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Louise Moon

Gigi Choy

Deb Price

Hello traders --
A second day of gains in Hong Kong and the mainland. Catch up on the action below.
And, hey, are you getting your Live Stocks Blog every morning via email? You can! Don't miss out on our coverage of Hong Kong and mainland markets each trading day! If you would like the Live Stocks Blog emailed to you each morning, click here.
-- Louise Moon, Gigi Choy and Deb Price 
Note: Information in this blog is on an "as is" basis and not a solicitation or offer to buy or sell any securities or otherwise; and is not investment/professional advice or services in this regard.  It is subject to our T&C.  SCMP (as defined in T&C) shall not be liable for any loss, damage and costs relating to any investments in securities or otherwise in this connection


Hong Kong stocks head for longest losing streak in 2 months on China stimulus letdown

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Stocks

Hong Kong, China stocks gain after US rally on virus stimulus bill hopes

A woman walks past the security fence on a street in Beijing on March 11, 2020, as China tries to return to normalcy after being clobbered by the coronavirus. Photo: EPA-EFE


Business

Dow Jones Industrial surges more than 11 per cent -- biggest gain since 1933
Tencent, WH Group and Want Want China among gainers


In second straight day of gains in Hong Kong, Tencent advances 4.2 per cent, while pork processor WH Group soars nearly 12 per cent.  


China stock market

Hang Seng Index

Coronavirus pandemic: All stories

Live

Overnight markets/what futures foretell
-- Overnight, the  S&P 500 zoomed up 9.4 per cent, the Dow Jones rose 11.4 per cent, and the Nasdaq gained 8.1 per cent. Europe’s Stoxx 50 Index rose by 9.2 per cent.
-- Hong Kong Hang Seng’s futures were up 1.6 per cent, while the FTSE China A50 futures gained 2.5 per cent.
IPO debuts: Nothing scheduled.
Economic statistics/central bank action: Nothing scheduled.
Corporate events, earnings, meetings, news conferences: Earnings in Hong Kong include CGN Power (1816 HK), China Jinmao (817 HK), China Life (2628 HK), Mengniu Dairy (2319 HK), China Rail Signal (3969 HK), CNOOC (883 HK), Haidilao (6862 HK) and China Postal Bank (1658 HK). Earnings in the mainland include BOC International (601696 CH), Haitian Flavouring (603288 CH) and New China Life (601336 CH).


Morning guidance

Electronic components manufacturing company Elec & Eltek (1151 HK) has halted trading on the Hong Kong stock exchange as of 9am, it said in a filing without further information.
Meanwhile hospitality and management construction/engineering company South Shore Holdings (577 HK) will resume trading, having halted on Monday.
In a filing before market open, it explained a bank had demanded immediate payment of overdue interest amounting to a total HK$470 million, from a loan, and warned of enforcement steps if payment was not received by March 31.
South Shore Holdings said it will unlikely be able to meet the deadline. It intends to repay the bank with proceeds of a disposal of a 50 per cent interest in a subsidiary, and is in discussions with the bank on potential alternative repayment plans, it said.
-- Louise Moon


Elec & Eltek halts trading

Japanese Prime Minister Shinzo Abe and President of the International Olympic Committee (IOC) Thomas Bach postponed Tokyo’s 2020 Olympic Games to “not later than summer 2021, to safeguard the health of the athletes, everybody involved in the Olympic Games and the international community”, they said in a statement on Tuesday.
“The leaders agreed that the Olympic Games in Tokyo could stand as a beacon of hope to the world during these troubled time and that the Olympic flame could become the light at the end of the tunnel in which the world finds itself at present,” they said. The Olympic flame will stay in Japan, and keep the name “Olympic and Paralympic Games Tokyo 2020”.
This comes after both Canada and Australia pulled their national teams from participating as worries over the spread of Covid-19 intensify.
-- Louise Moon


