Asian Macro Initial Thoughts: Cautious trading on light volumes ahead of US PCE and China PMI's at the weekend. Light T/O could prompt intervention on Yen and Team China to come out and play.
Markets open today in Asian: Japan, S Korea, Taiwan, China.
Asia
Last trading day of the month and quarter and a big data dump from Japan pre open. Other markets open in Asian are S Korea, Taiwan and China. Also today we get Chinese Current Account and over the weekend key PMI data for China on Sunday. Chinese equities rallied Thursday morning on reports that President Xi Jinping was urging the central bank to buy government bonds as part of a broader stimulus push; raising hopes of more stimulus ahead.
Chinese developers remain a focus after Country Garden, China's largest private developer, said it will delay its 2023 results due to "continuous volatility" in what is an "increasingly complex" sector. We also saw weaker 2023 earnings from a number of the private developers.
Chinese Tech may also see pressure today on rumours the United States is drawing up a list of advanced Chinese chipmaking factories barred from receiving key tools; to make it easier for companies to stem technology flows into China. The list could be released in the next couple of months, one of the people said.
BUT main focus for most today will be the US PCE data out tonight in the US.
Trading volumes to be light with US markets closed along with Hong Kong, Australia and most of Europe; so trading mainly muted but with the potential for exponential moves due to the lack of volumes.
The expectation of light volumes could prompt the Japanese authorities to step in on the Yen but I hope they don’t and allow market forces to work.
Month and Quarter end repositioning for some; talked of selling of equities and switching to bonds to bring portfolios into balance. For Japan tomorrow will be the last day for the financial year.
Global smartphone shipments are expected to rebound 3% this year as easing inflation aids a demand recovery in emerging markets and the integration of generative AI attracts buyers to premium devices, a report by Counterpoint Research said on Thursday.
Global shipments had declined more than 4% last year earlier data from the research firm showed, as consumers tightened their purse strings in an uncertain economy. Emerging markets such as India, the Middle East and Africa are seen to be major growth drivers for the smartphone market, especially the budget-economy segment. +VE for smart phone supply chain.
The Boao Forum for Asia Research Institute started on Tuesday; under the theme "Asia and the World: Common Challenges, Shared Responsibilities”, finishes Friday.
Not good news for Hong Kong but Hotel bookings in Zhuhai have soared for the upcoming Easter holiday, with over half of them coming from Hong Kongers, said China Travel International Investment Hong Kong (0308) at its earnings briefing. T
Sam BankmanFried sentensed to 25 yrs in prison
Housekeeping
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A Three Body Problem - for US Politics. Both Biden and Trump have ’their problems’ is there a third option? RFK jnr raises an intriguing possibility of a contingent Election in the US, with the new House of Representatives picking the President. Smart analysts like Dr Pippa Malmgrem are starting to talk about it, while the betting markets are also starting to move. The financial markets? Not yet.
On a personal note I am looking for a job; if you have something or know of something please; email andsullivan@gmail.com, WhatsApp me +852 9129 1016 or call +855 10 435 7116. Thank you.
MARKET indications for Thursday’s open
New Zealand
NZX 50 closed Friday and Monday; re-opens Tuesday
No Data due
Australia
ASX200 closed Friday and Monday, re-opens Tuesday.
After market Thursday China announced dropping the tariffs on Australian wine. Treasury Wine Estates (TWE.AX) will resume the distribution of some of its products in China, it said on Thursday.
No Data due
Japan
Nikkei futures indicating a higher open up 185pts 0.46% at 40,360 but slightly weaker pre market inflation data a slight -VE
Today is the last day of the fiscal year Japan.
JR East’s Tohoku, Yamagata and Akita Shinkansen lines has been stopped due to power failure from around 5:45 a.m. on Friday, East Japan Railway said. There is no prospect of resumption, according to the company.
