Name: SCMP
Telephone: +852-2680-8888

bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Georgina Lee

Anthony Richardson

Happy Friday, traders :)
A bad afternoon for Chinese and Hong Kong stocks, after a promising morning session. Both finished the month lower.
Catch up on all the day's highlights below.

If you have any comments or questions about the live stocks blog, please contact Deb Price at deb.price@scmp.com

-- Georgina Lee and Anthony Richardson in Hong Kong
 


Stocks Blog: Oil firms, banks save Hong Kong from losses; Chinese stocks finish lower 

Hong Kong stocks suffered a second straight month of losses. Photo: AFP

Business

Markets


Shanghai dragged down by tech stocks, ends month 1.6 per cent lower
Energy giants PetroChina, CNOOC jump after oil price gains
	 



Energy giants PetroChina, CNOOC jump in Hong Kong after oil price gains


Live

CNOOC (883 HK), China's dominant offshore oil and gas producer, reported 19 per cent profit growth for the first half of this year, bolstered by buoyant sales.

The state-owned oil giant said on Thursday it earned 30.25 billion yuan (US$4.23 billion) from January to June, on revenue of 108.9 billion yuan, which had increased 3 per cent from a year earlier.

Sales of oil and gas climbed 4.4 per cent to 94.28 billion yuan while net production of oil and gas edged up 2.1 per cent to 243 million barrels of oil equivalent.

The company said it would continue to explore oil and gas in middle- and large-size fields.
Full story here
-- Daniel Ren


Chinese oil giant CNOOC sees profit rise by a fifth

Sino Land (83 HK) reported a 16.5 per cent year on year drop in underlying profit for the year ended June 30 to HK$4.67 billion (US$595.3 million).

Revenue, which mainly accrues from property sales, fell 25.4 per cent to HK$8 billion from a year earlier.

Chairman Robert Ng Chee Siong called for an early settlement to the protests that have disrupted the city’s economy, including the all-important property sector.
-- Daniel Ren
 


Developer Sino Land sees underlying profit down 16.5 per cent

Here's what we are watching this morning:

Overnight markets/ What futures foretell

--The S&P 500 rose 1.27 per cent, the Nasdaq climbed 1.48 per cent and the Dow Jones Industrial Average rose 1.25 per cent.

-- Hong Kong futures are up 1.07 per cent, while the China A50 futures are up 0.7 per cent

IPO debuts:

-- Nanhua Futures  (603093 CH)

Economic statistics/Central Bank action:

-- Hong Kong July retails sales

Earnings: AgBank (1288 HK), Bank of China (3988 HK), Bank of Jinzhou (416 HK), BOCHK (2388 HK),  China Communications Construction (1800 HK), China Eastern (670 HK), China International Travel (601888 CH), Minsheng Bank (600016 CH), China Railway Construction (1186 HK), China Railway Group (390 HK), Yangtze Power (600900 CH), Cosco Shipping Holdings (1919 HK), Gree Electric (000651 CH), Guangzhou Auto (2238 HK), Haitong Securities (600837 CH), Hansoh Pharma (3692 HK), Yanghe Brewery (002304 CH), Metallurgical (601618 CH), Midea Group (000333 CH), NARI Tech (600406 CH), New Hope Liuhe (000876 CH), Shanghai Electric (601727 CH), Shenwan Hongyuan (000166 CH), Suning.com (002024 CH), Wuliangye Yibin (000858 CH)

Good reads: Robert Ng Chee Siong, chairman of Hong Kong developer Sino Land, called for an early settlement to the protests that have disrupted the city’s economy, including the all-important property sector, reports Daniel Ren. Chinese car stocks are likely to get a boost after policymakers said they will implement a flurry of measures to spur buying in the world’s biggest car market that is in the midst of its longest streak of shrinking sales, reports Zhang Shidong.
 


Morning guidance

Hong Kong stocks opened 1.2 per cent higher at 26,011. 64 while the CSI 300, which tracks blue chips listed on Shenzhen and Shanghai bourses, rose 0.7 per cent to 3,816.68.

The Shanghai Composite Index climbed 0.6 per cent to 2,907.38. The Shenzhen Component Index also gained 0.6 per cent, to 9,458.39.

Comments from China’s commerce ministry spokesman, Gao Feng, that trade representatives from both sides had maintained “effective communications” since the last round of face-to-face talks in Shanghai in July to appear to have soothed market sentiment today.