Olympics postponed over virus threat

Kingsoft Corp. (3888 HK) reported a loss of 1.55 billion yuan in 2019 as compared to 389 million yuan in 2018.
  The software and online gaming company said revenue was up 48 per cent to 2.6 billion yuan, mainly driven by its cloud service business, which recorded a 73 per cent increase last year, fetching 3.8 billion yuan, according to a filing to Hong Kong stock exchange late Tuesday.
  It said the company plans a possible spin-off and separate listing of Kingsoft Cloud Holdings Limited.
  And on December 20, 2019, the cloud service unit submitted a draft registration statement for a possible offering of shares in the US.
  The company is going to pay a dividend of HK$ 0.1 in early July.
-- Pearl Liu   


Kingsoft revenue jumps

Pharmaceutical and medical device company WuXi AppTec (2359 HK) (603259 CH) is planning to raise up to 6.5 billion yuan via a private placement of 75 million A-shares to finance some of its projects, and replenish capital, it said in a filing to the stock exchange before trading.
It will also issue 68.2 million H-shares, but did not say how much it aims to raise from this.
On Tuesday the company reported a 33.9 per cent year-on-year revenue growth, to 12.8 billlion yuan, and a 38.2 per cent rise in net profit over the same period, to 2.4 billion yuan.
-- Louise Moon


WuXi AppTec issues shares to raise money

The Hang Seng Index opened 3 per cent higher at 23,339.70.
Tencent (700 HK) jumped 3.3 per cent to HK$377.20, while Alibaba (9988 HK) gained 3.5 per cent to HK$180.60.
-- Gigi Choy


Hang Seng, Tencent, Alibaba gain

The Hang Seng touched its highest level since March 13 and is on track for two days in a row of gains, for the first time since February 17.
-- Louise Moon 


Hang Seng touches highest level since March 13

On the mainland the Shanghai Composite added 1.9 per cent to 2,775.30 – its highest level since March 17 – while the CSI 300 of large caps rose 2.38 per cent to 3,711.48.
The indexes look set for a second day in a row of gains, tracking wider gains from Europe and US that came on the back of hopes the US Congress is close to a deal on a roughly US$2 trillion stimulus package.
-- Louise Moon


Shanghai gains 1.9 per cent

US markets surged overnight on expectations of a substantial bipartisan stimulus deal.
"But in ‘buy the rumour sell the news’ fashion, the stock market could easily take another sharp leg lower once the good news is out, and investors conclude that it won't be enough (yet) to address what's going on in the real economy,” Stephen Innes, chief global market strategist at foreign exchange company AxiCorp, wrote in a note.
“The reason why it’s critical to get this US Aid package wrapped up quickly and in a huge way is that in contrast to Europe, the US social and economic parachutes, and automatic fiscal stabilizers are much weaker,” said Innes.“With no [lengthy] unemployment and [guaranteed regardless of employment] health benefits, and in the absence of a quick and useful government safety net, the economic impact will be much worse in the US than in Europe.”
  -- Louise Moon


AxiCorp: US stock market could be in for a fall

Singapore will ban gatherings of more than 10 people outside work and school and ordered all bars, cinemas and other entertainment venues to close from Friday until the end of April.
The country has already barred entry and transit to all short-term visitors and tightened restrictions on work pass holders.
Full article here. 
-- Gigi Choy   


Singapore bans gatherings of more than 10 people, shuts bars and cinemas

Metal and mining company Jinchuan Group International Resources (2362 HK) reported a 10 per cent drop in revenue for 2019 to US$1.25 billion in 2019, when compared to the previous year.
Net profit for the same period shed 86 per cent, to US$13 million.
A drop in copper and cobalt prices in 2019, compared to 2018, had a negative impact on the company’s overall financial performance, it said in a filing to the stock exchange.
The average price of copper dropped from US$5,779 per ton to US$5130 per ton, while cobalt fell from US$69,961 per ton to US$16,116 per ton, it said.
Its stock was up 4.26 per cent to HK$0.49 in morning trading, having shed 29.8 per cent so far through the year to last close.
-- Louise Moon


