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CSCI Morning News Circular - 20180802

1. Macro News

• Fed Keeps September Rate Hike in Focus Amid ‘Strong’ Economy. Federal Reserve officials left U.S. interest rates unchanged and stuck with a plan to gradually lift borrowing costs amid “strong” growth that backs bets for a hike in September.  [Bloomberg]      
• Indian Central Bank Hikes Rate by 25 bps to 6.5%, In Line. Reserve Bank of India announced that it raised the repurchase interest rate by 25 bps to 6.5%, in line with estimates, representing the second hike of the year. The central bank said the decision conformed with its neutral monetary policy.  [AAStocks]      
• Caixin Manufacturing PMI eases to 50.8 in July. China's manufacturing sector continued to expand in July, registering slightly slower growth compared to the previous month amid weakening trend of export orders, according to a private survey on Wednesday. The Caixin Manufacturing PMI edged down from 51.0 in June to 50.8, data showed. [China Daily]         

1. Industry News

• HKEx assures movement on dual class shares in connect. It is just a matter of time before dual-class share companies will be included in the stock connects, said Charles Li Xiaojia, the chief executive of Hong Kong Exchanges and Clearing. But, he said much needs to be done by mainland exchanges.  [The Standard]    
• Taiwan manufacturing drops to 18-mth low in Jul. Manufacturing activity in Taiwan expanded for the 28th consecutive month in July, but expansion fell to its slowest in 18 months, Chung-Hua Institution for Economic Research said. The non-manufacturing index for June gained 2.3 from a month earlier to 57, marking the 17th straight month of expansion.

[The Standard]      

• China sees 297m air passengers in first half 2018.  China saw 297mn air passenger trips during the first half this year, a 12.4% YoY increase, according to Civil Aviation Administration of China. The country's air cargo traffic reached more than 3.55 million tons in the same period, a 6.4 percent YoY increase, said CAAC.  [China Daily]        
• Corporate News
• China Tower prices IPO at bottom of price range after weak retail interest, raising US$6.9bn. China Tower has priced its IPO at the bottom of the indicative price range, raising HK$54.3bn (US$6.9bn) amid lukewarm retail investor interests. The company has sold 25% of an enlarged share capital at HK$1.26 a share.  [SCMP]       
• Baidu banks on mini-programs in battle for users. Baidu chairman and CEO Robin Li Yanhong is taking a page out of fellow technology billionaire Pony Ma Huateng’s book, by pushing to introduce mini-programs, which have helped Ma’s Tencent Holdings surpass 1 billion users and boost engagement time.  [SCMP]       
• Huawei Passes Apple in Smartphone Share for the First Time. Hu of  to claim the No. 2 position in global smartphone shipments in the second quarter just behind , solidifying the rise of Chinese competitors. Huawei shipped 54.2mn phones in the quarter, 41% more than a year earlier, to jump ahead of the iPhone maker for the first time, according to market research firm IDC.  [Bloomberg]      
• Rio Returns $7B to Investors on Asset Sales, Profit Boost. pledged to return more than $7bn to investors after a spree of asset sales and 1H-profit hit a 4yr high. It declared an interim dividend of $1.27/shr, from $1.10 a year earlier, and also approved plans to hand investors about $4bn of proceeds from asset sales.  [Bloomberg]      
• Apple’s quarterly profit leaps 30 per cent, beating expectations and boosting valuation to near US$1 trillion. Apple said Tuesday that its profit had jumped more than 30 per cent to US$11.5 billion in the recently ended quarter, besting market expectations despite selling fewer iPhones than analysts projected.  [SCMP]    
• Chinese car maker FAW to unveil new Hongqi SUV models. Chinese automaker FAW Group is set to unveil two new Hongqi SUV models to target private buyers, the group said Tuesday. The two luxury SUV models Hongqi HS7 and HS5 are scheduled to debut in 2019.  [China Daily]      
• Huawei to buck global telecom trends. Huawei Technologies Co Ltd said on Tuesday that it is confident it will maintain sound momentum for the whole of 2018, after its revenue for the first six months reached 325.7 billion yuan ($47.6 billion), outperforming the slowing global telecom and smartphone market.  [China Daily]      
• Baidu revenues soar in Q2 with AI boost. Chinese internet search giant Baidu Inc reported its total revenues reached 26.0bn yuan ($3.93bn), an increase of 32% YoY in the second quarter of this year, while mobile revenue represented 77 percent of total net revenues, compared to 72% for the same period last year.  [China Daily]   
• Tencent's Enterprise WeChat signs deal with top industry body. Chinese tech giant Tencent Holdings Ltd announced on Tuesday that its WeChat application for enterprise users has inked a strategic partnership with the China Chamber of International Commerce, in its latest move to attract more corporate clients in the country.  [China Daily]   
• CNOOC opens LNG terminal in Shenzhen. China National Offshore Oil Corp's liquefied natural gas terminal in the southern city of Shenzhen went into operation on Wed in an attempt to meet China's growing appetite for natural gas, as the govt. eyes more of the clean fuel to replace traditional fossil fuel as a main source of energy.  [China Daily]   
• Yili likely to buy stake in Pakistan firm. Yili Industrial Group said it plans to acquire a stake of no more than 51% in Pakistani dairy maker Fauji Foods Ltd, according to a statement. It has handed in a letter of investment intention to acquire Fauji Foods as it looks to acquire new assets to consolidate its global position.  [China Daily]   
• Shanxi enterprises team up with JD, Baidu to boost millet sales. Supported by the regulators of Shanxi province, a brand promotion association, formed by officials at the Shanxi provincial bureau of grain and 12 top grain enterprises in the province, has reached agreements on Tuesday with JD and Baidu in Beijing, to integrate internet technologies, such as e-commerce platforms and big data, with millet sales.  [China Daily]   
• CTC and Alibaba team up for cloud services. China Tower Corp, a mobile communication infrastructure company that runs almost all of the mainland's telecom towers, is in discussions with e-commerce heavyweight Alibaba Group Holding Ltd for cooperation in cloud computing, data intelligence and the internet of things.  [China Daily]   
• R&F Properties 7M18 Contracted Sales Elevate 51% YoY. R&F Properties announced that at the end of July 2018, its cumulative attributable contracted sales were RMB67.44bn with approx. 5.0846mn sq.m. sold. It represents a year-on-year increase of 51% and 50% respectively.   [AAStocks]     
• ASCLETIS-B: Listing Proceeds Sizable, Planning Next Financing on Future Dev. ASCLETIS-B Chairman Jinzi Jason Wu said that he is thrilled and honored with the company being the first listed biotech enterprise in HK. Accordingly, the proceeds from listing is of a considerable amount, which will bolster further innovation, R&D and commercialization. ASCLETIS-B will plan the next financing plan pursuant to its future development demands.  [AAStocks]