Huge risk-free arbitrage opportunity exists between the onshore and offshore RMB.

Blue line: CNH (offshore)
Black line: CNY (onshore)

Smart investors can buy RMB in HK and sell in China because they can exchange for more RMB in HK.  This is a risk-free investment opportunity. Cheers!

Funds are leaving Hong Kong gradually because HK has no future anymore.

https://luxorr.media/worried-hong-kong-residents-are-moving-money-out-as-protests-escalate/

Capital flight is occurring gradually because many people have lost faith in HK's future since China no longer prioritizes HK as its long lost child.

http://sg-stock.blogspot.com/2019/08/omg-china-has-displaced-hong-kong-with.html

Baltic dry index - 2168

Today, Friday, August 23 2019, the Baltic Dry Index climbed by 50 points, reaching 2168 points.

Baltic Dry Index is compiled by the London-based Baltic Exchange and covers prices for transported cargo such as coal, grain and iron ore. The index is based on a daily survey of agents all over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit 11,793. The lowest level ever reached was on Wednesday the 10th of February 2016, when the index dropped to 290 points.

========================

Related stock: Sembcorp Marine, Cosco & Pan ocean.

US rig count - 916

Related stock: Keppel Corp, Sembcorp Marine & Cosco.

Trump has imposed more tariffs on China goods.

https://finance.yahoo.com/news/trump-slaps-retaliatory-tariffs-on-chinese-goods-210533036.html

Trump has imposed more tariffs on China goods but it won't make any difference to China because China has gotten used to the tariffs.

China will definitely retaliate further against Trump and make Americans suffer the worst Christmas under Trump.

We can see that China has the patience to perform tactical moves on the US, unlike Trump who is so impulsive.  China always waits and shocks the US markets at the right time to slaughter Trump's cronies in the financial market.

Hot news! China has retaliated with its own tariffs on US $75B goods.

https://finance.yahoo.com/news/stock-market-news-august-23-2019-121537620.html

The new tariffs will take place on 1 Sept and 15 Dec 2019.

The investors who bought stocks this week will suffer next week.

We have been warning our readers many times that China won't back down.

http://sg-stock.blogspot.com/2019/08/trump-is-in-trouble-because-china-is-no.html

http://sg-stock.blogspot.com/2019/08/china-warns-us-if-it-implements.html

https://sg-stock.blogspot.com/2019/08/china-has-suspended-us-agricultural.html

Keppel Reit - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/22/19	DBS Vickers	Keppel Reit	1.18	1.31	Buy	DCF
01/22/19	CIMB	Keppel Reit	1.18	1.34	Add	DDM
01/22/19	DMG & Partners	Keppel Reit	1.18	1.06	Neutral	DDM
01/28/19	UOB Kay Hian	Keppel Reit	1.18	1.35	Buy
03/07/19	UOB Kay Hian	Keppel Reit	1.28	1.35	Buy	DDM
03/18/19	DMG & Partners	Keppel Reit	1.23	1.06	Neutral
04/01/19	UOB Kay Hian	Keppel Reit	1.29	1.35	Buy	DDM
04/18/19	DMG & Partners	Keppel Reit	1.24	1.12	Neutral	DDM
04/18/19	DBS Vickers	Keppel Reit	1.24	1.38	Buy	DCF
04/18/19	Lim & Tan	Keppel Reit	1.24	0	Hold
04/24/19	UOB Kay Hian	Keppel Reit	1.21	1.37	Buy	DDM
04/24/19	DBS Vickers	Keppel Reit	1.21	1.4	Buy	DCF
04/25/19	CIMB	Keppel Reit	1.23	1.34	Add	DDM
05/30/19	UOB Kay Hian	Keppel Reit	1.21	1.37	Buy
07/04/19	DMG & Partners	Keppel Reit	1.28	1.12	Neutral
07/16/19	CIMB	Keppel Reit	1.26	1.41	Add	DDM
07/16/19	DMG & Partners	Keppel Reit	1.26	1.2	Neutral	DDM
07/16/19	UOB Kay Hian	Keppel Reit	1.26	1.37	Buy
07/16/19	DBS Vickers	Keppel Reit	1.26	1.45	Buy	DCF
07/16/19	Lim & Tan	Keppel Reit	1.26	0	Hold
08/06/19	DBS Vickers	Keppel Reit	1.2	1.45	Buy

