Name
Ticker
Commentary
Meituan
3690:HK
Meituan is under regulatory scrutiny for monopolistic practices. It is also under increasing cost pressure after Beijing told food delivery platforms in China to increase the pay and benefits for delivery staff.
Chart
Meituan
3690:HK
Last Update: August 3, 2021
Previous Close

HKD216
HKD1.0

0.47%

The Chart Shows

Weak follow through from last week’s market led bounce and the downtrend is still in force.

Company Notes

Meituan is China’s largest food delivery and e-commerce platform for services including  bike-sharing, travel booking, movie ticketing, and other entertainment offers. It recently got another USD400 million from major shareholder, Tencent, to expand autonomous delivery services, as it faces regulatory heat.

Hong Kong Exchanges & Clearing
388:HK
HKEX is expected to see more Chinese company listings as Beijing looks to change the rules on overseas listings.
Chart
Hong Kong Exchanges & Clearing
388:HK
Last Update: August 3, 2021
Previous Close

HKD517.5
HKD21.50

4.33%

The Chart Shows

The recovery that began last week appears to have legs for now and the down call is cancelled. The next level to attain and beat is the top of the March 2021 up channel at HKD535.

Company Notes

HKEX is the city’s only securities and derivatives exchange. A global IPO rush to tap into strong investor demand has led to the bourse netting 46 IPOs in 1H2021.

Tencent
700:HK
Tencent has been under intense regulatory scrutiny for anti-competitive behaviour. A merger of 2 Tencent-backed video game streaming companies was blocked by regulators, who also ordered it to give up its exclusive music rights.
Chart
Tencent
700:HK
Last Update: August 3, 2021
Previous Close

HKD475
HKD4

0.84%

The Chart Shows

The broad downtrend is still in force and the view is for more downside.

Company Notes

Tencent is one of China’s largest IT companies whose WeChat app is ubiquitous in the country for communication and payments. It also has vast content offerings including online games, videos, music, sports, and books. Tencent is under regulatory watch for its growing reach and anti-competitive behaviour.

China Evergrande Group
3333:HK
China Evergrande is facing growing concerns over its ability to repay debt and has been facing lawsuits for non-payment. Over the weekend, it agreed to sell a stake in HengTen to raise funds.
Chart
China Evergrande Group
3333:HK
Last Update: August 3, 2021
Previous Close

HKD5.67
HKD0.41

7.79%

The Chart Shows

The price path on all timeframes was down until Monday’s session, when some local stabilisation began to occur. HKD 5.73 is the price to beat, before the idea of a technical recovery can be formed.

Company Notes

China Evergrande is a real-estate focused conglomerate that expanded into EVs, video entertainment, theme parks and mineral water, amongst others. So far, founder Hui Ka Yan has been able to lean on an inner circle of billionaire peers to support his highly indebted empire.

Softbank Group
9984:JP
Softbank has been caught out by China's crackdown on Chinese tech companies as investments in the likes of Didi, Alibaba, and Truck Alliance suffer. It was reportedly mulling a stake sale in Uber to cover for loses.
Chart
Softbank Group
9984:JP
Last Update: August 3, 2021
Previous Close

JPY6,962
JPY125

1.83%

The Chart Shows

Broad trend is still down but price is now at the bottom of this year’s down channel and is therefore in a value zone. Upside momentum has started to pick up and could be at an early stage stabilisation ahead of a recovery.

Company Notes

SoftBank Group provides telecommunications services in Japan but is more famous as an investor of info-tech companies across various sectors including robotics, rideshare, biomedicine, finance, and agriculture. Its investments contain a fair share of hits (Alibaba, Coupang) and misses (Snapdeal, WeWork), and there’s no telling where the next investment sits.

21Vianet Group
VNET:US
21Vianet has been weighed down by concerns of an imminent block sale by shareholder Tuspark. Outlook supported by continued growing demand for data centre and cloud services in China.
Chart
21Vianet Group
VNET:US
Last Update: August 3, 2021
Previous Close

USD17.75
USD0.42

2.42%

The Chart Shows

Will need to see the channel return line (upper line) yield before calling a proper upside reversal and trend change. Wait.

