Chinese regulatory headwinds weigh on market sentiment


Asian Market Update: Chinese regulatory headwinds weigh on market sentiment as Australia returns to the green with no word on Evergrande bond payment due, watch out for China’s official PMI on Friday.

General trend

– Markets have traded lower as China continues to put in place new regulatory measures, its first white paper on exports released today. Australia were the only ones to post a positive performance with their first day of trading after the Christmas break.

– The yen has traded within a narrow range with large options expiring today, analysts note it is unlikely to cross 115 before the new year. With little major news, currencies changed little.

– COVID cases continue to rage in South Korea and Australia, as manufacturers in Xi’an, China develop alternative plans while COVID cases are processed.

– China uses another big OMO operation, lowering the overnight repurchase rate by 29 bps.

– The Japanese press focuses on autonomous driving technology in automobiles.

– Musk sells another $ 1.02 billion in Tesla shares.

– Chinese affairs office in Taiwan takes a firm stance on relations in 2022.

– With a 30-day grace period, Evergrande has not commented on whether he has made or planned to pay the deposit payment that was due on December 28.

Titles / Economic data

Australia / New Zealand

ASX 200 open flat.

SYR.AU gives further update on Tesla deal: contract is expected to reach agreement on AAM specifications by the end of 2022.

– (AU) Australia PM Morrison: The national cabinet meeting on COVID will take place on Thursday, December 30.

– (AU) China sets the import tariff quota for Australian wool for 2022 at 40.2 kt.

Japan

The Nikkei 225 opened -0.3%.

– (JP) Japanese automakers plan to equip their produced cars with autonomous driving functions as early as 2022 – Nikkei.

– (JP) Japan to maintain border rules against the spread of Omicron variant for now – press.

3086.JP Reports 9M Net + Â¥ 3.7B v – Â¥ 15.6B y / y; Op +4.4 billion against -18.5 billion y / y; Rev 237.5B vs. Â¥ 230.7B y / y (shares + 10%).

Korea

Kospi opened -0.6%.

– (KR) South Korea Manufacturing Enterprise Survey January: 92 v 88 previously; Non-manufacturing survey: 78 against 83 previously.

– (KR) South Korea Terms of trade in November: 88.3, ​​-10.1% year-on-year (9-year low).

– (KR) The ruling Party in South Korea and the government have agreed on the need to expand measures against coronaviruses.

005930.KR Have flexibility in chip production lines at factories in Xi’an, China (a city currently experiencing a COVID epidemic).

– (KR) South Korea Foreign Affairs Min Chung: South Korea and the United States “actually agreed” on a project to end the Korean War – Yonhap.

China / Hong Kong

Hang Seng opened -0.1%; Shanghai Composite opened flat.

– (CN) The Chinese PBOC fixes the benchmark rate of the yuan: 6.3735 against 6.3728 previously.

– (CN) China PBOC Open Market Operation (OMO): sells CNY 200 billion in 7-day reverse repurchase agreements against CNY 200 billion previously; Net injection: CNY190B vs. CNY190B before.

(CN) China Q4 Beige Book shows that companies have cut back on investment and have remained cautious about borrowing.

– (CN) China PBOC will lead CNY5.0B in a 3-month Central Bank Note (CBS) swap operation in today’s session against CNY5.0B forward.

– (TW) China Taiwan Affairs Office Official Ma: Will be more energetic against Taiwan independence; Ask about the report that Chinese spies have infiltrated the Taiwanese military.

– (CN) China Releases White Paper on Export Control – Chinese State Media.

– (CN) Expects China to set the TC / RC floor for copper in the first quarter at $ 70 / t and $ 0.07 / lb, flat q / q – Press.

– (CN) Shanghai Sec News: China is considering adding participants and derivatives to the domestic carbon emissions trading market.

– (CN) China State Planner (NDRC) approved the construction of data center clusters in Inner Mongolia, Gansu, Guizhou and Ningxia provinces.

1810.HK to announce CNY 100 billion 5-year R&D plan to become number 1 mobile phone brand within 3 years – HK Press.

JD Closes $ 2.0 Billion 5 Year Green Loan Facility; Increases share buyback amount from $ 1.0 billion to $ 3.0 billion and extends term to March 2024.

3333.HK have ~ $ 7.4 billion in bond coupon payments and redemptions due during 2022 (the reminder had 2 USD bond payments due on December 28, has a grace period of 30 days before a defect can be declared).

Other

– (TW) China Official Ma: Will be more energetic against Taiwan independence.

– (SL) Sri Lanka Central Bank Gov Cabraal: official reserve position at 3.1 billion dollars, with reserves to remain around the current level until the end of the year.

North America

– (United States) Weekly API crude oil inventories: -3.1 M against -3.7 M previously.

TSLA CEO Musk files Form 4 to exercise approximately 1.56 million options at $ 6.24 / shr; Sells ~ $ 1.0 billion in stocks.

Europe

– (IE) Ireland Dec economic pulse: 79.9 against 83.2 before.

– (UK) Russia Dep PM Novak: Russia is ready to export more gas to the EU if long term supply contracts are signed, has sufficient resources to meet any EU demand; The oil price of $ 65-80 / barrel is comfortable in 2022.

GAZP.RU Has not reserved gas transit capacity for export via the Yamal-Europe pipeline for December 29 (9th consecutive day).

Levels from 00:15 ET

– Hang Seng -0.9%; Shanghai Composite -0.7%; Kospi -0.8%; Nikkei225 -0.8%; ASX 200 + 1.2%.

– Equity Futures: S & P500 + 0.1%; Nasdaq100 + 0.3%, Dax -0.0%; FTSE100 + 0.3%.

– 1.1315-1.1298 euros; 114.88-114.74 JPY; AUD 0.7236-0.7213; NZD 0.6813-0.6791.

– Commodity Futures: Gold -0.3% at $ 1,806 / oz; Crude oil + 0.1% at $ 76.02 / brl; Copper -0.7% at $ 4.41 / lb.


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