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China risks backlash with Myanmar investments-NGO

July 10, 2010 By vani Leave a Comment

July 9 (Reuters) – Chinese companies who have poured billions of dollars into energy or other projects in Myanmar risk a violent backlash if they do not address the concerns of local ethnic groups, the head of a non-government group said on Friday.

The risk could be worse in regions that are not ethnically Burmese that have for years run their own affairs and maintained their own armed forces, said Emma Leslie, Cambodia-based director for the Centre for Peace and Conflict Studies.

Those people could resent deals that are cut between Chinese firms and Myanmar’s central government without any perceived local benefit, she said.

Beijing is the former Burma’s third-biggest foreign investor and trade partner. Chinese firms are building a port and energy pipelines that will feed oil and gas into China’s landlocked southwest, and are involved in numerous other projects.

Despite the diplomatic cover China has provided for its isolated, military-run southern neighbour in the face of pressure from the West over a slew of human rights issues, Chinese investment has proved controversial in Myanmar.

Rights groups say Chinese companies ride roughshod over environmental concerns, and that Myanmar’s army has forced people out to make way for China’s investments.

In April, a series of bombs exploded at a controversial hydropower project site being jointly built by a Chinese company in northern Myanmar’s Kachin state. [ID:nSGE63G036]

“There is a real concern that the grievances of ethnic communities along the China-Myanmar border is a real risk for Chinese investment,” Leslie told the Foreign Correspondents Club of China. “There are already indications of that. A bombing of a hydro-dam is an alert signal. People are not getting the benefit of that investment.”

Leslie said that a lack of information about what was happening to land earmarked for development fuelled anger.

“There’s one part of Kachin State called the ‘confluence’, which is very well known for families going for picnics, and it’s a very favoured place among the Kachin to hang out together,” she said.

“But that will soon be a hydro-dam, and nobody knows when it happens, how is happens, who gets to benefit from it. All people know is that it’s Chinese-backed,” Leslie added.

“When you’re in a situation where you can’t retaliate against your own government, you can retaliate against perhaps investment by outsiders.” (Reporting by Ben Blanchard; Editing by Alex Richardson)

Filed Under: International News Tagged With: Alert Signal, China Risks, Chinese Companies, chinese company, chinese firms, chinese investment, Energy Pipelines, ethnic communities, Foreign Correspondents Club, Government Group, Hydro Dam, Hydropower Project, Kachin State, myanmar border, Northern Myanmar, Peace And Conflict Studies, reuters, State Id, Trade Partner, Violent Backlash

China IPOs seen hitting record high in 2010-PwC

July 6, 2010 By vani Leave a Comment

July 5 (Reuters) – Chinese companies may raise a record 500 billion yuan ($73.86 billion) via IPOs this year after a record first half as companies race to tap the stock market for funds, PricewaterhouseCoopers (PwC) said on Monday.

The first-half saw 176 IPOs raising as much as 212.7 billion yuan as compared to no listings in the year-ago period, PwC said.

PwC, which raised its full-year projection from 320 billion yuan previously, expected the number of new listings in China to reach 300 this year, including 25 listings in Shanghai and 275 on the Shenzhen exchange.

Chinese companies raised a total 187.9 billion yuan from the IPO market for the whole of 2009, it said.

“China’s economic growth is expected to continue in the second half of the year. Unless some negative factors emerge, IPOs in Shanghai and Shenzhen will maintain the momentum and are likely to reach historical heights this year,” Charles Feng, PwC Beijing lead partner, told reporters.

China will likely see the world’s second biggest IPO this month when Agricultural Bank of China [ABC.UL], the country’s third-biggest lender by assets, completes its giant dual-lising in Shanghai and Hong Kong.

AgBank’s IPO could raise up to $20.2 billion, excluding a greenshoe, or overallotment option, just a tad smaller than Industrial and Commercial Bank’s (1398.HK) (601398.SS) record $21.9 billion offering in 2006. [ID:nTOE66102S]

AgBank is scheduled to price its IPO later this week.

Other sizeable IPOs expected this year include Industrial Securities’ planned Shanghai listing which will raise roughly $500 million, and Ningbo Port’s planned $1.9 billion offering.

($1=6.770 Yuan)

(Reporting by Soo Ai Peng; Editing by Jonathan Hopfner)

Filed Under: International News Tagged With: 1398 hk, 601398, agricultural bank of china, Bank Of China, BEIJING, China Abc, Chinese Companies, economic growth, Greenshoe, Ipo Market, Ipos, Lising, momentum, Negative Factors, Ningbo Port, reuters, shanghai, shenzhen, stock market, Yuan

Q&A: Why the attention on Pakistan’s Chashma nuclear complex?

July 6, 2010 By vani Leave a Comment

(Reuters) – Pakistan’s President Asif Ali Zardari visits China from Tuesday, following mounting signs that Chinese companies are moving ahead with plans to build two reactors at the Chashma nuclear complex in Punjab province.

Here is an explanation about those plans and why some other governments are concerned.

WHAT IS THE CHASHMA COMPLEX?

Chashma in Pakistan’s Punjab province is the site of a nuclear power complex built using Chinese expertise and designs. One 300 megawatt pressurized water reactor began commercial operation in 2000, and Chinese companies are building another one likely to be finished in 2011 or 2012.

Chinese nuclear companies have also unveiled plans to build another two bigger reactors at Chashma in coming years. They have not issued detailed information about when they will start, but contracts have been signed and financing is being secured.

WHY IS CHINA HELPING BUILD MORE REACTORS THERE?

Converging foreign policy and commercial motives appear to be driving China’s decision.

Pakistan is a long-standing partner of China, and Beijing believes it is important to back Pakistan to counter Indian regional dominance. It is also wary of growing U.S. sway across South Asia.

Pakistan faces increasing power shortages, and demand is likely to keep growing quickly as the country’s population expands.

There’s also a commercial pull, said Mark Hibbs of the Carnegie Endowment for International Peace. Chinese nuclear companies want to win foreign markets, and for now Pakistan is virtually the only “springboard” they have to hone their skills abroad and nurture the expertise that they hope will later find customers in other parts of the world.

ARE THERE NUCLEAR PROLIFERATION RISKS?