Markets wary; Yen weakness raises the chances of intervention if Yen hits 152
Markets will be open Friday and Monday
Yen closed 151.39. in US
Data out pre market
Unemployment Rate Feb 2.6% vs 2.4% Jan (F/cast was 2.4%)
Jobs/Applications Ratio Feb 1.26 vs 1.27 Jan (F/cast was 1.27)
Tokyo Core CPI Mar 2.4% YoY vs 2.5% Feb (F/cast was 2.6%)
Tokyo CPI Mar 2.6% YoY vs 2.6% Feb (F/cast was 2.7%)Ex Food & Energy Mar YoY vs 2.5% Feb (F/cast was 2.5%)
Due 10 minutes before the open
Industrial Production Pelim Mar MoM vs -6.7% Feb (F/cast was 1.4%)
Industrial Production Pelim Mar YoY vs -1.5% Feb (F/cast was -2%)
Retail Sales Feb YoY vs 2.3% Mar (F/cast was 2.9%)
Retail Sales Feb MoM vs 0.8% Mar (F/cast was 0.4%)
At Lunch
2 yr JGB Auction vs 0.18% prior
After Lunch
Housing Starts Feb vs -7.5% Jan (F/cast was -4.1%)
Construction Orders Feb vs 9.1% Jan (F/cast was -11%)
S Korea
Kospi to open higher after good Industrial Production data although weak retail sales.
Markets will be open on Friday and Monday
S Korea shifted into full-scale election mode on Thursday, with political parties launching their official campaigns ahead of the general election on April 10.
Data already out pre market
Industrial Production Feb 3.1% MoM vs -1.3% Jan (F/cast was 0.4%)
Industrial Production Feb 4.8% YoY vs 12.9% Jan (F/cast was 9.4%)
Retail Sales Feb -3.1% vs 0.8% Jan (F/cast was 0.5%)
Taiwan
Market to open flat with light trading but research from Counterpoint Research suggesting Global smartphone shipments are expected to rebound 3% this year +VE for the smartphone supply chain names.
Market will be open on Friday and Monday. But markets will be close next Thursday for Qingming Festival.
No Data due
China
CSI 300 to open flat after the Golden Dragon Index closed up 18pts off the early highs. Chinese banks under pressure after posting shrinking net interest margins (NIM), while warning of ongoing property sector risks. They are under pressure to reduce interest rates on the loans they make to bolster flagging sectors as demand for lending falls. Wang Jingwu, a vice president at ICBC, said at a press conference that the bank would help stabilise the property market; without specifying how.
Markets open Friday and Monday but Stock Connect closed.
Chinese markets will be closed next Thursday for Qingming Festival.Data due Friday after market
Company Account Final Q4 vs $62.8B (F/cast is $55.2b)
Then PMI data on Sunday
Manufacturing Mar vs 49.1 Feb (F/cast is 51)
Non Manufacturing Mar vs 51.4 Feb (F/cast is 52)
General Mar vs 50.9 Feb (F/cast is 53)
Hong Kong
ADR’s closed Thursday in the US up 107pts 0.65% at 16,726. Most in the red but in the green HSBC, AIA, BoC HK, Tencent, Baba and Xiaomi.
Markets will be closed Friday and Monday for Easter weekend re-opens Tuesday. Market will also be closed next Thursday 4 April Qingming Festival; so expect light trading next week.
No Data due
Singapore
Market will be closed Friday but open on Monday
No Data due
India
Markets will be closed Friday but open on Monday
India is open to being a part of trading blocs which include China if Beijing ensures its economy is open, transparent, and complies with the rules of the World Trade Organisation, India's trade minister Piyush Goyal said at a media event on Thursday.
Data out after market Thursday
External Debt Q4 $648.2B vs $635.3B (F/cast was $638B)
Government Budget Value Feb INR -1514B vs -11026B Jan (F/cast was -13,880B
Infrastructure Output Feb 6.7% YoY vs 4.1% Jan revised (F/cast was 3.8%).
Europe only France open
UK & German Markets closed on Friday and Monday
France open Friday but closed Monday
Data
Eurozone No data due markets closed
Germany No data due market closed Re-opens Tuesday
France Inflation Rate Prelim, Household Consumption, PPI
United Kingdom No data due market closed Re-opens Tuesday
United States
Markets closed but Government working
Data due Core and PCE Price Index, Personal Income, Personal Spending, Goods Trade Balance Adv, Retail Inventories and Ex Auto, Wholesale Inventories Adv, Fed Chair Powell speaks
HEADLINES
JAPAN
PM Kishida said on Thursday it was appropriate for the central bank to maintain accommodative monetary conditions. The government will continue to coordinate closely with the Bank of Japan to ensure wages continue to rise and the economy makes a complete exit from deflation, he said "Japan is experiencing a historical chance to make a full exit from deflation," Kishida told a news conference. "Some people may think that the government can declare that Japan is fully out of deflation. But we're still half way there," he added. Kishida said his administration's key mandate was to ensure companies and households pull out of a deflationary mindset.
