Hong Kong/China Market

Transcription

1 Hong Kong/China Market Technical Strategy The JPY has been range-bound against the USD since Feb17 Indices Latest Chg. Pts HSI 28,597-7 HSI Future 28, DJIA 23,548 9 S&P 500 2,591 3 NASDAQ 6, H-share 11, Red-chip 4, Shanghai Comp 3, Shenzhen Comp 1, But the currency appears to have come under increased depreciation pressure recently as the BOJ reiterated the need to implement an ultra loose monetary policy. Hong Kong Market Review Bumpy ride. The HSI was very volatile yesterday, although the key US markets hit new highs on Friday. The benchmark index opened 12 points higher but soon dipped into red and was once down by 465 points in the morning session. The HSI closed halfday down 166 points to Market sentiment improved a bit after lunch break and the HSI gradually recovered its losses. The local bourse ended the day little changed at 28596, as turnover volume increased to HKD111bn. Tencent remains strong. Yixin Group (2858.HK), which Tencent (700.HK) is a shareholder, kicked off its IPO yesterday. Market news reported that Yixan is well-received by the market. Tencent gained 2.44% to HKD377/share, hit yet another new high. Alternative energy shares gain. South-bound capital from the mainland continued to absorb alternative energy shares recently. A number of these shares fared well. GCL-Poly Energy (3800.HK) hit a 2-year high and rose 5.22% to HKD1.41/share. BE Clean Energy (1250.HK) soared 13.72% to HKD0.29/share, and CTEG (1363.HK) gained 5.12% to HKD1.23/share. VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

2 Economic News Dudley's exit hangs another question over Fed leadership. The Federal Reserve Bank of New York confirmed on Monday that William Dudley, among the most influential monetary policymakers throughout the financial crisis and its aftermath, expects to retire by mid-2018, raising another question over leadership at the U.S. central bank less than a week after President Donald Trump chose a new Fed chief. Dudley, 64, one of the central bank s strongest advocates of unprecedented monetary stimulus in the last decade and a steady hand on its delicate market operations, will step down before his term as president officially ends in January (Reuters) Some NAFTA talks to get early Nov. 15 start in Mexico: sources. U.S., Mexican and Canadian officials will kick off some of the next round of talks to rework the North American Free Trade Agreement slightly ahead of schedule on Nov. 15, four officials familiar with the process said on Monday. The fifth round of NAFTA negotiations is due to be held between Nov in Mexico City. However, some groups from the three nations will begin meeting from Nov. 15, the four officials said, speaking on condition of anonymity. (Reuters) China issues draft guidelines on overseas investment amid crackdown on deals. China s state planner issued draft guidelines on Friday for its companies investing overseas, streamlining approval processes for deals while raising oversight for projects in sensitive sectors and countries, the government said. After years of rapid growth, China s outbound investment has slumped so far in as authorities crack down on irrational overseas deals which are suspected of being used to bypass capital controls and move money offshore, pressuring the yuan currency. (Reuters) People's Bank of China seen supporting yuan around Trump visit. China is leaving nothing to chance during next week s visit by U.S. President Donald Trump, and will likely fortify the value of the yuan - a regular target of attack during last year s campaign for the White House. Trump promised while campaigning that if elected he would name China a currency manipulator for artificially depressing the value of the yuan to make its exports more competitive.since he took office, though, the Treasury Department has twice declined to do so because China has not met the necessary criteria. (Reuters) Nigeria supports OPEC cut extension under 'the right terms'. Nigeria supports an extension of a deal between OPEC, Russia and other non-members to cut oil supply until the end of 2018 as long as the right terms are on the table regarding its own participation, its oil minister said. He said there is growing agreement among other members of the Organization of the Petroleum Exporting Countries to extend the deal. There isn t any reason to change what is a winning formula, oil minister Emmanuel Ibe Kachikwu told Reuters, adding there is a consensus to extend. The issue will be the duration. (Reuters) VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

