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Kathleen Magramo

Gigi Choy

Deb Price

Good day traders, and welcome to a fresh week!
It was a great day to be holding new economy stocks in Hong Kong, especially Ping An Good Doctor.
Check out the day's action below. 
And, hey, are you getting your Live Stocks Blog every morning via email? You can! Don't miss out on our coverage of Hong Kong and mainland markets each trading day! If you would like the Live Stocks Blog emailed to you each morning, click here. If you need to reach the stocks team, email deb.price@scmp.com.
-- Gigi Choy, Kathleen Magramo 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.



Hong Kong new economy stocks surge as traders pile into 'after the coronavirus' stocks

People wearing face masks amid concerns over the COVID-19 coronavirus walk past Uniqlo and Adidas stores at a shopping mall in Beijing on April 19, 2020. Photo: AFP

Business

Hong Kong will see flood of earnings reports this week
Ping An Good Doctor surges 9 per cent, while Ali Health jumps 4.5 per cent 


Ping An Good Doctor shoots up 9 per cent, Maoyan jumps 7 per cent, as investors rush into new economy stocks in fear of missing out stampede. A flood of earnings will come out this week. 


Stocks

China stock market

Hang Seng Index

Coronavirus pandemic: All stories

Live

Here's what we are watching this morning:US overnight markets/ What futures foretell--
On Friday, the S&P 500 rose 2.7 per cent, the Nasdaq gained 1.4 per cent and the Dow Jones Industrial Average advanced 3 per cent
-- Hong Kong futures dropped 0.2 per cent while the FTSE China A50 futures gained 1.7 per cent 
IPO debuts: National Silicon Industry Group Co Ltd (688126 CH)
Economic statistics:  China’s April one-year loan prime rate and five-year loan prime rate. Hong Kong’s March unemployment rate.
Central bank action: Nothing major scheduled
Earnings: Merchants Shekou (001979 CH), China Mobile (941 HK), Zhifei Biological (300122 CH), Eve Energy (300014 CH), Guangdong Haid Group (002311 CH), Luxshare Precision (002475 CH), Tongwei (600438 CH)


Morning guidance

About 80 companies listed in Hong Kong will report earnings this week, which will show how the coronavirus pandemic has hit sectors ranging from automakers to insurers and even toilet paper producers.Some of note include:
April 20, Monday: Quarterly results of Livzon Pharmaceutical Group (1513 HK) 
April 21, Tuesday: 
-- Annual results of  consumer electronics manufacturer BYD Electronic (285 HK) and electric vehicle maker BYD (1211 HK).   -- Quarterly results of ASM Pacific Technology (522 HK)
April 22, Wednesday:   -- For telcos, three-months ended results China Unicom (762 HK) and interim results of HKBN (1310 HK).    -- First quarter results of toilet paper producer Vinda International Holdings (3331 HK)
April 23, Thursday:   -- First quarter results of insurers Ping An Insurance Group (2318 HK) and China Life Insurance (2628 HK)
April 24,Friday:  -- First quarter results of  telecom equipment supplier ZTE Corporation (763 HK).  -- Three-months-ended results of coal miner China Shenhua Energy (1088 HK)   -- Three-months-ended results of  state-owned China National Pharmaceutical Group, also known as Sinopharm (1099 HK).  -- Annual results of sport-utility vehicles (SUVs) maker Great Wall Motor (2333 HK)
-- Kathleen Magramo


ICYMI: Earnings this week in Hong Kong

Hong Kong home sales in 10 major housing estates dropped 15 per cent on the weekend, from the previous, with zero deals in Kowloon, according to Centaline Property Agency said on Sunday.
There were 17 deals done in 10 major housing estates in Hong Kong on Saturday and Sunday, compared  with14 transactions a week ago, it said. Most sales were concentrated at Taikoo Sing in Quarry Bay, Kingswood Villas in Tin Shui Wai and Sha Tin City One in Sha Tin.
In the primary residential market, China Evergrande sold another 12 units at Emerald Bay in Tuen Mun on Sunday. Together with 18 units being sold on Saturday, the mainland developer found buyers for 30 of 269 units put on sale during weekend.
But Centaline expects Hong Kong’s overall property sales, including flats, shops, industrial units and car parking spaces, will increase 15 per cent in April, as home buying picks up as people see the coronavirus under control.
The agent forecast the number of property transactions would reach 5,200 with a total value of HK$41 billion.
It would be the highest since there were 6,701 deals registered in  November, 2016, it said.
“The performance in the secondary residential market became active during the Easter Holiday.  Higher sales will likely to see in May once the coronavirus is under control,”  it said.
As of April 15, there were 2,569 property deals with total value of HK$19.96 billion have been recorded, it said.
-- Sandy Li   