Metal and mining company Jinchuan sees revenue drop

Jefferies expects another year of balanced growth for Longfor.
The investment bank believes Longfor can grow its sales by 12 per cent to around 270 billion yuan this year.
It also forecast more than 30 per cent rental income growth to 7.6 billion yuan.
Jefferies reiterated its buy rating at a target price to HK$41.36.
Longfor Properties (960 HK) jumped 9.1 per cent to HK$36.15.
-- Gigi Choy


Jefferies reiterates ‘buy’ rating for Longfor Properties

“From an economic perspective, the postponement of the Olympics is clearly less negative than cancelling the games outright,” said Jeremy Osborne, investment director at Fidelity International.
“One of the major beneficiaries of the Olympics is the construction industry, but Olympics related building work is already completed,” he wrote.
“The tourism and hotel industries would be negatively affected in the short term, but this is insignificant compared to the impact of the global Covid-19 pandemic. Therefore, the effects of postponement in isolation are relatively limited in the near term.”
-- Louise Moon


Olympics postponement unlikely to cause huge economic damage to Japan, says Fidelity

The US has the potential to become the new epicentre of the coronavirus, the World Health Organisation (WHO) said on Tuesday.
Over the past 24 hours, 40 per cent of new cases worldwide were from the US, WHO spokeswoman Margaret Harris told reporters.
But US President Donald Trump said he wants the US economy reopened in just over two weeks.
"I would love to have the country opened up and just raring to go by Easter," he said during a Fox News virtual town hall from the White House Rose Garden.
Trump said on Monday that the US economic shutdown meant to stop the spread of the virus across the country would not be extended, declaring that the US "wasn't built to be shut down".
-- Gigi Choy


US could be next coronavirus epicentre but Trump optimistic about restarting economy

Economic indicators released overnight in Europe showed coronavirus has plunged business activity in Germany – Europe’s largest economy – France and the UK.
In Germany, IHS Markit’s composite purchasing managers’ index (PMI) – which tracks the manufacturing and services sectors, that together account for more than two-thirds of the economy – fell to 37.2 in March, from 50.7 in February.
That was below expectations by analysts polled by Reuters, of 40.6, and the lowest level since the financial crisis in 2009.
In France, the IHS manufacturing PMI dropped to 42.9 in March, from 52.5 in February.
Meanwhile the UK’s economy is shrinking at a record pace, faster than during the financial crisis.
The flash UK composite PMI – conducted by IHS Markit – fell to a low of 37.1, from 53 in February. The services index plunged to a record low of 35.7, from 53.2 in February.
-- Louise Moon


Coronavirus hammers Eurozone, UK economies

Seoul’s Kospi rose 4.5 per cent, after its 8.6 per cent jump Tuesday. The tech-heavy Kosdaq, which jumped 8.3 per cent on Tuesday, rose 4.3 per cent.
Tokyo’s Nikkei 225, which shot up 7.1 per cent Tuesday, is up 5.7 per cent. The Tokyo Olympics were officially postponed overnight, the first time in history that has happened.
Australia’s S&P/ASX200, which rose 4.2 per cent Tuesday, increased 2 per cent.
New Zealand’s S&P/NZX50, which shot up 7.2 per cent Tuesday, jumped 2.6 per cent.
Meanwhile, Singapore’s Straits Times Index, which rose 5.8 per cent Tuesday after plunging 7.3 per cent on Monday, went up 2.4 per cent.
-- Gigi Choy


Asia-Pacific markets up

Apple may start reopening stores outside Greater China on a staggered basis in the first half of April, according to Bloomberg.
The tech giant previously closed 458 of its retail stores outside mainland China, Hong Kong, and Taiwan to minimise the spread of the coronavirus. It reopened all 42 of its China stores earlier this month.
Apple suppliers Luxshare Precision (002475 CH) rose 9 per cent to 38.60 yuan and GoerTek (002241 CH) jumped 9.7 per cent to 17.03 yuan in Shenzhen, while  AAC Technologies (2018 HK) went up 8.2 per cent to HK$41.70.
  -- Gigi Choy