In theory, Pakistan could at some later date take spent fuel from Chashma to reprocess for plutonium that could be used for nuclear weapons.

In practice, however, the International Atomic Energy Agency keeps safeguards at Chashma to prevent that happening, said Hibbs. China would keep control of the spent fuel to ensure it is not at risk of diversion to weapons programs, he said.

“There would be no connection between the fuel and reactors provided by China and Pakistan’s nuclear weapons program,” he said.

SO WHAT ARE OTHER GOVERNMENTS WORRIED ABOUT?

Some of the worry is about Pakistan, and some is about the integrity of nuclear non-proliferation rules. There are those, including many commentators in India, who say Pakistan is so dogged by instability and militant pressures that it should not receive nuclear technology, which could be the target of attacks.

Also, leading Pakistani nuclear scientist A.Q. Khan was an important illicit broker of nuclear technology to Iran, Libya and North Korea, and critics say that is another reason to worry.

The more broadly shared worry is that, however safe Chashma may be, expanding the nuclear complex there could be a fresh blow to the integrity of nuclear non-proliferation rules.

Pakistan and India have nuclear weapons, and both countries refuse to join the Nuclear Non-Proliferation Treaty, which would oblige them to scrap those weapons.

The NPT rules say that if countries not authorized to possess nuclear weapons want to receive nuclear materials from countries adhering to the Treaty, they should accept comprehensive safeguard agreements for their nuclear activities.

WHAT CAN THEY DO?

For now, the main arena for addressing this issue is the Nuclear Suppliers Group, a 46-member body that seeks to ensure nuclear exports are not diverted to non-peaceful purposes.

To receive nuclear exports, nations that are not one of the five officially recognized atomic weapons states must usually place all their nuclear activities under the safeguards of the International Atomic Energy Agency, say NSG rules.

When the United States sealed its nuclear agreement with India in 2008, it won a waiver from that rule from the NSG after contentious negotiations. Washington and other governments have said China should at least seek a similar exemption for the planned reactors in Pakistan.

But there is little likelihood of all 46 member governments of the NSG voting in favor of a waiver, and this is a group that operates by consensus, said Hibbs.

(Reporting by Chris Buckley; Editing by Sanjeev Miglani)

Filed Under: International News Tagged With: Asif Ali Zardari, Atomic Energy Agency, Carnegie Endowment For International Peace, Chinese Companies, Commercial Motives, Foreign Markets, international atomic energy, International Atomic Energy Agency, Mark Hibbs, nuclear proliferation, nuclear weapons, plutonium, Power Shortages, Pressurized Water Reactor, Proliferation Risks, reactors, reuters, safeguards, south-asia, springboard

Yuan depegging long-term positive

June 21, 2010 By vani Leave a Comment

(Reuters) – China’s decision to end the yuan’s nearly two-year peg against the dollar will boost its stock market heavyweights, as it heralds a long-term yuan appreciation based on robust productivity growth and aids an economic adjustment toward less reliance on exports.

China

All major sectors in China’s stock market — from airlines and banks to property and investment firms — are set to gain in the short or long term. Assets of Chinese companies, almost exclusively denominated in the yuan, stand to appreciate along with the value of the currency.

Exporters will be the main losers as they will find it more difficult to sell outside China.

But that may not be bad news for the economy as Beijing adjusts its economic mix to become less reliant on exports. Foreign trade, both exports and imports, typically accounted for two-thirds of gross domestic product until the peak of the global financial crisis in 2008.

Exporters are no longer the mainstream stock market sector and the impact of losses in such stocks will have only a limited impact on the overall market.

“The yuan’s appreciation is an indisputable trend in the long run, and it will be a great boost to China’s stock market by helping to improve China’s economic structure,” said Cao Xuefeng, senior analyst at Western Securities in Chengdu.

“Weak global economies and China’s rising costs of labor mean China will no longer be able to rely on exports as its engine for growth. Consequently, domestically focused companies, such as banks and investment firms, will be favored.”

Shares in China’s top three airlines — Air China, China Eastern and China Southern — are expected to rise in the short term due to cost reductions, as their main operating costs are aircraft purchases overseas.

LARGE-CAPS

Banks, such as Industrial and Commercial Bank of China, the world’s biggest bank by assets, are seen rising in the medium term as their huge volume of yuan assets will appreciate in line with the rise in the currency. Land and property stocks will benefit from expectations of yuan appreciation in the long run.

The yuan reform could therefore be a pleasant surprise for foreign firms, such as Standard Chartered Bank, which plans to tie up with Agricultural Bank of China as China’s third-largest bank prepares for an initial public equity offer in Shanghai and Hong Kong this month.

Other winning sectors include heavy importers of raw materials, such as paper makers, and investment firms, which will get a boost from government moves to boost domestic consumption to compensate for the smaller portion of exports in the economy.

But the boost to the stock market will likely be gradual, as China will control the pace of appreciation in the near term to deter speculative “hot money” inflows betting on the yuan’s rise.

The spot yuan rate is expected to move in narrow daily ranges of at most 50 pips in the coming weeks, if not months. That will still be much larger than movements of one or two pips a day since July 2008, when China repegged the yuan to the dollar to soften the impact of the global financial crisis on its economy.

Cumulatively, the yuan can be expected to appreciate 3 percent in about six months and 5 to 6 percent in a year, in line with the progress of China’s economic growth. These levels are not enough to push the value of major Chinese companies, such as banks, sharply higher during those periods.

The Chinese stock market’s benchmark Shanghai Composite Index, which has moved in a narrow range between 2,500 and 2,600 points since the start of this month, may not be able to break out of that band soon. Sentiment has been weakened by official steps to cool the property market and worries that the euro zone debt crisis will slow the economic recovery.

“The initial impact of the yuan reform will be limited as everybody in this market knows the process will be gradual,” said Qian Qimin, analyst at Shenyin & Wanguo Securities in Shanghai.

“The market will largely move in line with developments in other factors, such as the government’s property cooling steps, until yuan appreciation has reached a degree where it has a big enough impact on the overall economy.”

