Sales commentary, not BofA research

Headlines

l  Last Friday: NKY +0.72%, HSI +0.99%, SHCOMP +2.01%, KOSPI +0.8%

l  Jul 2: Dow +0.36%, SPX +0.45%, Nasdaq +0.52%

l   

COVID-19: WHO: record new daily high global cases; US cases ↑1.7%. Florida, Texas record daily ↑. California orders 19 counties to stop indoor dining & recreation for 3wks; NYC delays indoor dining that was slated to resume July 6;  Italy reports above-average ↑ in cases; India record day of 22,700 infections; In Aust, NSW-VIC to close border from Tuesday(ABC).

SINO-US: Trump yet to sign HK bill;  President reportedly considering 2- 3 actions against CN

SINO-US: US sent carriers to South China Sea during Chinese drills on Sat

SINO-Canada: Canada 1st country to suspend extradition treaty w/ HK amid the new security law

CN: beverage giant Wahaha to weight IPO > $1bn; HKEx among potential listing venues

UK: May phase out Huawei tech in 5G w/in mths, Telegraph reports

CN: China says G4 swine flu virus not new; does not infect humans easily

CN: Inner Mongolia reports suspected case of Bubonic plague

CN: Jinmao (817) seeks to raise $700m via placements @ HK$5.7 (6.6% disc)

HK: filed 1^st charges under new security law; Declares slogan chanted by pro-democracy protesters illegal

PH: Ayala Land starts gauging demand for Philippines’ 1st REIT IPO

Finally: Govt spending to develop clean energy technologies needs to triple by 2030 to hit climate goals, says the International Energy Agency. “In the absence of much faster clean energy innovation, achieving net zero [emission] goals in 2050 will be all but impossible,” IEA’s executive director Fatih Birol said. While many technologies to ↓ carbon emissions from high-polluting sectors like steel & chemical production & shipping already exist, they need funding to develop to the point that they’re ready to be deployed at industrial scale.  More than half of the emissions reductions needed to get the world on a sustainable path will come from technologies that are currently at prototype stage, incl producing steel w/out the need for coal; or early-adoption stage, such as producing hydrogen from splitting water in electrolyzers. (BBG)  The EESI says US residential & commercial buildings account for around 40% of US carbon dioxide emissions, so real estate has a big part to play.  Some companies (eg Swire Props, Unibail) have quite advanced ESG plans on this front. Do you?

CR Land mega redevlpnt project in Bao’an district, SZ approved. (Guandian) 1.4 mn sqm GFA. Should offer abundant saleable resources to support future sales & add new rental GFA to scale up rentals.

Shanghai’s new housing sold ↓23%MoM to 813,000m² in Jun, per centaline. (SH Daily)

Sunac Jun contract sales Rmb54.6b w/ GFA 3.8m m², 1H Rmb195b w/ GFA 14m m². (Co)

Shimao Jun contract sales Rmb30.2b, GFA 1.7m m². 1H Rmb 110.5b (+10%), GFA 6.3m m² (+13%). (Co)

Greentown Jun contract sales Rmb23.8b w/ GFA 930,000m². 1H Rmb66b w/ GFA 2.65m m². (Co)

Times Jun contract sales Rmb7.96b w/ GFA 571k m². 1H Rmb32.6b w/ GFA 2.3m m². (Co)

China Jinmao to raise HK$5.41b @ HK$5.70/sh (6.56% disc to last) for land bidding, debt repayment & general working capital. Also sell 349.5m shrs to controlling s/hldr Sinochem HK @ HK$5.70/sh. (Co)

CCL Index ↓1.46%WoW, Mass ↓1.75%WoW, Small & Medium ↓1.65%WoW, & Large ↓0.4%WoW. (Centaline)

HK new home sales val↑to 13-mth high to US$9.1b in June, ↑92%MoM to 2,136 units. (SCMP)

Wheelock prices 2^nd batch 80 units in Koko Hills resi proj, Cha Kwo Ling for HK$19,668-22,948/ft². (HKET) 4.5x over-subscribed

CKA sold 189 of 2^nd batch 336 units in Sea To Sky resi project, Lohas Park till Sat night. (HKET)

ESR-MANULIFE JV BUYS 4 LOGISTICS PROPERTIES FROM PGGM FOR 1.7B YUAN

Retail sales ↓52.1%YoY in May in record slump. (Straits Times)

Jun new home sales projected to double that of May, cld cross 900 units, per PropNex. (Edge Prop)

EC World Reit says Commercial Affairs Dept interviewed CIO as part of probe. (Biz Times)

Singapore hotels can apply to accept local bookings, as SG resumes more activities under Phase 2. (CNA)

A 2,282ft² unit at Orchard Scotts sells for S$3.25m, incurring a 43% loss over 12yrs. (Edge Prop)

CapitaLand xpcts 1H operating PATMI to ↓25%YoY to 35%. Cash PATMI ↓40%YoY to 50%. (Co)

Ascendas REIT buys a A$23.5m, 13.1k m² new warehouse in western Syd from Melb-based Pelligra. (AFR)

Hulic bought Tiffany’s flagship bldg in Tokyo’s Ginza from Masayoshi Son believed to be >￥30b. (Nikkei RE)

Daiwa Securities Logistics Private REIT starts w/ AUM of ￥20b ($180m). Initial assets are 3 props incl J&S Kawasaki Ukishima Distribution Center. (Nikkei RE)

Sumitomo Mitsui Trust’s stake in Ichigo Office REIT ↑to 11.03% from 10.02%. (Kabutan)

Reno cuts joint Leopalace21 stake to 13.52% from 15.05%. (Kabutan)

Indiabulls Housing Finance gets ₹22b lifeline from Oaktree. (Mint)

Oyo Offers Shares to Workers After Placing Thousands on Furlough (Bloomberg) Indian budget lodging service backed by SoftBank offered to give employees restricted stock units a/f it placed thousands on indefinite furlough. Employees able to buy shares at a “deeply discounted pre-determined price,” a spokesperson said in an emailed response to questions

Ayala Land starts gauging demand for Philippines’ 1^st REIT IPO. (BBG) - Could be the first such listing in the Philippines. AREIT, formerly called AyalaLand REIT, could raise as much as 15bn pesos ($300m) in a share sale, the company said in an emailed statement

Vietnam retail & service revenues ↑6.2% & ↑5.3%YoY in May & Jun respectively. (Inside Retail)

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