Company Notes

21Vianet Group is a carrier-neutral internet data center service provider in China. It provides hosting and related services, cloud services, and business VPN services for retail and wholesale clients.

Yakult Honsha
2267:JT
Yakult Honsha has been under pressure from activist shareholders to change up its board and speed up growth.
Chart
Yakult Honsha
2267:JT
Last Update: August 3, 2021
Previous Close

JPY6,310
JPY150

2.32%

The Chart Shows

The broad trend remains up. The price, which has been consolidating since mid-June, is now creeping along the trend support line. Outsize volume in the last trading session suggests that this level is important and holds a move higher.

Company Notes

Founded in 1930, Japan’s Yakult Honsha is known for its namesake probiotics beverage sold worldwide. Its 2030 vision is to evolve into a healthcare brand. It also produces pharmaceutical and cosmetic products.

Sembcorp Marine
SMM:SP
Sembcorp Marine is in merger talks with Keppel O&M. It continued to be in the red for 1H2021 but losses should narrow in 2H2021.
Chart
Sembcorp Marine
SMM:SP
Last Update: August 3, 2021
After Hours

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Previous Close

SGD0.116
SGD0.001

0.87%

The Chart Shows

The price is attempting to reverse up and out of the prior deep oversold value zone. A sideways base looks to be forming to support the potential move higher.

Company Notes

Singapore’s Sembcorp Marine operates shipyards and facilities at home and in Indonesia, the United Kingdom, Norway and Brazil. In June 2021, it announced talks to merge with Keppel O&M to compete for larger contracts and accelerate the pivot to renewable energy. Both companies are backed by Singapore investment company Temasek Holdings.

CapitaLand
CAPL:SP
CapitaLand plans to delist its property development arm and become a pure real estate investment manager to unlock shareholder value. The EGM to approve the plan is on 10 August 2021.
Chart
CapitaLand
CAPL:SP
Last Update: August 3, 2021
Previous Close

SGD4.06
SGD0.03

0.74%

The Chart Shows

Price is creeping just below the top of the May 2021 uptrend channel, and although technically exposed, this is a good set up for a pop out. The pattern looks to be a low volume, slack momentum uptrend consolidation.  Keep looking up.

Company Notes

Singapore’s CapitaLand is a diversified property company involved in residential, commercial, and industrial property development and management. It is restructuring to become a pure real estate investment manager under CapitaLand Investment Management (CLIM).

Singapore Press Holdings
SPH:SP
SPH received a SGD 2.2 billion takeover bid from Keppel Corp. The deal is contingent on SPH's divestment of its loss-making media business.
Chart
Singapore Press Holdings
SPH:SP
Last Update: August 3, 2021
Previous Close

SGD1.88
SGD0.02

1.08%

The Chart Shows

Trading halted ahead of takeover announcement on 2 August. The price broke key resistance to the upside 5 sessions back and was still tracking sideways and up above the break level. The longer term price trajectory remains up.

Company Notes

SPH has operated Singapore’s mainstream media since 1984 but has increasingly diversified into real estate and other investments due to declining readership. It’s property investments include a listed REIT, student accommodation in the UK and Germany and aged homes in Singapore and Japan.

Cosmos Pharmaceutical
3349:JT
Cosmos Pharmaceutical, a low price drugstore chain in Japan, has posted posted better-than-expected FY2021 results.
Chart
Cosmos Pharmaceutical
3349:JT
Last Update: August 2, 2021
Previous Close

JPY18,590
JPY440

2.42%

The Chart Shows

The price recently broke through a key resistance level and the longer trend is still up. But expect a minor pull back towards the break level, after which it should push higher towards JPY 20,000 after a rest phase.

Company Notes

Cosmos Pharmaceutical operates a drugstore chain in Japan focused on selling food and daily necessities including health supplements and personal care products at low prices.