Nomad Investors

Deutsche Bank, in its latest report, stated that no new tightening measures for mid- and small-size residential units have been covered in the Budget. The government is planning to sell 29 pieces of residential sites in FY15/16, 16 of which will be new sites. It is predicted that a total of 19,000 new residential units could be produced, which would be less than the 20,000 units produced from the residential sites sold in FY14/15. These signify that the land supply is not rising at a faster pace to restore the current imbalance in the local property market. The research house prefers developers over landlords given their residential exposure with higher asset turnover and more stable IP portfolios. Top picks are NEW WORLD DEV (00017.HK)    +0.040 (+0.434%)     Short selling $4.46M; Ratio 5.233%    , CHEUNG KONG (00001.HK)    +0.700 (+0.463%)     Short selling $58.31M; Ratio 12.850%...

On the last trading day of the Year of the Horse, Hang Seng Index opened up 51 pts at 24,836 and mounted 86 pts at most amid a range-bound trade. It closed at 24,832, up 47 pts or 0.19%. Hang Seng China Enterprises Index advanced 67 pts or 0.56% to 12,066 at close. Market turnover amounted to $28.935 billion. The cumulative gain of 2014 for HSI and HSCEI was 2,797 pts (12.7%) and 2,248 pts (22.9%) respectively. Following the merger rumors regarding mainland oil companies, SINOPEC CORP (00386.HK)    +0.290 (+4.655%)     Short selling $70.42M; Ratio 3.304%    climbed 4.7% to $6.52 and became the best-performing stocks among blue chips and HSCEI constituents. PETROCHINA (00857.HK)    +0.270 (+3.100%)     Short selling $96.25M; Ratio 6.737%    escalated 3.1% and CNOOC (00883.HK)    +0.300 (+2.708%)     Short selling $25.64M; Ratio 2.891%...

Shenzhen Component Index and Shanghai Composite Index advanced for seven consecutive days. The SZCI peaked at 11,772 after midday, hitting a fresh high in over three and a half years. It closed at 11,718, up nearly 1.1%. The SHCI rose to 3,255 at most and finished at 3,246, up nearly 0.8%. Turnover of the Shanghai and Shenzhen market declined to RMB 263.3 billion and RMB249.3 billion respectively. 

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...

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 stoc...