Today: All eyes on HK.  Data from HKU (google HKU public health dashboard) shows R0 ↓ from 4 to just below 1. Experience from March suggests HK props should bounce if we have peaked.  

Headlines

l  Y’day: NKY -1.15%, HSI +0.45%, SHCOMP +2.06%, KOSPI +0.27%

l  Overnight: Dow +0.61%, SPX +1.24%, Nasdaq +1.35%

l  US: FDA could authorize COVID-19 treatment w/ convalescent plasma as early as next week (WSJ)

l  US: Pelosi says not enough equipment nationally to provide tests

l  US: Federal Reserve Affirms Easy Policy

l  US/CN: China needs "explosive" buying to meet u.s. farm import target (investing.com)

l  CN: Reports 105 new coronavirus cases July 29; 102 local cases

l  CN: Welcomes US co’s to expand investment: NDRC vice head

l  CN: stock leverage rises for third day to RMB1.36t

l  HK: HKU data indicates COVID R0 drops below 1

l  HK: Real GDP fell 9.0% YoY in Q2

l  JP: MOF Official - Will watch FX market with sense of urgency

l  AU: Victoria records record 723 new virus cases

l  AU: Treasury's Steven Kennedy - Aust economy xpctd to ↓ 7% in 2Q20

Finally:  The end of buffets? In March, the FDA issued a recommendation for all self-serve food bizes to be closed until the pandemic subsides.  Buffet self-serve lines often lead to customers crowding & the open-container presentation of the food seems particularly unappetizing w/ the virus is easily transmitted through respiratory droplets.  Hotel giants MGM, Hilton, Marriot, & 4 Seasons have eliminated their buffets entirely, & experts agree the chnge is likely permanent. (MSN)   Will we be telling our kids about buffet’s the way our parents told us about fondu’s?  

Shanghai total area of new resi props sold ↑41.5%WoW to ~221,000m² last wk per Centaline. (SH Daily)

Lujiazui bids for resi site in Qiantan, SH for Rmb4.9b, fl price Rmb57,201/m². Other bidder Ronshine China (3301HK). (The Paper)

Dexin China (2019HK) acq’d a resi site in Minghang, SH for Rmb1.36b, fl price Rmb27,818/m². (The Paper)

Wanda Hotel to sell 90% interest in Chicago prop project for $270m to Magellan Parcel C/D, which holds 10% of the project. Trading in Wanda Hotel will resume from 9am July 30. (Sina)

Country Garden to redeem 7.25% USD notes due 2021 on Aug 28. (Co)

CRIC: 100 cities primary home price saw 11% gwth YoY in 1H20. (The Paper) >>> rising tightening pressure for those cities with large home price hikes? …

Guangdong province to ramp up co-ownership home. Requires home buyer to own 50~100% of the home, govt to own the remaining; also requires hldg period of >5yrs. Local households w/out ownership of a home wld be granted the priority to purchase the co-ownership home + open to young talents, non-locals w/ stable occupation, + HK & Macau residents working in Guangdong. (The Paper)

Shiyan (a city in Hubei) rolled out supportive measures including lower deposit in land tenders, installment of land premium, deferred tax, more lenient pre-sale criteria, and etc. (The Paper)

Ever Sunshine entered into a VIE agreement w/ a target co to engage in certain value-added services which is restricted to foreign investors. (Co) >>> Via the VIE agreement, Ever Sunshine cld be entitled w/ economic benefits of the target co, which wld be primarily engaged in telecommunication value-added biz (e.g. certain types of mobile Apps) in the PRC.

6 new homes sold y’day. Double Cove Grandview (deved by Henderson Land / New World Devt) in Ma On Shan sold a 1454ft² unit for HK$32m or HK$22,008/ft². The Reach (deved by Henderson Land / New World Devt) in Yuen Long sold a unit for HK$18.6m or HK$19,608/ft². (HKET)

Vanke unit Wealth Honour wins a Tai Po resi site tender for HK$3.7b, fl price HK$4738/ft². Other 13 bidders incl CKA, Henderson Land, Kingboard (148), Great Eagle (41), COLI. (JRJ)

Sweaty Betty opens 2^nd store in Fashion Walk, HK. Covers 1,396ft². (Retail In Asia)