Filed Under: International News Tagged With: Air China, Aircraft Purchases, Bank Of China, China china, China Eastern, China southern, Chinese Companies, commercial bank of china, Currenc, Economic Adjustment, Economic Mix, Exports And Imports, Global Economies, global financial crisis, industrial and commercial bank of china, investment firms, market sector, Productivity Growth, Term Assets, Three Airlines

Nigerian Sunrise offers $4.8 bln Exxon JV stakes -FT

June 16, 2010 By vani Leave a Comment

(Reuters) – Nigerian energy company Sunrise has offered $4.8 billion to buy a stake in Exxon Mobil’s (XOM.N) joint venture in the country, the Financial Times said, citing people familiar with the matter.

Energy

The company is aiming at a 29 percent stake in the venture — with estimated reserves of 1.6 billion to 2 billion barrels and potential for more — in which Exxon holds a 40 percent stake and the rest by the Nigerian government, the paper said.

While the government is willing to part with a 19 percent stake in the venture, Sunrise is said to be attempting to gain an additional 10 percent from Exxon.

Exxon could not immediately be reached for comment by Reuters, outside regular U.S. business hours.

Sunrise has previously acted as representative for CNOOC Ltd (0883.HK)(CEO.N), China’s no. 3 oil and gas producer, one of several Chinese companies engaged in discussions with Nigeria about Beijing’s search for proven reserves. (Reporting by Antonita Madonna Devotta in Bangalore)

Filed Under: International News Tagged With: BEIJING, Business Hours, Chinese Companies, Cnooc Ltd, Energy Company, Exxon, Exxon Mobil, Financial Times, gas producer, Hk, joint venture, jv, Madonna, Nigeria, Nigerian government, oil and gas, Percent Stake, reuters, Sunrise, Xom

China avoids commitment to U.S. on currency

May 24, 2010 By vani Leave a Comment

China struck a conciliatory note on Monday by promising to spur its domestic demand at the opening of Sino-U.S. talks, but it avoided specific commitments, including on whether to allow its currency to appreciate.

The United States, which has called for a stronger Chinese exchange rate, also treaded softly on the subject as the two sides held their second Strategic and Economic Dialogue, welcoming Beijing’s long-standing pledge to reform the yuan.

Chinese President Hu Jintao, speaking at the opening session, said the two global powers needed to enhance economic policy coordination and work together to promote “full economic recovery”.

The world’s biggest and third-biggest economies are seeking to steady relations after a burst of tensions early this year, and while Hu broke no new ground on the currency dispute that has divided them, he set an amicable tone for the two days of talks.

“China will continue to steadily advance reform of the renminbi exchange rate formation mechanism following the principles of being independent, controllable and gradual,” he said. The renminbi is another name for the yuan.

Hu said his government wanted to expand domestic demand to create more balanced growth, something that Washington — worried about its yawning trade deficit with China — has also advocated.

At the meeting, U.S. Treasury Secretary Timothy Geithner appealed to Beijing to work together to reduce trade barriers and develop a more balanced global economy.

He indirectly urged China to ease up on its “indigenous innovation” policies aimed at giving Chinese companies a larger share of new cutting-edge technologies developed in China.

On the yuan, which has been effectively pegged to the dollar since the global financial crisis worsened in mid-2008, Geithner said the Chinese government was moving in the right direction.

“We welcome the fact that China’s leaders have recognized that reform of the exchange rate is an important part of their broader reform agenda,” he said.

Trying to press the case that yuan appreciation would be in China’s own interest, Geithner said that a more market-driven exchange rate would help suppress inflation while also driving private firms to move up the value chain.

PRESSING NORTH KOREA

The vows of closer economic coordination were partly offset by U.S. Secretary of State Hillary Clinton’s effort to coax China into joining international pressure on North Korea after South Korea found it responsible of torpedoing its warship in late March, killing 46 sailors.

China is the sole major backer of North Korea, and has not publicly criticised Pyongyang over allegedly sinking, instead issuing broad calls for restraint. Earlier this month, China hosted the North’s leader, Kim Jong-il, on a visit.

“We must work together to address this challenge and advance our shared objectives for peace and stability on the Korean peninsula,” Clinton told the meeting.

Tensions flared between Beijing and Washington in the first months of 2010, when China denounced U.S. criticism of its Internet censorship, Washington’s arms sales to Taiwan, and President Barack Obama’s meeting with the Dalai Lama, Tibet’s exiled leader.

Beijing considers Taiwan a part of its territory, and Hu said on Monday that it was important countries respected one another’s sovereignty.

Beijing officials have said they want only “quiet discussion” of U.S. complaints that the Chinese currency is held too low in value, giving Chinese manufacturers an unfair advantage.

The Obama administration so far appears willing to go along in the hope a quieter approach will give Beijing more political space to let its currency appreciate.

Zhang Xiaoqiang, vice chairman of the National Development and Reform Commission, told a news conference that the euro, not the yuan, had come up for discussion in the opening session of the dialogue. China’s “basic principles” of exchange rate policy were unchanged, he said.

China’s main official newspaper, the People’s Daily, on Monday repeated the government’s position that a rise in the yuan would not help the U.S. economy anyway.

The annual U.S. trade deficit with China fell to $226.8 billion in 2009, down from a record $268.0 billion in 2008. But the Obama administration is keen to lift exports, and the deficit remains a point of friction with Beijing.

U.S. officials have sought to concentrate attention on policies they claim may unfairly impede U.S. companies hunting for customers in China.

(Additional reporting by Chris Buckley; Editing by Nick Macfie and Ken Wills)

Filed Under: International News Tagged With: Chinese Companies, chinese government, Chinese president hu, cutting edge technologies, economic dialogue, Economic Policy Coordination, Formation Mechanism, global economy, global financial crisis, Global Powers, Hu Jintao, Innovation Policies, Moving In The Right Direction, new ground, Renminbi Exchange Rate, timothy geithner, Trade Deficit With China, treasury secretary, U S Treasury, Yuan Hu

Ramesh told not to exceed his brief, won”t resign for now: Sources

May 13, 2010 By vani Leave a Comment

New Delhi, May 13 (ANI): Environment and Forests Minister Jairam Ramesh is unlikely to resign from the Union cabinet for the moment, but has been told by the Congress leadership not to overstep his brief.

