Headlines

l  Y’day: NKY +1.88%, HSI +2.11%, SHCOMP -1.15%, KOSPI +1.35%

l  Overnight: Dow -0.38%, SPX -0.8%, Nasdaq -1.69%

l  GOLD: Gold sold off overnight ending the session -5.7%

l  US: SPX snapped 7-day win streak on reports stimulus negotiations had reached a stalemate

l  SINO-US: Trump says 'great' bond with China's Xi changed after Covid-19

l  SINO-US: Kudlow says that China is meeting obligations of trade deal

l  HK: Reports 32 local covid cases; the lowest since start of last outbreak

l  HK: China confirms to extend HK lawmakers' term

l  HK: NWD (17) wins Shanghai commercial plot

l  MACAU: China reinstates tourist visa to Macau from September 23

l  NZ: Covid cases after 102 days of no community cases.  Auckland on 3 day lockdown.

l  RU: Putin approves 1st Covid-19 vaccine; Plans to start mass inoculation as soon as October

l  COVID:  HK R_t ↓ to 0.57, with just 33 cases on 11^th. Nb 50 prelim cases so today will see more

l  COVID:  JP reports 694 provisional cases, down from 839 & 1444 prior 2 days

Today: With some big improvements in cases, & lots of results, we’ve seen some big moves in property stocks (some have helped themselves more than others – eg our call with Hysan y’day was quite constructive).  In HK, Link REIT & Fortune REIT are now really standing out on valuation as being left behind.  In Japan I’ve been surprised by the Mitsui Fudosan relative strength post results.  Would be looking at Mitsubishi Estate, Sumitomo Realty & Development (8830), Sumitomo Daiwa House Industry (1925) & laggard Invesco Office J-REIT (3298) today.

Finally: “Is this even possible?” Scientists are learning a lot about SARS-CoV-2 (the technical name of the coronavirus that causes the disease COVID-19). This super interesting read (especially the 2^nd half) has totally changed my ignorant presumptions around the possibilities of vaccines & the role of T-cells vs antibodies (T-cells ‘memory’ last years longer).  Its also cites multiple studies (in lay terms).  1 peer reviewed study found 40-60% of blood samples taken in 2015-18 contained T-cells which seemed to recognize SARS-CoV-2!  A similar study found T-cells of 50% of the study group in Singapore reacted.  Another showed people who’d had pneumonia or polio vaccines had 28%/43% reduction in risk.  They also talk about viral dose.   I highly recommend reading this one:  40% of people with coronavirus have no symptoms; might they be the key to ending the pandemic?

China Jul CPI ↑ 2.7%YoY from 2.5% in Jun, PPI ↓2.4%YoY, narrowed from 3%↓in Jun. (CN Daily)

China Devrs issued US$45.2b US$-dominated bonds YTD, ↓16.7%YoY;  financing cost for 30% of the devrs exceeded 10%. (The Paper)

New medium-long term loan increased by 37% YoY in July (PBoC) to Rmb 606.7bn  likely an indicator for strong national home sales growth in July, which was manifested by developers contracted sales and weekly sales data already.

Guangdong aims at new starts of 345 old community renovations in 2020 (the paper)  The renovation target would cover 182k households. So far, the renovation new starts have met 66% of the target in Guangdong.

Mainland Chinese buyers’ acquisition of US property plunged by 2/3 in 1H (SCMP)

Mo Bin, President of Country Garden (2007 HK), denied the news of his resignation (the paper)

R&F together w/ Nanchi group made Rmb 50m endowment to Sun YAT-SEN universities. (Guandian)

Beijing offers 2.8m coupons to spur consumption. (CN Daily)

Yanlord Land gets $1.1b Syndicated loan facility, comprising $805m dual-tranche term loan facility + $295m dual-tranche revolving credit facility. 3.5 yr facility at 335bps margin on HIBOR or LIBOR. (Co)

New World Devt acq’d a site on Huaihai Rd, Shanghai for Rmb4.1b, to devp a new K11 mall. Site area 17,171m², total devt area 128,683m². (The Paper)

China Mobile snapped up a new territories data centre site for HK$3.6b ($460m), outbid local tycoons by 56%. (Mingtiandi)

HK residential rents stabilized in July (HKEJ) per Centaline, HK resi rent +1.5% MoM to HK$33.9 psf in July, or 3.6% in Jun-July.

More foreign property buyers in July (IRD) According to HK’s Internal Revenue Dept, the no. of transactions involving non-local buyers (BSD) was 73, +49% MoM and the highest since Jan, but the value fell 12.5% MoM.

18 new homes sold y’day. A buyer bought 4 units in HKR’s Poggibonsi resi project, Discovery Bay for HK$46m. (HKET)

16-flr Tung Chiong Commercial Bldg at 221-221A Nathan Rd sold for HK$510m ($66m), slashing ~50% from HK$1b asking price in 2018. (Mingtiandi)

Singapore’s GDP contracts 13.2%YoY in 2Q20, worst qrtr on record, per MTI. (Biz Times)

Singapore condo resale volume nearly doubles in July to 978 units, per SRX. (Biz Times)

Tuan Sing Hldgs agreed to sell Robinson Point office bldg near Singapore’s Raffles Place CBD for S$500m ($364m), or 34% over prop’s book val. (Mingtiandi)

Aims APAC REIT proposed to acq logistics warehouse at 7 Bulim St, SG for S$130m from Titan, initial NPI yld 7.07%. Fully leased to KWE-Kintetsu World Express. (Co)

Perennial, Qingjian Realty sell 190 units at Forett At Bukit Timah condo, avg price S$1,880/ft². (Biz Times)

2 shophouses in CBD, 3 in Jalan Besar up for sale. (Biz Times)

CapitaLand Retail China Trust anncd issue price of new units to be issued under 1H DRP is S$1.2/unit. (Co)

Roxy-Pacific's 1H net profit ↓70% to S$2.8m, revenue ↓16% to S$118m, no div declared. (Biz Times)

Lendlease Global Reit 4Q DPU 0.48 S cent, 62.7% lower than IPO f/c of 1.28 cents. (Biz Times)

Singapore’s Keppel Capital reportedly close to buying a 41,595m² office bldg at 4 Drake Ave, Syd’s Macquarie Park for A$300m from Goodman. (AFR)

Stockland renegotiating arrangement to buy land in Marsden Park, Syd. In 2017, SGP entered agreement to acq ~184ha land for future resi devt in Marsden Park for A$398m on deferred terms over 5yrs. The acqn was conditional on land rezoning & add’l terms. (Co)

PGGM Vermogensbeheer’s stake in Kenedix Office ↑to 9.60% from 8.55%. (Kabutan)

Sumitomo 1Q operating income Y82.76b, +1.7%YoY, beats highest est. NI Y65.49b, +17%YoY, net sales Y315.96b, -5.5%YoY. Still sees FY operating income Y204b, NI Y130b, net sales Y880b, FY div Y38. (Co)

Embassy Office Parks to consider raising funds via debt Aug 14. (BBG)

IHG to open 471-key Kimpton Hotels & Restaurants at KL’s Exchange TRX in 2023. (Hotel News Resource)

Ayala Land Q2 Net Income 196.8m Pesos, -97% Y/y (BBG) Revenue 12.80b, -71% y/y; EPS 1.0 centavos; Gross expense 12.09b pesos versus 30.92b pesos year ago

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