Headlines

l  Y’day: NKY -0.58%, HSI -2.25%, SHCOMP +0.37%, KOSPI -0.01%

l  Overnight: Dow +0.62%, SPX +0.57%, Nasdaq +0.24%

l  US: Equities climbed for 4^th day amid new spending bill hopes + vaccine optimism

l  US-CN: US ordered China to "cease all operations & events" at Houston consulate – this is a good read

l  US-CN: China vows retaliation; considers closing U.S. Wuhan Consulate (BBG)

l  US-CN: Trump - closing more Chinese consulates in US is 'always possible'

l  US-CN: Pompeo urged India to focus on domestic supply chains & reduce dependence on China

l  US-CN: Rail, steel, manufng groups call for CRRC sanctions a/f Pentagon says backed by CN military

l  UK-CN: UK to open BNO visa route to HK citizens from Jan 2021

l  CN: To improve public facility construction in counties & strengthen urbanization construction (CCTV)

l  Covid: White house office worker tests positive; CN 22 new cases; HK record local cases yday

l  AU: Forecasts jobless rate of 8.75% in 2020-21

l  PH: Ayala Land says REIT IPO to raise 12.3b pesos

Finally: Staff working from home suffer less stress & are more productive but miss their colleagues, German study finds. The study surveyed 7,000 employees' attitudes to home working in Germany. ~75% of those surveyed said they’d like to continue WFH a/f coronavirus.  According to the study, the amt of people who often experienced stress from their work ↓ from 21% to 15% a/f 'home office'. Those who rarely or never feel stress also ↑by ~10%, from 48% to 57%. However, ~50% of those surveyed said they found it tough having their professional duties invading their personal space. ~75% said they missed in-person contact w/ their colleagues. (Daily Mail)

Nanjing rolls out new prop policy: if the couple is divorced & either party purchases housing w/in 2yrs, the # of housing owned by them shall be calculated based on total # of units owned by the family b/f they divorced. (The Paper)

Ningbo rolls out new prop policy: families w/out housing in the 6 districts have priority to subscribe for 1 housing. (The Paper)

RK Props acq’d a resi site in Jiading district, Shanghai for Rmb2.8b, ~45% premium. Site area 61,048m², fl price Rmb21,000/m². (The Paper)

2H will be peak for devrs to repay debt. Total Rmb558.8b bonds will be due 2H20, ↑58%YoY. (The Paper)

Politburo meeting scheduled nxt wk; prop policy not a focus but might be mentioned (SCMP)

Old community renovation new starts ramping up quickly. MOHURD: w/ regard to new starts tgt of 39k old communities renovation w/in 2020, 20% completed as of May & ~50% completed as of Jun. (Sina) >>> Renovation new starts ramped up quickly in Jun, hence the related invsmt cld be a driver to stabilize GDP in 2H. Total related invsmt for 39k old communities renovation is ~Rmb3~4tn, which is still smaller vs invsmt scale in shanty town campaign which was Rmb10tn+ p.a. in past several yrs.

Bao’an district of Shenzhen to make new starts of 15k units social housing. (Guandian) >>> Bao’an district witnessed the 2^nd-largest price hike YTD in Shenzhen, a/f Nan’shan district. Shenzhen govt increased social housing supply to a lvl even more than commodity home units for many yrs, but this has led to more scarcity of commodity home units in Shenzhen.

Qingke issues $100m 4 yr convertible bonds, & plans to acq a Chinese long-term rental apt firm for $130m, 72k rental units. (The Paper)

CK Asset applied to HK’s stock exchnge to list a € medium-term note program of $5b. (Co)

CK Asset will actively monitor financial & debt status of Goldin Financial, per an email from Goldin’s newly appointed vice chairman Gerald Ma. Ma was appointed vice chairman of Goldin Financial; will focus on providing financial & restructuring advice to firm & its subsidiaries. Ma is currently GM of CK Group’s corp biz devt dept. (Co)

Empire / HK Ferry prices 1^st batch of 123 units in Seacoast Royale, Tuen Mun, price from HK$2.9m/unit. (HKET)