Toyota Motor's (7203.T) global sales dropped 7% in February from a year earlier, hurt by a heavy decline in China due to Lunar Year holidays and a slump in Japan after a safety test scandal at its small car unit. Sales in China - the world's biggest auto market - tumbled 36%. This year the week-long Lunar New Year holiday took place in February while last year it occurred in January. China's auto market is also engaged in a cut-throat price war and Toyota said sales were affected by fierce competition. While Toyota's U.S. sales for February surged 16% and those in Europe gained 14%, Japan sales tumbled by a third. Domestic sales were hit by production stoppages at Daihatsu which also makes some Toyota brand cars and due to the reputational fallout from the scandal even though Daihatsu brand vehicles are not included in Toyota's global sales count.
Tokyo Electric Power Co (Tepco) (9501.T) said on Thursday it had applied for regulatory approval to load nuclear fuel into reactor No. 7 at its Kashiwazaki-Kariwa power station from April 15 as it seeks to restart the world's biggest nuclear plant. The Kashiwazaki-Kariwa plant has been offline since 2012 after an accident at another Tepco plant in Fukushima a year earlier led to the shutdown of all nuclear plants in Japan at the time. Tepco needs consent from Niigata prefecture, where the plant is located, to resume operations. The prefecture governor said last week more talks were needed over the possible restart, suggesting operations may not resume quickly.
The development of driverless forklifts is picking up pace as more companies enter the market and businesses embrace a technology tipped to help alleviate the labor shortages looming over many Japanese industries. In addition to major manufacturers that hold a hefty share of the manned forklift market, new makers are entering the fray in anticipation of greater demand for automated forklifts that can lift and carry heavy loads without a driver at the wheel. The government will from April start supporting the introduction of these cutting-edge forklifts expected to be a key weapon in combatting the logistics industry’s “2024 problem” — labor reforms that will from April this year limit the number of overtime hours truck drivers can work, a move that has raised fears about a decline in transportation capacity and delays in logistic chains.
Mitsubishi Logisnext Co., a company within the Mitsubishi Heavy Industries Group, unveiled its latest driverless forklift to the media on March 4. Laser equipment affixed to the upper part of the forklift detects reflectors on walls inside the factory to pinpoint the vehicle’s position, which allows it to transport its load to pre-programmed locations smoothly.
SOUTH KOREA
Lee Bok-hyun, head of South Korea's Financial Supervisory Service, pledged Thursday to promote "sound and fair finance," aiming to enhance the country's allure as an investment destination for foreign investors. Lee addressed officials from global financial firms and foreign diplomats during the annual "FSS Speaks" forum held in Seoul under the theme "toward sound and fair finance.” "In striving for this objective, we aim to cultivate market practices that accurately reflect the values of the Korean companies through their financial health and industry outlook," the top financial regulator stressed.
South Korean prosecutors charged HSBC's Hong Kong subsidiary and 3 traders with illegal naked short-selling of stocks totaling KRW15.8 billion in 2021, Korean media quoted sources from Seoul’s Southern District Prosecutors’ Office as saying. The spokesman for HSBC said the South Korean prosecutors’ arbitrary approach to indicting HSBC and individuals is unwarranted and disproportionate to the local regulatory findings. The bank acknowledged unintentional breaches of the Korean short selling regulations, and it took fast remedial action to address these, and it paid a fine to the Korean regulators of USD5.6 million consequently. It will defend its position vigorously.
The expected merger between OCI Group and Hanmi Group has been called off after a general meeting of shareholders at Hanmi Science, the holding company of Korea's leading drug firm Hanmi Pharmaceutical, on Thursday. The management conflict within the founding family has also temporarily ended as Lim Jong-yoon and Lim Jong-hoon, the first and second sons of founder Lim Sung-ki, secured enough seats on Hanmi Science’s board to stop the merger. "(OCI) humbly accepts shareholders' decision, and the whole merger process will stop. (We) wish Hanmi Group the best in all its future endeavors," said OCI Chair Lee Woo-hyun after the general meeting of shareholders.
Kakao on Thursday appointed Chung Shin-a as its first female, chief while it is facing urgent challenges in revamping its corporate culture and management. The announcement was made as she gained a nod from shareholders during the annual meeting and a separate approval from the board of directors earlier in the day at the company’s headquarters in Jeju Island. After being named as the CEO nominee in December, Chung has served as the head of the company’s innovation task force and chair of its strategy committee, seeking ways to reform Kakao. She also engaged with over 1,000 employees more than 20 times before taking the helm to come up with implementation plans, the company said.
