, the latest data from an industry association showed.  [China Daily]    
• Corporate News
• China and US agree ‘broad outline’ of settlement over ZTE ban, WSJ says. China and the US have agreed on the “broad outline” of a settlement to the seven-year ban on ZTE buying American technology, ending a punishment that threatened to put the company out of business, The Wall Street Journal [SCMP]    
• Anbang hangs ‘for sale’ sign over majority stake in domestic securities firm. Anbang is selling its majority stake in a domestic securities firm for what’s expected to be at least 3.6bn yuan, in what will be its first major divestment after the company was taken over by the authorities following the dramatic downfall of its former chairman Wu Xiaohui.  [SCMP]    
• BYD sees sharp growth in global order China's leading electric vehicle maker BYD on Monday signed a contract for 200 electric trucks with a Brazilian firm, marking the company's largest order for e-trucks in the international market. It is the company's second large-scale deal for heavy-duty trucks in less than one month.   [China Daily]    
• Fosun Pharma Anti-Depression Drug Passes Generic Drug Consistency Evaluation. Fosun Pharma announced that Escitalopram Oxalate Tablets, an anti-depression medicine made by its subsidiary Dongting Pharmaceutical, passed the consistency evaluation for generic drugs of CFDA.  [China Daily]       
• China Huarong IPO seeks US$2.8b in biggest Hong Kong listing so far this year. China Huarong Asset Management’s initial public offering will seek to raise up US$2.8 billion, its indicative price range shows, marking the biggest Hong Kong listing in 10 months as investors venture back into equities after a market slump this year.  [SCMP]
• SenseTime joins forces with Alibaba Group to nurture AI start-ups in Hong Kong. Hong Kong’s first artificial intelligence (AI) unicorn SenseTime and Alibaba Group have jointly launched an AI laboratory in the city to advance the technology and help build a start-up community in the field.  [SCMP] 
• Xiaomi Expands in Europe With First Store in Paris. Chinese smartphone maker Xiaomi Corp is opening a store in Paris and planning for more shops in France, Spain and Italy, testing the appetite of consumers in developed markets as its executives consider a U.S. expansion.  [Bloomberg]     
• Microsoft Will Share Data, Tools to Speed Chinese AI Development. Microsoft Corp. will set up an open platform with four of China’s most prestigious universities to share its data and tools on artificial intelligence, quickening efforts to try and wrest clients away from local giants.  [Bloomberg] 
• Dongfeng Honda-built CR-Vs recalled for lubricant issues. Dongfeng Honda Automobile, the Sino-Japanese joint venture between Honda and Dongfeng Motor Group is set to recall 130,455 vehicles to replace parts affected by lubricant issues which may cause safety hazards and damage the engine.  [China Daily]    
• US Chief Economic Adviser: ZTE To Face Big Fines, Board Restructuring. Larry Kudlow, director of the White House National Economic Council, told ABC that ZTE is going to face extremely severe punishment, including enormous fines, compliance measures, new management and board of directors.  [AAStocks] 
• China Telecom Apr 4G Users Net Increase Eases to 5.86mn. Mobile subscribers increased to 270.87 million, with net increase of 5.57 million. Of which, 4G mobile subscribers totaled 206.12 million, with net increase of 5.86 million, easing from cumulative net increase of 6.93 million in the previous month.  [AAStocks]    
• China Unicom Apr Mobile Billing Subscribers Net Addition 3.071mn. Aggregate number of mobile billing subscribers reached 297 million, with net addition of 3.071 million. Of which, aggregate number of 4G subscribers 198 million, with net addition of 4.062 million.  [AAStocks]   
• China Mobile Loses 2.427M 4G Customers in Apr. Total mobile customers reached 899.658 million, with net additional customers for the month eased to 1.121 million. Meanwhile, 4G customers totaled 669 million, down 0.36% month on month, losing 2.427 million.  [AAStocks]
• CNOOC Parent Company Signs Production Sharing Contracts with Husky Oil. CNOOC announced that its parent company China National Offshore Oil Corporation executed Production Sharing Contracts, regarding area 22/11 and area 23/07 in South China Sea, with Husky Oil Operations.  [AAStocks] 
• MTR Corp UK subsidiary begins Heathrow route services. The MTR Corporation said that a wholly owned subsidiary, MTR Corp Crossrail, on Sunday began passenger services on Paddington Station to Heathrow Airport route under the Transport for London brand.  [The Standard] 
• Lee & Man Paper building plant in Myanmar, report says. Hong Kong listed, Lee & Man Paper Manufacturing is planning to build a paper production plant in Myanmar's southern Bago region, the official Global New Light of Myanmar reported, Xinhua said.  [The Standard]