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Georgina Lee

Deb Price

Happy Friday, traders --
So the focus remains on Donald Trump and whether his expected signature on the legislation in support of Hong Kong pro-democracy activists will upend trade talks aimed at a partial deal between the world's two largest economies.
The Hang Seng gained, while Shanghai's benchmark fell. Catch up on the day's action below.
Please help us improve our blog by taking this quick -- under 2 minutes! -- survey. Your feedback will really help us make the blog better for you!
Also, if you would like the Live Stocks Blog emailed to you each morning, click here.
-- Georgina Lee and Deb Price in Hong Kong
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.
 


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Stocks

Hang Seng Index gains, with Tencent, WH Group rising; in mainland, Kweichow Moutai tumbles 3 per cent 

Meituan Diaping's third quarter revenue beat expectations after Thursday market close. Here, some of its drivers are seen in Shanghai. Photo: Reuters

Business

Markets

Kasen International soars nearly 500 per cent after rebuttal to short seller attack
Meituan Dianping jumps on Q3 revenue beat


Meituan Dianping jumps on Q3 revenue beat; Kasen International soars nearly 500 per cent after rebuttal to short seller attack. 


China stock market

Hang Seng Index

Meituan

Alibaba

Trade war

Hong Kong protests

Tencent

Kweichow Moutai

MTR Corporation

Hong Kong property

WH Group

Live

The third-quarter revenue of Meituan Dianping (3690 HK) beat expectations after the company, which operates China’s largest e-commerce platform for services, deepened forays into areas beyond its core food delivery and online travel agency businesses.
Sales increased 44 per cent to 27.5 billion yuan (US$3.9 billion) in the three months ended September 30, compared with the 26 billion yuan average of analysts’ estimates. It reported net income of 1.3 billion yuan, including gains from investments, while analysts projected a 502 million yuan loss. That came on the heels of the company’s first-ever quarterly profit in the previous quarter, which stemmed from big one-time investment gains.
Backed by internet giant Tencent Holdings (700 HK), Meituan is investing heavily in a plethora of online services, from food delivery to travel, to compete directly against Alibaba Group Holding. New York-traded Alibaba is the parent company of the South China Morning Post.
Meituan’s billionaire founder and chief executive, Wang Xing, is trying to sustain a robust pace of growth by expanding into newer arenas, such as ride-hailing services, restaurant management and online groceries. That ambitious expansion has helped Beijing-based Meituan overtake the likes of Baidu to become China’s third largest publicly traded technology company.
Read full Bloomberg article here.    


Meituan Dianping’s Q3 revenue beats estimates

Chinese marble producer Artgo Holdings (3313 HK) said a major shareholder was forced by brokers to sell a 4.87 per cent stake in the company on Thursday, as its stock plummeted by nearly 98 per cent in a mere few hours.
The stock had gained a jaw-dropping 3,800 per cent this year as of Wednesday’s close before the plunge, which was triggered by global index compiler MSCI’s decision to reverse plans to add it to the MSCI China All Shares Index.
Artgo Holdings was aware of the decision, the company said in the statement. Trading in its shares will resume from 9am today, after being halted from 11am on Thursday.
-- Yujing Liu    


Major shareholder forced to shed stake in flash crash of Artgo Holdings

Here’s what we are watching this morning:
Overnight markets/ What futures foretell
--The S&P 500 slipped 0.16 per cent, the Nasdaq fell 0.2 per cent and the Dow Jones Industrial Average dropped 0.2 per cent.   -- Hong Kong futures rose 0.3 per cent, and the FTSE China A50 futures rose 0.4 per cent
IPO debuts: None to note.
Economic statistics/Central Bank action: None to note
Earnings: No major earnings 


