News Headline Summary

PRE-MARKET CHINESE STOCK NEWS: China Resources Power (836 HK) downgraded at Credit Suisse and BNP Paribas

RECAP: During the US session, Chinese stocks tumbled led by Sina after China shutdown 110 websites as part of a national crackdown on Internet Pornography.
- About 3,300 accounts on China-based social networking services, including Tencent Holdings’ (700 HK) WeChat and Sina’s Weibo, were deleted as part of the crackdown. (Xinhua)

Yesterday, the Shanghai Comp. fell 1.5% amid prospects for new IPOs drawing funds from already listed stocks, after China Securities Regulatory Commission unexpectedly announced a list of 28 companies that have disclosed their IPO plans, including 16 to be listed on the Shanghai Stock Exchange.

Individual stock news:

Air China (753 HK)
- Co. says Q1 net have fallen 55% to 65% Y/Y. Elsewhere, more than a 100 of the Co.’s larger aircraft pilots have signed a letter complaining of overwork. (BBG)

China Mobile (941 HK)
– Co. is due to report its Q1 earnings today. Elsewhere, Apple is due to release its Q2 earnings later today. Expectations; revenue USD 43.6bln vs. Co.’s forecast of USD 42bln – USD 44bln. Q2 iPhone units Exp 37.7mln, iPad units Exp. 19.7mln. (BBG)

China Resources Power (836 HK)
- Citgroup says the Co.’s 2014 profit may be erased by asset write downs and keeps a buy rating on the Co. with a Price target HKD 26.50 (BBG)

Developers
- China’s local governments shouldn't try to save the real estate market as the banking system won’t be hard hit even if property drop significantly. (Shanghai Securities News)

Electric Car Makers
- China is to stick to electric vehicles as a strategy, according to the Ministry of Industry and Information Technology Chief Miao. (BBG)

Hong Kong Exchanges and Clearing (388 HK)
– Co. is to study mutual market access plans with commodity futures exchanges in China (Oriental Daily/BBG)
- This follows recent reports that HKEx had reached an agreement on a system link-up with the Shanghai exchange which would allow mainland investors to trade Hong Kong stocks through mainland brokers, with the Shanghai exchange passing orders to HKEx.

Lenovo (992 HK)
- Morgan Stanley was out cautious on the Co. saying it may face uncertain earnings outlook. (BBG)

PetroChina (857 HK)
- Co. sees 2.6bln cubic meters 2015 shale gas output. (BBG)

Broker Moves

DOWNGRADES
China Resources Power (836 HK) cut to neutral at Credit Suisse
China Resources Power (836 HK) cut to reduce from buy at BNP Paribas
Luk Fook (590 HK) cut to hold at Guoco Capital

EARNINGS
- China Mobile (941 HK)
- CNOOC (883 HK)
- China State Construction (3311 HK)

22 Apr 2014 - 02:18 - Energy - Source: RANsquawk

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