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Martin Choi

Deb Price

TGIF, traders!
Well, we had a good source on how the much-awaited trade talks in Washington are going. According to President Donald Trump, the first day went "very well."
Catch up on the day's action below.
And if you'd like to get the Live Stocks Blog each morning via email, shoot Deb an email at deb.price@scmp.com and she'll add you to the list!  
 
-- Martin Choi and Deb Price 


Stocks Blog: Hang Seng rallies, with gains by Henderson Land, Sun Hung Kai Properties  and MTR

Yau Ma Tei wet market in Hong Kong. Pork producer WH Group was among stocks that gained on the Hang Seng after the first day of trade talks went "very well," according to US President Donald Trump. 

Business

Markets

China stocks also end ahead after Trump says trade talks going 'very well'
Kweichow Moutai rises 1.7 per cent 


China stocks close ahead, with shipping stocks getting boost from report China will ask US to lift sanctions on COSCO. 


Stocks

China markets

Hong Kong Stock Exchange

Hong Kong protests

US-China trade war

Tencent

Live

Overnight markets/ What futures foretell:
– Overnight in US markets, the S&P 500 rose 0.64 per cent, the Nasdaq climbed 0.6 per cent and the Dow Jones Industrials rose 0.57 per cent.
-- Hong Kong futures were 0.77 per cent higher, while the FTSE China A50 futures climbed 0.7 per cent.
IPO debuts: Chinese Xinyuan Property Management Service (Cayman) (1895 HK) starts trading on Hong Kong’s main board
Economic statistics/Central Bank action: None to note
Corporate events, earnings, meetings, news conferences: 
Muyuan Foodstuff (002714 CH) reports earnings


Morning guidance 

Mainland carmaker Geely Automobile Holdings (175 HK) said its total car sales volume in September was down 9 per cent year-on-year to 113,832 units.
The sales volume, however, was 12 per cent above sales in August. 
Among all car sales in September, 2,663 units were exported overseas, up 15 per cent than a year earlier, the company said in a stock exchange filing on Thursday after market close. 
Its total car sales in the first nine months this year dropped 16 per cent year on year to 958,110 units, while the number represents 70 per cent of the Group’s revised full-year sales volume target of 1.36 million. The company closed 2.7 per cent higher at HK$13.36 on Thursday.
-- Enoch Yiu   


 Geely auto sales slide 9 per cent in September year-on-year 

Chinese car and battery maker BYD (1211 HK) said its total car sales in September dropped 15 per cent year-on-year to 40,729 units. 
New energy vehicles saw the biggest decline among all types of cars, with only 13,681 units sold in September, down 51 per cent from 27,903 last year. In the gas-fueled vehicle category, in contrast, 27,048 units were sold in September, up 35 per cent from 20,010 a year earlier. 
For the first nine-month period, its total car sales stood at 335,795 units, down 4.5 per cent from 351,571 units sold a year earlier.  It closed 1 per cent higher on Thursday at HK$38.1.
-- Enoch Yiu    


BYD sees car sales drop 15 percent in September compared to year before

NWS Holdings (659 HK), a conglomerate with businesses from infrastructure and buses to finance, has appointed the son of the company’s chairman to its board. 
Adrian Cheng Chi-kong, 39, who is executive vice-chairman and general manager of New World Development Company, will become an executive director and a member of the executive committee of the NWS starting today. 
He was named by Fortune one of “40 Under 40” global business stars and a “Young Global Leader” by the World Economic Forum in 2012. 
He is the son of Henry Cheng Kar-shun, chairman of both New World Development and its subsidiary NWD.  
He will receive a monthly salary of HK$453,170 and a year-end discretionary bonus. In addition,  an additional director's fee will be determined by the board.
The company rose 0.2 per cent to close at HK$11.7 on Thursday.
-- Enoch Yiu   


 NWS Holdings names chairman's son to board

Chinese sportswear retailer Topsports International Holdings (6110 HK), which debuted in Hong Kong on Thursday, was rated a new outperform by Macquarie, with a price target of HK$11.20.
It finished its first day of trading at 9.25, rising nearly 9 per cent from its IPO price of HK$8.50. 
-- Deb Price 


