China Economy Forum

[cirr]

S Africa's trade with China surges by 32 pct in 2013

(ECNS/Xinhua, March 13)

South Africa's bilateral trade with China saw a 32-percent increase in 2013 over the previous year, Trade and Industry Minister Rob Davies said on Wednesday.

Two-way trade between the two countries increased from 205 billion rand (about 19.2 billion U.S. dollars) in 2012 to 270 billion rand (about 25 billion dollars) at the end of 2013, Davies said in a written reply to a parliamentary question.

There is indeed scope to expand South Africa's exports to China in value-added manufactured products, particularly as the Chinese economy continued to register strong growth rates, said Davies.

Chinese investments in South Africa, meanwhile, continued to grow, Davies said.

Between January 2003 and January (this year), a total of 38 FDI (foreign direct investment) projects were recorded. These projects represent a total capital investment of 13.33 billion rand (about 1.24 billion dollars), which is an average investment of 350.48 million rand (about 33 million dollars) per project.

"During the period, a total of 10,992 jobs were created," he said.

These investments were spread across the metals; car; communications; financial services; food and tobacco; chemicals; industrial machinery; construction; engines and turbines; and transportation sectors, according to Davies.

link: S Africa's trade with China surges by 32 pct in 2013 - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns

 

[cirr]

Existing rules are such that these companies are unlikely to get approval for listing on the domestic exchanges。

 

[jkroo]

It's good to hear this business news. CSR is really a giant and develop fast these years. The company also manufacture the wireless charging electricity powered bus. More new transportation toys will emerge in the coming years.

 

[bolo]

First technology is not bad, we are not making the best cars for the world. Chinese car's quality is pretty good. Not worse than a few popular brands.

But the thing is prestige, who hears China and thinks oh, I want that.

Marketing is hard when the country doesn't offer prestige. American cars are not that great, it;s not the best, but America is and that helps a lot more than people think.



Second going public is good, more money, and regulation. China's closed off policy is old and useless, would you rate Toyota or Sony any less because their American counter parts are pretty significant?

I don't think you understand what you're really saying. going public can generate more market capital by issuing more stocks for the company, but it dilutes your control. Going public restricts the company from doing things and play by the "rules" set forth by the people who made the rules. In some ways it can hurt you.

The misconception that people have is that public traded companies perform better than private companies, which is not true.

 

[bolo]

Don´t waste our time with bragging of your money, people, economy or whatever (for instance smog polluted cities and poisoned foods). First, you cannot impress Vietnam. And second, all do not lead to a solution, unless you resort to force and fire the first shot and start the WW III.

I made a 10 point proposal a year ago or so, how China and Vietnam can reach a deal. Principle: status quo with take and give.

1- VN recognises CN occupied Paracel islands plus 12miles waters
2- CN recognises VN occupied Spratly islands plus 12miles waters
3- VN recognises CN occupied Spratly islands plus 12miles waters
4- CN recognises VN EEZ waters (200 miles)
5- VN controls the southern half of SC Sea (see map: the line below Paracel islands)
6- CN controls the northern half
7- CN and VN share natural resources when found in the SE Sea except areas 1-4
8- CN and VN sign a 50 year non-aggression-pact
9- CN and VN guarantee freedom of navigation for all third parties
10- CN provides military and economic aid to VN

I've said this before and I will say it again:

BEGGARS CAN'T BE CHOOSERS. VC is no position to bargain anything. Better to suck uncle Sam's dxxk and kowtow to grandpa Hirohito for support.

 

[shuttler]

First technology is not bad, we are not making the best cars for the world. Chinese car's quality is pretty good. Not worse than a few popular brands.

But the thing is prestige, who hears China and thinks oh, I want that.

Even the S Koreans have a lot more cars that get 5 * rating on Euro NCAP and US NCAP
what are you talking about!

 

[shuttler]

Existing rules are such that these companies are unlikely to get approval for listing on the domestic exchanges。

Alibaba wants to list on HKEx but rejected due to the disagreement on voting rights and sharing holding issues
I dont know if Alibaba can go through the NYSE board's approval

These companies will regret listing in the US if one day the US puts sanctions on China for some geopolitical spat.

IMO a Chinese company doing an IPO in a foreign country is corporate treason.

At the same time the Chinese leaders should hang their heads in shame because our capital markets are still extremely backward.

China will lose independence by listing in the US.

Welcome back Beidou!

