Sales commentary, not BofA research

Headlines

l  Y’day:NKY +0.5%, HSI +1.62%, SHCOMP +0.18%, KOSPI +0.21%

l  Over night: Dow +0.5%, SPX +0.43%, Nasdaq +0.74%

l  US: NASDAQ reaches record high

l  US: Treasury sec Mnuchin sees recession over by yr end.  Discussing another stimulus package

l  US: New COVID cases in some states Tue broke record for 4th day in the past week

l  US: Trump says China trade deal is fully intact

l  US: Navarro says comments on China `taken wildly out of context'

l  US: GNC holdings files for chapter 11 in Delaware court

l  US-CN: Luckin Coffee Receives Delisting Notice From Nasdaq for Failure to File Annual Report

l  CN-India: Military agree to disengage on disputed Himalayan border

l  N.Korea: Removing propaganda loudspeakers near border: YONHAP

l  SG: to hold elections on july 10

l  HK: Travel bubble plan for HK, mainland China, Macau stalls over technical issues (SCMP)

l  AU: GIC commits $278m to ESR’s new $695m Australia logistics fund   

l  Today is last day for CN & Northbound trading for the rest of the week ahead of Dragon Boat Festival

l  Holidays: Greater CN markets including HK will be closed tomorrow.

No daily for rest of this week - Have a good day.

Conf call:

l  Today:Sam Zell, Chairman of Equity Grp Invsmts @ 10pm HKT.Clients only

Finally:  Thanks to people who sent in more staycation ideas for HK! 

·           Rosewood Hotel/K11—apparently offering promos for dining/shopping

·           JW Marriott @ Ocean Park for those w/ kids.  Big pool. 

·           Tai O Heritage Hotel

·           Lamma Island or Cheng Chau Island (check out some of the rustic guest houses on AirBnb)

Relaxed ‘Hukou’ rules spark China housing rebound beyond Beijing. (BBG)

Wuxi sold 6 comm/resi sites for Rmb10b, site 425,527m², planned construction 849,141m². (The Paper)

Redsun Services to raise $55.5m in HK IPO, offers 100m shrs @ HK$3.30-HK$4.30/sh. Proceeds: strategic invsmt, expand prop mngt biz, boost R&D, strengthen high-end service quality, staff training + working capital. (Sina)

Tahoe sold 19% equity of 2 projs cos in Zengcheng, Guangzhou for Rmb1.1b to Minmetals Int’l Trust. Proj cos hold 4 sites w/ area 707,171m². (The Paper)

Evergrande outlook to negative from stable, L-T rating affirmed @ B1, per Moody's. Concern on high lvl of S-T debt. (Moody’s) >>> Total amt of public bonds & loans outstanding Rmb247.8b, according to BBG.

Oceanwide Holdings to Get 850m Yuan Funding From Shareholder (Bloomberg) -- Oceanwide Holdings Co. & subsidiaries will receive no more than 850m yuan financial support from its controlling shareholder and its other units, according to a filing to the Shenzhen Stock Exchange.   The tenor of the borrowing from China Oceanwide Holdings Group and its units is no longer than one year and can be extended upon agreement before maturity.  Lending rate is 4.35% and proceeds will be used for daily operations

HKR wins tender for a residential site in Hangzhou for CNY 470m  (JLL)

Times China won entitlement for a Guangzhou village renewal project. Total invsmt Rmb8.9b. (Guandian)

HK May overall consumer prices ↑ 1.5%YoY, less than ↑ 1.9% in Apr. (Standard)

Biggest landlord on Russell St Emperor US$464.5m loss for FY19-20, w/ revaln loss HK$1.4b on invsmt props. To issue HK$0.035/sh final div, bringing total to HK$0.07 for the yr, ↓from HK$0.11 last yr. (SCMP)

CKA to put 462 units in Sea To Sky up for sale this Sat, received 8000 subscriptions in last 4days. (HKET)

Increasing vacancy level likely to exert pressure on office rents in Central, Hong Kong: JLL

MTR to open1st batch of shops at The Lohas mega mall in August Currently 70% pre-let.

Taiwanese actress crashes rents in Mid-Levels:  A duplex at Arezzo in Mid-Levels owned by Taiwanese actress was rented out at about a quarter of going rates last week.  Anomaly or not, analysts see no strong support for luxury residential leasing market as economy flounders.  (SCMP)

Beijing: to push introduction of prop mngt in old communities.(CREB)

>60% graduates plans to purchase their own homes. >90% fresh graduates wish to own their own homes, per Anjuke & 58.com. (Sina)

Legco. halts proposed vacancy tax bill review, citing insufficient time before the July deadline. (HK01)

China studying the possibility of leasing land to HK to build public housing (HK 01): Reclaimed land near Guishan Island in Zhuhai (to the south of Lantau Island in HK) to help ease HK’s housing shortage.

Mapletree Industrial Trust to acq remaining 60% interest in 14 US data centres for US$494m. To raise S$350m @ S$2.732-2.8/sh to fund the acqn + repay debt. (Co)

Eagle Hospitality Trust anncd defaults & litigation. Creditors placed liens against the REIT’s assets. (Co)

Oxley sells retail & commercial units in 30 Raffles Place for S$315m. (Biz Times)

Office demand to ↑as bizs bring offshore operations back, per Mirvac's head of office & industrial. (AFR)

Dexus divest landmark 28-storey twr @ 45 Clarence St, Syd for A$530m to China-backed Zone Q. (AFR)

ESR launches A$1b ESR Australia Devt Partnership. GIC committed A$400m (US$277m). (Co)

Mirvac: 2H20 distribution A$0.03/sh. Preliminary valns (excl IPUC) for June 30 across 63 assets ↓A$306m or 2.8% from Dec 31. As at Jun 19, Co has cash & undrawn debt facilities in excess of A$1.3b w/ only A$200m debt due for repayment b/w now & early 2022. (Co)

Japan May convenience store sales ↓ 10%YoY. (Mainichi)

GLP J-REIT to raise net \19.6b via public offer 149,560 units, price TBD. Proceeds to fund \38.4b acqn of 4 assets in Kanagawa (2), Saitama & Chiba. The REIT revises 2021 Feb earnings f/c. Oper rev ↑6.8% (vs pre f/c) to \19.8b, NI ↑7.9% to \9.4b. (Co)

Oriental Land anncd reopening of Tokyo Disney Landfrom 1-July. Stock price ↑3.2%. SI remains at high levels at 8.5 DTC. (Nikkei)

Sumitomo Mitsui Trust Asset Management Co.,Ltd's stake in Mori Trust Hotel rises to 10.76% from 9.71%, according to a filing to Japan's Finance Ministry. (Bloomberg)

India GDP to contract 3.1% 2020, flags geopolitical risk, per Moody's. (Standard)

Consulting firm ANSR leased 300k ft² office across 8flrs in Embassy NXT, Bengaluru for 10yrs. (India Times)

~466,000 homes scheduled 2020 delivery may miss deadline as Covid-19 impact. (India Times)

Taiwan May unemployment rate ↑ to 4.07%, highest since Nov ’13. (Taipei Times)

* My pa holdings: BAC US, 1 HK, 6 HK, ST SP