Volkswagen Group Korea on Thursday appointed Steve Cloete to become the next head of Audi Korea as the German automaker looks for a breakthrough to turn around ailing sales in the local market. According to the announcement, Cloete will begin this new post at Audi Korea starting May 1. The new chief has over 27 years of experience in the automotive industry having worked at Hyundai Motor Group in South Africa and BMW Group in Bahrain.
The Kia EV9, an all-electric large sports utility vehicle, won the World Car of the Year on Wednesday at the New York International Auto Show, marking the third year in a row for South Korean auto giant Hyundai Motor Group to take the prestigious award. The EV9 beat out the EX30, Volvo’s electric subcompact crossover SUV, and the BYD Seal, a midsize sedan of the Chinese EV behemoth, to claim the highest honor. Kia’s electric SUV came out on top of the competition between 38 vehicles from all over the world.
TAIWAN
US Deputy Secretary of State Kurt Campbell “underscored the importance of maintaining peace and stability across the Taiwan Strait, in the South China Sea and on the Korean Peninsula,” during a call with Chinese Vice Minister of Foreign Affairs Ma Zhaoxu on Tuesday, US Department of State spokesman Matthew Miller said. The call was part of “ongoing efforts” of the US and China “to maintain open lines of communication ... and responsibly manage competition in the relationship.” he added In other news, a report published by the Heritage Foundation on Wednesday, titled The American Case for Taiwan, said that deterring China from invading Taiwan is “critical” to the security and economic prosperity of the US.
Artificial intelligence (AI) has become a must-have tool for businesses to increase productivity amid drastic changes in markets and the environment, Wistron Corp chairman Simon Lin said at a panel discussion at National Yang Ming Chiao Tung University after receiving an honorary doctorate. “I’m not an expert in AI, but our company has adopted AI in its operations and I feel deeply that AI is an integral part of the business,” Lin said. “Without utilizing the power of AI to double or triple an employee’s working capabilities, a business would face difficulties in handling enormous changes in markets, technology and the environment.” Likewise, AI technology would play a crucial part in allocating production lines promptly and taking countermeasures when geopolitical tensions spell trouble for manufacturers, Lin said.
Online bank O-Bank Co is seeking to deepen customer relations rather than gain market share this year, in a bid to grow into a boutique lender and set itself apart from its peers, the lender said at an event in Taipei yesterday to mark its 25th anniversary. “We are aiming to better utilize our resources by turning into a boutique bank that places more emphasis on our relationship with customers rather than wooing new ones indiscriminately,” O-Bank chairwoman Tina Lo said.
CHINA
In response to a WTO lawsuit filed by China against the U.S. for the latter preventing electric vehicle (EV) manufacturers from sourcing battery materials from China, China's Ministry of Commerce (MOC) spokesman He Yadong said the U.S., in the name of addressing climate change and a low-carbon environment, introduced the Inflation Reduction Act and its implementation details. The U.S. aimed to formulate and introduce a discriminatory subsidy policy based on the premise that subsidies were granted on the basis of the use of products of the U.S. and other specific regions, which distorted fair competition and seriously disturbed the global industry chain and supply chain of new energy vehicles (NEVs), violating the relevant WTO rules, said the spokesman. This distorts fair competition, seriously disrupted the global NEV industry chain and supply chain, and violated relevant WTO rules. He Yadong said that China's prosecution at WTO against the U.S. is a proper move to firmly defend the rules-based multilateral trading system and steadfastly safeguard the stability of the global industry chain and supply chain of NEVs.
China's commerce minister will travel to Europe in April for discussions about the European Commission's investigation into whether China's electric vehicle industry has benefited from unfair subsidies, four people briefed on the plan told Reuters. Visit to France expected on April 7 then Italy expected on April 12. Reported that BYD, SAIC and Geely representatives to accompany Wang.
China will lift anti-dumping and anti-subsidy tariffs on Australian wine from today March 29, the Chinese commerce ministry said on Thursday, ending three years of punitive levies and offering long-awaited relief to Australian wine producers. China still imposes import duties on French wine, which leaves the country at about 7.7 euros per bottle; French Bordeaux wine exporters, who supply 9% of China's total wine and spirits imports, expect a rapid fall in exports after China's decision on Thursday to lift import tariffs on Australian wine.