The reported dressing down comes a day after he met Union Home Minister P.Chidambaram for about ten minutes to explain his stance on the controversial comments that he made in China with regard to the Indian Home MInistry.

Some sources had said earlier that the minister had offered to step down when he met Prime Minister Manmohan Singh on Monday, but others in the ministry and in the Congress have said that this is incorrect and added that Ramesh has no plans to quit.

Last week, Ramesh said the Home Ministry”s policies towards Chinese companies were “alarmist” and “paranoid”, and he had to explain his stand to the Prime Minister and to Sonia Gandhi.

Ramesh”s remarks were made in the context of a company named Huawei Technologies, which is a major manufacturer of telecom equipment, which has been lobbying to operate in India.

Ramesh is a Rajya Sabha member from Andhra Pradesh and his term in the Upper House of Parliament comes to an end next month. The Congress leadership in Andhra Pradesh is reportedly reluctant to re-nominate him in the wake of his refusal as a minister to give permission and environment clearance to build a memorial for former chief minister Y.S. Rajashekhara Reddy in a forest area where his chopper went down on September 2 last year. (ANI)

Filed Under: International News Tagged With: Chief Minister, Chinese Companies, Congress Leadership, controversial comments, Environment Clearance, forest area, home ministry, House Of Parliament, huawei technologies, jairam ramesh, manmohan, Manmohan Singh, prime minister manmohan, Prime Minister Manmohan Singh, rajya sabha member, Sonia Gandhi, Telecom Equipment, union cabinet, Union Home Minister, upper house of parliament

US keeping close watch on China’s offer to build nuke power plants in Pak

May 11, 2010 By vani Leave a Comment

Washington, May 11 (ANI): Stressing that countries must respect their individual non-proliferation commitments, the United States has said that it is closely observing China’s offer to build two nuclear power plants in Pakistan.

Speaking during a forum at the Brookings Institution, US Deputy Secretary of State James Steinberg said Washington is concerned about proliferation issues and is studying China’s offer to assist Pakistan with nuclear reactors, adding that Washington has not taken any final decision in this regard.

“The United States has not reached a final conclusion. But it”s something we”re obviously looking at very carefully,” The News quoted Steinberg, as saying.

“I think it”s important to scrupulously honour these non-proliferation commitments. We”ll want to continue to engage on the question, about whether this is permitted under the understandings of the International Atomic Energy Agency (IAEA),” he said in reply to a question.

China had earlier built two reactors for Pakistan. But in 2004 Beijing entered the Nuclear Suppliers Group, an association of nuclear energy states that forbids exports to nations lacking strict safeguards set up by the IAEA.

China began building a nuclear reactor in Chashma in Pakistan”s Punjab province in 1991 and work on a second reactor began in 2005, which is expected to be completed next year. Under the new agreement, Chinese companies will build at least two new 650-MW reactors at Chashma, a media report had said last month. (ANI)

Filed Under: International News Tagged With: Atomic Energy Agency, brookings institution, Chinese Companies, Close Watch, deputy secretary, Energy States, final decision, international atomic energy, International Atomic Energy Agency, international atomic energy agency iaea, james steinberg, non-proliferation, nuclear energy, nuclear power plants, nuclear reactor, nuclear reactors, nuclear suppliers group, proliferation issues, punjab province, safeguards

Congress ticks off Jairam Ramesh for comments on Home Ministry

May 10, 2010 By vani Leave a Comment

New Delhi, May 10 (ANI): Congress Spokesperson Abhishek Manu Singhvi on Monday criticized Minister of State for Environment and Forests Jairam Ramesh for his alleged comments in China on the Home Ministry.

“It was not proper for Jairam Ramesh to comment on another ministry. He should have not made those comments,” said Singhvi.

“Prime Minister Dr Manmohan Singh has made his displeasure clear to the Union Minister,” he added.

Further lashing out at Ramesh”s comments, Singhvi said: “We don”t approve of the comments made by Jairam Ramesh. Yes, as a party, we disapprove his comments.

Meanwhile, the Bharatiya Janata Party (BJP) has sought an explanation from the Prime Minister on the whole issue.

“Lobbyists have entered the Union Cabinet. Prime Minister must reign in his ministers and give an explanation on the whole issue,” said a BJP leader.

Dr Singh reportedly spoke to Ramesh over his critical comments.

PMO sources said Dr Singh asked Ramesh not to comment on the functioning of other ministries.

On a visit to China this weekend at an international conference on climate change, Ramesh embarrassed his own government by using words like ”alarmist” and ”paranoid” for the Home Ministry”s policies on the entry of Chinese companies in India. (ANI)

Filed Under: International News Tagged With: bharatiya janata party, bjp leader, Chinese Companies, climate change, companies in india, Critical Comments, displeasure, Dr Singh, Dr. Manmohan Singh, home ministry, lobbyists, manmohan, Manmohan Singh, manu, minister of state, New Delhi, Ramesh, spokesperson, union cabinet, Union Minister

China’s plan to build two nuclear plants in Pakistan worries Washington: Report

April 29, 2010 By vani Leave a Comment

London, Apr.29 (ANI): In what could severely impede the United States’ efforts towards nuclear non-proliferation, China has reportedly agreed to help Pakistan build two nuclear reactors.

According to a report in The Financial Times, Chinese companies and officials in Islamabad have confirmed the deal, which is yet to be made public by Beijing.

China began building a nuclear reactor in Chashma in Pakistan”s Punjab province in 1991 and work on a second rector began in 2005, which is expected to be completed next year. Under the new agreement, Chinese companies will build at least two new 650-MW reactors at Chashma, the report said.

It quoted a Pakistani government official privy to the discussions with China over the issue as saying : “Our Chinese brothers have once again lived up to our expectations. They have agreed to continue cooperating with us in the nuclear energy field.”

Diplomats in China said that though Beijing has given its formal approval to the deal, there could still be last-minute hitches in the talks between the two governments.

Analysts believe that China’s overtures to Pakistan were primarily because of political reasons, as it wanted to help its ‘old ally’ after the US snubbed Islamabad’s demand for a India like civil nuclear deal.

“China had decided to go ahead with the deal because for political reasons it felt Pakistan should be compensated in some way for the US-India nuclear deal,” the newspaper quoted Mark Hibbs, senior associate at the Carnegie Endowment for International Peace”s nuclear policy programme, as saying.

