ChinaSecurities Blog Home

Archive for the ‘Posts – Alex Ba’ Category

Bloomberg: China to Invest $14.6 Billion in Wind Power by 2010

Posted by Alex Ba at 7:38 AM on Thursday, June 18th, 2009

Great article on Bloomberg recently.  China, the world’s second-biggest energy consumer, will invest about 100 billion yuan ($14.6 billion) to more than double its wind power capacity by 2010 from last year.

That is great news for alternative energy investors in general and wind power investors in particular.  According to a government official, China’s wind power capacity was the fourth-largest in the world last year.

In fact it is quite clear that China is getting serious about alternative energy for the long-term.  Why?  First , The government has allocated 210 billion yuan (~ $US 30 billion) for energy- saving and carbon-reduction projects under its 4 trillion-yuan economic stimulus package.

Second, last month, Han Wenke, the Head of Energy Research at the Planning Commission stated that China is drafting a long-term plan to develop renewable energy to replace coal and oil with cleaner-burning fuels.  Wenke added that details will be released “soon”.

Overall, this is a great article that includes more information on both the government and the private side of things. If you are interested in Chinese alternative energy companies, it is a must read.

To this end, you should also take a look at a post here on our blog by Matt Hayden titled “China’s Efforts To Be The Largest Renewable Energy Market In The World Provides Vast Opportunities For Investors.”

Regards,
Alex

Posted in China Stimulus, Investing, Posts - Alex Ba, Renewable Energy | No Comments »

China Regulators May Allow Companies To IPO Again

Posted by Alex Ba at 6:33 PM on Tuesday, June 2nd, 2009

According to this Yahoo Finance story, Chinese securities regulators recently signaled that they think the time is right to allow companies to raise capital in the market again. The story went on to say:

In China, companies need to obtain the green light from the China Securities Regulatory Commission (CSRC) before they can proceed with IPOs. That green light was switched off last September, after the Shanghai Composite Index had plunged 60% from the beginning of the year. Regulators believed that they had to take action to halt IPOs because battered investors were no longer able or willing to absorb new stock offerings.

It was the seventh time in the 20-year history of the Chinese stock market that regulators decided to suspend IPOs. Previous suspensions lasted from two months to a year.  Review the full Yahoo Finance story.

Regards,
Alex

Posted in Chinese Economy, Posts - Alex Ba | No Comments »

China Exporters Are Potential Beneficiaries of G20 Plan

Posted by Alex Ba at 10:21 AM on Friday, April 3rd, 2009

Marketwatch reported the following this morning:

“China’s exporters could be among the winners from a plan to bolster the International Monetary Funds’ war chest,
as agreed at the G20 meeting in London this week, with the funding seen as key in reviving demand among some of
the fastest-growing consumers of Chinese goods.”

The article cites the following factors:

  • Tripling of lending power to the IMF to around $750 billion
  • Plans to make $250 billion available to bolster trade financing
  • A $250 billion expansion in the IMF’s reserve currency

With 30% of China’s GDP growth reliant on exports and much of the above slated for developing nations that are important to China’s export industry, recover may now come even sooner than expected.

Finally, the apparent agreement of the G20 to avoid protectionist policies also serves as obvious good news for China.

Regards,
Alex

Posted in Chinese Economy, Posts - Alex Ba | No Comments »

The Entrepreneurs Who See Opportunity In Crisis

Posted by Alex Ba at 11:17 PM on Sunday, March 8th, 2009

Great article in Canada’s Globe & Mail about entrepreneurs who are seeing and creating opportunity out of today’s markets.  You can read the complete article here but here are some highlights:

  • That gung-ho attitude is common in Chinese business these days. China may be going through its sharpest downturn in years but many companies see it not as a disaster to moan about but an opportunity to seize.
  • Big Chinese resource companies are scouring the world for bargains. In one week last month, they spent nearly $60-billion (U.S.) to sew up supplies of iron ore, copper, zinc and oil.
  • The crisis is a chance for Chinese companies to mature, going beyond the low-tech, cheap-labour model that helped lift the country out of poverty. “Companies with good capabilities and determination can survive and even refine their skills for the better”.

Overall, an excellent article that is not only well worth the read but well worth considering.

Best Regards,
Alex Ba

Posted in Posts - Alex Ba | No Comments »