3 Market News Dollar rally stumbles as traders turn cautious. The dollar stumbled against a basket of currencies on Monday, giving up some recent gains, as uncertainties related to proposed U.S. tax revisions and the future composition of the Federal Open Market Committee discouraged traders from bidding the greenback higher. The dollar was 0.31 percent lower against the Japanese yen, and the euro was down 0.03 percent against the greenback. (Reuters) U.S. oil prices edge down from near 2-1/2 year high. U.S. oil prices edged lower on Tuesday after posting the biggest gains in six weeks a day earlier, buoyed by moves by Saudi Arabia s crown prince to tighten his grip on power and a drop in U.S. drilling rigs. U.S. West Texas Intermediate (WTI) crude CLc1 slipped 13 cents, or 0.2 percent, to $57.22 a barrel by 0028 GMT. The contract surged 3 percent on Monday, the biggest percentage gain since late September. Brent crude futures LCOc1 were yet to trade. On Monday, they closed 3.5 percent higher, also their biggest percentage gain in about six weeks. (Reuters) Sterling bounces, though investors wary of Brexit uncertainty, politics. Sterling recouped some losses on Monday after slipping against the dollar for three consecutive weeks, but any strong gains were checked by continued uncertainty around Brexit talks and instability in the governing Conservative party. Investors are monitoring the negotiations around Britain s future relationship with the European Union for the impact not only on business confidence and economic growth, but also on the likelihood of further interest rate increases, after the Bank of England s decision to raise rates last week. (Reuters) Trump says he spoke to Saudi King about Aramco, 'they will consider' using U.S. exchanges. U.S. President Donald Trump, who arrived in Japan on Sunday, said he spoke with the king of Saudi Arabia about listing national oil company Saudi Aramco s shares in New York and that they will consider using U.S. exchanges. The remarks were made aboard Air Force One en route to Japan, where Trump kicks off a 12-day Asian trip during which North Korea is expected to top the agenda in meetings with Japanese Prime Minister Shinzo Abe and other leaders. (Reuters) VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

4 Company Announcements Great Wall Motor (02333) records 3.02% rise in Oct sales. Great Wall Motor (02333) announced that its motor-vehicle production dropped 0.98% on year to 107,817 units in October and decreased 2.90% to 791,570 units for the period of January to October. (Infocast News) CC Securities (01375) records RMB45.55M profit for Oct. Central China Securities (01375) announced that for October, its operating income was RMB84.12 million and net profit was RMB million. As at the end of the month, the company's net assets totalled RMB billion. (Infocast News) Weiye Holdings (01570) expects 9-month net loss. Weiye Holdings (01570) said the group "is expected to record a net loss attributable to owners of the Company for 9M [the nine months ended 30 September ], which is over 150% decrease as compared to nine months ended 30 September 2016". (Infocast News) GTJA (02611) records RMB614M profit for Oct. Guotai Junan Securities (02611) announced that for October, its operating revenue was RMB1.182 billion and net profit was RMB million. As at the end of the month, the company's net assets totalled RMB billion. (Infocast News) DFZQ (03958) records RMB413M net profit for Oct. DFZQ (03958) announced that for October, its operating income was RMB million and net profit was RMB million. As at the end of the month, the company's net assets amounted to RMB39.25 billion. (Infocast News) Sunshine 100 (02608): Jan-Oct contract sales RMB7.303B. Sunshine 100 China (02608) announced that in October, the group achieved unaudited contracted sales (including light-asset operation projects) of RMB775 million, corresponding to a contracted sales area of 62,696 square metres. (Infocast News) VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

5 Today s Sector Focus Hong Kong's retail sales value in Sep17 recorded the fastest growth in two years as consumer sentiment improved and visitor arrivals increased. The local retail sector is believed to have bottomed out and the luxury gifts, gold and jewellery segment was one the major contributors to the decent growth. Oriental Watch (0398.HK) HKD1.83/share is a key near-term resistance. And turnover volume also increased in recent sessions. Luk Fook (0590.HK) Rose along a stable ascending channel. But appears to have topped out at HKD33.3/share. VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

6 CTF (1929.HK) The formation of the death-cross is a negative signal. The next resistance is at HKD8.7/share, or the 50- day MA. Hang Seng Composite Sectors Sector Index Day (%) Week (%) MTD (%) YTD (%) Hang Seng Index (HSI) 28, Hang Seng Composite 3, HSCI Utilities 7, HSCI Industrial Goods 1, HSCI Materials 7, HSCI Conglomerates 2, HSCI Telecommunication 1, HSCI Property & Construction 4, HSCI Info Technology 13, HSCI Consumer Goods 5, HSCI Financials 4, HSCI Services 4, HSCI Energy 8, HS Mainland 100 8, HS China Enterprises 11, HS China H-Financial 18, HS China Affiliated Corps 4, HS HK 35 3, HS HK Large Cap 2, HS HK MidCap 5, HS HK Small Cap 2, Source: Bloomberg VC Brokerage Limited. All rights reserved. Opinions, projections and other information contained in this

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