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Yujing Liu

Srinivasan Iyer

Good day, traders
It's back to normal on the Hong Kong stock exchange, as trading resumes after a two-day Christmas break.
Stay with us for the latest markets updates here in Hong Kong and the mainland. 
BTW, if you would like the Live Stocks Blog emailed to you each morning, click here. 
-- Yujing Liu and Srinivasan Iyer 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 closes at five-month high, goes past psychologically important 28,000-point level

Trading on the Hong Kong stock exchange resumes today after a two-day Christmas break. Photo: AFP

Business

Markets

AIA Group and China Construction Bank rise at least 1.7 per cent each
Shanghai Composite reverses early gains to end in negative territory


Financials, property developers and tech shares advance broadly.


Hong Kong Stock Exchange

China stock market

Investing

Live

Here's what we are watching this morning:
Overnight markets/What futures foretell  -- The US market advanced on Thursday, boosted by reports of bright year-end retail sales. The Dow Jones Industrial Average rose 0.3 per cent. The S&P 500 gained 0.5 per cent, and the Nasdaq Composite climbed 0.8 per cent to a fresh record.  -- The Hang Seng Index futures are up 0.7 per cent, while the China A50 futures are down 0.04 per cent.
IPO debuts:  -- Electronics manufacturer Shenzhen Keanda Electronic Technology Corp (002972 SZ) will be traded in Shenzhen for the first time.
Economic statistics/Central Bank action:  -- China to release November industrial profits at 9:30am.
Corporate events:  -- None to note.


Morning guidance

Kweichow Moutai (600519 SH), a Chinese liquor maker and the second-largest stock on the Shanghai market, said it plans to sell 34.5 kilo tonnes of alcohol in 2020.
This represents an 11 per cent increase from its sales target of 31 kilo tonnes in 2019.
Shares of Moutai have been consolidating and trading sideways recently, after it touched an all-time intraday high of 1,241.61 yuan on November 19. The stock was the first to reach 1,000 yuan per share on the A-share market when it powered above the level in July.
-- Yujing Liu


Liquor king lifts sales target for 2020

The Hang Seng Index surged 0.6 per cent at the market open to 28,033.66, its highest intraday level since August 2. Property developers advanced broadly.
-- Yujing Liu


Hong Kong stocks jump to a five-month intraday high

Carpenter Tan Holdings (837 HK), a Hong Kong company with a focus on wooden handicrafts and accessories, will pay a special dividend of 67.15 HK cents per share to shareholders to celebrate 10 years of listing. 
The dividend will be given to shareholders whose names appear in the company register at the close of business on January 17, 2020. The payment will be made on or before February 28, 2020. 
The shares closed 6.4 per cent higher at HK$5.17 on Tuesday, having risen 17 per cent this year.
-- Enoch Yiu


Special dividend from handicraft maker

Mainland property developer China South City Holdings (1668 HK) entered into a cooperation agreement with Wanda Commercial Management on Wednesday to develop a new generation of Wanda Plaza at the China South City Shenzhen wholesale shopping centre. 
The 20-year agreement will see the company will offer a combination of retail and tourism facilities as well as operate a 24-hour business centre. 
The programme will commence in 2020, the company said in a stock exchange filing on Thursday. 
Shares of China South City closed 1.1 per cent higher at 94 HK cents on Tuesday. They have declined 15 per cent this year.
-- Yujing Liu


China South City and Wanda Group in cooperation deal

China’s industrial profit in November expanded by 5.4 per cent year on year to post the fastest growth since March.
The growth is a sharp turnaround from -9.9 per cent seen in the previous month.
-- Yujing Liu


China’s industrial profit grow at fastest pace in nine months

The Hang Seng Index quickly widened gains in early trading, jumping 1.1 per cent to 28,169.68.
Property developers led the gains. Country Garden (2007 HK), one of the largest Chinese real estate companies, climbed as much as 4.3 per cent to HK$12.54, its highest intraday level since April.
Chinese gaming and social media giant Tencent Holdings (700 HK) also contributed big gains to the benchmark. It advanced as much as 1.7 per cent to HK$383, its highest intraday level since May.
-- Yujing Liu


Hong Kong market powers on

Goertek (002241 SZ) and Luxshare Precision Industry (002475 SZ), component suppliers to Apple’s products including the wireless AirPods, rose on media reports of potential expansion into Vietnam.
The two companies are each in talks to raise hundreds of millions of dollars from banks to expand production in Vietnam, technology news outlet The Information reported on Thursday.
Goertek gained as much as 1.3 per cent in early trading, while Luxshare rose 1.4 per cent. Both stocks have been on a rapid run-up since May, as investors piled in on expectations of strong demand for wireless earbuds.
Shares of Goertek have returned a stunning 200 per cent this year, while Luxshare has advanced 231 per cent.
Full story here
-- Yujing Liu


