LongBridge Morning Call | Tesla's European factory will be closed for two weeks, Hong Kong stocks face the challenge of declining liquidity

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Asia Pacific Morning

This morning, the U.S. stock futures index opened slightly lower, with the Nasdaq futures down 0.24%, the Dow futures down 0.19%, and the S & P 500 futures down 0.2%.

Soon, the U.S. stock futures index rose in a straight line, the Nasdaq futures rose more than 1%, the S & P 500 futures rose about 0.8%, and the Dow futures rose about 0.5%.

IPO

Deutsche Bank Tianxia, Noah Holdings, Tianqi Lithium, Reader, Mingchuang Youpin, Minimally Invasive Brain Science, Bowei Wisdom, Huzhou Gas, Zhongkang Holdings, and China Graphite are in the IPO.

New Shares Listed

The offer price of Zhiyun Health has been fixed at HK $30.50, which is 7.89 times slightly over-subscription. Trading in the shares is expected to start on the main board of the Stock Exchange on July 6 (Wednesday). It will be traded in grey market today.

Graffiti Smart-W is going to be listed in HKEX.

Nano Labs Ltd.、Onfolio Holdings Inc.、Virax Biolabs Group Limited are listed in NYSE.

US Stock News

1. It is rumored that Apple is considering the contraction of consumption due to inflation, and the initial stock iPhone 14 new machines. However, Taiwanese supply chain manufacturers said that they had not received a notice from Apple to cut orders, and the sell in target of the first batch of 90 million iPhone 14 remained unchanged.

2. Tesla will close the European Gigafactory for two weeks starting in early July for a production process overhaul. The goal is to increase annual production from 52,000 to about 500,000, with two shifts expected to be changed to three shifts.

3. Tesla confirmed in the latest software update that its vehicles will support scanning rough roads, such as potholes, and adjust the suspension height to avoid damaging the vehicle.

4. The German Federal Antimonopoly Office will not file a lawsuit against the planned cooperation between Bosch and Volkswagen for the further development of autonomous driving. The cooperation aims to develop a joint software solution in the field of semi-autonomous driving.

5, Samsung's electronic equipment solutions (DS) department has set up a semiconductor packaging working group in mid-June, with the aim of strengthening cooperation with major foundry customers in the packaging field, and is expected to propose more advanced packaging solutions.

Hong Kong News

1. The Hang Seng Index Company will announce the results of the review of the Hang Seng Index Series for the second quarter of 2022 on Friday, August 19. The changes in constituents of the Hang Seng Index Series will take effect on Monday, September 5.

2. Hong Kong stocks are facing a situation of declining liquidity. Judging from the overall transaction situation, the valuation of the Hang Seng Index fell below 10 times in mid-March this year, and the cumulative turnover from January to June was HK $12.9 trillion, down 32% year over year. On June 30, there were nearly 745 stocks in the Hong Kong stock market with zero turnover, and the daily turnover below HK $100,000 reached 1,123, accounting for 47%.

3. Sunac China stated that it has received the guidelines on resumption of trading issued by the Stock Exchange and is taking appropriate measures to comply with the guidelines on resumption of trading and the relevant listing rules.

4. Xiaomi released the annual flagship Xiaomi Mi 12S series, starting at 3,999 yuan. The 12S Ultra is not only equipped with a Leica professional optical lens, but also a 1-inch outsole professional main camera, starting at 5,999 yuan.

5. Xiaomi has started producing smartphones in Vietnam and entrusted the production to DBG Technology in Hong Kong. The overall factory covers an area of about 200,000 square meters and the investment is about 80 million US dollars.

6. Xiaopeng Motors was reduced by JPMorgan Chase 3.5094 million shares of H-share at an average price of HK $134.2934 per share on June 28, involving about HK $471 million. After the reduction, JPMorgan Chase's latest long position was 65.0463 million shares, and the proportion of long positions was reduced from 5.25% to 4.96%.

7. Concino Bio was reduced by American Capital Group at an average price of HK $81.679 per share on June 29 482,600 shares, involving about HK $39.4183 million. After the reduction, the latest number of long positions held by American Capital Group was 32.8059 million shares, and the proportion of long positions was reduced from 25.09% to 24.73%.

Singapore News

1. Singapore Kitchen Equipment, a company listed on the Singapore Kelly Board, was investigated by the Commercial Affairs Bureau (CAD) and ordered to submit some documents to assist in the investigation. The documents ordered to be handed over included a report by Lijie Law Firm on eight transactions involving Q'son Kitchen Equipment (QKE), a Singapore-based kitchenware subsidiary.

2. The Ascott Limited, a subsidiary of CapitaLand Investment, plans to acquire Oakwood Worldwide, which operates high-end serviced apartments, from Mapletree Investments. It is expected to be completed in the third quarter of this year, and the specific acquisition amount has not been disclosed.

3. S & P: DBS has benefited the most from the rate hike environment, with an estimated 20% increase in dividends this year compared to last year. Asia-Pacific banks' dividend growth is estimated to be slashed to 7% this year.

Macroeconomy

1. The People's Bank of China announced that the establishment of a "swap link" between the mainland and Hong Kong will be officially launched in 6 months. Initially, the "northbound connection" will be opened, and the study will be extended to the "southbound connection" in due course in the future.

2, ETF into the mainland and Hong Kong stock market trading interconnection cross-border distribution mechanism on the first day, Shanghai and Shenzhen Stock Connect ETF turnover of 147.5 million yuan, Hong Kong Stock Connect ETF turnover of 84.13 million Hong Kong dollars.

3, the European Central Bank Governing Council Mueller expects that the European Central Bank will raise interest rates by 25 basis points in July and 50 basis points in September.

Reminders

09:45, China June Caixin Services PMI

12:30, Australia until July 5 RBA interest rate decision

13:00, Singapore May quarter adjusted retail sales

22:00, US factory order in May