Market Highlight

Asia equities fell with US futures in subdued trading after the US holiday. Treasuries edged higher and major currencies were little changed. WTI rose.

The Hang Seng Index opened 0.7% lower at 19,278.16 in Hong Kong. Meituan contributed the most to the index decline, decreasing 1.3%. Li Ning Co. had the largest drop, falling 4.1%. In early trading, 67 of 80 shares fell, while 10 rose; all sectors were lower, led by commerce and industry stocks.

China's CSI 300 Index fell 0.4%, while the Shanghai Composite declined 0.3%. CSI 300 Energy Index stocks led the benchmark lower, with seven of 10 sectors declining. On the CSI 300, 149 of 288 stocks fell, while 139 rose. China Shenhua Energy Co. led the declines, falling 8%, while Shenzhen Inovance Technology Co. gained, rising 8.9%.

Important News

• Chinese stocks fall after a private gauge of services activity pointed to weaker-than-expected expansion in June. Sportswear and property names are among top decliners. “Service sector should be the bigger beneficiary post reopening and keep the momentum, but the weaker print may trigger some market concern,” said Willer Chen, senior analyst at Forsyth Barr Asia.
   
• China industrial machinery makers including Haozhi Industrial fall after they were questioned by the stock exchange on the specifics of their robotics businesses. Zhejiang TongLi Transmission Technology falls as much as 8.1% in Shenzhen; exchange issued a letter of concern asking the firm to specify whether it is engaging in R&D in robotics, while also inquiring about its orders and sales prospects; shares more than doubled in June.
   
• HSBC HOLDINGS, as suggested by media reports, is planning to expand its mainland China business. Shanxi Trust, which holds a 51% stake in the joint venture company HSBC Jintrust Fund Management, is auctioning 31% of its stake in the firm on the national public resources trading platform. In response, HSBC HOLDINGS remarked that it has great ambition to expand its business presence in the Chinese market and described the operations of HSBC Jintrust Fund Management as "robust and lucrative".
   
• Alibaba Group Holding is exploring options for its video streaming platforms Youku and Tudou, Bloomberg News reported on Tuesday, citing people familiar with the matter. One of the options under consideration is to inject the assets into Alibaba Pictures Group Ltd and bolster the scope of the Hong Kong-listed company, Bloomberg reported.
   
• BYD's subsidiary brand Denza announced at a product launch event the fully-electric luxury SUV model N7, which will be available in four different configurations, with a selling price of RMB319,800-379,800. The customers will also have the option of two "Air" configurations that do not come with the DiSus-A system, which will be priced at RMB301,800 and RMB321,800, respectively. Deliveries of the vehicle model are anticipated to start within two weeks.
  
  
   
• Tesla achieved record deliveries of their China-made vehicles in the second-quarter, China Passenger Car Association data showed, as a fight for market share heats up. Tesla sold 93,680 China-made electric vehicles (EVs) in June, up 18.72% from a year earlier, when Tesla's factory in Shanghai delivered 78,906 China-made Model 3 and Model Y vehicles after the city ended a two-month COVID-19 lockdown.
   
• UBS is facing a new legal challenge to its Credit Suisse takeover after a group of leading Swiss investors joined a class action lawsuit, the FT reported.
   
• Airbus urged Chinese airlines to place orders for its biggest planes as deals with other carriers and supply-chain disruptions are extending wait times. Separately, the company is working on an elongated carbon-composite wing with folding tips to help planes become more fuel efficient.
   
• OMV surged 7.4% on news it's in talks with Adnoc to merge two chemicals and plastics firms that'd together be worth as much as $30 billion. A broad outline for the combination of Borouge and Borealis may be reached in coming weeks, people familiar said. Adnoc is said to be still pursuing Covestro and will decide in coming weeks whether to increase its offer.
   
• Greece plans to repay two years of bailout loans ahead of schedule, PM Kyriakos Mitsotakis said. He called the move "a commitment to investors," adding that he aims to restore Greece's investment-grade sovereign credit rating this year, some 13 years after it was lost during the financial crisis. Greek two-year bonds erased a decline after the comments.
   
• Twitter's temporary cap on the number of tweets accounts can see each day has had minimal impact on advertising, the firm said, adding that an update would follow when the work is done.
   
• Japan is making preparations to release treated radioactive water from the Fukushima Dai-Ichi nuclear power plant as soon as August, Nikkei reported, after the IAEA said the plan met global safety standards. Foreign Minister Yoshimasa Hayashi will meet this month with his Chinese and South Korean counterparts to win support for the move, Yomiuri reported.

Hong Kong

Option Name

Last Price

Volume

9988 HK 07/28/23 C95 Equity

0.49

2986

388 HK 07/28/23 C300 Equity

6.38

2129

939S HK 07/28/23 P4.7 Equity

0.105

1653

700 HK 07/28/23 P330 Equity

6.26

1640

700 HK 07/28/23 C350 Equity

5.3

1521

3988S HK 08/30/23 P2.9 Equity

0.071

1200

939S HK 08/30/23 C5 Equity

0.055

786

2007 HK 07/28/23 P1.15 Equity

0.02

760

700 HK 07/28/23 C360 Equity

3.25

747

9988 HK 07/28/23 C92.5 Equity

0.73

695

US

Option Name

Last Price

Volume

NKLA US 07/07/23 C1.5 Equity

0.09

97608

AAPL US 07/07/23 C195 Equity

1.13

82901

CMCSA US 07/21/23 C37.5 Equity

4.2

69639

AAPL US 07/07/23 C192.5 Equity

2.49

62700

SNAP US 08/18/23 C12 Equity

1.17

59348

CMCSA US 07/21/23 C30 Equity

11.61

53784

AAPL US 07/07/23 P190 Equity

0.42

52434

NKLA US 07/07/23 P1 Equity

0.04

50929

AMC US 07/21/23 P4 Equity

0.87

45127

TSLA US 07/07/23 C265 Equity

7.2

43030

Edward Liu

Head

Tiffany Cheung

Product Specialist

Jenny Luo

Trader

Email

advisory@goldhorse.com.hk