He indicated that China won’t retaliate against the US latest batch of tariff increases announced by President Trump last weekend, and sees the need for further discussion to resolve the trade dispute.

“The most important thing now is to create the necessary conditions for continuing the negotiations,” he said. “What should be discussed now is that the US must call off its plan to impose [additional] tariffs on US$550 billion worth of Chinese products to avoid a further escalation in the trade dispute.”

Index heavyweights drove the Hang Seng up, with Tencent (700 HK) jumping 2.7 per cent at HK$329. Insurer AIA (1299 HK) rose 2.4 per cent to HK$78.5; State-owned oil giant CNOOC (883 HK) was the top percentage gainer, up 3.6 per cent at HK$11.5.

In Shanghai, China National Software & Service (600536 CH) was up 7.9 per cent at 74.11 yuan; liquor distiller giant Kweichow Moutai (600519 CH) rose 1 per cent to 1,124.52 yuan.
-- Georgina Lee


Hong Kong stocks opens with a solid gain, China benchmarks rise

Kerry Logistics (636 HK) announced a 13 per cent rise in turnover to HK$19.8 billion in the first half of 2019 over the same time last year, with core net profit dropping slightly from HK$700 million to HK$699 million. 

Kerry Logistics disposed of two Hong Kong warehouse properties, earning HK$1.96 billion in the period.

The US-China trade war has been good for business, said Ellis Cheng, the firm's chief financial officer, as it had acted as a catalyst for companies to move operations in China to less expensive production locations in Southeast Asia. 

“Basically, we have captured that game (in Southeast Asia),” said Cheng. “The profit growth in Asia is higher comparing to other regions.”

-- Ryan Swift


Kerry Logistics benefits from trade war with 13 per cent rise in turnover

The gold miner said first-half net profit attributable to shareholders dropped 26.6 per cent  to 1.85 billion yuan from 2.53 billion yuan. Operating income rose 34.9 per cent to 67.2 billion yuan.

During the period, it made a hedging loss of 43.8 million yuan, versus a hedging gain of 89.4 million yuan a year ago.

The gold price in China was 283.98 yuan per gram at the beginning of 2019, rising to 314.43 yuan per gram at the end of June, a 10.72 per cent increase. During the period, Zijing said it produced 4.88 million ounces of gold, an increase of 44.63 per cent from a year ago.

Zijing Mining (2899 HK) dropped 0.3 per cent at HK$2.9.
-- Georgina Lee
 


Zijing Mining shares slip as profit falls despite gold price and production increasing

Shares of Nanhua Futures (603093 CH), a Hangzhou-based commodity futures broker, jumped by their 44 per cent daily limit in their trading debut on the Shanghai exchange to 6.97 yuan, from an initial public offering price of 4.84 yuan.
 
-- Eugene Tang


Commodities broker Nanhua Futures skyrockets on Shanghai debut

Standard Chartered changed its forecast for the Chinese currency to 7.23 per dollar by the end of this year, from a previous estimate of 6.86. It expects the currency to weaken further to 7.32 per dollar, down from its initial forecast of 6.82, by the end of 2020.

The revision is based on an analysis showing cumulative tariff hikes since July 2018 would warrant a 4.07 per cent increase in the currency's fair value to 7.35 per dollar.

Analysts Becky Liu and Terry Chan wrote in a note that the fundamentals of the yuan remain “decent”.

“The authorities are likely to allow the [yuan] to depreciate further to compensate for higher tariffs and expected weaker economic performance,” the analysts said in the report.
-- Georgina Lee
 


Standard Chartered sees yuan weakening to 7.32 per dollar by end 2020

The hotel operator, which runs four-star rated Rosedale-branded hotels in Hong Kong, Guangzhou and Shenyang, said first-half net loss attributable to shareholders narrowed by 9.5 per cent to HK$38.6 million from HK$42.6 million a year ago.  Total revenue dropped 7 per cent to HK$118.6 million.

Sentiment had been dampened by "the increase of geopolitical risks, China-US trade tension uncertainties, and unfortunate [civil unrest] affecting tourism and hotel businesses,” it said in a financial statement filed to the Hong Kong bourse.

The combined average occupancy rate of the group slightly decreased to 66.3 per cent for the six months period, down from 72.2 per cent.

Shares of Rosedale (1189 HK) dropped 5.3 per cent to  27 HK cents.
-- Georgina Lee
 


Hotel operator Rosedale sees revenue fall as protests weigh on occupancy

Cathay Pacific Airways (293 HK) shares climbed this morning even as a controversial "whistle-blowing" policy urging staff to report breaches of conduct rules added to a growing climate of fear among employees. 