Airpods suppliers gain on reports of Vietnam expansion

China’s largest distiller by market cap Kweichow Moutai (600519 SH) gained as much as 3.2 per cent in early trading, after setting its 2020 sales target 11 per cent higher.
The stock is currently trading 3 per cent higher at 1,169.08 yuan.
-- Yujing Liu


Investors welcome Kweichow Moutai’s 2020 sales target

The Shanghai Composite Index rose 0.8 per cent to 3,031.57 in the latest trading.
The Shenzhen Component Index added 0.6 per cent, while the ChiNext Index gained 0.3 per cent.
Metal stocks led by lithium miners were the top performers. Liquor makers and securities brokerages also posted steady gains.
-- Yujing Liu


China stocks broaden gains

The state-owned parent of China’s largest distiller, Kweichow Moutai (600519 SH), will transfer part of its stake to a local government financing vehicle, in what appears to be an effort to alleviate the province’s debt pressure.
China Kweichow Moutai Winery Group will transfer a 4 per cent stake, worth around 57 billion yuan (US$8 billion), to the financing arm of Guizhou province in southwestern China, one of the country’s poorest provinces.
The group had a 61.99 per cent stake in Kweichow Moutai. The move was requested by Guizhou’s state asset regulator, it said in an exchange filing on Thursday.
-- Yujing Liu


Kweichow Moutai’s controlling shareholder to transfer small stake to local province

Stocks related to lithium battery continue to rise in China amid renewed optimism over electric cars.
Lithium battery maker Youngy Co (002192 SZ) jumped by the daily 10 per cent limit to 23.35 yuan, taking its gains for the week to 31 per cent.
Miner Tianqi Lithium (002466 SZ) added 8.2 per cent to 29.11 yuan. The stock is on track to post a second straight day of big gains since trading of its shares resumed after a new share allotment.
-- Yujing Liu


Lithium battery stocks extend rally

Animal biological products maker China Animal Husbandry Industry (600195 SH) shed 6.7 per cent to 11.74 yuan, after a bacteria leak infected nearly 200 people.
One of the company’s factories in the northwestern city of Lanzhou used expired sterilizer in its production, causing bacteria to leak through its exhaust fumes, the local health authority said in a statement on Thursday.
A total of 181 students and staff of a veterinary school nearby have been found to be carrying a type of bacteria causing the Brucellosis disease, which can also spread among animals.
Only one of them had obvious symptoms, according to the statement. Common symptoms of the disease include fever, headache and muscle pain.
The company said the leakage was an accident. The factory department involved has suspended operations, and the incident will not have a significant impact on the firm’s operations and financials, it said in a stock exchange filing today.
-- Yujing Liu


Animal vaccine maker plunges after bacteria leak infects 180 people

The Shanghai Composite Index advanced 0.9 per cent to 3,032.81 by lunch break.
The Shenzhen Component Index added 0.6 per cent, while ChiNext Index rose 0.3 per cent.
Financials including banks and securities brokerages gained broadly, as investors speculated on potential monetary easing policies to be rolled out soon.
A gauge tracking 35 banks listed in Shenzhen and Shanghai rose 1.1 per cent. Bank of Xi’an (600928 SH) led the gains with a 5.4 per cent rise to 7.88 yuan.
-- Yujing Liu


China stocks climb in morning trading

Owners and managers of commercial properties bucked the upward trend in Hong Kong after anti-government protesters staged three consecutive days of actions at various shopping malls.
Hysan Development (0014 HK) dropped 0.1 per cent to HK$30.25. New World Development (0017 HK) shed 0.2 per cent to HK$10.44. Wharf Real Estate Investment Company (1997 HK) weakened as much as 3.5 per cent, before recouping the losses to trade 0.9 per cent higher.
Police have arrested more than 310 people over the past three days amid demonstrations and confrontations across the city. Protesters vowed to return to the streets in a mass rally on January 1.
Read full story here.