Keppel KBS - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/02/19	DBS Vickers	Keppel KBS	0.61	0.78	Buy	DCF
01/28/19	DBS Vickers	Keppel KBS	0.68	0.8	Buy	DCF
04/03/19	DBS Vickers	Keppel KBS	0.705	0.8	Buy
06/06/19	DBS Vickers	Keppel KBS	0.74	0.8	Buy
06/17/19	DBS Vickers	Keppel KBS	0.75	0.9	Buy	DCF
07/12/19	DMG & Partners	Keppel KBS	0.79	0.88	Buy	DDM
07/18/19	DBS Vickers	Keppel KBS	0.82	0.9	Buy

Keppel Infrastructure - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/23/19	DBS Vickers	Keppel Infrastructure	0.515	0.58	Buy	DDM
03/15/19	Lim & Tan	Keppel Infrastructure	0.485	0	Hold
04/16/19	DBS Vickers	Keppel Infrastructure	0.48	0.58	Buy	DDM
07/16/19	DBS Vickers	Keppel Infrastructure	0.505	0.58	Buy	DDM

Stock calls for 23 August 2019

Date	Analyst	Company	Last	Target	Call	Valuation
08/23/19	DMG & Partners	DBS	24.59	28.3	Neutral
08/23/19	phillip	Golden Energy	0.188	0.19	Neutral	PER10x
08/23/19	DBS Vickers	Manulife US Reit	0.895	1.1	Buy	DCF
08/23/19	DMG & Partners	Sheng Siong	1.16	1.32	Buy

Keppel DC Reit - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/04/19	Phillip	Keppel DC Reit	1.36	1.45	Accumulate
01/23/19	Phillip	Keppel DC Reit	1.44	1.52	Accumulate	DDM
01/23/19	CIMB	Keppel DC Reit	1.44	1.51	Add	DDM
01/23/19	OCBC	Keppel DC Reit	1.44	1.6	Buy
01/23/19	DBS Vickers	Keppel DC Reit	1.44	1.6	Buy	DCF
02/15/19	Phillip	Keppel DC Reit	1.45	1.52	Accumulate
03/12/19	OCBC	Keppel DC Reit	1.44	1.6	Buy
04/08/19	Amfrasers	Keppel DC Reit	1.47	1.62	Buy	DDM
04/09/19	CIMB	Keppel DC Reit	1.48	1.54	Add	DDM
04/16/19	OCBC	Keppel DC Reit	1.49	1.64	Buy
04/16/19	Lim & Tan	Keppel DC Reit	1.49	0	Hold
04/18/19	Phillip	Keppel DC Reit	1.49	1.59	Accumulate	DDM, PB1.37x FY19
05/02/19	Amfrasers	Keppel DC Reit	1.51	1.62	Buy
06/19/19	Phillip	Keppel DC Reit	1.64	1.59	Accumulate
07/10/19	CIMB	Keppel DC Reit	1.67	1.54	Add
07/17/19	OCBC	Keppel DC Reit	1.71	1.93	Buy
07/17/19	DBS Vickers	Keppel DC Reit	1.71	1.9	Buy	DCF
07/18/19	Phillip	Keppel DC Reit	1.73	1.71	Hold	DDM
07/18/19	CIMB	Keppel DC Reit	1.73	1.67	Hold	DDM
07/23/19	Amfrasers	Keppel DC Reit	1.75	1.71	Neutral
07/26/19	OCBC	Keppel DC Reit	1.71	1.93	Hold