New face Topsports International rated new outperform by Macquarie 

US President Donald Trump said on Thursday that he will meet with Chinese Vice-Premier Liu He on Friday, the second of two days of high-level US China trade talks aimed at averting further tariff increases, and that negotiations are “going very well” so far.
This week’s bilateral meetings convened amid a spike in friction between the two countries on many fronts and indications of a trade war-related slowdown in global economic growth, which is hitting China particularly hard.
US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer had a full day of meetings with a delegation led by Liu, resuming bilateral negotiations at the highest level since the two US officials met Liu in Shanghai in July.
“We just completed a negotiation with China,” Trump told White House reporters after the first day of talks wrapped up.
Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House.
  — Donald J. Trump (@realDonaldTrump) October 10, 2019
Read full story here. 


Trump says trade talks going 'very well'

The Hang Seng Index had a big open, and is up 1.3 per cent at 26,044.48.
Here how some of the index heavyweights are trading:
-- HSBC Holdings (5 HK) is up 1 per cent to HK$58.05.
-- Tencent Holdings (700 HK) is up 1.8 per cent to HK$324.60
-- AIA Group (1299 HK) is up 0.5 per cent at HK$72.05
-- China Construction Bank Group (939 HK) is up 1.3 per cent at HK$6.08
-- Ping An Insurance Group (2318 HK) is up 2 per cent at HK$92.95
Noteworthy others: 
-- 360 Ludashi (3601 HK) -- which shot up more than 200 per cent in its debut Thursday -- is up 21 per cent at HK$10.40
-- Topsports International Holdings (6110 HK), which debuted Thursday, is up 2.7 per cent to HK$9.50
-- Deb Price    


Hang Seng starts day up more than 1 per cent 

The Shanghai Composite Index is up a bit, by 0.15 per cent to 2,952.
Here's how several stocks popular with northbound Stock Connect traders are doing in early trading:
-- Kweichow Moutai (600519 CH) is up 0.6 per cent at 1,162.11 yuan
-- China Merchants Bank (600036 CH)  is up 1.5 per cent to HK$35.63
-- Shanghai International Airport (600009 CH) is up 0.3 per cent to HK$80.70
-- Ping An Insurance (601318 CH) is up 0.2 per cent to HK$88.68 yuan 
-- Deb Price 


Shanghai Composite starts with small gains

Chinese Xinyuan Property Management Service (Cayman) (1895 HK) started trading on Hong Kong’s main board today, while Singaporean automotive service provider Optima Automobile Group Holdings Limited (8418 HK) was newly listed on the GEM board.
Xinyuan’s stocks opened up  34.6 per cent at HK$2.8 from an initial offering price at HK$2.08. It is now trading at HK$3.75.
Xinyuan, which manages properties in over 35 cities in China, ranked 33rd among property management companies in the country by total revenue in 2018. It is a subsidiary of property developer Xinyuan Real Estate Holdings (NYSE:XIN).
Optima opened up 12.5 per cent at HK$0.27 from HK$0.24. It is now trading at HK$0.31.
Optima is the largest independent after-market automotive service provider by revenue with a market share of 8 per cent in 2018. It operates three service centres and one paint workshop in Singapore.
#IPO today:  - Chinese Xinyuan Property Management Service (Cayman) (1895 HK) on Hong Kong’s mainboard  - Singaporean automotive service provider Optima Automobile Group Holdings (8418 HK) on GEM@SCMPNews@scmpbusiness@HKEXGroup pic.twitter.com/f5GIAVJV6m
  — Holly Chik (@hollycwchik) October 11, 2019
 
-- Holly Chik    


Xinyuan Property Management Service and Optima Automobile bang the gong in Hong Kong 

Hangzhou Hikvision Digital Technology (2415 CH) and Zhejiang Dahua Technology (2236 CH), makers of video surveillance equipment, continued on a downward trend today after resuming trading on Thursday.
Hikvision started the day down 1.26 per cent to 30.51 yuan, while Dahua was down 2.27 per cent to 15.90 yuan.
Both had been temporarily suspended beginning on Tuesday after the US added them to its trade blacklist.
-- Martin Choi


