Headlines

l  Y’day: NKY -0.26%, HSI +0.62%, SHCOMP +0.17%, KOSPI +1.4%

l  Overnight: Dow +1.39%, SPX +0.64%, Nasdaq +0.52%

l  OIL: Crude closed @ 5mth high; US inventories ↓ over 7m barrels last wk, lowest since April

l  US: extends gains on xpctations a stimulus deal will be reached this wk

l  US/CN: Biden says Trump's China trade deal is 'failing' badly.  US-CN trade talks are Aug 15

l  US/CN: US pork shipments to China in June declined to the smallest since Oct

l  US/CN: Pompeo urges US co’s to bar CN apps; refuse to make apps avail on Huawei phones

l  US/CN: Congressman Banks calls on Trump admin. to review stimulus loans to China-linked firms

l  CN: NDRC says China to accelerate promotion of smart-retail & online education in H2

l  CN: PBOC advisor Ma Jun says PBOC doesn’t need to step up policy as eco recovery is well under way

l  CN: Approves US$67.9bn urban railway projects in GBA… LT good for NWD’s investment in GBA

l  CN: Cogard Services (6098) positive profit alert; 1H net rise >50% YoY

l  CN: Greentown Service (2869) positive profit alert; 1H 2020 to rise at least 50% YoY

l  HK: R_t 0.81

Segro secured as much new headline rents as last yr in H1. LFL rental growth +1.5%. Noted Acceleration in demand for logistics assets.

Country Garden Service (6098 HK) +ve profit alert (Co) Attributable net profit xpctd to ↑ no less than 50% YoY, on ↑ in area of properties managed; gwth in revenue from community value-added services, value-added services to non-property owners; & “3 Supplies & Prop mgt” businesses.

Greentown Service (2869 HK) announced positive profit alert (Announcement)  Attributable net profit xpctd to ↑ no less than 50% YoY, due to (1) steady ↑ in projects under mgt & GFA of props under mgt; & (2) effect of social insurance relief policy during  COVID-19.

Greenland / CRRC unit to start Rmb26b Industrial Park in Suzhou, to be a manufacturing base focusing on smart manufacturing technology. (JRJ)

China approved US$67.9bn urban railway projects in GBA. Total length of 775km; to cover key GBA cities, Guangzhou & Shenzhen by 2025, & 100% coverage by 2035. (Reuters)

Hangzhou denied ASP cap for pre-sales (Guandian) Stated there is no ASP cap of below Rmb35,000 psm for the application of pre-sale permission.

Beijing land market still heated (Guandian)  On 3 Aug, Beijing sold two land parcels for Rmb13.4bn. In 1H20 it sold 31 land parcels with land premium of 18.57%.

COLI wins mega land tender in Beijing (Guandian)  beat a JV led by CRL to acquire a 201k sqm-GFA land plot in Beijing for RMB7.8bn, or RMB39k psm.  Winning bid 23% above reserve price.  in Yizhuang, SthEst BJ, adjacent to 5th Ring Road.

Ministry of Natural Resources unveiled a notice to prohibit arable lands for resi use in rural areas (Sina)

Shanghai new home sales  ↑5.7%WoW to 234,000m² last wk. (SH Daily)

Sunac Jul contract sales Rmb52.3b, GFA 3.7m m². Jan-Jul Rmb247.5b, GFA 17.8m m². (Co) +27 YoY

Shimao Jul contract sales Rmb29b (+45%YoY), GFA 1.6m m² (+45%YoY), Jan-Jul Rmb139.4b (+16%YoY), GFA 7.9m m² (+19%YoY). (Co)

CIFI Jul contract sales Rmb22b, GFA 1.5m m²; Jan-Jul Rmb102.7b, GFA 6.4m m². (Co)

Gemdale Jul contract sales Rmb21b (+42%YoY), GFA 1.07m m² (+53%YoY); Jan-Jul Rmb122.6b (+22%YoY), GFA 5.9m m² (+19%YoY). (Guandian)

Agile Jul contract sales Rmb10.6b, GFA 763,000m². Jan-Jul Rmb65.7b, GFA 4.8m m². (Co) +49% YoY

# sales & purchase agmts for all bldg units in HK ↓8.2%MoM but ↑18.7%YoY to 7,576 in Jul. (Standard)

CKA names new resi proj on Lai Ping Rd as名日‧九肚山, total 266 units. CKA acq’d site for HK$1.95b 2016, fl price HK$8001/ft². (HKET)

HK Ferry / Empire launched 62 more units in Seacoast Royale, Tuen Mun, effective price HK$13,453-19,164/ft². To start sales of 185 units this Sunday. (HKET)

Banks to extend relief measures for SMEs (Apple Daily; HKET)  HKMA announced that HK banks’ interest-only payment relief program for SMEs (intro’d Oct 19) extended for 90 days. Was to expire late Aug. Banks have also extended interest-only payment options to mortgage borrowers.  HKMA says 14k applications for such relief were approved.