Yes there is a potential danger not lethal

Even if the NYSE stops all trading of China related stocks in compliance with the US government's decisions, it can cause no major harm to the operations of the companies as all the essential activities are happening in China That is they cant stop our companies making profits non can they freeze our assets in China UNLESS these companies hold USD accounts in american banks or having assets there in usa

But if they do that we are answering tit for tat

In addition we have FX control on capitals transferring out of China

 

[terranMarine]

Yes there is a potential danger not lethal

Even if the NYSE stops all trading of China related stocks in compliance with the US government's decisions, it can cause no major harm to the operations of the companies as all the essential activities are happening in China That is they cant stop our companies making profits non can they freeze our assets in China UNLESS these companies hold USD accounts in american banks or having assets there in usa

But if they do that we are answering tit for tat

In addition we have FX control on capitals transferring out of China

That's a relief

 

[cirr]

CNPC discovers largest monomer marine uncompartmentalized gas reservoir in China

2014/2/10 17:07

A major breakthrough was made by CNPC in natural gas exploration in the Sichuan Basin. As certified by the Ministry of Land and Resources, the newly added proven gas in place in the Longwangmiao formation of Cambrian system in the Moxi block of Anyue gas field is 440.385 billion cubic meters, with technically recoverable reserves hitting 308.2 billion cubic meters.

This is the largest monomer marine uncompartmentalized carbonate gas reservoir discovered in China up to now, featured by large reserve scale, broad gas-bearing areas, high formation pressure, high gas flow, and superior gas components. The production test has obtained average per well daily output of 1.1 million cubic meters, and the wells in production yield at 0.6 million cubic meters per day averagely.

The Anyue gas field is located at the paleo uplift of central Sichuan. Since 2011, CNPC has drilled two exploration wells — Gaoshi-1 and Moxi-8, both obtaining high-yield gas flows of one million cubic meters per day from the Simian system and Cambrian system respectively.

It only took CNPC less than two years to find the Longwangmiao gas reservoir, identify its reserves, and make a successful production test with 1 billion cubic meters capacity. The phase-I capacity building project of 4 billion cubic meters is now on full swing, and the phase-II capacity building project of 6 billion cubic meters has already been kicked off. At present, gas production test at Moxi block has cumulatively yielded more than 600 million cubic meters.

CNPC discovers 308 Bcm gas reservoir in China's Sichuan basin

 

[cirr]

Domestic innovation aids China's push for shale gas

(China Daily, March 20)

China will become the third country after the United States and Russia capable of designing and building the turbine-driven fracturing equipment that can reduce costs and cut emissions during shale gas development.

Chinese private oil and gas equipment manufacturing and engineering company Jereh Group unveiled the latest turbine fracturing pump on Wednesday during the 14th China International Petroleum Petrochemical Technology and Equipment Exhibition held in Beijing.

"Industrial experts have spent years of research in this field, achieving little progress," said Zhou Shouwei, president of China Petroleum and Petrochemical Equipment Industry Association. "The new super power fracturing pump developed by the company utilizing advanced technical innovations will significantly contribute to non-conventional oil and gas development in China."

According to the 2014 Energy Working Guidance released by the National Energy Administration in late January, China's shale gas output this year will surge to eight times as much as production levels last year. Coal-bed methane production capacity will also increase to six times the level it was in 2013.

A current obstacle is China's unique geological conditions, which create problems for non-conventional natural gas exploration.

Jereh, the first Chinese company to sell shale gas exploration equipment to the US market, has been investing in research and development for the production of core equipment that can handle China's poor road conditions and the small size of its well sites.

According to the company, its latest turbine-driven fracturing equipment possesses many advantages including a smaller footprint, lighter weight and fewer carbon emissions.

full: http://www.chinadaily.com.cn/busines...t_17363173.htm

 

[Edison Chen]

China GDP per capital level by US dollars of each city in 2012.

 

[senheiser]

Billionaire Usmanov Aims at China After Apple, Facebook Sale - Bloomberg

By Ilya Khrennikov and Yuliya Fedorinova Mar 18, 2014 6:13 PM GMT+0100


Billionaire Alisher Usmanov sold shares in Apple Inc. and Facebook Inc., focusing on technology investments in China such as Alibaba Group Holding Ltd. and may expand stakes in Russian assets, an executive said.

“Chinese companies account for about 70 percent to 80 percent of the portfolio of our foreign Internet investments,” Ivan Streshinskiy, head of Usmanov’s asset-management company USM Advisors LLC, said in an interview on March 14 in Moscow. Most of the investment is in “Alibaba, JD.com and some other companies with great potential,” Streshinskiy said.

Usmanov, 60, built his Metalloinvest Holding Co. iron ore business by acquisitions and is Russia’s richest man, according to the Bloomberg Billionaires Index. He bought a stake of about $100 million in Apple last year and sold it recently this year, according to Streshinskiy. The sale follows a gradual reduction of Usmanov’s stake in Facebook, he said.