Apple may start reopening stores outside Greater China, supplier shares surge

By just after 11am, Air China (753 HK) (601111 CH) had risen 5.2 per cent to HK$5.2, and by 6.14 per cent in the mainland, to 6.91 yuan.
China Eastern Airlines (670 HK) (600115 CH) rose 6.2 per cent to HK$2.75, and by 4.89 per cent to 4.29 yuan in the mainland.
China Southern Airlines (1055 HK) (600029 CH) shot up 8.2 per cent to HK$3.31, and 3.65 per cent to 5.39 yuan in Shanghai.
Hong Kong’s flag carrier, Cathay Pacific Airways (293 HK) gained 5.6 per cent to HK$8.29.
The gains come after the Hong Kong government announced a HK$1 billion stimulus package for the aviation industry earlier in the week.
The International Air Transport Association (IATA) said on Tuesday airlines globally could take a US$252 billion hit from the pandemic.
Airlines globally are suffering as one of the hardest hit industries amid the Covid-19 outbreak.
Swedish flight tracker Flightradar24 tracked 95,227 flights on Tuesday. That was the lowest number of flights in a day since December 25, 2016, and the first time it has tracked less than 100,000 flights in a day. It was founded in 2006.
-- Louise Moon


Airlines extend gains

How long until this mother of all grizzly bears goes into hibernation? Traders and analysts weigh in.
Global markets are unbelievably volatile. Get used to it, analysts say. 
Tencent (700 HK) has a big fan club. Here’s why. 
China airline stocks will come back. What should investors know?
And Macau casino stocks have been beaten down. What do analysts say about their odds ahead?


ICYMI: Features for investors on this big grizzly bear, Tencent, China airlines, casinos

Investors bought shares of internet-based insurance firm ZhongAn Online (6060 HK) after it narrowed losses in 2019.
Still, research houses seeming mixed in their outlook on the stock.
Its share price was up 1.6 per cent to HK$24.80.
The firm narrowed its net loss by 74 per cent in 2019, when compared to the previous year, to 454 million yuan.
In reaction, both Nomura and and Daiwa raised ZhongAn to “buy” and “outperform,” respectively, with target prices of HK$27.55 and HK$26, while JP Morgan cut it to “neutral,” with a price target of HK$22.
-- Louise Moon


Research houses mixed on Zhong An Online

Asia gains today are pre-mature, says Edward Moya, senior market analyst, New York, at OANDA, given the grim news on the virus.
  “There is a lot of momentum behind this risk-on move,” he wrote in a new note, “but the news on the virus front is getting worse and it seems a bit premature to cheer the massive US fiscal stimulus bill before it is finalized and all the details are revealed. 
“Volatility is likely to remain on overdrive and it will be difficult to imagine a scenario that will see global equities further advance throughout the remainder of the week,” he wrote.
The Hang Seng is up 2.1 per cent while the Shanghai Composite Index gained 1.6 per cent.
-- Deb Price     


Asia gains are pre-mature, given grim virus news, says analyst Edward Moya

The Shanghai Composite was up 1.6 per cent to 2,765.13 at the lunch break.
The CSI 300 of large caps gained 2 per cent to 3,698.05.
Food, 5G and pharmaceutical-related stocks led the morning rally
.Among food, New Hope Dairy (002946 CH) gained 8.7 per cent to 11.43 yuan, while Tianjin Guifaxiang (002820 CH) boosted by the daily limit of 10 per cent to 12.19 yuan.
Beijing Sanyuan Foods (600429 CH) rose 2.15 per cent to 5.22 yuan, and HaiXin Foods (002702 CH) gained 2.63 per cent to 5.47 yuan.
Among 5G and electronics stocks, Luxshare Precision Industry (002475 CH) gained 8.5 per cent to 38.43 yuan, while Goertek (002241 CH) rose 9 per cent to 16.93 yuan.
And among pharmaceutical stocks, Fuan Pharmaceutical Group (300194 CH) shot up the daily maximum 10 per cent to 6.04 yuan and Guangdong Zhongsheng Pharmaceuticals (002317 CH) rose 4.22 per cent to 12.59 yuan.
-- Louise Moon