Home buying picks up in Hong Kong

Japan’s Nikkei 225 fell 1 per cent.
It jumped 3.2 per cent on Friday, closing at a one and a half month high. The country's exports declined 11.7 per cent in March from a year earlier, while imports fell 5 per cent, Ministry of Finance data showed. Prime Minister Shinzo Abe expanded a state of emergency last week from seven prefectures to cover the entire country.
South Korea’s Kospi rose 0.2 per cent, building on its 3.1 per cent gain on Friday. The tech-heavy Kosdaq went up 0.8 per cent, after accelerating 1.8 per cent on Friday.
In Australia, the S&P/ASX200 fell 0.5 per cent. More than 150 economists warned the government against easing social distancing rules aimed at curbing the spread of the new coronavirus in an open letter, Reuters reported. The measures are expected to push unemployment to a 16-year high of about 10 per cent.
  New Zealand’s NZX 50 Gross Index gained 0.5 per cent.
Meanwhile, Singapore's Straits Times Index advanced 0.2 per cent.
-- Gigi Choy 


Asia-Pacific markets mixed

Singapore oil trader Hin Leong Trading hid US$800 million in losses from futures trading, Bloomberg reported, citing people familiar with the matter.
The large hole in the finances of one of the biggest physical fuel-oil trader shows the fallout from the historic drop in oil prices this year because of the Saudi-Russia price war and the coronavirus pandemic.
HSBC (5 HK) has the biggest exposure to Hin Leong at about US$600 million, according to Bloomberg.
-- Kathleen Magramo 


Watch HSBC today after Singapore oil trader hid US$800 million of losses

After months of nail-biting bouts of volatility and panic selling driven by the coronavirus, Hong Kong’s stock market has transformed itself into a strange beast: part bull, part bear.
Investors suddenly finding themselves astride this hybrid creature are galloping into uncharted territory offering both rare opportunities and extreme hazards.
Technically, the Hong Kong market’s 50-stock Hang Seng Index tumbled down into bear territory on March 13, and continued to slide. Assuming its March low sticks, it still has considerable distance to go before entering its next official bull stage. But don’t tell that to individual stocks both on the benchmark and more broadly in the city’s equity market that are already posting great numbers.
The Hong Kong stocks now behaving like bulls have been on a spectacular run – the kind that some key analysts predict will continue in a post-coronavirus world that places a premium on the internet and the conveniences it brings.
This bear-bull phase of the coronavirus puts pressure on investors to study, differentiate and take charge of their portfolios.
Read full story here by stocks team. 


It’s a bear! It’s a bull! It’s Hong Kong’s stock market!

The Shanghai Composite Index was up 0.07 per cent  to 2,840.41 at the open.
The tech-focused ChiNext rose 0.4 per cent to 2,027.84.
Meanwhile, the CSI 300 gauge of large-caps listed in Shanghai and Shenzhen was down 2.4 per cent to 3,747.84.
Kweichow Moutai (600519 CH), the world’s most valuable liquor company, shed 0.4 per cent to 1,221 yuan.
Luxshare Precision Industry (002475 CH) was down 0.5 per cent to 41.87 yuan. It reports its earnings today.  Goertek (002241 CH) advanced 0.4 per cent to 19.21 yuan. They both make Apple AirPods.
Ping An Insurance (601318 CH) went up 0.7 per cent to 72.89 yuan. China International Travel Service (601888 CH) gained 1.1 per cent to 82.18 yuan. 
-- Kathleen Magramo


China benchmarks mixed, CSI 300 opens lower

The Hang Seng Index slipped 0.3 per cent to 24,303.46.
HSBC (5 HK) rose 1.3 per cent to HK$40, while Standard Chartered (2888 HK) gained 0.6 per cent to HK$39.50.
  Index heavyweight Tencent (700 HK) slipped 0.5 per cent to HK$407.40.
  Insurers Ping An (2318 HK) dropped 0.1 per cent to HK$78.50 and AIA (1299 HK) gained 0.5 per cent to HK$72.95.
  Meanwhile, e-commerce giant Alibaba (9988 HK), which owns the South China Morning Post, fell 1.7 per cent to HK$204.
-- Gigi Choy