Rents for resi props ↓ for 9 consecutive mth. Rental index for flats <431ft² saw most significant ↓, slumping by ~12% cumulatively. (Standard)

HK to add carparks in future resi projects, in response to ↑ carpark rental rates & capital values. (HK01)

Wheelock sold a 2,024ft² unit at Koko Hills devt for HK$62.7m (US$8.1m) through bidding process. Of 34 units available for general sale on the day, only 1 finds a buyer. (SCMP)

Hongkong Land 1H20 underlying profit ↓24%YoY to $353m as it granted pandemic-related retail rent relief, & due to fewer resi completions. Co.’s net debt ↑to $5.6b as of Jun 30 from $3.6b at end-2019. (Co)
Central office: positive rental reversion but vacancy rose
Retail: 40% rental concession but occupancy stayed strong
Invsmt prop val ↓6%HoH underlying
HKL indicated that 2 strategic investors have invested US$2.6bn in its Xuhui, Shanghai project.

Frasers Centrepoint Mngt received 610,427 units in FCT issued @ S$2.3984/unit - payment of 50% of base fee component of mgt fee for 2Q. (Co)

CapitaLand grant 212,897shrs award by way of a transfer of treasury shrs to non-executive directors. (Co)

CDL Hospitality Trusts 1H DPS↓63.7%YoY to S1.51c. Gross revenue ↓44.5YoY to S$52.1m, NPI ↓56%YoY to S$29.7m. (Biz Times)

Starhill Global Reit posts lower DPU of S0.7c for 2H (end Jun) due to income retention, distribution deferment. Income to be distributed to unitholders ↓68%YoY to S$15.4m. (Biz Times)

CapitaLand’s Ascott signs 6 new properties for ‘Lyf’ Brand, incl 4 in China, 1^st in Aust, 1 in Manila. (Co)

Australian employment ↓ 1.1% b/w mid-Jun & mid-Jul. (Biz Times)

Stockland set to acq a devt site at Macquarie Park office precinct in Syd. The 4-ha site adjacent to Stockland's M-Park commercial office project which has potential consolidated devt end val >A$1.5b. (SMH)

Dexus sell 5 high quality industrial assets in Truganina,  VIC + 1 biz park in Botany, NSW to the Dexus Australia Logistics Trust (DALT) for A$269.4m, passing yld 5.3%. (Co)

Rezoning of 850-ha land near future Western Syd Airport for industrial use leads to landlords of nearby sites to ↓ rents. (Commercial RE)

Japan's retail sales ↓ 1.2%YoY in Jun. (Today Online)

Kenedix Office decided to undertake ￥2.7b, TIBOR+0.5% debt financing & execute an interest rate swap agreement. (Co)

Nomura Real Estate sees FY operating income ￥61b, est ￥64.79b, NI ￥31b, est ￥36.63b, net sales ￥600b, est ￥610.12b. 1Q operating income ￥17.9b NI ￥8.83b, net sales ￥136.49b (+21% YoY). Still sees FY div ￥80. (Co)

Tokyo Tatemono 5.3% Stake Reported by PGGM Vermogensbeheer B.V

Invincible: PGGM Vermogensbeheer B.V's stake in Invincible Investment rises to 6.24% from 5.02%,

Price cut, low mortgage rate & attractive payment plan might not be enough to boost housing demand, per JLL India. (India Times)

Top 8 Indian prop mkts Q1 (Apr-Jun) avg price ↓5.4%YoY, per Liases Foras RE Rating & Rsch. (India Times)

Summarecon Agung 1H NI Rp10.2b, 1H revenue Rp2.18trn. (BBG)

Malaysia govt has re-established Home Ownership Campaign under PENJANA Stimulus Package to support domestic prop mkt, incl exemption of stamp duty on instruments of transfer & a full exemption on loan agreements, exemption of Real Prop Gains Tax, lifting 70% gearing limit on 3^rd housing loans. (BBG)

The 175-key InterContinental Halong Bay Resort in Vietnam is set to open in 2023. (Hotel News Resource)

Parkson is to quit operating full-scale stores in Vietnam a/f yrs of losses. (Inside Retail)

S Korea may ease some construction rules to supply more homes in Seoul & neighbouring area; may allow an apt bldg to have more homes by raising the resi fl area ratio, Finance Minister Hong said. (YNA)

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