The Philippines will implement countermeasures against "illegal, coercive, aggressive, and dangerous attacks" by China's coastguard, President Ferdinand Marcos Jr. said on Thursday, upping the stakes in an escalating row in the South China Sea. The Philippines is furious over what it calls repeated hostilities by Chinese vessels around disputed features inside Manila's 200-mile exclusive economic zone. The United States has weighed in with moral support for its former colony and military ally. Marcos did not specify what the countermeasures would entail, but said they would come in succeeding weeks and be proportionate, deliberate and reasonable in response to what he called open and unabating attacks. "We seek no conflict with any nation, more so nations that purport and claim to be our friends but we will not be cowed into silence, submission, or subservience," Marcos said on Facebook.
Chinese Defence Ministry spokesperson Wu Qian on Thursday said the Philippines was to blame for the breakdown and was counting on support from external forces while peddling misinformation and infringing on China's sovereignty. "China firmly opposes the Philippine side's treachery and provocation, as well as its fabrication of lies to mislead international public opinion," Wu said.
Malaysia's government has said it would consider extending a $10 billion China-led rail project to its border with Thailand to boost economic ties between the Southeast Asian neighbours. Part of China's Belt and Road Initiative, the 665-kilometre (413-mile), 50.27 billion ringgit ($10.63 billion) railway is on track to connect the east and west coasts of peninsular Malaysia by the end of 2026. Malaysia's Transport Minister Anthony Loke said on Wednesday the government was open to proposals to extend the track to the border with Thailand, for further integration into existing railway networks or future infrastructure developments. He did not provide further details.
The original rail link was first proposed in 2017 and is being constructed by the Malaysian unit of China Communications Construction Co Ltd (601800.SS). It was 60% complete as of March, according to Bernama state news agency. Thailand also has plans to invest in a massive land bridge project in the country's south to boost growth and global trade. The bridge would bypass the congested Strait of Malacca, a narrow sea lane between Malaysia and Indonesia.
"Rather than a zero-sum game of competition, (Malaysia's) ministry of transport is confident that Malaysia and Thailand can explore closer cooperation in the areas of transport and national development for long-term mutual benefit," Loke said.
HONG KONG
Data
The Hong Kong Monetary Authority (HKMA) announced that the total assets of the Exchange Fund amounted to HK$4,040.9 billion as at February 29, 2024, HK$5.7 billion lower than that at the end of January 2024. Foreign currency assets decreased by HK$3.6 billion and Hong Kong dollar assets decreased by HK$2.1 billion. The decline in foreign currency assets was mainly due to reduction in the month-end balances of unsettled purchase of securities, which was partly offset by interest income from investments and mark-to-market revaluation of investments. The decline in Hong Kong dollar assets was mainly due to a decrease in placements with banks, which was partly offset by mark-to-market revaluation of Hong Kong equities.
The Government announced its financial results for the 11 months ended 29 February 2024. There was a deficit of HK$17.4 billion in the month of February. Expenditure for the 11-month period amounted to HK$647.2 billion and revenue HK$457.2 billion, with the cumulative year-to-date deficit at HK$118.3 billion after taking into account the proceeds of HK$72.5 billion received from issuance of green bonds and repayment of principal of HK$0.8 billion under the Government Green Bond Programme (Green Bond). The fiscal reserves stood at HK$716.5 billion as at 29 February 2024.
The Hong Kong Monetary Authority (HKMA), together with the Banking Sector SME Lending Coordination Mechanism (Mechanism), announced a series of measures to assist small and medium-sized enterprises (SMEs) in obtaining financing from banks and to support their continuous development. Although the local economy has been recovering gradually, some SMEs are still facing challenges in their operations. Taking into account the views of the commercial sectors, the Mechanism decided to launch 9 measures to assist SMEs in navigating a complex and ever-changing operating environment and to increase their bargaining power relative to banks. One of the measure is to never demand early repayments from mortgage customers who repay on schedule. The participating banks in the Mechanism commit to follow the guidance issued by the HKMA on 20 December 2023 not to demand early repayments from mortgage borrowers who make payments on schedule.