Hong Kong slips at open

Mainland developer Greentown China Holdings (3900 HK) is to acquire a stake in three property developments in Shenyang in a deal would cost 378.81 million yuan  from a Shanghai-listed developer.
“The acquisition will facilitate the group in indirectly participating in the three real estate development projects,” according to Greentown’s filing with the stock exchange on Sunday. The vendor is Xinhu Zhongbao, which primarily engages in commerce, property and finance in the mainland.
The three projects are Xiablin Golden Valley project, Xinhu Bay project and Xinhu Beautiful Island project, with a combined 1.06 million square metre of gross floor area.
--Sandy Li   


Greentown China Holdings acquiring stake in three property developments

China cut its April one-year loan prime rate (LPR) by 20 basis points to 3.85 per cent from 4.05 per cent.
This was in line with an estimated 20 basis point cut by Bloomberg Economics.
It also reduced the April five-year LPR  by 10 basis points to 4.65 percent from 4.75 per cent.
The LPR  is the interest rate that commercial banks charge to their prime clients.
-- Kathleen Magramo 


China cuts loan prime rates

National Silicon Industry Group (688126 CH) shot up 145.5 per cent  to 9.55 yuan from a listing price of 3.89 yuan on its trading debut on the Shanghai stock exchange’s Nasdaq-like Star Market.
It produces solar silicon rods, silicon wafers, single crystal silicon rods, and other related products.
There is no limit on the first week of trading for IPOs on the Star Market.
-- Kathleen Magramo


Star Market IPO skyrockets

In Hong Kong, the biggest turnover stocks are Tencent (700 HK), which slipped 0.5 per cent to HK$407.40; Alibaba (9988 HK), which fell 1.4 per cent to HK$204.60; and AIA (1299 HK), which stayed flat at HK$72.60.
  The biggest blue chip losers are Sun Hung Kai Properties (16 HK), which tumbled 2.8 per cent to HK$105.80; Want Want China (151 HK), which retreated 2.7 per cent to HK$5.48; and CNOOC (883 HK), which fell 1.2 per cent to HK$8.29.
-- Gigi Choy 


Hong Kong: Biggest turnover stocks; blue chip losers

Wang Jianyu, founder and former chairman of SEC Electric Machinery (603988 SH), a maker of motors, was reported by Chinese media outlets to have snuck into a factory owned by rival Guodian United Power Technology on Saturday.
Security staff caught Wang photographing the production line and reported the case to the police, according to a report by the Securities Times.
Wang is "deeply sorry for the negative impact of the incident," SEC Electric Machinery said in a Sunday night filing to the stock exchange. He has not been arrested or detained, and did not receive notice of an investigation. Wang is able to perform his duties and operations of the company remain normal, the company said.
Wang lost his controlling stake in SEC in 2018, when he shed some of his shares in the company to alleviate financing pressure amid a plunging stock price, as he pledged most of his stake as collateral for loans.
Shares of SEC shot up by the 10 per cent daily limit in market open, and were latest traded 7.2 per cent higher at 9.69 yuan.
-- Yujing Liu


Founder of machinery firm reported to have snuck into competitor’s factory

Oil prices tumbled to a 21-year low as output cuts have been insufficient to offset plunging demand.
Oil-linked stocks were mixed in China and Hong Kong.
CNOOC (883 HK),  China’s dominant offshore oil and natural gas producer, turned down 0.1 per cent to HK$8.38.
Sinopec (386 HK), the country’s biggest oil refinery, rose 1 per cent to HK$3.91 and  its A-shares (600028 CH) gained 0.2 per cent to 4.57 yuan. PetroChina (857 HK), the nation's largest oil and gas producer, dropped 0.4 per cent to HK$2.75 and its A-shares (601857 CH) shed 0.7 per cent to 4.52yuan.
US West Texas Intermediate (WTI) crude futures plunged 14.1 per cent and were priced around US$15 a barrel on Monday morning.
International benchmark Brent crude futures shed 1.3 per cent.
Oil lost about a fifth of its value last week after the deal to cut production failed to counter the loss of demand from a global economic slowdown as a consequence of the coronavirus pandemic.
The Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, agreed a week ago to reduce production by  9.7 million barrels a day starting May.
-- Kathleen Magramo