“After the dust settled on the US-India nuclear deal, China gravitated towards a position that it will support nuclear commerce if it benefits Chinese industry,” Hibbs added.

It is worth mentioning that the deal between Washington and New Delhi had facilitated nuclear co-operation, even though India has not signed the Nuclear Non-Proliferation Treaty (NPT).

Hibbs also pointed out that while the White House is concerned over the deal keeping in mind Pakistan’s history of nuclear proliferation, it can not do much as it wants keep Pakistan engaged in Afghanistan and garner Beijing’s support over Iran’s nuclear programme.

He is said that it was difficult for the Obama Administration to oppose the deal between Pakistan and China as it has a similar accord with India. (ANI)

Filed Under: International News Tagged With: beijing china, Carnegie Endowment For International Peace, Chinese Brothers, Chinese Companies, Chinese Industry, energy field, Financial Times, Formal Approval, Mark Hibbs, Minute Hitches, nuclear commerce, nuclear deal, nuclear plants, Nuclear Policy, nuclear reactor, nuclear reactors, overtures, Pakistani Government Official, punjab province, Senior Associate

China’s Sany Heavy, Yitai Coal plan $1 billion HK IPOs

April 26, 2010 By vani Leave a Comment

(Reuters) – China’s Sany Heavy Industry Co Ltd and Inner Mongolia Yitai Coal Co announced Hong Kong initial public offerings that could raise more than $1 billion each as mainland firms increasingly tap Hong Kong for funds.

Deals | China

Sany Heavy (600031.SS) said it would sell H-shares totaling up to 15 percent of its expanded capital, which would be worth up to about 8.5 billion yuan ($1.25 billion) at its current market value. The company gave no fund-raising target.

The Shanghai-listed construction machinery maker, which earlier this year announced plans to invest $200 million in a manufacturing base in Brazil, said the funds would be used to expand production capacity and overseas operations, as well as to upgrade technology.

It said the share sale received shareholder approval but still required the green light from regulators.

Inner Mongolia Yitai Coal Co (900948.SS) said its planned Hong Kong initial public offering would fund the purchase of 8.45 billion yuan of coal assets from its parent company.

The issue of H shares would be worth at least 15 percent of its expanded capital, it said in a statement.

A source close to the deal had said in January that the coal production and transport company aimed to raise about $1 billion in a Hong Kong IPO in the second or third quarter of this year.

Chinese companies are taking advantage of a buoyant Hong Kong market to sell shares, with banks particularly keen to raise funds in the city as they seek to replenish their capital after a lending spree.

Sany Heavy’s Shanghai-listed yuan-denominated A shares rose 0.3 percent in early trade while Yitai Coal’s Shanghai foreign-currency B shares were up 3.2 percent, compared with a 0.2 percent drop in the benchmark Shanghai Composite Index .SSEC.

(Reporting by Samuel Shen and Edmund Klamann; Editing by Jonathan Hopfner)

Filed Under: International News Tagged With: Chinese Companies, Coal Assets, Coal Co, coal production, Construction Machinery, Current Market Value, Foreign Currency, Heavy Industry, Hong Kong Ipo, Industry Co Ltd, Initial Public Offering, Initial Public Offerings, inner mongolia, overseas operations, reuters, Sany, Shanghai Composite Index, Shareholder Approval, target, transport company

Investindustrial to boost Asia sales, sell companies

April 12, 2010 By vani Leave a Comment

(Reuters) – European investment group Investindustrial plans to boost sales in Asia by two-thirds to $1 billion in three years and aims to sell its portfolio companies to Chinese firms eager to expand overseas, its President Filippo Aleotti said.

Investindustrial, whose portfolio companies posted $600 million in sales in Asia, a tenth of global revenue, is setting up regional headquarters in Shanghai to tap robust economic growth in China.

“Our role is to bring Italian, Spanish companies into China, and later we can do exactly the opposite, as Chinese companies are having expansion abroad,” Aleotti said in a recent interview.

Unlike major buyout firms such as Blackstone Group (BX.N) and Carlyle Group CYL.UL, Spain-based Investindustrial was founded in 1990 out of an industrial conglomerate, and its investment focuses on Italian and Spanish industrial- and retail-related companies.

Investindustrial, whose investors include U.S. and European pension funds, endowments and several sovereign funds, manages $3 billion in four private equity funds, and has 15 companies in its portfolio.

Although the Shanghai office is just established, Investindustrial entered China in 2001 when its unit Italmatch started business in the country as a local phosphorus supplier, Aleotti said.

Currently, Investindustrial has four subsidiaries operating in China, including Italmatch, Permasteelisa, Polynt and Ducati.

“The rest of the world is in a low-growth environment,” Carl Nauckhoff, Investindustrial’s principal said in the same interview. “In China, you have growth here, a lot of expertise, and technology is catching up very fast.”

(Reporting by Samuel Shen and Jacqueline Wong)

Filed Under: International News Tagged With: Blackstone Group, Carlyle Group, Chinese Companies, chinese firms, economic growth in china, European Investment Group, European Pension Funds, growth environment, Industrial Conglomerate, Investindustrial, jacqueline wong, Polynt, Portfolio Companies, Private Equity Funds, Regional Headquarters, related companies, reuters, Robust Economic Growth, Shanghai Office, Spanish Companies

A Return Rate of 7000% — A Miracle Made by Chinese Online Game Companies

April 3, 2010 By vani Leave a Comment

BEIJING–(Business Wire)–
7000% may be a dream return rate for every investor but it did happen, right in
China`s game industry: in 2003 Softbank invested in Shanda and was rewarded with
a return rate as high as 1400%; in September 2006, Softbank SAIF made an
investment of $ 8 million in Perfect World, and within a year was paid back with
70 times of what they poured in a year ago. With the IPO of Perfect World in
July 2007, the shares they bought were then valued as $ 560 million. Thereafter,
many investors hold that with a good eye and perhaps a bit of luck, it is not
impossible to reap up a return of dozens even hundreds of times of return in
China`s online game market.