Earnings
PSBC(01658.HK) Annual Net Profit RMB86.27B, Up 1.2%; Final DPS RMB0.261
JOY CITY PPT Annual Net Profit RMB340M, Down 35.9%; Final & Spec. Div. Total HKD1.44 Cents
CHINA MER PORT Annual Net Profit HK$6.233B, Down 19.9%; Final DPS HK$48 Cents
WEIMOB INC (02013.HK) announced annual result ended December 2023. The total revenue rose 21.1% year on year to RMB2.228 billion. The loss narrowed from RMB1.829 billion in the corresponding period of previous year to RMB758 million. LPS was RMB0.28. No dividend was declared.
GWMOTOR Proposes to Distribute Cash Div. RMB30 Cents/ Shr. Net profit for 2023 amounted to RMB7.022 billion, and the undistributed profit of GWMOTOR (02333.HK) as at the end of December 2023 amounted to RMB52.729 billion, according to GWMOTOR's announcement. The Company proposed to distribute cash dividends to all of the shareholders in an amount of RMB30 cents per share, involving approx. RMB2.563 billion. The cash dividends to be distributed account for 36.5% of the Company's net profit for 2023.
GOME RETAIL (00493.HK) announced annual result ended December 2023. The turnover declined 96.3% year on year to RMB647 million. The loss narrowed from RMB19.956 billion in the corresponding period of previous year to RMB10.057 billion. LPS was RMB22.3 cents. No dividend was declared.
SHIMAO GROUP (00813.HK) announced its annual results ended December 2023. Revenue dropped 5.7% YoY to RMB59.464 billion. The loss was RMB21.03 billion, narrowing from RMB21.492 billion in the corresponding period of the previous year. LPS was RMB5.55. No dividend was declared.
COSCO SHIP PORT (01199.HK) announced annual result ended December 2023. The turnover rose 0.9% year on year to US$1.454 billion. The net profit amounted to US$325 million, up 5.8%. EPS was US$9.33 cents. A second interim dividend of US$1.988 cents (HK$15.5 cents) was declared against a dividend of US$1.504 cents in the corresponding period of the previous year.
CHINA RES GAS (01193.HK) announced its annual results for the year ended December 2023. Revenue increased 7.3% YoY to $101.272 billion. Net profit elevated 10.4% YoY to $5.224 billion, with an EPS of $2.3. A final dividend of HK100.69 cents was declared, compared to HK90 cents in the same period last year. A final dividend of HK100.69 cents was declared, compared to HK90 cents in the same period last year.
BOC HONG KONG announced its annual results for the year ended December 2023. Net operating income before impairment allowances was $65.498 billion, hiking 20.8% YoY. Profit attributable to equity holders elevated 26.1% YoY to $32.723 billion, giving an EPS of $3.095. A final dividend of $1.145 is declared, compared to HK91 cents in the same period last year. Together with the interim dividend, the full-year DPS would be $1.672, a 23.2% YoY increase, which is in line with the range of $1.6 to $1.75 forecasted by the 4 brokers as summarised by our reporters. Dividend payout ratio was 54%, a rise of 1 ppt YoY.
SINO BIOPHARM (01177.HK) announced its annual results for the year ended December last year, with revenue of RMB26.2 billion, a slight increase of 0.7% YoY. Net profit declined 8.3% YoY to RMB2.33 billion, with an. EPS. of RMB12.59 cents. A final dividend of HK3 cents was declared, compared to HK6 cents in the same period in 2022. Together with the interim dividend already paid, the total DPS for the whole of 2023 amounted to HK5 cents, compared to HK12 cents for the whole of 2022. As of the end of last year, SINO BIOPHARM had 145 products under development, including 60 oncology products, 9 liver disease products, 31 respiratory system products, and 15 surgery/analgesia products, of which 67 were Category I innovative products. In the next three years, more than 10 innovative products of the group are expected to be launched to market, and the other 30 or more innovative products under R&D have the potential to be launched by 2030.
SHIMAO SERVICES (00873.HK) announced its annual results ended December 2023. Revenue fell 5% YoY to RMB8.203 billion. It turned from a loss into a profit of RMB273 million, compared to a loss of RMB927 million in the same period last year. EPS was RMB0.11. No dividend was declared.
ABC (01288.HK) released its annual results ended December 2023. According to the International Accounting Standard, net profit amounted to RMB269.356 billion, up 3.9% YoY, in line with the net profit forecast range of RMB263.953 billion to RMB272.436 billion made by 7 brokers as summarized by our reporters. EPS was RMB0.72. The Board proposed distribution of a final dividend of RMB2.309 per 10 shares, as compared to RMB2.222 for the same period of 2022, i.e. a DPS of RMB23.09 cents, which is higher than the upper limit of a DPS of RMB23 cents projected by 6 brokers as summarized by our reporters.