Oil stocks mixed as prices fall to two-decade lows

New economy stocks mostly increased, including Maoyan Entertainment (1896 HK), which rose 1.3 per cent to HK$9.62, and Ali Health (241 HK), which gained 1.8 per cent to HK$16.92.
Ping An Good Doctor (1833 HK) jumped 3.2 per cent to HK$99.10.
Chinese smartphone and home appliance maker Xiaomi (1810 HK) slipped 0.8 per cent to HK$10.32.
NetDragon Websoft (777 HK), a Chinese online gaming company offering online learning products, went up 1.2 per cent to HK$20.90.
  Meanwhile, Kingsoft (3888 HK), a software company with cloud and business management services, increased 2.3 per cent to HK$27.05.
-- Gigi Choy


Hong Kong’s new economy stocks mostly up

Shares of Macau casino operators are up on hopes that travel restrictions will eventually be lifted to get the all-important Chinese gamblers back at the tables.
A press conference will be held later today at which time the Macau chief executive could raise outlook for the casinos, which are struggling due to restrictions to try to stop the spread of the coronavirus.
Efforts appear to be succeeding in the world's biggest gambling hub, which hasn’t reported any new infections in almost two weeks.
Galaxy Entertainment (27 HK) rose 1.6 per cent to HK$50.75, while Sands China (1928 HK) increased 0.2 per cent to HK$31.90.
MGM China (2282 HK) gained 1.2 per cent to HK$9.56.
Melco International (200 HK) jumped 2.4 per cent to HK$14.76. Wynn Macau (1128 HK) gained 1.2 per cent to HK$13.88. Meanwhile, SJM Holdings (880 HK) rose 2.6 per cent to HK$7.92.
Here is a feature for investors on what analysts expect for Macau casino stocks. 
-- Gigi Choy


Macau casinos gain as investors bet travels restrictions will be lifted in foreseeable future

Hang Seng, Shanghai benchmarks each up 0.2 per cent

Jefferies believes property sales in China should recover further and may start showing positive monthly year-on-year growth in April.
It expects first-tier and second-tier cities to show stronger sales rebound given the robust demand in higher-tier cities.
The investment bank is bullish on the sector on a 12-month horizon and continues to suggest overweighting the sector due to further sales recovery and better cashflows for developers.
Jefferies' top picks are CIFI Holdings (884 HK), which tumbled 3 per cent to HK$5.74; KWG Property Holding (1813 HK), which fell 1.1 per cent to HK$11.22; China Overseas Land & Investment (688 HK), which rose 0.2 per cent to HK$26.20; Sunac China (1918 HK), which slid 0.9 per cent to HK$34.05; and China SCE Property (1966 HK), which fell 1.4 per cent to HK$3.47.  -- Gigi Choy


Expect further recovery for China property in second quarter, Jefferies says

The Shanghai Stock Exchange is looking into the cause of the unusual movements in some indexes including the CSI 300 Index this morning with the index compiler, the bourse said on its official microblog.
The Shanghai Composite Index and other major benchmarks rose slightly this morning, while the CSI 300 slid 2.4 per cent.
-- Zhang Shidong


Shanghai exchange probes into abnormality in index movements

The Shanghai Composite Index was up 0.3 per cent to 2,847.13 at the break.
The tech-focused ChiNext rose nearly 1 per cent to 2,040.09.
Meanwhile, the CSI 300 gauge of large-caps listed in Shanghai and Shenzhen was down 2.3 per cent to 3,750.49.
The Shanghai Stock Exchange is looking into what caused unusual movements in some indexes including the CSI 300 Index this morning.
Kweichow Moutai (600519 CH) fell 0.3 per cent to 1,222.68. Luxshare Precision Industry (002475 CH) was down 0.3 per cent to 41.98 yuan and Goertek (002241 CH) declined 1.4 per cent to 18.87 yuan. They both make Apple AirPods.
Ping An Insurance (601318 CH) gained 1.5 per cent to 73.47 yuan. China International Travel Service (601888 CH) climbed 1.5 per cent to 82.52 yuan.
Medical industry stocks jumped 3.1 per cent, cement and building materials companies gained 2.5 per cent and construction firms rose 2.3 per cent, according to gauges tracked by EastMoney.
-- Kathleen Magramo