Wheelock puts 88 units in Koko Hills resi project as 2^nd batch up for sale. (HKET)

Vanke HK sold 1063 units (95% of avai for sale) in Le Point project, Tuen Mun YTD, will put remaining 91 units up for sale. (HKET)

Kishin RK, 36yr-old heir to a multi-billion dollar SG prop empire, plans 1,000 cloud kitchens across Asia, Europe & US to crack the lucrative home-deliv dining mkt. (SCMP) >>> Kishin runs RB Capital, a privately owned prop firm which together w/ his father Raj Kumar’s Royal Hldgs, owns 13 office twrs, malls & hotels in Singapore, incl the recently refurbished 225-room InterContinental Robertson Quay.

Temasek’s deemed interest in CapitaLand Retail China Trust ↑to 37% from 36.97%. (Co)

CapitaLand Commercial Trust says independent valn of Raffles City Singapore at S$3.3b as Jun 30. (Co)

CapitaLand Commercial 2Q DPU S$0.0169, NPI S$70.8m, gross rev S$92.8m, distributable income S$65.6m.  1H DPU S$0.0334, NPI S$151.1m, gross rev. S$196.4m, distributable income +S$129.3m. (Co)

CapitaLand Mall Trust posts 1H 2020 distributable income of S$109.7m, DPU 2.96c, NPI S$216.4m (↓20.8%YoY). (Co)

CapitaLand Commercial Trust directors receive units as part payment of director’s fee for FY19 @ S$1.7578/unit: Mrs Quek Bin Hwee received 11,116 units; Tan Soon Neo Jessica 9,443 units. (Co)

Keppel Pacific Oak US REIT 2Q DPU 1.56c, distributable income ↑18.5%YoY to $14.7m. 1H20 distributable income ↑17.6%YoY to $29.1m, avg rental collection for 1H ~94%. ~196,000ft² office space was committed in 1H, which reduced lease expiries to 2.8% for the remainder of 2020. Refinancing of 2021 loans extends weighted avg term to maturity to 3.4 yrs. (Co)

JP Morgan is set to sell its troubled 9000m², St Collins Lane mall in Melb CBD for A$120m, <50% what it paid for it in 2016. Buyer believed to be a local fund mngr backed by offshore capital. (AFR)

WeWork Australia is asking for rent relief from landlords; will not rule out walking away from some locations if the pandemic worsens biz. (AFR)

GYP Props plans a new 500-unit residence housing estate in Auckland. (NZ Herald)

Japan's dept store sales ↓19.1%YoY in Jun, improved from ↓65.6% in May. (Mainichi)

Nomura Secs’ stake in Sankei Real Estate ↓to 11.27% from 12.34%. (Kabutan)

Leopalace21 s/hldrs approve proposal for directors: Shigeru Ashida’s new title: Director, Managing Executive Officer/Chief of the Corporate Planning HQ, & Chief of the Emergency HQ for Construction Defects (concurrent); Mayumi Hayashima: Director, Executive Officer/ Chief of the Mngt HQ, & Chief of the Compliance Promotion HQ, Chief Legal Officer (concurrent). (Co)

CoHo partnered w/ World Trade Centers to convert latter’s resi assets into co-living spaces. Co will launch 10,000 new beds in nxt yr in cities like Gurgaon, Noida, Ahmedabad & Chandigarh. (India Times)

Guardians RE Advisory bought 7,500ft² office space at commercial complex 1 BKC in Mumbai for Rs300m. (India Times)

Indonesian economy to contract by 0.3%YoY in 2020, per IMF predicts. (Jakarta Post)

Ayala Land REIT – AREIT was priced at Php27/share, some 10% below the maximum offer price of Php30.05 but closer to the upper end of recent guidance. Offer price implies 5.5% dividend yield. AREIT will pay out 90% of distributable income, paid quarterly.  99% occupancy, with no debt at IPO.  Tenants are largely BPO’s, that are allowed to operate even under the strictest lockdown ECQ. The portfolio will grow with an acquisition of a fourth building, Teleperformance Cebu (various press

Grand Cosmos Hotels & Resorts in talks to build more hotels in various parts of Taiwan. (Taipei Times)

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