Morning guidance 

The Hang Seng opened 0.5 per cent higher, at 26,584.88.
The CSI 300, which tracks blue chips listed on the Shenzhen and Shanghai exchanges, opened 0.1 per cent higher, at 3,894.17. The Shanghai Composite Index rose 0.1 per cent at 2,906.24.
China and US trade negotiators continue to wrestle with which trade tariffs would be removed as part of a “part one” deal that both sides have been trying to reach, as optimism remains that a watered-down deal can be reached before new US tariffs go into effect on December 15.
It is understood neither side wants the 15 per cent tariff on US$156 billion of Chinese imports to go ahead, since they would hit popular consumer electronic products, including smartphones, for the first time, affecting US consumers and large swathes of China’s manufacturing base, the SCMP reported, citing sources.
-- Georgina Lee 


Hong Kong and China stocks open higher

Meituan Dianping (3690 HK) shot up 8.4 per cent to HK$99.65, after its third-quarter revenue  beat expectations.
--  Deb Price   


Meituan Dianping soars on Q3 revenue beat

Kasen International Holdings (496 HK), a Chinese maker of furniture and leather products that plunged 90 per cent Thursday after a US short seller attack, shot up 313 per cent to HK$1.88 in early trading.
Trading was halted Thursday before the lunch break after Blue Orca Capital  accused it of selling best assets at bargain prices and fabricating investment projects in Cambodia. 
In an extension response filed at the Hong Kong exchange, Kasen refuted the short seller’s accusations point by point, calling them “groundless.“
“The Board considers that the Report contained certain factual error, misleading statements and unfounded allegations which may lead to unusual price movement,” it said.
-- Deb Price    


Kasen International soars more than 300 per cent after rebuttal to short seller attack

Traders are returning to battered stocks on the Hang Seng, which is up 0.5 per cent at 26,591.16. 
Of its 50 constituent members, 37 have gains, six losses and seven are unchanged.
Tencent (700 HK), the Chinese social media and gaming giant, gained 1 per cent to HK$332.800.
WH Group (288 CH), the world’s biggest pork processor, jumped 2 per cent to HK$8.21. That’s after its 3.1 per cent fall Thursday to HK$8.05 on overall weak market sentiment.
Meanwhile, some profit taking is being seeing in snack maker Want Want China (151 HK), which rose 1.4 per cent on Thursday in a declining market. It fell 1.2 per cent to HK$6.48 in the morning session.
Also, Sa Sa International Holdings (178 HK) is taking another beating, falling 3.3 percent after reporting Thursday that its first half year-on-year retail sales in the Hong Kong and Macau markets decreased by 19.4 per cent. On Thursday, it dropped 3.7 per cent. It cited the double whammy of the US-China trade war and Hong Kong protests for beating down traffic, especially from the mainland.
-- Deb Price 


Tencent, WH Group rise, while Sa Sa gets another pounding 

Jiangsu Jinji Industrial (300798 CH) jumped 20 per cent, to 6.64 yuan, minutes after the market opened. This compared to its offer price at 5.53 yuan.
The Jiangsu province-based manufacturer of dyes and dye intermediates, which are petroleum products and serve industries such as textiles, plastics and paints, saw a total of 17,264 yuan change hands in early trading.
-- Georgina Lee


Dye maker Jiangsu Jinji Industrial jumps in Shenzhen debut

Shares of Contemporary Amperex Tech (300750 CH), the maker of electric vehicle battery and energy storage battery systems, surged, on reports that German car maker BMW has increased battery cell orders to 7.3 billion euros, from 4 billion euros, for the contract period from 2020 to 2031.
Orders for BMW Group were 4.5 billion euros, while the remaining 2.8 billion euros were for the Chinese joint venture production site of BMW Brilliance Automotive in Shenyang, BMW Group said Thursday.
Contemporary Amperex Tech shot up 7.7 per cent, to 83.13 yuan.
-- Georgina Lee    