Most China benchmarks gain slightly, CSI 300 down

The Hang Seng Index rose 0.2 per cent to 24,419.99 at the break.
Index heavyweight Tencent (700 HK) inched up 0.05 per to HK$409.80, while Alibaba (9988 HK) slipped 0.2 per cent to HK$207.20.
HSBC (5 HK) gained 1.5 per cent to HK$40.10. Standard Chartered (2888 HK) went up 1.4 per cent to HK$39.80.
Insurers Ping An (2318 HK) increased 0.8 per cent to HK$79.25, AIA (1299 HK) rose 0.07 per cent to HK$72.65 and China Life (2628 HK) jumped 3.1 per cent to HK$16.58.
-- Gigi Choy


Hong Kong stocks to start afternoon with gains. Here’s where we are

The Shanghai Stock Exchange will try to restore normal pricing of relevant indexes within the day and continue to monitor the across-the-board trading, it said in a statement on its official microblog.
Trading of individual stocks, bonds, funds, exchange-traded funds and ETF options are not affected, it said.
 It is looking into unusual movements in some indexes including the CSI 300 Index this morning with the index compiler.
-- Zhang Shidong 


Shanghai aims to restore normal index pricing by the end of day

Jefferies’ analysts believe e-commerce platforms Alibaba, JD and Baozun are on track with their revenue guidance after data from the National Bureau of Statistics showed China’s online retail sales of physical goods grew 5.9 per cent year on year in the first quarter.
They see online shopping to be the first to show a recovery and reiterated preference for e-commerce within the internet sector
Alibaba (9988 HK), the e-commerce giant and parent company of the South China Morning Post, remains a top pick for Jefferies. They expect Alibaba to show a recovery trend in March and  post the Covid-19 pandemic. The company has a high-margin core marketplace and a strong cash-cow business with customer management revenue benefiting from the high return on investment [ROI] offered to merchants, analysts said.
Nasdaq-listed business-to-customer platform JD.com is expected to be on track with its first quarter revenue guidance as its business momentum picks up week-over-week. Its logistics arm, JD Logistics, also enhanced brand awareness during Covid-19.
Analysts believe user growth will increase from lower-tier cities penetration, changes in consumer habits and product diversification.
Nasdaq-listed Baozun is expected to be a beneficiary in the recovery of online shopping in the coming quarters. Baozun plans to focus on high-quality growth with the goal to convert gross merchandise value [GMV] into revenue and profitability in 2020.
-- Kathleen Magramo


China’s online shopping regaining strength: Jefferies

Jefferies said the recovery pace for each Chinese liquor brand depends on its exposure to banquet demand.
Sell-through for premium brands has recovered to 60 per cent to 65 per cent, while mid-high end liquor has recovered to 40 per cent to 50 per cent of last year's level, respectively.
Distributors generally do not expect a full recovery by the Labour Day holiday in May due to the delay of most private and business events, according to the investment bank. Mid-autumn festival is a more likely time for a full recovery and demand for mid-high end liquor will be under pressure until then, the firm said.
Jefferies prefers Kweichow Moutai (600519 CH), which is more defensive with resilient demand growth, and Jiangsu Yanghe (002304 CH), which has more re-rating potential with its successful channel reform and low valuation.
Moutai is down 0.3 per cent to 1,222.68 yuan in Shanghai, while Yanghe is up 0.05 per cent to 89.80 yuan at the midday break.
-- Gigi Choy


Chinese liquor distributors waiting for the party to restart, Jefferies says

China’s semiconductor stocks are showing some virus immunity.
Investors should look for stocks that will thrive in the post-coronavirus world. Here are some analysts like.
Five questions  investors should be asking. 
How long until this mother of all grizzly bears goes into hibernation? Traders and analysts weigh in.
Global markets are unbelievably volatile.  Get used to it, analysts say. 
Tencent (700 HK) has a  big fan club. Here’s why. 
China airline stocks will come back. What should investors know?
And Macau casino stocks have been beaten down. What do analysts say about their odds ahead?