Keppel Corp - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/04/19	OCBC	Keppel Corp	5.81	7.25	Buy	Sum of parts
01/10/19	DIR	Keppel Corp	6.18	7.15	Buy	Cut from $7.86, Sum of parts
01/23/19	CIMB	Keppel Corp	6.17	8.28	Add
01/25/19	OCBC	Keppel Corp	6.13	7.55	Buy
01/25/19	CIMB	Keppel Corp	6.13	8.41	Add	Sum of parts
01/28/19	Lim & Tan	Keppel Corp	6.2	0	Hold
01/29/19	Amfrasers	Keppel Corp	6.14	7.5	Hold
01/29/19	Macquarie	Keppel Corp	6.14	8.2	Outperform	Sum of parts
02/21/19	CIMB	Keppel Corp	6.32	8.41	Add	Sum of parts
03/12/19	Lim & Tan	Keppel Corp	6.1	0	Hold
03/26/19	CIMB	Keppel Corp	6.17	8.41	Add
04/15/19	CIMB	Keppel Corp	6.62	8.41	Add	Sum of parts
04/22/19	OCBC	Keppel Corp	6.74	7.83	Buy
04/22/19	Lim & Tan	Keppel Corp	6.74	0	Hold
05/08/19	CIMB	Keppel Corp	6.72	8.41	Add	Sum of parts
06/10/19	DMG & Partners	Keppel Corp	6.05	7.33	Buy	Sum of parts, Cut from $7.92
06/21/19	DBS Vickers	Keppel Corp	6.57	9	Buy
06/28/19	CIMB	Keppel Corp	6.67	8.41	Add	Sum of parts
07/03/19	DBS Vickers	Keppel Corp	6.77	9.2	Buy
07/03/19	OCBC	Keppel Corp	6.77	7.83	Buy
07/19/19	DMG & Partners	Keppel Corp	6.59	7.3	Buy	Sum of parts
07/19/19	CIMB	Keppel Corp	6.59	8.41	Add	Sum of parts
07/19/19	UOB Kay Hian	Keppel Corp	6.59	7.61	Buy	Sum of parts
07/19/19	Lim & Tan	Keppel Corp	6.59	0	Hold
07/22/19	Amfrasers	Keppel Corp	6.57	7.43	Neutral	Sum of parts
07/22/19	DBS Vickers	Keppel Corp	6.57	8.5	Buy	Sum of parts
08/22/19	Lim & Tan	Keppel Corp	5.9	0	Buy

Jumbo - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
02/15/19	DBS Vickers	Jumbo	0.415	0.44	Hold	PER23x FY19
02/15/19	CIMB	Jumbo	0.415	0.52	Add	PER21x FY20
02/18/19	UOB Kay Hian	Jumbo	0.415	0.41	Hold	Buy @ $0.37
03/14/19	UOB Kay Hian	Jumbo	0.405	0.41	Hold	PER20x FY19, Buy @ $0.37
03/29/19	DBS Vickers	Jumbo	0.395	0.5	Buy	PER23x FY19/20
05/16/19	DBS Vickers	Jumbo	0.405	0.51	Buy	PER23x FY19
05/16/19	UOB Kay Hian	Jumbo	0.405	0.41	Hold	PER20x FY19, Buy @ $0.32
05/16/19	CIMB	Jumbo	0.405	0.52	Add	PER21x FY20
06/21/19	DMG & Partners	Jumbo	0.38	0.47	Buy	DCF, PER23x FY19
08/07/19	DBS Vickers	Jumbo	0.38	0.47	Buy	PER23x FY20
08/08/19	DMG & Partners	Jumbo	0.375	0.47	Buy	DCF
08/08/19	UOB Kay Hian	Jumbo	0.375	0.37	Hold

Stock calls for 22 August 2019

Date	Analyst	Company	Last	Target	Call	Valuation
08/22/19	DIR	Capitaland	3.5	4.1	Buy	RNAV (20% discount)
08/22/19	CIMB	Frasers Centrepoint Trust	2.68	2.79	Add
08/22/19	CIMB	Frencken	0.73	0.95	Add
08/22/19	Amfrasers	Frencken	0.73	0.81	Neutral	PER10x FY20
08/22/19	DMG & Partners	Japan Foods	0.435	0.4	Neutral	Sum of parts
08/22/19	Lim & Tan	Keppel Corp	5.9	0	Buy
08/22/19	CIMB	Mapletree Commercial	2.08	2.24	Add
08/22/19	Phillip	Thai Beverage	0.925	0.83	Neutral	Sum of parts
08/22/19	CIMB	Wilmar	3.81	4.58	Add
08/22/19	Kim Eng	Wilmar	3.81	3.89	Hold

Hong Kong workers are forced to take unpaid leaves now.

https://sg.finance.yahoo.com/news/hong-kong-hotel-workers-paying-020839342.html

We stated that Hongkongers would be the ones paying a huge price in our previous post.  It is already happening now in the HK hotel industry because workers are being forced to take unpaid leaves due to poor businesses.

https://sg-stock.blogspot.com/2019/08/why-did-us-and-taiwan-engineer-hong.html

This economic slowdown will spread to other sectors because China has decided to transfer its "love" for the long lost child (HK) to Shenzhen.

