FAST NEWS: OneConnect Cashes Out of Non-core Business

The latest: Financial technology service provider OneConnect Financial Technology Co. Ltd. (OCFT.US; 6638.HK) on Thursday said it sold its 40% stake in Puhui Lixin to Puhui Management, a company principally engaged in the investment and disposal of non-performing assets. Looking up: At the end of September, OneConnect had cash and cash equivalents of 1.46 billion yuan ($204 million). Through this transaction the company will obtain an additional 199 million yuan, further increasing its cash reserves. Take Note: Upon completion of the sale, OneConnect will no longer be able to incorporate…

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FAST NEWS: Linklogis Third-Quarter Profit Plunges as Clients Suffer Covid Hit

The latest: Supply chain financing solutions provider Linklogis Inc. (9959.HK) said Tuesday it expects to record an adjusted profit of approximately 153 million yuan ($21.6 million) for the first nine months of the year, down 37% year-on-year. Looking up: Linklogis said that expanded up-front investments in new business opportunities and new customers resulted in an increase in its up-front expenditure for research and development, sales and marketing for the period. But it expects such expenditures will translate into long-term growth opportunities. Take Note: The company recorded an adjusted profit of just 25…

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FAST NEWS: SMIC Forecasts 15% Drop in Fourth-Quarter Revenue

The latest: Semiconductor Manufacturing International Corp. (SMIC)(0981.HK; 688981.SH) said Thursday it expects its revenue will fall 13% to 15% quarter-on-quarter in the fourth quarter, and its gross margin will range from 30% to 32% for the period, much lower than the 38.9% in the third quarter. Looking up: Benefiting from a small increase in average unit selling prices, the company reported sales of $1.907 billion in the third quarter, up 0.2% quarter-on-quarter and 34.7% year-on-year. Take Note: The company expects that weak demand from the smartphone and consumer markets, combined…

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FAST NEWS: PCAOB Completes Chinese Stock Audits Ahead of Schedule in Hong Kong

The latest: Officials from the U.S. Public Company Accounting Oversight Board (PCAOB) in Hong Kong have completed their first on-site audits of Chinese stocks ahead of schedule and may submit preliminary reports to the U.S. securities regulator in the coming weeks, according to a report from Bloomberg last Friday. Looking up: Bloomberg indicated that dozens of PCAOB inspectors may have left Hong Kong over the past weekend. Their audit work of U.S.-listed Chinese companies was originally scheduled to continue until mid-November, but its early completion may reflect that things went…

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FAST NEWS: Yum China Shifts Hong Kong Listing to Primary Status

The latest: Yum China Holdings, Inc. (YUMC.US; 9987.HK), operator of U.S. fast food giant Yum Brands Inc.’s (YUM.US) KFC and Pizza Hut chains in China, on Wednesday announced it will convert its secondary listing status in Hong Kong to primary status effective Oct. 24. Looking up: By obtaining primary status for its Hong Kong listing, Chinese mainland investors can eventually trade Yum China’s shares through a program linking Hong Kong and mainland Chinese stock exchanges, thereby expanding its investor base and trading volume. Take Note: Unlike the secondary listing status Yum China currently…

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FAST NEWS: China Renaissance Swings Into Red Despite Steep Cost Cuts

The latest: Financial services firm China Renaissance Holdings Ltd. (1911.HK) on Tuesday reported its revenue dropped 42.4% to 604 million yuan ($87.5 million) in the first half of the year,  as it swung into the red with a net loss of 154 million yuan. Looking up: The company’s operating expenses decreased 44.4% to 586 million yuan in the period, outpacing its revenue decline, thanks to a roughly 50% cut in its compensation and benefits expenses to 380 million yuan and lower financing costs. Take Note: China Renaissance said the first half of the year was a tough…

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FAST NEWS: Supply Chain Financing Disruptions Drag Down Linklogis Profit

The latest: Supply chain financing solutions provider Linklogis Inc (9959.HK) announced Thursday that it expects to post an adjusted profit of 125 million yuan ($18.5 million) to 130 million yuan for the first half of the year, down 14.5% to 17.8% from 152 million yuan in the same period last year. Looking up: The company’s gross profit and gross margin increased in the first half, benefiting from optimization of its product structure. The group has also started to optimize its organizational structure and improve operational efficiency to control operating expenses, with…

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FAST NEWS: China Renaissance Swings to Loss on Weak Markets

The latest: Financial services firm China Renaissance Holdings Ltd. (1911.HK) on Tuesday warned it expects to post a net loss of 154 million yuan ($22.7 million) for the first half of the year, reversing a 1.23 billion yuan profit for the same period last year. Looking up: In its bid to offset more challenging market conditions in the second half of the year, the company said it will continue to grow its investment management business and expand its fee-generating assets under management, and pivot towards new growth areas such as…

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FAST NEWS: Noah Seeks to Upgrade Hong Kong Listing Status

The latest: Noah Holdings Private Wealth and Asset Management Ltd. (NOAH.US; 6686.HK) announced Wednesday that its board has approved allowing the company to convert its Hong Kong listing from secondary to primary status, and authorized the company’s senior management to take necessary steps for such a conversion. Looking up: Noah faces the risk of being delisted in the U.S., where it is one of more than 100 Chinese firms identified by U.S. securities regulators as being in danger of failing to comply with tighter auditing rules. By obtaining a second…

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FAST NEWS: Hywin to Acquire Health Management Services Company

The latest: Wealth management services provider Hywin Holdings Ltd. (HYW.US) said on Friday it has agreed to buy a controlling interest in Beijing iLife3 Technology Co. Ltd., a provider of health management services, for 140 million yuan ($20.7 million). Looking Up: The acquisition will provide Hywin with a major new revenue source as it seeks to tap exploding demand for services in China’s healthcare services market. Take Note: The purchase is well outside Hywin’s core business of providing wealth management services, and thus would bring the company into unfamiliar territory.…

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