Contemporary Amperex Tech shoots up on ramped-up order from BMW

Several makers of Lithium-ion battery surged in Shenzhen and Shanghai, after BMW Group said it has increased its order for electric vehicle batteries from Contemporary Amperex Tech (300750 CH), which is the world’s third largest provider of battery solutions for electric vehicles, hybrid electric vehicle and plug-in electric vehicles.
These include Jiawei Renewable Energy (300317 CH), which shot up 10 per cent to the daily up limit, to 4.27 yuan; Shenzhen Kedali Industry (002850 CH), which climbed 9.1 per cent to  37.05 yuan; Wuxi Lead Intelligent Equipment (300450 CH), which jumped 8.4 per cent to 38.2 yuan; Suzhou TA&A (300390 CH), which rose 7.5 per cent to 5.58; and Sunwoda Electronic (300207 CH), which rose 6.9 per cent to 15.92 yuan. Meanwhile, Shanghai Putailai New Energy Tech  (603659 CH) rose 5.5 per cent to 70.6 yuan.
-- Georgina Lee    


Lithium-ion battery makers in China surge, benefitting from news on BMW’s bigger order

Vitasoy International (345 HK) dropped 1.3 per cent to HK$29.6, after lackluster results on Thursday.
The beverage maker saw a year-on-year drop of 9.8 per cent in its first half net profit to HK$174.7 million in its home market Hong Kong. But overall net profit for the company, which also includes its biggest market China, rose 3 per cent to HK$533 million.
Chief executive Roberto Guidetti said earnings in Hong Kong were impacted by the ongoing economic recession.
-- Georgina Lee   


Vitasoy International down on lackluster half-year results

Kasen International Holdings (496 HK), the Chinese maker of furniture and leather products that plunged 90 per cent Thursday after a US short seller attack, is continuing its jaw dropping rocket ride. It is up 508 per cent to HK$2.77.
-- Deb Price 


Kasen International keeps soaring -- last up more than 500 percent

“Conflicting noise” about the prospects for a partial US-China trade deal if US President Donald Trump signs legislation backing Hong Kong protesters explains why the Hang Seng lost its momentum in the morning session, says Ken Wong, a portfolio manager specializing on China at Eastspring Investments.
“We are seeing conflicting noise in the market,” he said, based on positive and negative media stories about what may happen on trade if Trump signs the bill.
“For the moment, momentum traders don’t want to be in a position too long. Overall, it’s just that sentiment is not that strong,” he said.
Meanwhile, the debut of Alibaba in Hong Kong on Tuesday, may lift sentiment a bit that day, Wong said. But he isn’t expecting a big Alibaba bounce, either for the stock itself or for the whole market.
“You might see a few per cent, but I don’t expect to see huge gains,” Wong said, given that Alibaba has been available on the New York Stock Exchange for five years.
“I would be really surprised if there is a 4 or 5 per cent rise in a stock that is already traded,” he said.
But once Alibaba becomes available at a future point to mainland traders through the Stock Connect programme, he expects a short-term bounce, as the Chinese e-commerce giant finally becomes available to traders at home.
-- Deb Price  


‘Conflicting noise’ on trade deal outlook is holding down gains on Hang Seng, says analyst Ken Wong

The Shanghai Composite Index was down 0.6 per cent, to 2,886.47, while the CSI 300 lost 0.8 per cent to 3,857.62 at the lunch break.
The loss in the Shenzhen Component Index was wider, down 1.3 per cent to 9,651.7.
Leading these markets down were liquor distillers, such as Kweichow Moutai (600519 CH), which fell 2 per cent to 1,206.55 yuan. In Shenzhen, Wuliangye Yibin (000858 CH) dropped 2 per cent to 131 yuan.
Health-care stocks also weighed on the index. Jiangsu Hengrui Medicine (600276) lost 2.9 per cent to 89.92 yuan, while Wuxi AppTech (603259 CH) dropped 4.3 per cent to 90.89 yuan.
-- Georgina Lee 


 Shanghai benchmark led down by consumer and health-care stocks

The Hang Seng Index narrowed the gains seen in the morning, ending up 0.3 per cent at the lunch break at 26,536.06.
Heavyweights such as China Construction Bank (939 HK) rose 0.8 per cent to HK$6.3, while insurer AIA (1299 HK) rose 0.7 per cent to HK$77.2.
Social media giant Tencent (700 HK) rose 0.4 per cent to HK$330.8.
Meanwhile, WH Group (288 HK), the world’s largest pork producer, was the top percentage gainer, rising 1.7 per cent to HK$8.19.
CNOOC (883 HK) rose 1.7 per cent  to HK$11.88.
-- Georgina Lee 


