Daily Brief Energy/Materials: Gold, ABM Investama, Yankuang Energy Group, Tokyo Stock Exchange Tokyo Price Index Topix and more

• Gold short met 1,730 PT to close and now kissing key support at 1,700 as the long pivot level. WTI’s nasty give back needs basing at the key 85/86 support.
• Gold 1,700 and WTI 85 are make or break bull/bear lines. Gold RSI bull divergence stands out as the driver amid risk aversion and a safe have bid in bonds.
• WTI RSI uber bull divergence shows good energy to retake 93 but is it enough to offset demand destruction/Sept risk. Reserve levels are low and support the bull case.

The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks. The Asia Monthly is intended to broaden investors’ understanding of the Asian USD high-yield market.

• Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
• Overall, the net outflow over the past week was ~US$0.1bn, split (-US$0.4bn) for Shanghai and (+US$0.3bn) for Shenzhen.
• The largest inflows were into CNOOC Ltd (883 HK) and Yankuang Energy Group (1171 HK). The largest outflows were in Meituan (3690 HK) and Kuaishou Technology (1024 HK).

• Cases of illegal transactions by the president of a company from the founding family should be handled in terms of legal violations before corporate governance.
• If we focus on the issue of corporate governance, the problem is that the board of directors and statutory auditors have failed to fulfill their duties and cross-shareholdings were involved.
• If corporate governance is not effective in practice, we should at least expect to see improvements in corporate governance practices in organizational forms that are more legally binding.