Chinese’ passion for start-ups brings up many companies with great potential

The Chinese may be one of the most passionate about start-ups. This is
especially the truth when it comes to online games, an industry which has an
abundance of opportunities. Many, for example Shang Jin (Qilin Games) and Wang
Feng (Linekong), chose start-up as a way for self-fulfillment after their
initial success or acquisition of certain resources. Shang and Wang, as well as
many others blessed with capital or resources, founded businesses that prove to
be of great potential for investors.

According to “Report on China`s Game Industry 2009″, there are approximately 750
game development companies in China; in 2009, China boosted a revenue from
online games amounting to $40 billion, 39.4% higher than 2008; those games
developed by the Chinese record a revenue of $2.4 billion, or 64.5% of the
total, and a 50.1% increase compared with the previous year. In the same year,
64 “made-in-China” online games developed by 29 Chinese companies were sold to
over 40 countries and districts around the globe, with revenue of $109 million,
up 53.9% compared with 2008. Moreover, during the same period of time, mobile
game sales reached $100 million, a 25% increase. The number of online game
players grew to 65.87 million, with an increase of 33.46% while the number of
those paid players reached 37.15 million, an increase of 22.1%.

These statistics indicate that there are already a number of game enterprises in
China, which boosts the largest population of game players but few of them are
listed companies. This is due to, on the one hand, the absence of appropriate
listing mechanism for them, and on the other hand, the lack of knowledge for
investment and financing by the company owners and executives. As it is
commented by Victor Huang, Vice President of China Renaissance, now there should
be timely and effective communication between the capital market and digital
entertainment market, through which the two sides will better know one another
and in turn, to seek more opportunities for cooperation.

As revealed by Mr. Hugo Shong, founding partner of IDG Capital Partners, in the
CGBC Summit Forum in 2009, games developed by the Chinese saw an increase in
their sales of over 60% that year. In fact, Chinese online game companies are
becoming more and more valuable for investors with the introduction of Start-up
Board in China and the increase of exits for the industry.

With proper funding and guidance from investing and financing organizations,
these online game companies are able to see how far they can go, which in terms
of economics of course is what return rate they can achieve–7000% is by no
means a fairy tale. Actually, this fast growing industry has already attracted
funding from many enterprises dealing with production and manufacturing, for
example, businessmen from Zhejiang invested in Shendiao Online and Delixi funded
in Uqu. They are clear proof that online game industry is to become the next
“star” in investment.

CGBC I&F Forum, a fast track for talks between capital and enterprises

China Game Business Conference (CGBC), which is held along with ChinaJoy, has
held “Investment and Funding Forum” for the past four years and this year it
will continue to be an important part of the conference. For 2010, CGBC, in
partnership with China Renaissance Capital Partners which has been awarded “New
Investment Bank of the Year” for four consecutive years, will send its
invitation to investors across the globe to find their opportunities in CGBC.

Every year, hundreds of medium and small sized game companies (with employees of
fewer than 150) come together at ChinaJoy. These three conferences, ChinaJoy,
CGBC and CGDC, are not only a festival to celebrate their success, but also a
market for them to seek business opportunities: they show themselves, talk with
investors and look for the right one who would believe in their potential and
pour in money. It is through this capitalization that they will find the fast
track to success. Any of them may have the chance, with such support, to
flourish, to get listed in a few years and become the next legend to tell about
online game investment.

No wonder someone joked that deals worth millions of dollars may be born just
like that, right in the cafe outside ChinaJoy/CGBC/CGDC.

For more information, please visit http://www.chinagbc.com.cn

Subject solicitation (with prizes)—–

http://www.chinagbc.com.cn/YiTiZhengJiList.aspx

About CGBC

China Game Business Conference (CGBC) is the largest and most distinguished
business event in China’s game industry and its related industries. It is held
in late July annually at Shanghai International Conference Center simultaneously
with ChinaJoy. Through seven years’ rapid and sustainable development with
China’s game industry and its related industries, CGBC has become an optimal
platform for discussions, education, exchanges and networking centering on the
development of China’s game industry. The forthcoming CGBC 2010 will continue to
expand its scale and scope to include the Summit Forum, the SNS & Social Game
Forum, the Investment & Financing Forum, the Media Marketing Forum, the
International Cooperation Forum, the Webgame Forum, the In-game Advertising
Forum, the Mobile Internet Entertainment Forum, the Serious Game Forum.

http://en.chinagbc.com.cn/

Photos/Multimedia Gallery Available:

http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6236643〈=en

Howell International
For speaker and sponsor inquiries, please contact:
Mr. Joe Liu
Tel: +86-10-51659355 ext. 13
Fax: +86-10-87732633
E-mail: joe_liu@howellexpo.com
or
For coupon inquiries, please contact:
Ms. Phoebe Liu
Tel: +86-10-51659355 ext. 32
Fax: +86-10-87732633
E-mail: phoebe_liu@howellexpo.com

Filed Under: International News Tagged With: Beijing Business, boosts, Chinese Companies, ENTERPRISES, Game Companies, Game Development Companies, Game Industry, Game Market, Game Sales, Good Eye, great potential, Initial Success, investors, Online Game, Perfect World, Qilin, resources, Saif, Self Fulfillment, Shanda, Softbank, Start Ups, ups, Wang Feng

SBI says it plans to list in Hong Kong

April 3, 2010 By vani Leave a Comment

TOKYO, April 2 (Reuters) – SBI Holdings Inc (8473.T) said it plans to list in Hong Kong, as the Japanese financial services company looks to expand its China business.

Financials

SBI, which operates brokerages and an asset management unit, along with banking and insurance services, has set up a team to prepare for the listing, company spokeswoman Miho Uratani said on Friday.

“We are working on changing our accounting standards to meet international standards,” Uratani continued, adding that the timing of the listing has not been decided.

SBI has also not decided whether it will sell new shares at the time of the listing or which underwriters it will use for the process.

SBI has various funds, including the New Horizon Fund, that invest in Chinese companies. (Reporting by Junko Fujita)

Filed Under: International News Tagged With: accounting standards, asset management, brokerages, business, China Business, Chinese Companies, company spokeswoman, Financial Services Company, Fujita, Hong Kong, horizon, insurance, Insurance Services, invest, management unit, Miho Uratani, New Horizon, reuters, sbi, shares, Tokyo, underwriters

Chinese factories supplying new ”legal highs” to Brit dealers

March 29, 2010 By vani Leave a Comment

London, Mar 29 (ANI): A new probe into “legal highs” has found that Chinese chemical factories are supplying drugs like mephedrone and methylone to British dealers.

