ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: China Economic News
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Business parks in Chengdu. One of which is jointly built by sembcorp.

http://business.asiaone.com/news/biomedi...difference
HKSE got another IPO, huge one. I suppose china companies will always prefer HKSE, SSE, etc ?

Bank of China taps banks for world's biggest aircraft leasing IPO: Sources

Bank of China has hired Goldman Sachs and BOC International as joint sponsors for a $3 billion Hong Kong listing of its aircraft leasing arm, people with knowledge of the matter said.
SINGAPORE: Bank of China has hired Goldman Sachs and BOC International as joint sponsors for a $3 billion Hong Kong listing of its aircraft leasing arm, people with knowledge of the matter said.
Bank of China plans to launch the IPO of Singapore-based BOC Aviation in the second quarter of this year, the people said, in what is set to be the world's biggest listing by an aircraft lessor.
The IPO comes as Asian lessors raise funds to challenge Western rivals in the nearly $217 billion global industry, with huge orders or acquisitions to service the world's fastest-growing aviation market. Rival CDB Leasing, owned by state-controlled China Development Bank, plans to raise $1 billion in another IPO set for the second-quarter 2016, the people said.
"There won't be any shortage of investors because they are looking at not just an aircraft leasing company (BOC Aviation) but at a company whose future is entrenched in Asia Pacific. It's a growth story," said Shukor Yusof, an analyst at Malaysian aviation consultancy Endau Analytics.
Morgan Stanley has been hired as joint global co-ordinator for the lessor's IPO, the people said, adding that the final deal value could change depending on market conditions and more banks could join the deal. The people declined to be identified because the information was not public.
BOC Aviation, formed after Bank of China's 2006 purchase of a firm formerly backed by Singapore Airlines Ltd, has grown to become Asia's second-biggest lessor with a portfolio of about 250 planes valued at $9.4 billion, according to estimates from industry publication Flightglobal.
The lessor, which has an investment grade rating, has already tapped into different sources of financing, including offshore renminbi-denominated bonds.
Longer-term investors such as insurers and pension funds are warming up to the sector as aircraft leases offer fixed incomes and are often seen as safe transactions. Paid for in U.S. dollars, aircraft are comparatively easy to re-lease to different geographies.
"Investors should avoid airlines but aircraft leasing companies are among the best assets investors can go for because you are looking at returns of at least 12 to 13 percent a year," said Endau Analytics' Yusof.
BOC Aviation posted a 5 percent rise in net profit to a record $171 million in the first half to June 2015.
Goldman Sachs and BOC Aviation declined to comment.
Bank of China and BOC International, its investment banking unit, declined to comment, while Morgan Stanley was not available to comment.
China Aircraft Leasing is the only listed aircraft lessor in Asia, while the U.S. has a few listed sector players including AerCap Holdings NV and Air Lease Corp.
At least five Asian companies, including units of Sumitomo Mitsui Financial Group Inc and Industrial and Commercial Bank of China Ltd as well as BOC Aviation, now rank among the world's top 15 aircraft lessors, according to Flightglobal.
GECAS, a unit of General Electric Co and AerCap dominate the sector in which the top 50 lessors control a fleet of just over 7,800 planes valued at nearly $217 billion.

(Additional reporting by Shu Zhang in BEIJING; Editing by Lisa Jucca and Kenneth Maxwell)



http://www.channelnewsasia.com/news/busi...00768.html
Many funds are scared off from the market, due to fear... Big Grin

Shanghai fund manager dumps all holdings in 'insane’ market

SHANGHAI (Jan 7): A Shanghai fund dumped all its holdings as Chinese shares tumbled and triggered a circuit-breaker that halted trading in the world’s second-biggest stock market.

“This is insane,” Chen Gang, chief investment officer at Shanghai Heqi Tongyi Asset Management Co., said in an interview on Thursday. “We were forced to liquidate all our holdings this morning,” said Chen, whose firm manages about RMB300 million ($45.5 million).
...
http://www.theedgemarkets.com/sg/article...%99-market
It will bring further volatility into money market...

China to see a market-based yuan currency mechanism in 2016
07 Jan 2016 11:22
[BEIJING] China will continue to proceed with reforms to bring about a market-based yuan currency mechanism this year, the China Foreign Exchange Trade System (CFETS) said on Thursday.

The yuan was stable against a basket of other currencies in 2015, CFETS said in a statement published on its website.

It added that China has ample foreign exchange reserves while there is no basis for the yuan's continuous depreciation. Economic fundamentals will support the yuan in the long term.

REUTERS

Source: Business Times Breaking News
With so much intervention as we can plainly see in their stock market, which is an important part of financial system, it is unlikely China can go ahead with any reforms without causing a big deflation of their credit bubble.

Currency wise, they either have a really free market and see their currency crash down short term, or keep defending their yuan by drawing on their foreign reserves, which they have been trying to do these past few months ever since their devaluation mid last year cause shockwaves in their local markets.

It's just a fake front by them aiming for "free market" anything, in the end politically they are still communist, dun expect too much from them.

Haha time for me to say again, Japan 2.0
China Suspends Stock Circuit Breaker Rule, CSRC Says on Weibo

The China Securities Regulatory Commission's decision comes amid calls for circuit breakers to be suspended amid two halts this week after rule’s implementation and a widening of the yuan band.

Developing...
(07-01-2016, 10:48 PM)mkmk Wrote: [ -> ]China Suspends Stock Circuit Breaker Rule, CSRC Says on Weibo

The China Securities Regulatory Commission's decision comes amid calls for circuit breakers to be suspended amid two halts this week after rule’s implementation and a widening of the yuan band.

Developing...

testing new policies in a sinking market, they really have no idea what they are doing..
(07-01-2016, 11:40 PM)BlueKelah Wrote: [ -> ]
(07-01-2016, 10:48 PM)mkmk Wrote: [ -> ]China Suspends Stock Circuit Breaker Rule, CSRC Says on Weibo

The China Securities Regulatory Commission's decision comes amid calls for circuit breakers to be suspended amid two halts this week after rule’s implementation and a widening of the yuan band.

Developing...

testing new policies in a sinking market, they really have no idea what they are doing..

Maybe they "know", but then it turns out bad...

It is better to turn back then to persist with a mistake. Of course, the damage to confidence is done and that is something that is hard to come by.
Well wait see if their index go below 3000 again which was low point last year. No still above that but hitting soon.

They not turning back with the ssh policy yet leh, seems another 3 months ban to sell. Another dumping of stocks in 3 months time?

sent from my Galaxy Tab S