Report
Steven Liu

CSCI Morning News Circular - 20180530

  1. Macro News
  • China rejects US accusations on technology transfer as baseless at WTO. Chinese Ambassador to the World Trade Organization Zhang Xiangchen rejected the US accusation that China has abused joint venture requirements to achieve technology transfer, saying the United States is one of the main beneficiaries of technology transfer.  [China Daily]   
  • China-Pakistan Economic Corridor helps boost Pakistan's economy. Pakistani Prime Minister Shahid Khaqan Abbasi said the China-Pakistan Economic Corridor and cooperation from China helped Pakistan emerge as a rising economy in the world.  [China Daily]  
  • India Vows to Ignore Trump’s Sanctions and Continue Iran Imports. President Donald Trump may have ordered the re-imposition of sanctions on Iran, but one of Asia’s biggest oil importers,and a strategic partner of the U.S.,plans on ignoring them.  [Bloomberg]     
  1. Industry News
  • China Eyes 1st Shanghai-London Connect Product by 2018. China should maintain financial stability during opening up and prevent asset bubbles, China Securities Regulatory Commission Vice Chairman Fang Xinghai says at a forum in Shanghai. Fang also urges strengthening of international financial risk monitoring and cross-border supervision cooperation.  [Bloomberg]     
  • China Is Said to Consider More U.S. Coal Imports to Cut Deficit. China is studying a plan to import more coal from the U.S. as part of efforts to narrow trade gap with the country. Officials are currently considering boosting imports from West Virginia. China sees U.S. as source of high-quality coal.  [Bloomberg]      
  • China slashes tax breaks for zombie models in new energy vehicle sector. A total of 1,882 electric cars were removed from the country's purchase tax exemption list, in an action that experts believe is the first in China's attempt to remove zombie companies from the sector and improve the investment environment.  [China Daily]    
  • Corporate News
  • Alibaba sells medical assets to HK arm for US$1.4bn as it targets China healthcare. Alibaba Group is selling assets from medical devices to drugs for HK$10.6bn to a HK-listed unit that it’ll take control of and turn into its main health care arm. Alibaba unveiled a deal Tuesday under which it will inject a plethora of businesses into Alibaba Health Information Technology Ltd., in return for HK$10.6bn worth of new stock in the affiliate.  [SCMP]   
  • ZTE sidelines two more senior executives amid US-China negotiations on export ban. ZTE Corp has sidelined two senior executives amid ongoing negotiations between the US and China over an export ban that has threatened the survival of the Chinese telecommunications equipment supplier.  [SCMP]   
  • Alibaba leads US$1.38b Investment in Delivery Service Operator ZTO Express. Alibaba Group Holding is leading the purchase of a 10% stake in Chinese delivery service ZTO Express for US$1.38 billion, a deal that will boost the ability of the e-commerce giant to ship packages around the globe.  [SCMP]   
  • Agricultural Bank gets private placement nod. Agricultural Bank of China has been given the go-ahead from the CSRC for its 100 billion yuan private placement, paying the way for what will be the country’s largest-ever additional share offering.  [SCMP]   
  • Alibaba, Baidu, Tencent to hold stakes in Foxconn unit. Affiliates of Baidu Inc, Alibaba Group Hldg and Tencent Holdings Ltd, known collectively as BAT, are becoming strategic investors in Foxconn Industrial Internet Co Ltd. The companies are buying 21.8mn shares each in FII's listing at 13.77 yuan apiece, it said in a statement to the Shanghai Stock Exchange.  [China Daily]   
  • JD Finance denies IPO reports. JD Finance denied recent reports the company plans to list on China's A-share market in 2019-2020, Securities Daily reported on Tuesday. A relevant official at JD Finance told the newspaper the company has no IPO timetable at present, and the media’s reports of $2bn in fundraising by JD Finance was not true.  [China Daily]  
  • China's BYD wins annual LA Foreign Direct Investment Award. China's leading electric vehicle manufacturer BYD won "Award of Year" presented by the Select LA Investment Summit, an annual meeting held at the World Trade Center Los Angeles.  [China Daily]  
  • BRICS New Development Bank approves 6 projects. The BRICS New Development Bank (NDB) has approved six new projects from all five member countries with loans totalling $1.6bn, according to NDB President K.V. Kamath. The Chinese project is the Chongqing Small Cities Sustainable Development Project, with loans reaching $300mn.  [China Daily] 
  • Xiaomi Confirms Listing in HK in Jul. Xiaomi confirmed flotation on Hong Kong stock market between early July and mid-July, Mainland media reported. Xiaomi is set for roadshow at end-June and has to prove to investors that its profit will grow 50% in next three years, so that its valuation can lift to at least US$70bn.  [AAStocks]
  • Volkswagen-FAW Joint Venture to Open Three New Car Factories in PRC. Volkswagen AG announced that it plans to open three new automobile factories in China, situated in Qingdao, Shanghai and Foshan, under its joint venture with FAW.  [AAStocks]
  • Agile Group Refinancing Loan Added to $10.4B. Agile Group has increased the four-year refinancing loan amount to equivalent of $10.4bn from $6bn, Reuters reported. The loan, reportedly signed on 21 May, had $2.5 billion over-allotment option.  [AAStocks]  
  • Sunny Optical: Not Consider Back to A-shr by CDR as Mkt Cap Below Requirement. Sunny Optical’s Vice President Ma Jianfeng stated after general meeting that the current value of the company still has a way to go to the market capitalization requirement, which is RMB200 billion, for re-listing as A-shares through CDR.  [AAStocks]  
  • LH Group Ltd. Priced at $1.1; One-lot Success Rate 55%. LH Group Ltd, a catering group operating restaurant chains Gyu-Kaku and On-Yasai, announced that Hong Kong public offering reported approx 1,086.76 times of over-subscription, excluding shares reserved for employees; and approx 978.1 times of over-subscription, if incl. shares reserved for employees.  [AAStocks]   
  • China Auto Start-up NIO Reportedly Submits Listing Doc. in US, Raising HK$15.6B. Tecent investee NIO, a start-up automobile manufacturer based in China, has submitted listing document to the U.S. Securities and Exchange Commission and may finance for approximately US$2bnn, foreign media cited sources.  [AAStocks] 
  • AAC set to maintain 40pc profit margins. AAC Technologies Holdings aims to maintain a target gross profit margin of around 40% this year, according to its executive director Richard Mok. Mok said the trade war between China and the US has no direct impact on the company's business, adding that the electronic components manufacturer will use 7 or 8% of total sales for R&D.  [The Standard]        
Provider
CSCI
CSCI

中信建投国际研究部是中信建投证券香港子公司中信建投国际下属研究部门,负责香港上市公司、行业和宏观研究。我们的研究产品和服务包括行业报告、公司、宏观、常规日报、新闻摘要、分析员路演、上市公司非交易路演和反向路演 以及策略会。

Analysts
Steven Liu

Other Reports from CSCI
Yang Tian
  • Yang Tian
Yang Tian
  • Yang Tian
Yang Tian
  • Yang Tian

ResearchPool Subscriptions

Get the most out of your insights

Get in touch