FREE

CSCI Morning News Circular - 20181112

1. Macro News

• China's CPI up 2.5% in October. China's consumer price index rose 2.5 percent year-on-year in October, unchanged from that in September, data showed Friday. China's producer price index rose 3.3 percent year on year in October, the National Bureau of Statistics said.  [China Daily]      
• Argentina In Talks to Expand PBOC Credit Line By $8.7B. Argentina is close to signing a deal with China to expand a currency swap line by $8.7bn, boosting the nation’s foreign reserves. Argentina would get an extra 60b yuan ($8.7bn), boosting the size of the credit line to 130bn yuan, the central bank’s press office said in a statement.  [Bloomberg]
• Portugal Expects Economy to Continue Growing Above EU Average. Portugal’s economy will continue to grow above the European Union average, helped by the country’s ability to attract investment, Economy Minister Pedro Siza Vieira said.  [Bloomberg]      

1. Industry News   

• China Coal Imports Shrink After Power Plants Build Winter Hoard. China imported the least coal in five months as the record heap of inventories at power plants signals the top user is well-supplied heading into the winter heating months.  [Bloomberg]       
• China to Let More H-Share Cos. to Apply for Full-circulation. China Securities Regulatory Commission is assessing plan to expand H-share full circulation trial, vice chairman Fang Xinghai speaks at a panel discussion at World Internet Conference.  [Bloomberg]         
• China Lays Out Banks’ Lending Targets for Private Companies. China aims to boost large banks’ loans to private companies to at least one-third of new corporate lending, said Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission.  [Bloomberg]   
• Corporate News
• Alibaba sets record US$30.8bn for Singles’ Day sales. Alibaba Group set a record 213.5b yuan in Singles’ Day sales, underscoring the resilience in consumer spending in the world’s second-biggest economy. The gross merchandise value was c.27% higher than last year’s tally, also a record, which was surpassed mid-afternoon on Sunday.  [SCMP]   
• Tesla names director Robyn Denholm to replace Musk as board chairman after turbulent ride. Tesla Inc has named director Robyn Denholm as board chair, fulfilling a demand by the US Securities and Exchange Commission to strip the job from Elon Musk, the electric car maker’s wayward chief executive who has dragged the company through months of turbulence.  [SCMP]    
• Melco Resorts Third Quarter Net Revenue Misses Lowest Estimate. Melco Resorts reported net revenue for the third quarter that missed the lowest analyst estimate.3Q net revenue $1.22 billion, estimate $1.35 billion (range $1.26 billion to $1.43 billion).  [Bloomberg]
• Jack Ma's Ant Financial Makes a Big European Play Via Soccer. The world’s largest online financial services firm, controlled by the billionaire founder of , signed an agreement to become the official digital wallet for UEFA competitions. Ant’s Alipay will provide online payments and other financial services to Europe’s governing body for soccer till 2026, encompassing an estimated 420 matches watched by billions.  [Bloomberg]    
• Ctrip secures robust Q3 revenue growth as tourism services expand at home, abroad. China's top online travel agency Ctrip reported robust revenue growth in the third quarter of this year thanks to steady service expansion in domestic lower-tier cities and international markets. The company raked in about 9.4bn yuan in net revenue in Q3, up 15% YoY [China Daily]   
• Tongcheng-Elong may list in HK by year-end. Tongcheng-Elong Holding Limited, the third-largest online travel agency in China by trading volume, has reached a profit of 845.36 million yuan ($122 million) in the first half of 2018, it said in a post-hearing information released Thursday.  [China Daily]  
• American Express approved to offer clearing service in China. American Express was notified on Friday that PBOC, the central bank, has granted preparatory approval to a JV established by the multinational financial services corporation in the Chinese mainland for its application for a clearing and settlement license in the mainland.  [China Daily]
• Aviation suppliers confident about success in China's growing market. Aviation companies have demonstrated their confidence in the Chinese market at the ongoing China International Import Expo, with Airbus looking to capitalize on opportunities in helicopter emergency medical services.  [China Daily]   
• Blue Chip Constituents Unchanged; China Tower Added to HSCEI with CGS Removed. Hang Seng Indexes Company Limited Friday (9th) announced the results of its review of the Hang Seng Family of Indexes for the quarter ended 28 Sep-18. The total number of constituents is fixed at 50. China Tower has been included as HSCEI constituents and CGS has been removed. The changes will be effective from Dec 10th 2018.  [AAStocks] 
• Sunny Optical Oct Handset/ Vehicle Lens Sets Shipment Volume +73.9%/ 23.4% YoY. Sunny Optical announced that in October, the shipment volume of spherical glass lenses lifted 19.2% YoY to 3.151mn pieces, while that of handset lens sets grew 73.9% YoY to 103mn pieces. Shipment volume of vehicle lens sets rose 23.4% YoY to 3.49mn pieces.  [AAStocks] 
• Dongfeng Group Production, Sales in January-October Down 1.7%, 5.2%. Dongfeng Group announced that, in the month of October 2018, production and sales of passenger vehicles amounted to 221,800 vehicles and 233,200 vehicles respectively.  [AAStocks] 
• China State Construction 10M18 New Contract Value HK$100.23B. China State Construction announced that it has recorded an accumulated new contract value of about HK$100.23bn in the ten months ended 31 Oct 2018, and hence achieved a 83.5% completion of the full year target of 2018 (which has been revised up to no less than HK$120bn).  [AAStocks]   
• SIM Tech Oct Core Biz Revenue Down 52% Year on Year to $118 million. SIM Tech announced that the revenue of the core business of October 2018 decreased by 52.2% as compared with that of the same period last year to $118 million.  [AAStocks]   
• Huaneng Renewables October Power Generation Up 11.7% Year on Year. Huaneng Renewables announced that the gross power generation in October 2018 amounted to 1,940,000 MWh, representing an increase of 11.7% as compared with October 2017.  [AAStocks]