The airline's management has reminded staff to "speak up" if they suspect wrongdoing, as many employees worry about possible reprisals for their online activities and support for anti-government protests.

Cathay's shares are up 1.6 per cent at HK$10.3.

For full story click here
-- Anthony Richardson
 


Cathay Pacific shares rise despite unease over 'whistle-blowing' policy

The Shanghai-listed firm could go 15 per cent higher from Thursday's close of 76.94 yuan, as investment bank CICC raised its target price by 21 per cent to 88.5 yuan, according to Bloomberg. CICC's is the highest among all estimates it tracks.

The upgrade came after Jiangsu Hengrui reported first-half net profit rose 26.3 per cent year-on-year to 2.41 billion yuan, missing estimates by 1.2 per cent. Revenue rose 29.2 per cent to 10 billion yuan.

Its shares (600276 CH) rose 4 per cent to 80 yuan, a record high, and were the sixth most-traded by foreign investors via the Hong Kong northbound stock connect on Friday morning.

-- Georgina Lee
 


Jiangsu Hengrui Medicine hits record high after CICC lifts price target

The Hang Seng had given up some early gains by the lunch break, but was still 0.7 per cent higher at 25,880.82. Propping up the index were energy giants CNOOC (883 HK), which surged 6.7 per cent at HK$11.84, and PetroChina (857 HK) which gained 4.8 per cent to HK$3.93.

Index heavyweight AIA (1299 HK) was up 1 per cent higher at HK$77.45, while social media giant Tencent (700 HK) added 1.6 per cent to HK$325.2.

Property stocks limited the gains on the Hang Seng, with Sun Hung Kai Properties (16 HK) down 3 per cent at HK$109.7, Henderson Land (12 HK) 1.1 per cent lower at HK$36.3 and New World Development (17 HK) falling 1.5 per cent to HK$9.8.

Early gains in China's stock market also slowed down. The Shanghai Composite Index was up 0.2 per cent at 2897.59 at the break, while the CSI 300 had climbed 0.6 per cent at 3,811.92.

Consumer-related stocks did well, particularly fiery liquor distillers: Kweichow Moutai (600519 CH) rose 2.42 per cent to 1140.08 yuan, Yuliangye Yibin (000858 CH) was up 2.9 per cent at 141 yuan, and Luzhou Laojiao (00568 CH) gained 6 per cent to finish the morning at 97.78 yuan.
-- Georgina Lee
 


Hang Seng gains limited by struggling property firms; China liquor distillers surge

The total value of short sales in Mengniu Dairy reached $182 million, or 37.6 per cent of its turnover. A short sell is a trade whereby an investor sells borrowed securities in anticipation of a price decline.

The stock continued to decline after hitting a record high of HK$33.45 on Wednesday.

China’s leading maker of milk, yoghurt and other dairy products reported on Wednesday night disappointing first-half net profit of 2.08 billion yuan, below estimates. 

China Mengniu Dairy (2319 HK) is down 2.1 per cent at HK$30.85, the second biggest loser in the Hang Seng Index.
-- Georgina Lee
 


Short sellers bring down China Mengniu Dairy after Wednesday's historic high

What a turnaround at the lunch break!
After not a bad morning session, both benchmarks find themselves in negative territory.
The Hang Seng Index is down 0.38 per cent at 25,602.92, while the Shanghai Composite 0.30 per cent lower at 2,882.21.
-- Anthony Richardson


Hong Kong, China give up morning gains, start afternoon lower

First-half profit attributable to shareholders rose 20 per cent to HK$6.5 billion from HK$5.4 billion a year ago, the company said in an exchange announcement at the lunch break. 

It said throughput of containers handled was up 1.4 per cent, at 54.56 million twenty foot-equivalent unit (TEU). Throughput of bulk cargos handled reached 223 million tonnes, down 10.7 per cent.

Shares of China Merchant Port (144 HK) edged up 0.2 per cent to HK$12.1, heading for a fourth straight day of gains.
-- Georgina Lee
 


China Merchant Port sees first-half net profit up by a fifth

Huayi Brothers Media (300027) reported losses of 379.3 million yuan for the first half, down 236.75 per cent from a net profit of 270 million yuan in the same period last year, the worst half-year result in a decade.
Revenue was down 49.26 per cent to 1.077 billion yuan.

In June, two films produced by Huayi – military epic The Eight Hundred and social drama The Better Days – were pulled from theatres.