US-blacklisted Hikvision and Dahua down in early trading 

Baoding Technology (2552 CH), a forging and casting manufacturer, has risen 4.42 per cent to 26.94 yuan.
It has briefly surged to the 10 per cent daily up-limit in morning trading, and has risen more than 210 per cent over the last 13 trading days.
Controlling shareholders signed a framework agreement to sell part of its stake on September 11, according to a filing on the Shenzhen Stock Exchange.
-- Martin Choi


Baoding Technology rises more than 4 per cent 

Chinese software developer 360 Ludashi (3601 HK) -- which started trading on Hong Kong’s main board yesterday -- is up 21.6 per cent to HK$10.46.
360 Ludashi shares have jumped nearly 300 per cent from its initial public offering price of HK$2.7.
360 Ludashi was the largest PC and smartphone hardware and system benchmarking and monitoring solution provider in China by user base in 2018, occupying almost 99 per cent and 59 per cent of the market share based on the monthly active users for PCs and mobile devices, respectively.
-- Martin Choi


360 Ludashi up 24 per cent in early trading

The chief financial officer of Optima Automobile Group (8418 HK), which began trading today on the GEM board in Hong Kong, said she is optimistic about the business outlook in the city despite the outgoing protests.
“I believe that this is only temporary,” said Tan Peck Luan, CFO of Optima Automobile Group Holdings, referring to the social unrest in Hong Kong. 
“We are still very confident in Hong Kong itself. We feel that the listing in Hong Kong will be good for our future international development.”
The company will continue to expand its market in Singapore by setting up new service centres and satellite workshops, she said.
Optima is trading at HK$0.31, up 29 per cent from its IPO price.
-- Holly Chik    


Optima Auto CFO 'very confident' in Hong Kong 

The Hang Seng is up 1.5 per cent to 26,097.15, seeing gains in every sector except health care, which is down more than 5 per cent.
Big gainers include:
-- Henderson Land Development (12 HK) is up 3.2 per cent to HK$37.15
-- Sun Hung Kai Properties (16 HK) is up 2.7 per cent at HK$111.10
-- Chinese oil and natural gas producer CNOOC (883 HK) is up 3.1 per cent at HK$11.86
-- CITIC (267), a Hong Kong-based conglomerate that spans from financial services and energy to manufacturing and real estate,  is up 3.4 per cent at HK$10.20
-- Chinese oil and gas major PetroChina (857 HK) is up 2.5 per cent at HK$4.10
Meanwhile, WH Group (288 HK) has turned up, rising  0.4 per cent to HK$7.36, on improved outlook on trade.
Big decliners include CSPC Pharmaceutical Group (1093 HK), down 7.6 per cent at HK$15.76, while Sino Biopharmaceutical (1177 HK) is down 2.9 per cent at HK$10.54. 
They fall as Jefferies says the second group of medicines for inclusion in the China's new drug-procurement programme may be added early, Bloomberg reports. 
Geely (175 HK) is down 2.5 per cent to HK$13.52 after reporting its car sales volume in September fell 9 per cent year on year.   
-- Deb Price 


Property stocks among gainers on Hang Seng in morning

Xinyuan Property Management Service (Cayman) (1895 HK) is up 27 per cent from its opening price, now trading at HK$3.56.
I caught up with its executive director at the IPO ceremony. Here's what he had to say. 
“Hong Kong is a very mature capital market and an important area we would like to expand into,” said Huang Bo, executive director and CFO of Xinyuan Property Management Service (Cayman).
“Over half of the properties we manage now are own by third parties, [instead of the parent company Xinyuan Real Estate]. Through expansion, the proportion of third party properties we manage will grow gradually,” he added.
-- Holly Chik   


Newly listed Xinyuan Property is up 27 per cent in Hong Kong 

Nearly a third of the protesters that have been arrested in Hong Kong were under 18 years old.
“These numbers are shocking and heartbreaking,” said Chief Secretary Matthew Cheung Kin-chung.
Of the 2,379 arrested since June 9, 750 were under 18 years, and 104 of them were under 16, accounting for about 4.4 per cent. (Read full story here by SCMP reporters.) 
The protests have weighed on investor sentiment in Hong Kong.
As of Thursday's close, the Hang Seng Index had fallen 4.7 per cent, but more than 40 per cent of its weighting is made up of Chinese stocks, which are less likely to have been impacted by the protests.
Some stocks have fallen dramatically, including MTR (66 HK), which as of Thursday's close was down 23.3 per cent from mid July, when the protests began turning violent. MTR is having a strong morning, rising 3 per cent to HK$44. 
-- Deb Price    