The investigation also uncovered plans to outsmart the British authorities if they ban the drug mephedrone.

Shot with a hidden camera, the investigation was conducted by Sky News’ film crew, who posed as customers and managed to buy legal highs in shops, markets and from online dealers.

Media attention has focused on mephedrone after the drug was linked to several deaths in recent weeks.

However, Sky”s investigation discovered an entire new generation of chemical highs including substances such as methylone, butylone and MDPV.

All these drugs mimic the effects of other, better known drugs such as cocaine and ecstasy.

They are freely available with no legal consequences, though to avoid prosecution most dealers describe them as “plant food” or label them “not for human consumption.”

Toxicologist Dr John Ramsey said that we are witnessing a revolution in the drug trade.

“We”re seeing 10 or 11 new compounds every year coming out now,” Sky News quoted him as saying.

“While they”re legal they”re really quite attractive for young people. They can experiment without the risk of getting a criminal record. The problem is, we don”t know what the risks are. They”ve never been tested anywhere for safety,” he added.

It is understood that Chinese chemical companies are supplying most dealers, said Ramsey.

“The Chinese chemical industry seems to provide anything at a price. So if somebody here orders something they”ll either synthesize it or have it in stock, and they”ll send it regardless of what it”s to be used for,” he said.

A quick search online reveals dozens of Chinese companies ready to sell mephedrone, methylone, MDPV and other drugs in bulk, which can even be ordered at the click of a mouse and sent by courier to Britain. (ANI)

Filed Under: International News Tagged With: British authorities, Chemical Factories, Chinese Chemical, Chinese Companies, chinese factories, criminal record, dr john, ecstasy, film crew, Hidden Camera, Human Consumption, John Ramsey, legal consequences, Legal Highs, media attention, Methylone, News Film, Plant Food, sky news, toxicologist

China’s Xi promises Belarus $1 billion in loans

March 25, 2010 By vani Leave a Comment

China will loan the former Soviet republic of Belarus $1 billion on favourable terms, the man widely seen as China’s next leader told Belarussian President Alexander Lukashenko on Wednesday.

“China has taken a decision to grant Belarus favorable credits of $1 billion, which will be used for projects the nations have agreed upon,” Chinese Vice President Xi Jinping said at a meeting with Lukashenko.

Xi, seen as the frontrunner to succeed President Hu Jintao in 2013, gave no more details.

Lukashenko on Wednesday offered to give Chinese companies wider access to the $50 billion economy of Belarus, which exports potash to China.

(Reporting by Andrei Makhovsky; writing by Steve Gutterman; editing by Guy Faulconbridge)

Filed Under: International News Tagged With: 1 Billion, Alexander, alexander lukashenko, andrei, Belarussian President, China, Chinese Companies, chinese vice, economy, Favourable Terms, frontrunner, Hu Jintao, loans, potash, president alexander lukashenko, President Hu Jintao, Soviet Republic, Steve Gutterman, vice president, Xi Jinping

China, Afghanistan sign three deals to boost economic cooperation

March 25, 2010 By vani Leave a Comment

Beijing, Mar 25(ANI): Chinese President Hu Jintao and his Afghan counterpart Hamid Karzai have signed three deals, in which China has announced more investment in the war-torn country and pledged to continue aiding reconstruction efforts.

Jintao and Karzai, who is on a state visit to China, signed the deals on Wednesday, and it covers economic cooperation, technical training and the granting of preferential tariffs for some Afghan exports to China.

Afghan Foreign Minister Zalmai Rassoul said China has contributed tremendously in Afghan economic development, especially in infrastructure building.

Rassoul said Afghanistan welcomes more Chinese investment, and promised that the government will take necessary measures for the security of Chinese companies and nationals working in Afghanistan.

“There are some security issues. We are trying to deal with it and I hope the security situation will allow Chinese investment to operate without any risks,” The China Daily quoted Rassoul, as saying.

This is Karzai”s first visit to China since his re-election last year, and his fourth as Afghan President.

During his visit, he is also scheduled to meet top legislator Wu Bangguo and Premier Wen Jiabao. (ANI)

Filed Under: International News Tagged With: china daily, Chinese Companies, chinese investment, Chinese president hu, chinese president hu jintao, counterpart, economic cooperation, Foreign Minister, hamid karzai, Hu Jintao, legislator, necessary measures, President Hu Jintao, Rassoul, reconstruction efforts, security issues, security situation, tariffs, Wen Jiabao, Wu Bangguo

Universal Travel Group to Present at the Rodman & Renshaw Annual China Investment Conference

March 5, 2010 By vani Leave a Comment

SHENZHEN, China, March 3 /PRNewswire-Asia-FirstCall/ — Universal Travel
Group (NYSE: UTA) (“Universal Travel Group” or the “Company”), a growing
travel services provider in China offering package tours, air ticketing, and
hotel reservation services online and via customer service representatives,
today announced the Company’s management team will present at the upcoming
Rodman & Renshaw Annual China Investment Conference in Beijing, China.

The date, time and location of Universal Travel Group’s presentation at
the Rodman & Renshaw Annual China Investment Conference are as follows:

Date: Tuesday, March 9, 2010
Time: 12:20 PM Beijing Time, Ballroom I
Presenter: Philip Zhang, Chief Financial Officer
Venue: The Regent Hotel
99 Jinbao Street
Beijing, China

The Rodman & Renshaw Annual China Investment Conference is a three-day
conference that brings together executives from more than 130 U.S.-listed
Chinese companies. This event is designed to provide investors with access to
companies across a variety of sectors, including agriculture, auto, cleantech
& energy, consumer, retail, education, healthcare, industrial and technology.
The conference combines company presentations, management one-on-one meetings,
and daily networking opportunities over breakfast, lunch and cocktails to
provide institutional clients with extensive interaction with senior
management. Interested parties and investors who wish to meet with Universal
Travel Group’s management may contact Rodman & Renshaw.