Chinese markets gain, led by food, 5G and pharmaceuticals

The Hang Seng gained 2.1 per cent to close the morning session at 23,143.24.
  Tencent (700 HK) rose 2.7 per cent to HK$375.00, while Alibaba (9988 HK) went up 2.3 per cent to HK$178.50.
  Insurers Ping An (2318 HK) rose 2.7 per cent to HK$75.50 and AIA (1299 HK) is up 5 per cent to HK$67.10.
  --Gigi Choy


Tencent, Alibaba, Ping An, AIA gain

China Daye Non-Ferrous Metals Mining (661 HK) posted a positive profit alert to the Hong Kong stock exchange at the lunch break, saying revenue in 2019 increased 6.7 per cent when compared to the previous year, to 32.8 billion yuan.
Profit gained 100 per cent, to 173.5 million yuan.
Gains came from the rise in precious and rare metal products like gold and silver, enhanced efficiencies and government grants in relation to early employee retirement, it said.
-- Louise Moon


China Daye Non-Ferrous Metals Mining expects huge earnings

AAC Technologies Holdings (2018 HK) posted a 1.4 per cent decline in revenue for 2019, to 17.8 billion yuan, and a 41.5 per cent fall in net profit to 2.2 billion yuan for 2019, in a filing to the Hong Kong stock exchange.
The smartphone component maker said weak upgrade demand and a lack of breakthroughs in design specifications in 2019 led to a drop in global smartphone shipments.
The second half of the year saw some increase, it said, as smartphone growth picked up momentum.
Through 2019, overall global smartphone shipment decreased 2.3 per cent compared to the year before, to 1.37 billion units, it said, citing the International Data Corporation.
Now, consumer sentiment and demand for smartphones in the short-to-medium will be hit by the outbreak of Covid-19, it said.
“The group’s priority is to adhere to its financial discipline, maintain a strong balance sheet and cash flow, and further improve the operational efficiencies via rigorous cost control and further automation,” it said.
AAC expects 5G smartphone shipment to provide revenue growth opportunities going forward.
The firm also announced that chairman of the board and non-executive director Boon Hwee Koh has retired, along with non-executive director Chung Yin Joseph Poon.
Hongjiang Zhang – currently chairman of the nomination committee and non-executive director –  is proposed to become chairman of the board. 
Meanwhile Tai On Lo resigned as company secretary – with no disagreement with the board – and will be replaced by Siu Tak Jonathan, who has been the company’s legal director since April 2018.
-- Louise Moon


AAC Tech posts big fall in net profit amid smartphone shipment slowdown in 2019

Property developer Soho China (410 HK) posted an 11 per cent increase in revenue for 2019, to 1.8 billion yuan when compared to 2018, and an 8 per cent increase in net profit to 1.3 billion yuan over the same period.
It is not declaring a final dividend for the year.
As of December 31, 2019, the group had a 90 per cent average office occupancy rate.
It owns and runs 9 office blocks in Beijing and Shanghai, including two new ones that were added in 2019.
“Looking forward to 2020, despite many uncertain factors affecting the economy at home and abroad, we believe China will continue to promote structural economic transformation and maintain stable growth,” it said in a filing to the Hong Kong stock exchange.“With such a huge market and huge potential, China’s development speed will still be a leading one among large economies of the world, and the commercial office markets in Beijing and Shanghai will continue to develop steadily.”
-- Louise Moon


Soho China posts 8 per cent increase in net profit 

Advertising and marketing services Wanke Online (1762 HK) said it has delayed its annual results for 2019, as the auditor needs more time.
It halted trading on the Hong Kong stock exchange as of 9am this morning, pending the release.
-- Louise Moon