ICYMI: Investor features on semiconductors, airlines, casinos

South Korea's Kospi fell 0.4 per cent, while the tech-heavy Kosdaq went up 0.6 per cent.
Japan’s Nikkei 225 fell 1.3 per cent, widening its earlier loss.
In Australia, the S&P/ASX200 fell 1.7 per cent.
New Zealand’s NZX 50 Gross Index fell 0.2 per cent.
Meanwhile, Singapore's Straits Times Index retreated 0.3 per cent.
-- Gigi Choy


Asia-Pacific markets mostly down

China’s central bank launched its digital currency last week in a trial to deliver subsidies in Suzhou, a city in Jiangsu province.
In the pilot program starting this month in Xiangcheng district in Suzhou, government and state-owned enterprises (SOE) employees can receive transport subsidies by downloading an e-wallet via Alipay, the online payment platform owned by Alibaba. 
The program is set to be expanded to Shenzhen, Xiong’an and Chengdu.
“We believe it is well-timed since it would allow the authorities to direct payments to those parts of the economies most affected by Covid-19,” Jefferies’ analysts said in a fresh note.
Jefferies’ analysts highlighted that the digital yuan is being tried out as a mode of payment rather than as a form of currency yielding an interest rate. The digital yuan will provide e-commerce platforms with digital currency to meet in-and-out payments with the People’s Central Bank (PBOC).
“It will certainly be a huge economic advantage for Chinese payment systems internationally whilst providing the PBOC an ability to instantly access people’s wallets even in rural areas. This should be particularly pertinent post the Covid-19 economic slowdown as it may allow the authorities to directly distribute money to those areas that need financial support,” Jefferies’ analysts said.
The four state-owned banks, Industrial and Commercial Bank of China (1398 HK; 601398 CH), China Construction Bank (939 HK; 601939 CH), Agricultural Bank of China (1288 HK;601288 CH), and Bank of China (3988 HK), along with telecom companies China Telecom (728 HK), China Mobile (941 HK), and China Unicom (762 HK; 600050 CH) and Internet giant Tencent (700 HK) are involved in the development of the digital currency, according to financial news outlet Caixin.
-- Kathleen Magramo


China tests a digital yuan payment in Jiangsu province

The Shanghai Stock Exchange restored normal pricing as of 1 pm of the relevant indexes that displayed abnormality in morning trading, it said in a statement on the official microblog.
The cause of the incident was the upgrade of the computer system over the weekend, it said.
-- Zhang Shidong 


Shanghai exchanges restores normal pricing of indexes

Chinese airlines listed in Hong Kong rose, buoyed by oil prices tumbling to a 21-year low.
China Southern (1055 HK) (600029 CH) jumped 4.3 per cent to HK$3.65 but slipped 0.2 per cent to 5.23 yuan in Shanghai.
China Eastern (670 HK) (600115 CH) gained 3.4 per cent to HK$3.05 and slid 0.5 per cent to 4.24 yuan in Shanghai.
Air China (753 HK) (601111 CH) increased 2.3 per cent to HK$5.40 and fell 0.3 per cent to 6.80 yuan in Shanghai.
Meanwhile, Hong Kong’s flag carrier Cathay Pacific Airways (293 HK) inched up 0.1 per cent to HK$9.37.
-- Gigi Choy


Airline shares take off in Hong Kong

Most new economy stocks increased, including Maoyan Entertainment (1896 HK), which surged 5.3 per cent to HK$10, and software company Kingsoft (3888 HK), which jumped 5.1 per cent to HK$27.80.
  Ping An Good Doctor (1833 HK) shot up 4.1 per cent to HK$99.90, while Ali Health (241 HK) gained 2.5 per cent to HK$17.04.
Meanwhile, food delivery giant Meituan Dianping (3690 HK) rose 1.8 per cent to HK$101.80.
But Chinese smartphone and home appliance maker Xiaomi (1810 HK) slipped 1 per cent to HK$10.30.
NetDragon Websoft (777 HK), a Chinese online gaming company offering online learning products, fell 0.2 per cent to HK$20.60.
  -- Gigi Choy