BRILLIANCE CHI (01114.HK) announced its annual result ended December 2023. Revenue declined 0.8% YoY to RMB1.121 billion. The net profit amounted to RMB7.735 billion, up 8.2%. EPS was RMB1.53312. No dividend was declared.
Buybacks
AIA (01299.HK) disclosed that the Company repurchased 550,000 shares on Thursday 28 March on the Stock Exchange of Hong Kong at $50.2-52.95 per share, involving approximately $28.5545 million. Since the ordinary resolution was passed, the company has repurchased nearly 363 million shares, accounting for 3.1226% of its share capital.
TENCENT (00700.HK) announced that it repurchased 3.28 million shares of the company on the Hong Kong Stock Exchange Thursday (28th) at $301.8-308.6 per share, involving about $1.003 billion.
YUM CHINA (09987.HK) repurchased 15,300 shares on the Stock Exchange of Hong Kong (HKEX) on 27 March (Wednesday) at a price per share ranging from $303.8 to $307.4, involving about $4.6879 million, according to YUM CHINA's announcement. In addition, the Company repurchased 61,500 shares on the New York Stock Exchange (NYSE) on the same day at a price per share ranging from US$38.62 to US$39.36, for a total consideration of approx. US$2.3999 million.
MGM CHINA (02282.HK) disclosed that Thursday (28 Mar), it repurchased 1.5542 million shares on the Stock Exchange at a price of $13.3-$13.62 per share, involving a total amount of about $20.9111 million. Since the ordinary resolution was passed, the company has repurchased a total of 5.2087 million shares this year.
HSI Short Selling Thursday 18.8% vs 22.8% Wednesday
Top shorts Ali Health (241) 49%, Longfor (960) 41%, OOIL (316) 39%, Tingyi (322) 38%, MTRC (66) 36%, ICBC (1398) 35%, New World Development (17) 34%, TRIP com (9961) 34%, JD Health (6618) 33%, PetroChina (857) 33%, Galaxy Ent (27) 32%, Bank of China (3988) 32%, Hang Lung Ppty (101) 32%, CM Bank (3968) 32%, China Life (2628) 31%, SHKP (16) 30%, JD SW (9618) 29%, Henderson Land (12) 29%, China Shenhua (1088) 29%, CITIC (267) 28%, BoC HK (2388) 26%, BYD (1211) 26%, Xiaomi (1810) 25%, China Res Beer (291) 25%, Meituan (3690) 25%.
WATCH
Gu Shu, Chairman of ABC (01288.HK) envisioned that credit demand will keep growing steadily this year as economic performance improves. He projected that the bank's county loans to rally by RMB1.3 trillion this year, and loans to farmers to grow by more than RMB300 billion. The bank will also strive to achieve a loan growth of RMB800 billion in inclusive finance under the People's Bank of China's window. Zhang Xuguang, Vice President, ABC, separately said that the quality of assets will remain stable this year. Besides, the bank's credit structure continues to be optimized, with more than 80% of its loans last year invested in advanced manufacturing, infrastructure and energy.
Xiaomi, a well-known maker of smart consumer electronics in China, is joining the country's booming but crowded market for electric cars. It will start taking orders for the SU7, a sporty four-door sedan, following a launch event with founder Lei Jun in Beijing on Thursday evening. Analysts think it will be priced in the 300,000 yuan ($40,000) range. Government subsides have helped make China the world's largest market for electric vehicles, and a bevy of new makers are locked in fierce competition. Most of the industry's sales have been domestic, but Chinese makers are pushing into overseas markets with lower-priced models, posing a potential challenge to European, Japanese and American auto giants.
CATL (300750.SZ) posted in its WeChat official account saying that its two new products will unveil their first model tonight. Its Shenxing battery and Qilin battery all-around series will be officially released, and will has a longer range, higher performance, with the world's most stringent battery safety standards, to create the ultimate safety performance for user. XIAOMI-W (01810.HK) 's SU7 will be officially launched tonight. Therefore, the outside world believes that the first car model for CATL's batteries may be Xiaomi SU7.