Hong Kong stocks kept afloat by financials, Tencent

Zhejiang Shibao rose to the 10 per cent daily up limit in Shenzhen, after it disclosed Thursday in an exchange filing that it had signed an agreement with Scania AB, the heavy duty truck maker under Volkswagen Group,concerning its steering gear.
Scania AB sells commercial vehicles, such as heavy duty trucks and buses, and its heavy duty trucks are sold in over 100 countries worldwide. The announcement did not provide financial details.
Shares of Zhejiang Sibao (002703 CH) in Shenzhen shot up to 4.79 yuan. In Hong Kong, Zhejiang Sibao (1057 HK) surged 13.8 per cent, to 99 HK cents, its highest price in over two months.
-- Georgina Lee 


Zhejiang Shibao surges in Hong Kong and Shenzhen after order from truck maker Scania

Officials at the Ministry of Agriculture and Rural Affairs said today that the decline in China’s pig supply due to the African swine fever should have bottomed out in October.
Sow livestock numbers have shown a 0.6 per cent increase from September for the first time since April.
Meanwhile, at farms with an annual supply exceeding 5,000 pigs available for slaughter, their sow livestock in October increased by a bigger 4.7 per cent from September, for the second monthly gain in a row.
Based on these figures, the ministry said the decline in pig supply has bottomed out.
Pig-related stocks show mixed performance.
Jiangxi Zhengbang Tech (002157 CH) rose 0.5 per cent to 15.05 yuan, while Beijing Dabeinong Tech (002385 CH) rose 1.4 per cent to 4.27 yuan.
But Shandong Delisi Food (002330 CH) lost 3.9 per cent to 8.41 yuan, and Jiangsu Lihua Animal Husbandry (300761 CH) dropped 2.8 per cent to 58.63 yuan.
-- Deb Price


Ministry of Agriculture and Rural Affairs said pig supply drop has bottomed out

Chinese marble producer Artgo Holdings (3313 HK) has risen 3.3 per cent to 31 HK cents after it plunged nearly 98 per cent Thursday following global index compiler MSCI’s decision to reverse its plans to add it to the MSCI China All Shares Index.
Artgo halted trading Thursday before the lunch break, and resumed trading this morning.
It said a major shareholder was forced by brokers to sell a 4.87 per cent stake in the company on Thursday, as the stock plummeted.
The stock had gained 3,800 per cent this year as of Wednesday’s close.
-- Deb Price     


Atgo Holdings stabilises after 98 per cent plunge Thursday

Shares of Auto Italia (720 HK) shot up 23 per cent to 15.1 HK cents, putting it on track for its third-straight days of gain this week.
Yet on Monday, the company said in a profit warning filed to the exchange that for the 10 months this year its unaudited loss before tax was about HK$8 million, compared to loss of HK$1 million a year ago. It cited the city’s social unrest, which led to weak market sentiment and economic uncertainty for the downturn.
The company sells Ferrari cars and Maserati cars, among others.
-- Georgina Lee 


Auto Italia, sellers of Ferrari and Maserati, shoot up to 2-year high

Wharf REIC (1997 HK) slipped 0.1 per cent to HK$42.65, wiping out morning gains.
Many analysts consider it to be the stock most hurt by the social unrest in Hong Kong, which shows no sign of ending and could flare up this weekend amid elections to be held Sunday.
“For the third quarter, retail sales in Harbour City and Time Square probably fell by 30-35 per cent...given the protest will unlikely end in the near term, I don’t see retail sales during Christmas or Chinese New Year in January will shine either,” said Raymond Cheng, an analyst at CGS-CMIB.
Further downside could be in store for the stock, said Shaun Tan, analyst at UOB Kay Hian. 
In October he lowered target price on Wharf REIC (1997 HK) by 28 per cent, to HK$38.01, and downgraded his recommendation on it to “sell” from “hold”.
-- Georgina Lee    