Wanke Online delays results, halts trading

César Pérez Ruiz, head of investments and chief investment officer at Pictet Wealth Management, is staying underweight in equities due to coronavirus uncertainties and says Italy will be a bellwether for what’s ahead. Italy, with the world’s largest number of deaths at more than 6,800, is in lockdown.
“Markets continue to lurch to and fro,” he wrote in a new note. 
“The huge volatility jump has levelled a heavy pressure on investor shoulders. Forced selling has ensued, especially from investors that were short volatility or invested with leverage, but in the complete absence of market liquidity. Prices collapsed as a result and every intermittent rebound met more selling pressure. In the fixed-income space, investors offloaded around USD100 bn in one week, about 25% of last year’s total inflows. 
“There was nowhere left to hide as even defensive trades like Treasuries and gold sold off for the sake of cash. Within equities, passive investment is being tested as investors try to sell out of ETFs without buyers on the receiving end,” he wrote.
“[W]e prefer active stock picking, especially among low-leveraged equities, as well as quality credit in fixed income. This week, whether we see Italy’s coronavirus cases begin to fall following the extensive containment measures taken will be a key bellwether of an end to the crisis,” he wrote.
-- Deb Price    


Watch Italy as bellwether of end to crisis, says Pictet Wealth

Financial services company Morningstar has recommended 10 stock picks in Asia amid coronavirus, in a report.
“It has been difficult to keep on top of the rapidly shifting environment, but collectively we find more opportunities to buy than sell shares at the current level,” said Lorraine Tan, Morningstar’s director of equity research, Asia.     “We think there are a number of names with strong competitive advantage that investors should consider adding to their portfolios as well as heavily sold-down stocks that could see a good post-virus bounce,” she said.     Of those listed in Hong Kong and China, the recommendations were: Anta Sports (2020 HK), China East Education Holdings (667 HK), CNOOC (883 HK), Galaxy Entertainment (27 HK) and Hon Hai Precision Industry (2317 HK).     Though Morningstar expects global GDP to grow 2 per cent in 2020, in a “severe” hit, it forecasts minimal long-term economic impact from the outbreak of Covid-19, on expectation that a vaccine will be deployed in mid-to-late 2021.
-- Louise Moon


Morningstar recommends top stock picks amid coronavirus

Senate leaders and the Trump administration have agreed on a $2 trillion stimulus package to help the coronavirus-battered economy, which could see swift passage, The Washington Post reported.
“Ladies and gentlemen, we are done. We have a deal,” White House legislative affairs director Eric Ueland told reporters around 1 a.m., the Post reported.


Senate leaders, Trump administration reach deal on US$2 trillion stimulus: Washington Post

A guest who attended an IPO listing ceremony at the Hong Kong Stock Exchange (HKEX) last Friday has tested positive for the coronavirus.
No other IPO ceremonies have been held at HKEX since Friday. The latest was InnoCare Pharma, which was the first to bang the gong virtually on Monday.
Local media outlets Ming Pao and RTHK reported the news earlier.
The Hong Kong Exchanges and Clearing Limited, the operator of the city’s stock market, said it was notified that a guest who was in attendance at a listing ceremony at HKEX Connect Hall on March 20 was confirmed to have contracted Covid-19.
“HKEX is contacting all the attendees of the 20 March event, and has arranged a deep clean of the Connect Hall space and its surrounding areas. No other events have been held in Connect Hall since the listing ceremony on 20 March,” the HKEX responded to questions from the Blog.
“The health and safety of our employees and guests remain our top priority. We will continue to monitor developments and review our arrangements as required," it said.
-- Gigi Choy and Deb Price    


Guest at Hong Kong Stock Exchange tests positive for coronavirus

The Independent Commission Against Corruption (ICAC), Hong Kong’s anti-corruption watchdog, charged a former senior executive of bourse operator Hong Kong Exchanges and Clearing on Wednesday for allegedly accepting HK$9.15 million (US$1.18 million) in bribes between 2017 and 2019.
Eugene Yeoh Kim-loong, 43, the former joint-head of the initial public offering (IPO) vetting team of HKEX’s listing department, is said to have accepted the amount in bribes between June 20, 2017 and April 30, 2019, from an IPO consultant for supporting certain listing applications. He has been charged with two offences, accepting an advantage as a public servant and for misconduct in public office, the ICAC said.
Read full story here by Enoch Yiu.