Hong Kong’s new economy stocks mostly see big gains

Singapore reported 596 new coronavirus infections Sunday, making it the worst-affected country in Southeast Asia.
It has experienced a drastic spike in Covid-19 cases, which grew tenfold over March to hit 1,000 on April 1, then rose more than sixfold to 6,588 on Sunday.
The city-state has seen a surge in local transmissions that has largely affected the migrant worker community, 323,000 of whom live in crowded dormitories with 12 to 20 men in each room.
The government began mass testing foreign workers, made masks compulsory and ordered a partial lockdown in a bid to contain the outbreak. It has committed S$59.9 billion (US$42 billion) -- amounting to 12 per cent of GDP -- to help businesses and households through the crisis.
Indonesia still has the most deaths in the region at 582, compared with 11 in Singapore.
-- Gigi Choy


Singapore has most coronavirus cases in Southeast Asia

Alibaba Cloud, the data intelligence backbone of Chinese e-commerce giant Alibaba Group, will invest an additional 200 billion yuan (US$28.2 billion) in the next three years on its cloud infrastructure to help speed up the digital transformation of businesses in China following the Covid-19 pandemic.
Aimed at next-generation data centres, the investment will focus on technologies including operating systems, servers, chips and networks, according to a company statement on Monday.
“The Covid-19 pandemic has posed additional stress on the overall economy across sectors, but it also steers us to put more focus on the digital economy,” said Jeff Zhang, president of Alibaba Cloud Intelligence. “By increasing our investment on cloud infrastructure and fundamental technologies, we hope to continue providing world-class, trusted computing resources to help businesses speed up the recovery process.”
Alibaba (9988 HK) is trading down 0.9 per cent in the afternoon session.
Read full story here.  


Alibaba Cloud to invest additional US$28.2 billion in cloud infrastructure

Oil-linked stocks turned up in China and Hong Kong as oil prices continued to sink amid demand shrunk by the coronavirus.  
Tumbling oil prices can benefit China, the world’s largest oil importer, by allowing it to stockpile reserves at a discount. 
CNOOC (883 HK),  China’s dominant offshore oil and natural gas producer, turned up almost 1 per cent to HK$8.47. Sinopec (386 HK), the country’s biggest oil refinery, rose 1.6 per cent to HK$ 3.93 and its A-shares (600028 CH) gained 1.1 per cent to 4.61 yuan. PetroChina (857 HK), the nation's largest oil and gas producer, climbed 0.4 per cent to HK$2.77 and its A-shares (601857 CH) were flat at 4.55 yuan.
US West Texas Intermediate (WTI) crude futures plunged as much as 21 per cent to $14.47 a barrel during the day, its lowest level since 1999.
It is now trading down 19.4 per cent to US$14.72 per barrel. International benchmark Brent crude futures widened losses to trade down 2.7 per cent. 
-- Kathleen Magramo


Chinese oil players rise in Hong Kong as oil prices continue to drop

The Shanghai Composite Index gained 0.5 per cent to 2,852.55 and the tech-focused ChiNext rose 1.1 per cent to 2,043.44.
The CSI 300 gauge of large-caps listed in Shanghai and Shenzhen finished up 0.4 per cent to 3,853.46, after resolving issues on several market indices this morning. 
Kweichow Moutai (600519 CH), the world’s most valuable liquor company, added 0.1 per cent to 1227.30 yuan.
Luxshare Precision Industry (002475 CH) gained 0.7 per cent to 42.39 yuan while Goertek (002241 CH) shed 0.9 per cent to 18.97 yuan. They both make Apple AirPods.
Ping An Insurance (601318 CH) went up 1.5 per cent to 73.50 yuan. China International Travel Service (601888 CH) jumped 1.9 per cent to 82.80 yuan.
Medical industry stocks advanced 3.7 per cent, craft goods makers rose 3.1 per cent and cement and building materials companies gained 2.7 per cent, according to gauges tracked by EastMoney.
-- Kathleen Magramo


China benchmarks end with gains; Luxshare, Kweichow Moutai advance

Hong Kong announced zero new Covid-19 infections today. The city's total stands at 1,025 cases and four deaths.
This comes after Hong Kong recorded two new cases on Sunday, including its first local infection in 10 days.
The government has limited public gatherings to four people and required restaurants to halve capacity and ensure a distance of at least 1.5 metres between tables in late March. It has also ordered 11 types of entertainment and leisure venues to shut. Authorities are expected to extend social-distancing measures, which are set to expire on Thursday.
Earlier this month, Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor unveiled a relief package worth HK$137.5 billion (US$17.7 billion) -- amounting to 4.8 per cent of the city’s GDP -- to support the city's struggling workers and businesses.
-- Gigi Choy