About Universal Travel Group

Universal Travel Group is a leading travel services provider in China
offering package tours, air ticketing, and hotel reservation services via the
Internet and customer service representatives. The Company also operates
TRIPEASY Kiosks, which are placed in shopping malls, office buildings,
residential apartment buildings, and tourist sites. These kiosks are designed
for travel booking with credit and bank cards, and serve as an advertising
platform for Universal Travel Group. The Company’s headquarters and main base
of operations is in Shenzhen in the Pearl River Delta region of China. More
recently, Universal Travel Group has expanded its business into Western
China,
opening a second home base in the Chongqing Delta region, and other
attractive,
under-penetrated tier-two travel markets throughout the country. For more
information on the Company, please visit http://us.cnutg.com .

For more information, please contact:

Company Contact:
Mr. Jing Xie
Secretary of Board and Vice President
Universal Travel Group
Phone: +86-755-8366-8489
Email: 06@cnutg.cn
Web: http://us.cnutg.com

Investor Relations Contact:
CCG Investor Relations
Mr. Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com

Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com

SOURCE Universal Travel Group

Company Contact: Mr. Jing Xie, Secretary of Board and Vice President,
Universal Travel Group, +86-755-8366-8489, or 06@cnutg.cn; or Investor
Relations Contact: CCG Investor Relations, Mr. Athan Dounis, Account Manager,
+1-646-213-1916, or athan.dounis@ccgir.com; or Mr. Crocker Coulson, President,
+1-646-213-1915, or crocker.coulson@ccgir.com

Filed Under: International News Tagged With: beijing china, Beijing Time, Breakfast Lunch, china investment, china march, Chinese Companies, Company Presentations, Customer Service Representatives, energy consumer, Hotel Reservation Services, investment conference, Networking Opportunities, PRNewswire, Regent Hotel, Residential Apartment Buildings, Retail Education, Rodman Renshaw, Shenzhen China, shopping malls, Universal Travel

A&J Venture Capital Group, Inc. Receives Signed Agreement With Green Company China Honeycomb Ceramic

March 2, 2010 By vani Leave a Comment

DAYTONA BEACH, FLORIDA, Mar 01 (MARKET WIRE) —
A&J Venture Capital Group, Inc. (OTCBB: AJVE) is pleased to announce the
Company has Signed an agreement with China Honeycomb Ceramic a Green
company and will assist with the corporate planning and strategic growth
process for their listing on the OTCBB. For these services A&J Venture
Capital Group will retain an equity position of 4.5%.

Mr Andreas Klimm, CEO & President of A&J Venture Capital Group, stated,
“China has some of the world’s most polluted cities and is spending
billions annually to protect the environment. As their economy grows so
does the need for contract manufacturing of Honeycomb Ceramics products.
Honeycomb Ceramics is focused on the purification of automotive exhaust
gas and industrial emissions (waste gas). We expect to attract high
quality clients as we continue to develop appealing core competencies and
services that are customized for each client’s special needs.

About A&J Venture Capital Group

The business of A&J Venture Capital Group, Inc. is focusing on 3
directions. The first direction is the total or partial takeover of
Chinese SME’s with the scope of restructuring and improving their
performance through the thorough application of modern management
techniques. This is achieved through A&J Venture Capital Groups’ own
staff or through the development of the subsidiaries existent staff. A
dynamically tailored package of activities will lead the subsidiaries to
a development stage where they are viable to spin off candidates for
public listing. Second direction is the service provider for established,
fast growing and leading Chinese Companies. A&J Venture Capital Group,
Inc. is providing all services for going public and assist with locating
financing. Third direction is providing service for foreign Companies in
entering Chinese market and expanding their business.

Forward-Looking Statements

The statements in this Press Release are forward-looking statements that
are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve known
and unknown risks and uncertainties, which may cause our actual results
in future periods to differ materially from forecasted results. These
risks and uncertainties include, among other things, market competition,
and risks inherent in our operations. For a more complete discussion of
such risks and uncertainties, please refer to the company’s filings with
the Securities and Exchange Commission.

Contacts:
A&J Venture Capital Group, Inc.
Andreas Klimm
Office: +49 6221 7195661 or Mobile: +49 176 62953148
info@ajvcap.com
www.ajvcap.com

Filed Under: International News Tagged With: Automotive Exhaust, capital group inc, Ceo President, Ceramics Products, Chinese Companies, chinese market, core competencies, Corporate Planning, Daytona Beach Florida, Development Stage, Equity Position, Exhaust Gas, Honeycomb Ceramics, industrial emissions, Modern Management, Otcbb, polluted cities, Quality Clients, Venture Capital Group, Venture Capital Groups

As westerners flee, Chinese workers land in droves in turbulent Pakistan

September 12, 2009 By admin Leave a Comment

Islamabad, Sep.11 (ANI): Amid the exodus of foreign officials from Pakistan due to security fears, China has rather increased its involvement in the strife torn country.

According to an estimate the number of Chinese engineers has shot up dramatically to 10,000 in 2009 from 3000 in 2008.

Various Chinese companies are working on over 120 projects in different sectors across Pakistan.

Beijing’s focus is on the Gilgit-Baltistan region where it is involved in the construction of a 750-kilometer railway track linking the two countries, The Asia Times Online reports.

China’s increasing interest in Pakistan was highlighted recently when during a press conference Chinese Ambassador to Pakistan, Lou Zhaohui, stressed that Beijing was committed to complete all projects in Pakistan undertaken by it.

“A number of foreigners have left Pakistan, but we are committed to complete all the projects on which Chinese are working,” Zhaohui said.

Zhaohui also informed that Beijing has provided one billion dollars to Islamabad to enable it to fight the sagging economy and boost its foreign reserves.

“Pakistan is the only country in the world to which China has given such a huge amount on very low interest rate,” he said. (ANI)

Filed Under: International News Tagged With: Asia times, BEIJING, chinese ambassador, Chinese Companies, chinese engineers, chinese workers, different sectors, Droves, economy, exodus, foreigners, gilgit, interest rate, one billion dollars, Pakistan, Pakistan islamabad, Railway Track, security fears, Sep 11, strife, westerners