Hong Kong exchange operator charged with allegedly accepting bribes

Hang Seng is up 3.1 per cent; Shanghai gains 2.4 per cent

China State Construction International (3311 HK) posted a 10.9 per cent jump in revenue for 2019, to 61.6 billion yuan when compared to 2018, and a 20.3 per cent increase in net profit to 5.4 billion yuan over the same period.
It proposed a final dividend of HK 16.00 cents per share, taking the total distributed throughout the year to HK 32.00 cents, representing a year-on-year growth of 18.5 per cent.
China State Construction International said it reduced the proportion of orders for long term projects and actively acquired infrastructure projects with a shorter cycle, faster turnover and higher return.
Its revenue was driven by growth of the Hong Kong segment that includes government projects like hospitals and private housing.
  "Although the Group's main business market is facing challenges due to the prevalence of Covid-19 and other factors, the Group is confident in its competitive advantage, execution ability, and capacity to move forward steadily in a volatile market environment," the company said in filing at the stock exchange.
-- Gigi Choy


Strong results for China State Construction International

China Yongda Automobiles Services (3669 HK) posted a 13.3 per cent increase in revenue for 2019 to 63.8 billion yuan when compared to 2018, and a 18.4 per cent increase in net profit to 1.569 billion yuan over the same period.
It said sales volume of new vehicles increased by 11.6 per cent over the same period in 2018 to 197,382 units, of which, sales of new vehicles of luxury brands increased by 15.5 per cent year-on-year to 128,628 units.
  China Yongda Automobiles Services said the new energy vehicle industry has become an important exploration direction of business development.
  "Looking forward, targeting the rapid growth in the principal business of the automotive services, we will focus on improving operational management and enhancing our competitive advantages through: strengthening the local retail and inventory turnover management of new vehicles, seizing the growth of production capacity of the after-sales services and continuous enhancement of the service absorption rate and maintaining the solid retention customers and services," it said in a filing.
-- Gigi Choy


China Yongda Automobiles Services sees boost in revenue, net profit

Seoul’s Kospi closed up 5.9 per cent, after its 8.6 per cent jump Tuesday. The tech-heavy Kosdaq, which shot up 8.3 per cent on Tuesday, rose 5.3 per cent.
Tokyo’s Nikkei 225, which jumped 7.1 per cent Tuesday, went up 8 per cent. The Tokyo Olympics were officially postponed overnight, the first time in history that has happened.
Australia’s S&P/ASX200, which rose 4.2 per cent Tuesday, increased 5.5 per cent.
New Zealand’s S&P/NZX50, which shot up 7.2 per cent Tuesday, rose 1.7 per cent.
Meanwhile, Singapore’s Straits Times Index, which rose 5.8 per cent Tuesday after plunging 7.3 per cent on Monday, went up 3.6 per cent.
-- Gigi Choy


Asia-Pacific markets surge

The Shanghai Composite closed up 2.2 per cent to 2,781.59, while the CSI 300 of large caps similarly gained 2.68 per cent to 3,722.52.
The indexes were helped through the day by gains in pharmaceutical and automobile stocks.
Among pharmaceutical stocks, Fuan Pharmaceutical Group (300194 CH) shot up the daily maximum 10 per cent to 6.04 yuan and Guangdong Zhongsheng Pharmaceuticals (002317 CH) rose 3.3 per cent to 12.48 yuan.
  Automobile stocks saw a second day of gains. Great Wall Motors (601633 CH) added 5.6 per cent to 9.06 yuan, GAC Group (601238 CH) rose 5.2 per cent to 11.18 yuan, and BYD (002594 CH) gained 5.2 per cent to 52.30 yuan.
Others relating to the making of masks in the fight against coronavirus also saw gains.
Medical equipment company Zhende Medical (603301 CH) shot up 9.99 per cent to 40.74 yuan. It recently teamed up with the Huajian Group – a Chinese shoemaker – to send hundreds of cases of medical equipment to Ethopia to help deal with the coronavirus.
The company earlier signed a cooperation agreement with Yinghe Technology to jointly develop a KN95 mask automated production line.
-- Louise Moon