Wharf REIC slips on weekend protest jitters as Sunday election approaches

Nomura’s majority-owned joint venture in China has received a license for securities business from the securities watchdog, it said in a statement today.
The Japanese financial services group owns a 51 per cent stake in Nomura Orient International Securities, one of the first brokerages controlled by foreign firms that were approved to be set up by the China Securities Regulatory Commission in March.
Beijing in recent years has pushed for the opening up of its vast financial sector to foreign players.
-- Yujing Liu 


Nomura-controlled Chinese joint venture brokerage gets securities license

The Shanghai Composite Index dropped below the key 2,900-level, falling 0.6 per cent to  2,885.29. 
That is its lowest level in three months. For the week, the index dropped 0.2 per cent, its second weekly decline in November.
The Shenzhen Component Index dropped 1.5 per cent to 9,626.9, its biggest percentage loss in nine days. The CSI 300 lost 1 per cent, closing at 3,850.
“China indexes were consolidating the gains seen in the earlier part of this week. The recent news flow on US China trade negotiations probably showed investors that the path towards the signing of the ‘first part’ trade deal would appear more bumpy the closer we approach a deal,” said Kenny Tang, chief executive of Royston Securities.
China and US trade negotiators continue to wrestle with which trade tariffs will be removed as part of a partial deal that both sides have been trying to reach. New US US tariffs are scheduled to go into effect on December 15.
Leading the Shanghai index down were consumer staple and heath-care stocks.
Kweichow Moutai (600519 CH) dropped 3 per cent to 1,194 yuan. In Shenzhen, Wuliangye Yibin (000858 CH) fell 3.5 per cent to 128.97 yuan.
Health-care stocks also weighed on the Shanghai benchmark.
Jiangsu Hengrui Medicine (600276 CH) dropped 3.9 per cent to  88.98 yuan, while Wuxi AppTech (603259 CH) dropped 4 per cent to 91.17 yuan and Autobio Diagnostic (603658 CH) dropped 9.2 per cent to 99.23 yuan.
The Shanghai Composite Index will hover at a range of 2800- 2950 next week, Tang predicts.
-- Georgina Lee 


Kweichow Moutai drops 3 per cent; Shanghai drops below 2,900 level

The Hang Seng Index closed up 0.5 per cent at 26,595.08, snapping the past two days of losses. For the week it gained 1 per cent.
At the close,  solid buying interests in index heavyweights persisted, which helped keep the index afloat after it had given up some gains earlier.
Social media giant Tencent (700 HK)  rose 1.5 per cent to HK$334.2. Insurer AIA (1299 HK) rose 0.7 per cent to HK$77.2, and China Construction Bank (939 HK) was up 1.1 per cent at HK$6.34.
WH Group (288 HK), the world’s largest pork producer, was the top percentage gainer, rising 1.9 per cent to HK$8.2.
Outside the blue chips, Kasen International Holdings (496 HK) rebounded by as much as 600 per cent in Hong Kong after the Chinese furniture maker and developer rebutted claims of wrongdoing in a report issued by US short seller Blue Orca on Thursday.
Kasen International surged as high as HK$3.20 on Friday after trading resumed, before closing at HK$2.6, showing a gain for the day of 478 per cent. The stock had slumped 90 per cent after the attack, wiping HK$6 billion off its market value on Thursday.
Kenny Tang, chief executive at Royston Securities, see the Hang Seng trading at a range of 26,300 -27,500 next week.
-- Georgina Lee    


Tencent, AIA gain, boosting Hang Seng

Hang Seng Index gains, with Tencent, WH Group rising; in mainland, Kweichow Moutai tumbles 3 per cent

Kasen International soars nearly 500 per cent after rebuttal to short seller attack Meituan Dianping jumps on Q3 revenue beat

Kasen International soars nearly 500 per cent after rebuttal to short seller attack

Meituan Dianping jumps on Q3 revenue beat