“We hope that our investments in China’s Internet companies may show the same and even better returns as we had with the American companies,” Streshinskiy said. China is Russia’s largest trading partner.

Alibaba’s estimated valuation rose to an average of $153 billion last month after the Chinese e-commerce company reported surging sales. The Hangzhou-based company is starting the process for what may be the biggest U.S. initial public offering in two years. Chinese online retailer JD.com may start an IPO next quarter and be valued at more than $20 billion, according to co-owner Tencent Holdings Ltd.


Photographer: Simon Dawson/Bloomberg
Russian billionaire Alisher Usmanov at the St. Petersburg International Economic Forum...Read More

Apple Performance
China has refrained from criticizing the Kremlin for plans to annex Ukraine’s Crimea peninsula, abstaining from a United Nations Security Council vote on declaring the region’s referendum illegal. China and Russia have voted together about Syria and Iran, while President Xi Jinping was the most prominent foreign leader to attend the Winter Olympics in Sochi this year, as U.S. and most European Union leaders stayed away.

Apple shares have advanced about 23 percent since March 2013, when Usmanov first said he bought the stake. The Cupertino, California-based company’s stock has declined about 6 percent this year. Facebook initially plunged after its IPO in 2012 and has more than doubled in the last 12 months, taking its market value to about $176 billion.

Alibaba Value
When Usmanov acquired a Facebook stake in 2009, his fund persuaded founder Mark Zuckerberg to sell by giving up its voting rights. Usmanov, with a partner, bought about 10 percent of Facebook when the company was valued at $6 billion to $10 billion and sold some shares in the IPO, which valued the company at $104 billion, the businessman told state television at the time.



Alibaba, which operates online markets for products from Louis Vuitton bags to Boston lobsters, posted its fourth straight quarterly profit in the three months through September, according to a January presentation from Yahoo! Inc., which owns a 24 percent stake. The company, founded by former English teacher Jack Ma, may be worth as much as $200 billion, according to investment bank valuations, which would make it the second-biggest Internet company behind Google Inc.

Russia’s benchmark Micex index has declined about 11 percent since Feb. 17, the day before Ukrainian police fired on protesters in Kiev’s Independence Square, and Russian stocks may drop more following the March 16 referendum in Crimea on joining Russia, Streshinskiy said. If stocks fall further, Usmanov’s company may consider buying more shares of wireless operator OAO MegaFonand Internet company Mail.ru Group Ltd., he said.

Crisis Opportunity
“Mail.Ru and MegaFon revenue is coming from Russia and people won’t stop making calls and using the Internet,” Streshinskiy said. “If the events will further escalate, we will be buying shares. Crisis is always a good opportunity as valuations become cheap.”

Mail.ru agreed to buy 12 percent of VKontakte, Russia’s biggest social network, raising its stake to 52 percent, and started to buy back $45 million of its own stock, the company said in statements today.

The operator of games and online networking services jumped 10.5 percent to $36.70 at the close of trading in London, extending yesterday’s 2.3 percent gain and cutting Mail.ru’s decline this year to 18 percent. MegaFon, Russia’s second-biggest wireless operator and controlled by Usmanov, rose 5 percent in London, paring its decline this year to 20 percent.

Crimea, Sanctions
Usmanov’s Metalloinvest, Russia’s largest iron-ore producer, may switch to shipping to China and other markets should Europe apply sanctions on its exports due to the crisis in Ukraine’s Crimea region, Streshinskiy also said.

Russian President Vladimir Putin has backed an accord on annexing the territory, signaling he won’t back down after U.S. and European Union leaders imposed sanctions on Russian officials and threatened further measures.

“We are concerned with the possible sanctions against Russia but don’t see any dramatic repercussions for our business,” Streshinskiy said. “China is unlikely to impose any sanctions. So, we will be trading in rubles, yuan, Hong Kong or Singapore dollars.”



seems Obamas sanctions are working

 

[Fattyacids]

LOL, I'm waiting to see if sanction will be levied at Russian energy companies that supply gas to the EU.

 

[Chinese-Dragon]

Great news.

We welcome Russian investment!

Maybe we will hit a record high FDI inflow this year as well.

 

[Genesis]

To be fair, this isn't so much a move for sanctions but logic. Apple and Facebook, how much can they really rise anymore?

Apple is failing in China as we speak, Facebook is none existent in China and more or less tapped out everywhere else.

While these Chinese companies have a lot of room to grow. These Chinese companies may not necessarily be bigger, but the room for growth is more and that's really what matters.