CIFI HOLD GP (00884.HK) said that the Company is in search of a holistic solution in respect of its offshore indebtedness, and has suspended payment under the Group’s certain offshore financing arrangements including the debts securities listed on the Stock Exchange. Therefore, payment under the 2024 March Notes is not expected to be made on the maturity date. Failure to pay such principal at maturity will constitute an event of default under the 2024 March Notes as well as other debt securities of the Company listed on the Stock Exchange. Notice is also given that as the 2024 March Notes will mature on 28 March 2024, the 2024 March Notes will be delisted from the Stock Exchange on 28 March 2024. Trading in the ordinary shares of the Company on the Stock Exchange has been suspended with effect from 9:00 a.m. on 28 March 2024. An application has been made by the Company to the Stock Exchange for the resumption of trading in the ordinary shares of the Company from 9:00 a.m. on 2 April 2024.
BRILLIANCE CHI (01114.HK) announced that a meeting of the Board will be held on 15 April 2024 for the purpose of considering and approving the declaration and payment of a special dividend to the shareholders of the Company whose names are registered on the register of members of the Company on the relevant record date. As the proposed Special Dividend may or may not be approved by the Board at the Board Meeting, Shareholders and potential investors are advised to exercise caution in dealing in the securities of the Company.
The China Mobile 5G-A Commercial Launch Ceremony was held today (28 Mar) in Hangzhou, Zhejiang Province. It was announced at the meeting that China Mobile 5G Advanced network (5.5G) is officially commercialised, and the full series of OPPO Find X7 would be the first to support 5.5G mobile communication.
South Korean prosecutors charged HSBC's Hong Kong subsidiary and 3 traders with illegal naked short-selling of stocks totaling KRW15.8 billion in 2021, Korean media quoted sources from Seoul’s Southern District Prosecutors’ Office as saying.
EUROPE & US RECAP
DAX 0.08%, CAC 0.01%, FTSE 0.26%
Markets opened higher, DAX traded sideways in a tight range just above flat. CAC climbed slightly higher initially but then eased back to the opening and traded sideways around the opening level. FTSE opened higher and trended slightly higher through the day.
Travel stocks led gains while financial services and Utilities slipped.
Earnings from insurer Lloyd’s of London who commented that the Baltimore incident may be the largest marine insurance payout.
JD Sports rallied 16% after its positive trading update after its January profit warning. Whilst conditions are challenging they expect conditions to improve.
UK GDP figures confirmed that the U.K. economy fell into a recession in 2023 with a 0.3% contraction in the final quarter. German employment nudged fractionally higher in February
DOW 0.12%, NDX -0.12%, S&P 0.11%, Russel 2K 0.48%
US markets opened around flat and traded around flat all day. S&P hit a new intraday high and had its best Q1 in 5 years.
Initial claims came in at 210,000, slightly lower than the 211,000 than F/cast. University of Michigan’s latest Consumer Sentiment Index in March unexpectedly jumped to 79.4, reaching the best level since July 2021. The reading, from the , topped consensus estimates of 76.5.
GDP Growth Rates and Corporate Profits beat but Kansas Fed Manufacturing Index Mar -9 vs 3 in Feb (F/cast was -6)
Banks JPMorgan Chase 0.39%, Citigroup 0.78% Wells Fargo 0.61%, Amex -0.03%
Ecommerce Meta -1.68%, Apple -1.06%, Amazon 0.31%, Netflix -1.01%, Disney 1.14%, Zoom Video -1.88%, Alphabet 0.21% and Microsoft -0.17%,
Tech NXP Semi 0.95%, Nvidia 0.12%, Micron -1.05%, AMD 0.5%, Skyworks 0.4%
Industrial/Discretionary Boeing 0.54%, Caterpillar 0.49%, Simon Property 1.4%, Kohl’s 2.5%, Nordstrom 1.76%, Gap 0.95%, United Airlines 1.35%, Carnival -4.94%, Wynn Resorts 0.43%
Energy Chevron 0.89%, Exxon Mobil 1.1%,
Consumer Staples Campbell Soup 0.86% General Mills 0.45%, JM Smucker 0.12%
DAILY DATA
USD firmer ahead of inflation data, Bitcoin 3.16% at 70,834.78, VIX 1.8% at 13.01,
US T10 up 1 bpts at 4.21% and T2 up 6 bpts at 4.63%
OIL Brent 1.61%, WTI 2.24% on tighter supply outlook with OPEC+ expected to extend. its current production cuts.
Gold 1.9%, Silver 1.41%, Copper 0.29% Platinum 1.46%, Palladium 3.23%.