Nomad Investors

HKEX (00388.HK)    -1.100 (-0.613%)      Short selling $30.91M; Ratio 4.829%     expects a trading link with the Shenzhen Stock Exchange to be launched in the second half of this year, Reuters cited the source as saying. Such timeline could lower China's chance of being included in the MSCI Index.

HKEX (00388.HK)    -1.700 (-0.935%)      Short selling $126.70M; Ratio 12.786%     issued a notice to securities brokers that the Exchange will carry out a test for the short selling function under the Shanghai-Honng Kong Stock Connect at the end of this month, and the it tentatively aims to launch the service in February.

As the QE scale unveiled by the European Central Bank exceeded market projection, stocks with greater exposure of business in Europe were benefited, especially for CATHAY PAC AIR (00293.HK)    +1.020 (+5.910%)      Short selling $27.01M; Ratio 9.888%     , which advanced for 4 days, peaked at $18.3 (hitting nearly 3.5-year high) and last traded at $18.14, up 5.1%, with volume rising to 10.62 million shares. ESPRIT HOLDINGS (00330.HK)    +0.300 (+3.695%)      Short selling $18.18M; Ratio 28.361%     also snapped the two-day declining streak and rebounded 3.3% to $8.39 after hitting the high at $8.48. In addition, HSBC HOLDINGS (00005.HK)    +1.200 (+1.669%)      Short selling $318.83M; Ratio 10.684%     , moving up for four days, saw resistance at the 50MA and last stood at $73, up 1.5%, with volume increasing to 30.04 million shares.  

Credit Suisse said in a research report that Macau's fourth-quarter gross gaming revenue declined 25% year-on-year or 9% quarter-on-quarter, showing a faster drop against the 7% decline in the third quarter. With the high-profit mass market turning more negative, it is estimated that gaming stocks' fourth-quarter EBITDA would fall 12% over the previous quarter, or drop 22% compared with a year ago; the EBITDA profit margin forecast was reduced by 1.2 ppt.  The broker further pointed out that in terms of revenue, MELCO CROWN (06883.HK)    0.000 (0.000%)      is the only one operator that recorded a quarterly growth (about 3%) in 4Q2014. WYNN MACAU (01128.HK)    +0.050 (+0.249%)       Short selling $73.31M; Ratio 51.006%      's EBITDA may see a substantial decline of 25% quarterly due to the possible loss of market share.  Credit Suisse suggested investors should slowly add quality gaming stocks with fair valuation, and it was positive towards MGM CHINA (02282.HK)    +0.180

CITIC SEC (600030.SH)'s substantial shareholder cut 348 million shares or 3.16% equity interest in the company last week. Meanwhile, the company was asked to suspend the account opening of new margin financing, together with HAITONG SEC (600837.SH) and Guotai Junan, for three months as a result of a crackdown by the China Securities Regulatory Commission (CSRC). In addition, the China Banking Regulatory Commission (CBRC) recently released the draft of management methods on commercial banks entrusted loans.  Shanghai and Shenzhen stock markets were under hefty selling pressure today. Shanghai Composite Index fell from its near 5.5-year closing high, with a plunge of 8.3% at most, and ended the day trading at 3,116, down 7.7%. Shenzhen Component Index hit the intraday low of 10,634 and closed the day at 10,770, down 6.6%. ChiNext Index edged down 0.6% at close after rising to 1,691. Turnover of the two markets rose further to RMB409.8 billion and RMB291.4 billion, respectively. In

Deutsche Bank pointed out that CCB (00939.HK)    -0.020 (-0.312%)    Short selling $30.99M; Ratio 4.262%   's management predicted that the bank's net interest income growth will be weak this year, as the 10% (yoy) loan growth target will be offset by the narrowed profit caused by the rate cuts. The Bank estimated that CCB can maintain a dividend payout of about 35% this year, and may have a chance to issue preferred shares in the second half of the year at the earliest. The target price was set at $8.46, with a Buy rating

According to Morgan Stanley's report, it is believed that CHEUNG KONG (00001.HK)    +0.200 (+0.140%)      Short selling $84.50M; Ratio 7.983%     's share price has a chance of 80% or above to outperform the industry in the coming 60 days, mainly because the announced reorganization plan of Chueng Kong and Hutchison has helped improve the transparency, removed double discount and signified a decline in WACC, which suggests re-rating opportunities. In addition, Cheung Kong planned to raise the dividend payment for this and next year. The group can also benefit from the further integration of telecom business in the UK and Italy. The broker gave the Overweight rating on the stock.

Morgan Stanley believed that the share price of CHINA MOBILE (00941.HK)    -0.200 (-0.210%)      Short selling $93.39M; Ratio 15.005%     will increase in the next 60 days. The broker was bullish on Chinese telcos, mainly attributable to the effective cost control and positive impacts bought by tower company. China Mobile remained the top pick within the industry due to the continuous 4G advantage and possible surge in earnings. In addition, the upside of tower spinning-off was not yet taken account in the share price. The research house expected that there will be an 80%+ chance for the rise in the upcoming 60 days.