Huayi’s business has been under increasing pressure amid a soured industry - which was largely affected by the central government's tighter controls over content and the break out of a tax evasion scandal involving top actress Fan Bingbing last year.

Huayi Brothers Media's shares rose 0.45 per cent to 4.48 yuan.
-- Deb Price
 


Huayi Brothers Media sees profits plunge to losses after films pulled

Hong Kong tourist arrivals dived abruptly in July falling 4.8 per cent year on year as anti-government protests continue to rock the city.

A total of 5.19 million people visited the city in July, the Hong Kong Tourism Board said on Friday. 

Visitors from all markets except South and Southeast Asia marked decreases, while the number of tourists from mainland China fell for the first time in years, declining 5.5 per cent to 4.16 million. They accounted for 80 per cent of the city’s total arrivals in July.

As a result, fewer rooms at hotels were taken up, with occupancy down 5 percentage points to 86 per cent in July and down 2 percentage points for the first seven months of this year.

The board warned of an even worse performance in August.
-- Denise Tsang
 


Tourist arrivals in Hong Kong fall as protests deter visitors

The Shanghai Composite reversed morning gains, ending 0.2 per cent lower and closing at 2,886.24. For the month it lost 1.6 per cent, the same as in July.

The CSI 300 closed up by 0.2 per cent at 3,799.59, but for the month it lost 0.9 per cent.

Leading Chinese stocks lower were technology firms, with Shenzhen Goodix Technology (603160 CH) the biggest loser, plunging 8.4 per cent at 197.01 yuan.

Shengyi Technology (600183 CH) dropped 6.2 per cent to 24.36 yuan, Foxconn Industrial Internet (601138 CH) fell 1.11 per cent to 14.21 yuan. China United Network (600050 CH) finished lower by 1.7 per cent at 5.85 yuan.

Elsewhere, limiting the losses in the Shanghai Composite Index were liquor stocks. Distiller Kweichow Moutai (600519 CH) moved up 2.6 per cent to 1,142 yuan, and Anhui Golden Seed Winery (600199) surged by the 10 per cent daily limit to 6.78 yuan. In Shenzhen, Yuliangye Yibin (000858 CH) rose 3.3 per cent to 141.5 yuan.

Linus Yip, chief strategist at First Shanghai, said he expects Chinese shares to perform better in September, as FTSE implements phase 2 of increasing their weighting in its global indexes.

“The Shanghai Composite reached a peak of 2,965 before the re-escalation of the US-China trade war in early August. If going into September the index could break past this level, then I’d say it indicates that the recent waves of tariff increases imposed by US and China are no longer weighing on the index performance,” said Yip.
-- Georgina Lee
 


Shanghai benchmark ends with second straight monthly loss

The Hang Seng Index lost the solid gains it saw in the morning, and closed almost flat at 25,724.73. For the month, it dropped 7.4 per cent, the second straight monthly loss after a smaller 2.68 per cent decline in July.

Oil stocks saved the blue chip index from bigger losses, with CNOOC (883 HK) jumping 5.4 per cent to HK$11.7, PetroChina (857 HK) gaining 3.7 per cent to HK$3.89, and Sinopec (386 HK) moving up 1.3 per cent to HK$4.59.
Their gains came on the back of a nearly 3 per cent gain in the price of brent crude, last quoted at US$60.55.

Elsewhere, index heavyweight Tencent (700 HK) closed 1.4 per cent higher at HK$324.8.
 


Chinese banks performed well, with Industrial and Commercial Bank of China (1398 HK) up 1.2 per cent at HK$4.95. After market close on Thursday, it reported first-half net profit rose 4.5 per cent to 167.9 billion yuan.
China Construction Bank (939 HK) climbed 0.9 per cent to HK$5.82, and Bank of China (3988 HK) added 1 per cent to HK$2.99.

Linus Yip, chief strategist at First Shanghai Securities, said today's gains could be short-lived.

“Globally, banks have not been performing well due to concerns about the slowdown of the world economy. In China, the specific concern is their low single-digital earnings growth every year in the past few years,” said Yip.

-- Georgina Lee
 


Stocks Blog: Oil firms, banks save Hong Kong from losses; Chinese stocks finish lower

Shanghai dragged down by tech stocks, ends month 1.6 per cent lower Energy giants PetroChina, CNOOC jump after oil price gains

Shanghai dragged down by tech stocks, ends month 1.6 per cent lower

Energy giants PetroChina, CNOOC jump after oil price gains