China closes up for a second straight session led by pharma and automobiles

Profit taking will return to Hong Kong, and the Hang Seng Index will find resistance at 23,500, says Alan Li, portfolio analyst at Atta Capital. It was last trading at 23,432.09.
“When the Fed announced unlimited QE [quantitative easing], the liquidity problem, which was the main reason for sharp falling, was generally solved. Short cover [by traders who have to cover bets that stock prices would go down] may give momentum to a technical rebound at the beginning. But profit taking pressure may limit the range of the HSI rising. The HSI will see strong resistance at 23,500, and it will take time to break through,” he said.
Japan didn’t fall on the news the Olympics will be postponed because traders had already priced that in and liquidity injections by the US Fed and the Bank of Japan will boost the world’s third largest economy, he said. 
“There was no hope to hold the Olympics during the original schedule. We all knew that. We were just waiting for the official announcement,” he said. “.. Japan’s stock market is benefiting  from unlimited liquidity provided by the Fed and the BoJ,” he said.
-- Deb Price 


Expect resistance of Hang Seng at 23,500, says analyst Alan Li

The US stock market decline fueled by the coronavirus pandemic is an "event-driven" bear market, which on average, result in 29 per cent declines and last nine months, according to Goldman Sachs' chief global equity strategist Peter Oppenheimer.
They are triggered by a one-off shock such as war, spiking oil prices or an emerging-markets crisis, and recovery typically occurs within 15 months in nominal terms (71 months in real terms).
Other types of bear markets, structural and cyclical, see falls of 57 per cent and 31 per cent and last 42 months and 27 months, respectively. They take much longer to get back to starting point.
Oppenheimer analysed bear markets since 1835 based on US data and noted that no event-driven bear market has historically been triggered by a virus or other disease outbreak.
He added previous examples were in periods where the starting point of interest had not been so low, raising concern that there is less room for an effective policy response.
-- Gigi Choy


Coronavirus US stocks recovery will take 15 months, Goldman Sachs strategist says

The Hang Seng Index closed up 3.8 per cent to 23,527.19 in its second straight day of gains.
That back-to-back advance was the first since February 17. All but one of the benchmark’s 50 constituents rose.
Big gainers included Tencent (700 HK), which tracked the market in two straight sessions of gains, ending up 4 per cent to HK$380. Over the past two days its 14-day relative strength index (RSI) – a gauge of buying sentiment – has risen from 39 to 52, indicating investors are piling back in. Its new share price is the highest since March 11. In the gauge, a 70 reading means that a stock is overbought, while a 30 means it is oversold.
Also, fellow internet giant Alibaba Group Holdings (9988 HK) – the owner of the SCMP – gained 3 per cent to HK$179.70.
Food-related companies were among big winners.
WH Group (288 HK) – the world’s largest pork producer – skyrocketed 11.2 per cent to HK$7.3, while Want Want China (151 HK) – manufacturer of snacks and beverages like flavoured milk – shot up 7.6 per cent to HK$5.5, its highest level since March 13.
Property stocks also extended notable gains, with Longfor Group (960 HK) rising 8.9 per cent to HK$36.1, Country Garden (2007 HK) adding 5.4 per cent to HK$8.9, China Resources Land (1109 HK) gaining 5.8 per cent to HK$31.9 and China Overseas (688 HK) ending up 4.6 per cent to HK$24.
-- Louise Moon


Hang Seng extends gains for second straight session

Singapore's Straits Times Index, which rose 5.8 per cent Tuesday after plunging 7.3 per cent on Monday, closed up 6.1 per cent.
-- Gigi Choy


Hong Kong, China stocks gain after US rally on virus stimulus bill hopes

Dow Jones Industrial surges more than 11 per cent -- biggest gain since 1933 Tencent, WH Group and Want Want China among gainers

Dow Jones Industrial surges more than 11 per cent -- biggest gain since 1933

Tencent, WH Group and Want Want China among gainers