No new confirmed coronavirus cases in Hong Kong

The Hong Kong tranche of Chinese cancer drug firm Akesobio’s HK$2.58 billion (US$330 million) initial public offering has been oversubscribed 639 times by the city’s investors.
It is Hong Kong's largest IPO so far this year, and also the biggest in the broader health care sector after Pharmaron Beijing's HK$5.3 billion flotation last November, according to Refinitiv.
The Zhongshan-based company’s offer of 15.95 million shares in the city, a tenth of its global shares offering, saw HK$166.5 billion in investors’ funds locked up when the offer closed on Friday.
It begins trading this Friday.
Read full story here. 


Akesobio’s Hong Kong IPO oversubscribed 639 times

It was a good day to be holding select new economy stocks.
Ping An Good Doctor (1833 HK) rocketed 9 per cent higher to HK$104.60. Maoyan Entertainment (1896 HK) shot up 6.9 per cent to HK$10.16. Kingsoft (3888 HK) surged 5.7 per cent to HK$27.95. Ali Health (241 HK) jumped 4.5 per cent to HK$17.36.
Meanwhile, e-commerce giant Alibaba (9988 HK) went down 0.9 per cent to HK$205.80 and index heavyweight Tencent (700 HK) slid 0.2 per cent to HK$408.60.
Beyond the new economy sector, HSBC (5 HK) gained 1.4 per cent to HK$40.05.
The Hang Seng fell 0.2 per cent to 24,330.02.
  -- Gigi Choy


Ping An Good Doctor shoots up 9 per cent, Maoyan jumps 7 per cent

New economy stocks including Ping An Good Doctor had a very good day.
“It seems the virus outbreak is being contained in China, and investors worry that they may miss out on the rally and are driving the new economy stocks to go up,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai. “Generally, new economy stocks may have strong earnings growth potential, which is why investors are willing to give them a valuation premium.”
Ping An Good Doctor (18313 HK) is benefiting from the coronavirus outbreak, as Chinese consumers tried it out during the lockdown, he said. Meanwhile, Hubei province recently added Ping An Good Doctor to its medical reimbursement list, giving it the government’s stamp of approval and making it even cheaper. The trial is expected to be duplicated elswhere in China.
The stock shot up nearly 9 per cent to HK$104.60.
Maoyan reported a very good 2019 earnings results earlier. And investors are now treating it as a recovery play, Wen said.
The fundamentals of most new economy stocks are good, but they are very expensive, Wen pointed out. 
“Personally I wouldn’t recommend buying Ping An Good Doctor at the current levels, even though I truly believe it is a good company with solid fundamentals,” he said.
-- Deb Price    


Is Ping An Good Doctor a great stock that’s gotten too expensive? Kenny Wen says ‘yes’

Hong Kong's unemployment rate hit 4.2 per cent from January to March this year, up from 3.7 per cent in the previous three-month period.
The city's jobless rate rose for the sixth straight month and is the highest in more than nine years.
-- Gigi Choy


Hong Kong’s unemployment grows to 4.2 per cent

Some European countries are gradually easing coronavirus lockdown measures, while infections in Asia are still on a rise.
Singapore confirmed 1,426 new Covid-19 infections today, taking the tally to 8,014, which makes it the worst-affected country in Southeast Asia.
India recorded its largest daily spike with 1,553 cases, raising the national total past 17,000. The country eased its lockdown measures by allowing manufacturing and agricultural activity to resume, yet India’s air traffic and public transport are shut while schools and places of worship remained closed until May 3.
China reported no deaths but added 12 new confirmed coronavirus cases on Sunday, down from 16 infections a day earlier.
In Europe, hard-hit Spain has extended a nationwide shutdown but said it would ease restrictions to allow children time outside. 
Switzerland, Germany, Czech Republic and Finland began reopening certain shops on Monday while Norway and Denmark also restart schools.
In Germany, shops with a surface area up to 8,600 square feet are allowed to reopen along with auto showrooms, bike shops and bookshops of any size, as Europe’s largest economy restarts normal life after a four-week shutdown.
New Zealand will extend its lockdown measures in place by another week to beat the coronavirus, after which it will move to a lower level of restrictions that calls for many businesses to re-open.
-- Kathleen Magramo