Nearly one-third of arrested protesters are under 18 years old

The Shanghai Composite Index is up 0.44 per cent at the lunch break, with trade talks boosting investor sentiment.
Here's how some of the most heavily traded stocks by northbound Stock Connect investors are doing:
 -- Kweichow Moutai (600519 CH) is up 0.6 per cent at 1,161.85 yuan
-- Jiangsu Hengrui Medicine (600276 CH) is flat at 83 yuan
-- China International Travel Service (601888 CH) is down 0.3 per cent to 95 yuan
-- Ping An Insurance (601318 CH) is up 0.9 per cent to 89.30 yuan
-- Shanghai International Airport (600009 CH) is down 0.04 per cent to 80.45 yuan   
-- Deb Price    


Shanghai will start afternoon trading with 0.44 per cent in gains

The Hang Seng Index is on track for its biggest gain since September 4, when Hong Kong leader Carrie Lam announced she would formally withdraw the extradition bill that was the original spark of protests.
The benchmark is up 2.5 per cent at 26,336.90. Lam's announcement led to a 3.5 per cent daily rally on the Hang Seng Index.
But protests, slowdown of the city's economy and tensions between the US and China have dampened trader sentiment. Today, that cloud seemed to lift, following upbeat comments by President Donald Trump that the trade talks in Washington were going "very well."
Property stocks are among the day's biggest gainers. They have suffered as protests and worries about the local economy translated into less foot traffic at malls and at sales of new flats.
Sun Hung Kai (16 HK) is up 3.9 per cent at HK$112.40, Wharf Real Estate (1997 HK) is up 3.8 per cent to HK$43.45, New World (17 HK) is up nearly 4 per cent at HK$10.44 and Henderson Land (12 HK) is up 4 per cent at HK$37.45.  MTR (66 HK), which owns the protester-targeted subway system as well as malls, is up 2.7 per cent to HK$43.85.
The drag on the index is health care, with CSPC Pharmaceutical (1093 HK) falling 6.3 per cent, its biggest drop since February 18, when it sank 7.97 per cent.
The drugmaker has been a standout this year, rising 51 per cent as of Thursday's close. But Bloomberg reports that the stock is tanking amid speculation that its stroke treatment compound -- which makes up 20 per cent of its sales -- has been put on a government watch list for special monitoring of its use.
-- Deb Price      


Hang Seng on track for biggest gain since Lam formally withdrew extradition bill 

Apparent progress in the US-China trade talks in Washington is pushing up the Hang Seng Index, said Kevin Leung, executive director of investment strategy at Hong Kong-based brokerage Haitong International.
“I don’t think there will be a full deal tonight, but at least they’re on the right track. Some minor deals may come out of it,” said Leung. “The markets are reflecting a slightly more positive mood, but only in the short term.”  Leung said the market has factored in negative news, including about the protests, meaning positive news can be a mover.
“Any bit of positive news is a rebound opportunity for the markets. There may be short-term shocks, but I don’t think there will be a huge correction [in the market],” he added.
He said the big rebound in property stocks today is because of how far they have sunk since protests began June 9. In addition, investors are betting that something positive for developers could come out of city leader Carrie Lam's policy address next Wednesday. One thing under consideration is the government buying unused farmland from developers to expand public housing.    
-- Martin Choi   


Apparent trade war progress is the positive news investors have been waiting for, says Kevin Leung

CK Asset Holdings (1113 HK) confirms it has sold a property project in Dalian, in the Liaoning province of northern China, for 4 billion yuan.
The firm signed the contract four months ago, according to CK’s company statement in response to a report that Sunac China Holdings (1918 HK) was the buyer.
“In the past 10 years, CK has fetched an [average] annual property sales of 28 billion yuan. This transaction is equivalent to less than two months of its property income,” CK Asset said.
Property sales this year would follow “the same path of its previous 10 years”, it said.
CK said it has more than 50 property projects spanning across 20 mainland cities and will continue looking for suitable investment there.
Among Hong Kong firms, CK Asset says it is the largest investor in China, where it has invested in property, energy, port, retail, medical, food, power plant, infrastructure, aircraft maintenance and aircraft leasing.
Shares of CK Asset are up today 3.6 per cent to HK$52.70.
-- Sandy Li 