Hong Kong mall operators slide after Christmas protests

The Hang Seng Index jumped 1.2 per cent to 28,193.4 by lunch break. It reached an intraday high of 28,226.11, its best level since July 30.
Financials, property developers and technology shares advanced broadly.
Macau casino operator Galaxy Entertainment Group (0027 HK) gained the most among blue chips, rising 3.4 per cent to HK$58 on optimism over holiday season income.
-- Yujing Liu


Hong Kong market maintains huge gains

Mainland property developer China South City Holdings (1668 HK) climbed 5.3 per cent to HK$0.99, on the back of its cooperation plan with Wanda Commercial Management to develop a new generation of Wanda Plaza at its China South City Shenzhen wholesale shopping centre.
-- Yujing Liu


China South City rises on Wanda cooperation

Gold miners in Hong Kong and China advanced on the back of a recent rally in gold that has pushed the metal over US$1,500 an ounce.
Gold has risen 18 per cent so far this year, as investors sought safe haven amid the US-China trade war and an outlook of lower interest rates globally.
Zijin Mining (2899 HK), based in the southeastern province of Fujian, jumped as much as 11 per cent before paring some of the gains to 9.4 per cent to trade at HK$3.62. China Gold International Resources (2099 HK) rose 7.8 per cent to HK$6.84.
In China, a gauge of 36 gold-related stocks rose 2.2 per cent.
-- Yujing Liu


Gold miners shine as precious metal climbs above US$1,500

Earlier gains in China markets are fast dissipating, as a frenzied rally in securities brokerages and semiconductor is running out of steam.
The Shanghai Composite Index narrowed its gains to 0.3 per cent to 3,015.29, after rising as much as 1 per cent in early afternoon trading. The Shenzhen Component Index gave up all gains and declined 0.2 per cent, while the ChiNext Index also dropped 0.9 per cent.
Investors took profit after a quick run-up in chip makers this week. A gauge of semiconductor-related stocks fell 2 per cent, with SG Micro (300661 SZ) leading the decline with a 7 per cent drop.
Securities brokerages also gave up earlier gains, with a gauge of 47 stocks declining 1.6 per cent.
-- Yujing Liu


Shanghai narrows gains while Shenzhen reverses into losses

Tesla’s Model 3 is among the latest batch of electric vehicles that are exempted from purchase tax in China, a document released by the Ministry of Industry and Technology shows.
Chinese suppliers to Tesla jumped on the back of the news. Car parts makers Tianjin Motor Dies (002510 SZ) and VT Industrial Technology (300707 SZ) climbed by the daily 10 per cent limit to 4.51 yuan and 21.29 yuan, respectively.
-- Yujing Liu


Tesla suppliers surge on tax exemption

China markets gave up all gains and ended lower as profit taking kicked in, with investors ignoring upbeat November industrial profit data.
The Shanghai Composite Index closed 0.1 per cent lower at 3,005.04. The Shenzhen Component Index declined 0.7 per cent, while the ChiNext Index of start-ups in Shenzhen tumbled by 1.5 per cent.
Investors pocketed gains in semiconductors after a week of stunning gains. Securities brokerages also fell, as enthusiasm based on speculation over a trading tax cut and monetary easing failed to materialise.
-- Yujing Liu


Profit taking drives down China markets

A host of positive factors encouraged investors in Hong Kong to push stocks higher, according to Kenny Tang Sing-hing, chief executive of China Hong Kong Capital Asset.
“The signing of the US-China trade deal is under way, and US stocks rose to new highs overnight. Traders are also looking forward to further monetary easing policies in China and increased government spending on infrastructure to boost the economy,” said Tang.
Big gains in the Hang Seng today could also be the result of year-end “window dressing” as fund managers adjust their positions, he added.
Looking forward, Tang recommends stocks related to the 5G network because of a potential rise in demand and faster telecom development in China.
-- Yujing Liu


Wall Street gains, China stimulus hopes boost Hong Kong market

The Hang Seng Index jumped 1.3 per cent to close at 28,225.42, the highest level since July 26. It also stood above the psychologically important 28,000-point mark.
The benchmark plunged in early August amid worsening anti-government protests. It had traded sideways until earlier this month, when a temporary ceasefire in the trade war between the US and China lifted the market. That truce is soon expected to culminate in a phase one trade deal.  
Chinese gaming and social media giant Tencent Holdings (700 HK) contributed the biggest gains to the Hang Seng, rising 1.9 per cent to its highest level since May.
Financials advanced broadly. Insurer AIA Group (1299 HK) added 1.7 per cent to HK$80.75, while one of mainland’s biggest lenders China Construction Bank (0939 HK) gained 2 per cent to HK$6.76.
-- Yujing Liu


Hang Seng Index closes at five-month high, goes past psychologically important 28,000-point level

AIA Group and China Construction Bank rise at least 1.7 per cent each Shanghai Composite reverses early gains to end in negative territory

AIA Group and China Construction Bank rise at least 1.7 per cent each

Shanghai Composite reverses early gains to end in negative territory