https://sg-stock.blogspot.com/2019/08/omg-china-has-displaced-hong-kong-with.html

Germany flopped in its negative yield bond sales.

https://finance.yahoo.com/news/germany-sees-anemic-demand-30-100930717.html

The 30y Germany bonds were severely undersubscribed and this denoted that the investors were rejecting the negative yield bonds.  We did state that the current world was not built for a negative yield environment.  The world is in a conundrum now.

http://sg-stock.blogspot.com/2019/08/a-new-world-unchartered-territory.html

When the governments cannot raise funds for economic developments in a negative yield environment, they'll have to raise interest rates to attract investors to buy their bonds but the economic situation doesn't allow interest rates to be raised.

When the strongest economy, Germany, cannot raise enough funds, the other weaker European economies cannot raise funds too.  Therefore, the EU is badly in need of cheap funding and will need TLTRO urgently in September.

http://sg-stock.blogspot.com/2019/03/what-is-targeted-longer-term.html

Why is Renminbi (RMB) depreciating again?

The RMB or CNY is depreciating again because of the imposition of China new loan prime rate (LPR).

https://www.reuters.com/article/us-china-economy-rates-explainer/explainer-how-chinas-new-interest-rate-reforms-will-work-idUSKCN1V90Q8

China is facing tremendous pressure to stimulate its decelerating economy but it doesn't want to reduce its official bank interest rates because this will disrupt its property industry.  Therefore, it has come up with a new LPR which is based on MLF to be used as the benchmark for commercial loans (SMEs) and the LPR is lower than the current lending rate.

Like I said before, the money will flow from a low-interest rate country to a high-interest rate country.  Consequently, there is lesser demand for RMB after the LPR and this causes RMB to depreciate.

Huawei had repented and given my parents 4 $100 e-vouchers as compensations.

I've just bought 4 Huawei Y6 Pro for my parents and another 2 elders with the 4 $100 e-vouchers given by Huawei.  How did I get the e-vouchers? Well, I emailed to Huawei to complain about its bad promotion behaviour and also give it the greatest piece of my mind.

I would like to compliment Huawei for the generosity given.

My life philosophy is simple: If you treat me good, I will treat you better.  If you treat me bad, I will treat you worse.

I lambasted Huawei previously for its bad behaviour.

http://sg-stock.blogspot.com/2019/07/huawei-deceived-elderly-singaporeans.html

Now, I will compliment Huawei for its generosity to compensate my parents.  Well done and keep up the good work!

Jardine C&C - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/04/19	DBS Vickers	Jardine C&C	35.28	43.1	Buy
05/02/19	DBS Vickers	Jardine C&C	35.52	39.1	Buy	Sum of parts (16% discount)

Japfa - Stock calls

Date	Analyst	Company	Last	Target	Call	Valuation
01/29/19	CIMB	Japfa	0.82	0.9	Add	Sum of parts
01/30/19	Kim Eng	Japfa	0.81	0.99	Buy
03/01/19	CIMB	Japfa	0.765	0.9	Add	Sum of parts
03/05/19	UOB Kay Hian	Japfa	0.705	0.98	Buy	Sum of parts, PER10.7x FY19
03/05/19	DBS Vickers	Japfa	0.705	0.8	Buy	Sum of parts (15% discount), PER11.4x FY19
03/14/19	CIMB	Japfa	0.715	0.63	Reduce	Sum of parts
03/21/19	Kim Eng	Japfa	0.65	1.05	Buy	Sum of parts
04/02/19	Kim Eng	Japfa	0.665	1.05	Buy
05/03/19	UOB Kay Hian	Japfa	0.605	0.73	Buy	Sum of parts
05/03/19	DBS Vickers	Japfa	0.605	0.61	Hold	Sum of parts (10% discount), PER14x FY19
05/27/19	Kim Eng	Japfa	0.575	0.93	Buy	Sum of parts
07/31/19	UOB Kay Hian	Japfa	0.515	0.48	Hold	Sum of parts, Buy @ $0.42
08/01/19	Kim Eng	Japfa	0.51	0.73	Buy	Sum of parts
08/05/19	DBS Vickers	Japfa	0.5	0.53	Hold	Sum of parts (10% discount), PER12.5x FY19