Headlines

l  Y’day: NKY +0.093%, HSI -0.12%, SHCOMP +3.11%, KOSPI -0.14%

l  Overnight: Dow +0.03%, SPX +0.84%, Nasdaq +2.51%

l  COVID: Oxford-AstraZeneca Covid vaccine shows dual immune response

l  COVID: German BioNTech & US Pfizer release details of small study of vaccine that uses RNA

l  COVID: Cansino study induced signif immune responses w/ 'no serious adverse events' @ Oxford trials

l  US: Nasdaq made a new record high

l  US: Trump said they will restart coronavirus briefings tomorrow

l  US: Treas Sec Mnuchin: Nxt round virus relief focus on kids returning to schools + workers back to jobs

l  EUR: EU appears to have reached a compromise on its €750b emergency aid plan

l  UK: Recovery still looking V-shaped; Clawed back ~ ½ output lost in Mar/April, per BoE chief economist

l  SINO-UK: Britain confirms suspension of extradition treaty with HK

l  SINO-US: US reportedly adds 11 co’s to economic blacklist over China's treatment of Uighurs

l  CN PROP: Jinmao Hotel (6139) 1H accumulated occupancy -59% on yr

l  HK: Ant Group plans concurrent SH's STAR Board + HKEx (388) $200b listings (HK IPO for HK$10bn)

l  HK: unemploymnt 6.2%, worst in 15yrs. 9 mths worsening unemployment. 14.7% for F&B sector

Finally:  A new study has led to concerns that permanent immunity to the coronavirus may not be possible & have reinforced a decision by scientists at UCSF & affiliated laboratories to focus exclusively on treatments. Several recent studies conducted around the world indicate that the human body does not retain the antibodies that build up during infections, meaning there may be no lasting immunity to COVID-19 after people recover. Strong antibodies are also crucial in the development of vaccines. So some molecular biologists fear the only way left to control the disease may be to treat the symptoms after people are infected to prevent the most debilitating effects, including inflammation, blood clots & death.  Potent antibodies were found in 60% of the patients, according to the study, but only 17% retained the same potency 3mths later. In some cases, the antibodies disappeared completely, said the study which was published as a preprint Saturday, meaning it has not yet been peer-reviewed. (SF Chronicle)

China's prop devt invsmt ↑ 1.9%YoY to Rmb6.28trn ($898b) 1H20, vs ↓7.7% 1Q, per NBS. (CN Daily)

Beijing 1H sold 2.96m m² (↓24%YoY) props, incl resi 2.13m m² (↓35.4%YoY), office 136k m² (↓36.4%YoY), other commercial props (shops etc) 403k m² (↑210%YoY). (The Paper)

Shanghai lists 3 sites (incl resi-use) for sale on Jul 29, total start ask price Rmb5.66b. (Guandian)

Logan won a resi plot in Shanghai’s Yangpu district for Rmb2.4b ($341m). (Mingtiandi)

Beijing’s Sino-Ocean Capital acqrs office asset in Shanghai’s Xuhui district for Rmb2b ($286m). (Mingtiandi)

China State Construction Land acq’d a Guangzhou resi site for Rmb1.1b, parcel area 32,387m², construction area 109,254m². (Guandian)

Poly Devts Prelim 1H NI +1.66%YoY to Rmb10.1b, revenue +3.6%YoY Rmb73.7b, basic EPS Rmb85c. (Guandian)

Yida Jun contract sales Rmb1b, GFA 92,188m²; 1H Rmb2.6b (↓43%YoY), GFA 253,682m². (Co)

State council issued old community renovation guidelines, reiterated 2020 tgt of renovating 39k old communities, & set forth a long-term framework: to renovate all old communities completed b/f 2000 by 2025 end. (Wind)

Higher reliance on prop related income. From MOF, for prop-related govt income in 1H20: deed tax (Rmb310bn, -2.4% YoY), land VAT (Rmb325bn, -8.7% YoY), prop tax (Rmb140bn, -5.3% YoY), arable land usage fees (Rmb76, -8% YoY), urban land usage fees (Rmb105, -7.3%YoY), land sales revenue (Rmb2.8tn, +5.2% YoY). (Guandian) >>> not surprisingly, govt revenue had higher reliance on prop related incomes during the pandemic. Prop related tax + land revenue amt to Rmb3.77trn in 1H20, representing 30% of the total govt revenue vs. 26% in 1H19.  

ESR Cayman 55M Share Block Trades at HK$17.90 (BBG) OMERS administration to raise stake to 15.96%;  to buy 7% stake from WP OCIM ONE LLC

Biz group petitioning SFC to chng creeping rule to allow groups to buy >2% pa in HK. Li Ka-shing’s increased hldgs of 1113 in recent yrs approached 2%, per Apple Daily, so it looks like loosen the paving for Li Ka-shing to buy large amt of CKA in the future. (Apple Daily)

Goldin struggles to pay HK$10.3b in debts as HQs seized by creditors. The Goldin Financial Global Center was pledged as collateral on HK$6.8b in senior notes. Co notified investors that it was in discussions w/ creditors & in the process of arranging HK$8.7b ($1.12b) in new credit to help meet its financial obligations, + moving fwd w/ an earlier anncd plan to sell a Kai Tak plot for HK$7.04b. (Mingtiandi)

Chuang’s Consortium successfully acqd remaining units in 16 & 18 Gage St, Central thru a public auction, val’d the pair of props @ HK$332m ($43m). Now secured a 3,600ft² site, will likely start devt soon on a long planned 36,000ft² commercial & resi bldg. (Mingtiandi)

SHKP received 1200 subscriptions for 138 units in Regency Bay project, Tuen Mun last 3 days, price HK$14,992-19,922/ft². 7.7x oversubscribed. May officially launch this wkend. (HKEJ)

Henderson Land prices 22 units in The Consonance project, North Point at HK$27,504-33,769/ft². Will start sales of 11 units. (HKET)

Kerry sold #11 house in Mont Rouge project, Kowloon for HK$156m or HK$55,000/ft² & a 1,760ft² duplex apartment for HK$88m, or HK$50k psf. (HKET)  The project prevly sold a special unit at HK$100k/ft² – the highest ever in Kowloon, & another house at HK$80k psf last yr.