Gale Well Group buys Wanchai office flr below market px (HKET)  Whole flr @ 200 Gloucester Road, Wanchai for HK$135m or HK$18k psf. Reportedly 12% below mkt px  >>> which tbh always makes me laugh, as if that’s what they paid, then that is market…

BlackRock ceases to be substantial unithldr of CapitaLand Commercial Trust, ↓to 4.93% from 5.11%. (Co)

A 4-storey mixed-use bldg at 286 & 288 River Valley Rd is up for sale by expression of interest w/ guide px S$24m, or ~S$5,742/ft² on land area, per CBRE. (Biz Times)

ARA H-Trust 1H net prop loss US$2m. Gross revenue US$39.3m, 58.4% lower than IPO f/c US$94.5m a yr ago. Gross operating profit US$5.8m, ↓84.7% short of f/c of US$38.1m. (Biz Times)

Mapletree Commercial Trust issues 1.2m new units to the Mgr on 5 Aug @ S$1.9919/unit as payment of 50% of the base fee component of the mngt fee payable to the Mgr for Apr - Jun. (Co)

Centuria Industrial REIT raises A$240m new equity thru accelerated non-renounceable entitlement offer. To acq 3 assets for A$447m ( 1816-1832 Dandenong Rd, Clayton, VIC for A$416.7m; 144 Hartley Rd, Smeaton Grange, NSW for A$16.4m; 51-73 Lambeck Drive, Tullamarine, VIC for A$14m).  Sees FY21 FFO/unit A$0.174, Sees FY21 DPU A$0.17.  FY20 DPU A$0.187 vs A$0.184YoY, FY20 FFO A$63.5m (+27%YoY), NI A$75.3m, ↓15%YoY. (Co)

Scentre 1H Net Operating Cashflow to exceed A$250m. Carrying val of prop portfl at June 30 will ↓~10%; Board fees & fixed remuneration for exec team will revert to prev lvls effective from Aug 1, a/f a temporary ↓. (Co)

Dexus’s healthcare fund buys Qscan’s building College Junction for A$36.5m ($26.2m) & adds new domestic institutional investor. (Australian)

Franklin Resources’s vote power in Stockland ↑to 5.69% on 31 Jul from 5% on 20 May. (Co)

Sumitomo Mitsui Trust’s stake in Sankei ↓to 11.87% from 12.93%. (Kabutan)

PGGM Vermogensbeheer’s stake in Invincible ↑to 7.35% from 6.24%. (Kautan)

Nomura AM reports 5.04% stake in Tokyu Fudosan. (BBG)

RBI meets today (10:00 am local time, 12:30 pm SG/HKT)

Godrej Properties 1Q loss Rs202.3m (vs profit Rs898.9m YoY), EBITDA Rs400m. 1Q revenue Rs722.9m, ↓89%YoY; total costs Rs1.8b, ↓68%YoY; other income Rs1.23b, ↑58%YoY. Co xpcts new home bookings to grow this fiscal. 1Q of new bookings val↑71% to Rs15.31b even as Rs202.3m loss.  (India Times)

Standard Chartered Bank’s subsidiary leases 1mft² office space in DLF’s under-construction IT park Downtown Taramani in Chennai. (India Times)

DLF 1Q loss Rs706.5m vs profit Rs4.15b YoY. 1Q revenue Rs5.49b, ↓59%YoY; 1Q total costs Rs8.26b, ↓51%YoY; 1Q other income Rs983.5m. (Mint)

Filinvest Land 1H NI P2.3b, ↓24%YoY. 2Q rev P3.1b, ↓38%YoY; 2Q NI P952.2m, ↓23%YoY. (Co)

Ayala Land’s AREIT Completes IPO, Lists Aug. 13 (BBG) AREIT, Philippines’ 1^st REIT was 2x oversubscribed; deal had broad distribution across retail and institutional investors.  Final Offer Price 27 Pesos /shr

S Korea plans to supply 132k housing units in Seoul & neighbouring areas nxt 8yrs to stabilise home prices. Govt will ease some construction rules, allowing redevt projects of aging apt bldgs to increase fl area ratio to up to 500% to build more homes. (YNA)

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