CK Asset sells property project in Dalian for 4 billion yuan 

Kenny Tang Sing-hing, chief executive of China Hong Kong Capital Asset, said property stocks are rallying on hopes about Chief Executive Carrie Lam Cheng Yuet-ngor’s policy address next Wednesday.
“Everyone is looking forward to Carrie Lam’s policy address next week, to see if any new policies related to land supply and property will be announced. This has helped the overall sentiment towards property stocks,” said Tang.
Property stocks, which have been hammered amid protests, staged a broad rebound.
Hysan Development (14 HK) rose 4.9 per cent to HK$29.90,  Wharf REIC (1997 HK) gained 3.6 per cent to HK$43.35 and Henderson Land (12 HK) increased 3.3 per cent to HK$37.20.
These gains came as the Hang Seng Index was on track for its best day since September 4, when Lam announced she was formally withdrawing the extradition bill. It is up 2.3 per cent to 26,308.23.
“There has been a change in mood after signs of improvement at the trade talks. President Trump is set to see Vice-Premier Liu He in Washington, and tensions over Huawei have also eased,” said Tang.
-- Martin Choi    


Hopes about Lam's speech next week boosting property stocks, says Kenny Tang 

The Shanghai Composite Index closed up 0.9 per cent at 2,974 points, on positive sentiment about the US-China trade talks.
Every sector ended with gains, led by financials and energy, with nine stocks hitting or nearly hitting the 10 per cent upside limit. 
Shipping stocks gained on a Bloomberg report that China plans to ask the US to lift sanctions on its biggest shipper, the Dalian units of China COSCO Shipping (600026 CH), which is accused of violating a ban on carrying Iranian petroleum.
COSCO rose 10 per cent to 7.15 yuan, while China Merchants Energy Shipping (601872 CH) rose 9.97 per cent to 6.40 yuan. 
The Shenzhen Composite Index closed up 0.3 per cent at 1,636.97, with only information technology and consumer staples stocks posting small declines. Four stocks hit or nearly hit the 10 per cent upside limit. 
Here's how some of the most heavily traded stocks by northbound Stock Connect investors ended:
-- Kweichow Moutai (600519 CH) rose 1.7 per cent to 1,174.60 yuan
-- Jiangsu Hengrui Medicine (600276 CH) rose 0.5 per cent to 83.39 yuan
-- Ping An Insurance (601318 CH) climbed 1.6 per cent to 89.90 yuan 
-- Shanghai International Airport (600009 CH) dropped 0.3 per cent to 80.26 yuan
 

-- Deb Price    


Shanghai closes up 0.9 per cent; Kweichow Moutai rises 1.7 per cent 

The Hang Seng Index closed with its biggest gains in a month, with battered property stocks staging a big rebound.
The benchmark ended ahead 2.3 per cent at 26,308.44. 
Hysan Development (14 HK) rose 4.9 per cent to HK$29.90,  Wharf REIC (1997 HK) gained 3.6 per cent to HK$43.35 and Henderson Land (12 HK) increased 3.8 per cent to HK$37.35. MTR (66 HK) finished up 2.7 per cent at HK43.85.
Other moves included:
-- HSBC Holdings (5 HK) rose 2.6 per cent to HK$58.95
-- Tencent Holdings (700 HK) rose 1.9 per cent to HK$324.80
-- AIA Group (1299 HK) climbed 2.2 per cent to HK$73.25
Noteworthy others: 
-- Budweiser Brewing APAC (1876 HK) fell 0.8 per cent to HK$31.25
-- 360 Ludashi (3601 HK) -- which shot up more than 200 per cent in its debut Thursday -- plunged in the afternoon by 8.1 per cent to HK$7.9. 
-- Topsports International Holdings (6110 HK), which debuted Thursday, closed ahead 4.9 per cent at HK$9.70
-- Deb Price    