Central retail space cut rent by 60%. A ground fl retail space at Entertainment Bldg, owned by Angela Leong, has been leased to sporting goods retailer Decathlon for HK$800k /mth or HK$94psf, which was previously leased to German fashion retailer MCM for HK$2m/mth. (HKET)

Keppel Reit Q2 DPU ↑0.7% to S$1.4c, distributable income ↑0.4% to S$47.5m. 1H DPU ↑0.7% to S$2.8c, distributable income ↑0.2% to S$94.8m. (Biz Times)

Singapore’s tourism receipts ↓39%YoY in 1Q20, per STB. (Biz Times)

Balestier Rd mixed-use bldg up for sale w/ S$22m guide price. S$1,750/ft² on commercial GFA, S$950/ft² on resi GFA. (Biz Times)

Mapletree Logistics Trust Q1 DPU ↑1% to S$2.045c. Leases for ~362,126m² were successfully renewed or replaced, achieving positive avg rental reversion rate of ~1.9%. Distributable income ↑5.7% to S$77.8m, gross revenue ↑10.5% to S$132.4m. (Biz Times)

Mapletree Commercial Trust entered into a new committed term loan facility of S$100m. (Co)

First Reit xpcts 1H available distribution income to unitholders ↓40-50%YoY, 1H DPU to ↓40-50%YoY from S$4.3c, 1H TR a/f tax ↓50-60%YoY from S$30.9m.  (Biz Times)

Estee Lauder Singapore reopens its Singapore store at ION Orchard w/ new design. (Inside Retail)

CapitaLand Retail China Trust directors receive units as part payment of director’s fee for FY19 @ S$1.2769/unit: Soh Kim Soon receives 20,099 units, Fong Heng Boo 14,879 units, Christopher Gee Kok Aun 12,530 units,  Tan Kong Yam 11,903 units, Neo Poh Kiat 8,614 units, Kuan Li Li 8,614 units. (Co)

Stockland to sell 2 shopping centres to Syd-based Haben for A$250m. (AFR)

Stockland Partners W/ Supalai for Resi Dev (Bloomberg) -- Supalai to invest A$52.5m for a 50% interest in Stockland’s newest master-planned community, Katalia, in Melbourne’s north, Stockland says in a statement on its website dated July 20.  Through the JV w/ Supalai, Stockland plans to develop a/b 1,500 affordable new homes at Katalia.  Construction is due to start in the coming mths which will allow for the 1st settlements under the new JV to occur from July 2021, w/ Stockland’s share of FFO to be recognized in FY22

ARA says to nominate Gary Weiss, Joe Gersh for Cromwell Board. (BBG)

Ardent Leisure says Charges filed on Dreamworld Tragedy (Bloomberg) - Queensland Work Health & Safety Prosecutor has filed 3 charges in the Brisbane Magistrates Court.  All 3 are Category 2 charges with each carrying a maximum penalty of A$1.5m. 

Open House sets price for share sale at ￥3,104/sh. (BBG)

Nomura AM’s stake in Tokyu Fudosan ↓to 4.90% from 5.05%. (BBG)

Nomura Securities stake in Tokyo Tatemono ↓to 6.3% from 7.32% (BBG)

Embassy REIT 1Q rent collections at 97%; rental increase of 14%. Rent collection on office portfl of 26.2mft². (EquitBulls)

Phoenix Mills Eyes ~10B Rupees Via Institutional Placement (Mint) seeks to raise around 10b rupees through a qualified institutional placement to boost its balance sheet and to fund any future distressed asset acquisitions, Mint reports, citing two unidentified people aware of the plans.  The plan follows recently approved resolution allowing it to raise money via equity or debt, as well by allotment of convertible warrants

Max Grp builds office complex in Delhi @ Rs1.4b, eyes Rs200m annual rental income. (India Times)

A.P. Moller-Maersk leases 200kft² office space at Godrej Two in Mumbai. (India Times)

World Bank warns of 2.0% contraction in Indonesian economy in 2020. (Jakarta Post)

Bank of Indonesia cuts interest rate to a 4yr low 4.0%. (Jakarta Post)

Overall Indonesian prop demand in 1H20 is led by low-cost housing w/ <Rp300m, a/c for ~30% of all searches, per online prop mktplace 99 Group. (Jakarta Post)

Bumi Serpong Damai 1H mkting sales +6% YoY to Rp2.9trn, 40% of FY tgt. Sales of resi props totaled Rp1.6trn, commercial segment contributes Rp1.1trn. (Kontan)

Stockland Partners W/ Supalai for Resi Dev (Bloomberg) -- Supalai to invest A$52.5m for a 50% interest in Stockland’s newest master-planned community, Katalia, in Melbourne’s north (AUSTRALIA), Stockland says in a statement on its website dated July 20.  Through the JV w/ Supalai, Stockland plans to develop a/b 1,500 affordable new homes at Katalia.  Construction is due to start in the coming mths which will allow for the 1st settlements under the new JV to occur from July 2021, w/ Stockland’s share of FFO to be recognized in FY22

Heitman acqrs 2 state-of-the-art Korean distribution centres in Yeoju city GFA 65,000ft². (The Asset)

MEGAWORLD SAYS 1H HOME RESERVATION SALES 38 BILLION PESOS

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