(07-01-2014, 09:40 AM)CityFarmer Wrote: [ -> ]YZJ's HTM investment is base on the trust company model with local banks. The guideline might mean that YZJ needs to find new venture for its RMB 12.5 billion fund.
China draws up new regulations to curb shadow-banking risks
BEIJING — China has published guidelines strengthening the regulation of risky off-balance-sheet lending in a new effort to address growing financial risks from an explosion in debt.
The State Council’s guidelines called for tighter regulation of banks’ off-balance-sheet lending and said trust companies, the biggest non-bank players in what is called “shadow banking”, should return to their original purpose as asset managers and not engage in “credit-type” business.
...
http://www.todayonline.com/business/chin...king-risks
Hi City Farmer,
The article if I read correctly, call for tightening of regulation, not an upright ban, which might not be a bad thing to the whole system...
Perhaps, the way out for YZJ is for them to get the banking license approved from Jiangsu government, there is no news as of yet, and also no formal announcement.
If indeed, they need to monetize their HTM investment, will they be forced to sell at loss/ or at whatever cost? Unlikely, as such wanton "cleansing" will do more harm than good.
Vested and biased
(07-01-2014, 11:54 AM)Greenrookie Wrote: [ -> ] (07-01-2014, 09:40 AM)CityFarmer Wrote: [ -> ]YZJ's HTM investment is base on the trust company model with local banks. The guideline might mean that YZJ needs to find new venture for its RMB 12.5 billion fund.
China draws up new regulations to curb shadow-banking risks
BEIJING — China has published guidelines strengthening the regulation of risky off-balance-sheet lending in a new effort to address growing financial risks from an explosion in debt.
The State Council’s guidelines called for tighter regulation of banks’ off-balance-sheet lending and said trust companies, the biggest non-bank players in what is called “shadow banking”, should return to their original purpose as asset managers and not engage in “credit-type” business.
...
http://www.todayonline.com/business/chin...king-risks
Hi City Farmer,
The article if I read correctly, call for tightening of regulation, not an upright ban, which might not be a bad thing to the whole system...
Perhaps, the way out for YZJ is for them to get the banking license approved from Jiangsu government, there is no news as of yet, and also no formal announcement.
If indeed, they need to monetize their HTM investment, will they be forced to sell at loss/ or at whatever cost? Unlikely, as such wanton "cleansing" will do more harm than good.
Vested and biased
Interbank lending and tri-party transactions involving trust companies, are two types of "shadow-banking" that have compromised the effectiveness of macro-economic and financial regulation. I will not surprise a ban on both of them, but not on existing arrangements but on new ones.
Having said so, trust loans accounted for 11 percent of total corporate fundraising, and any tightening of rule should not be an abrupt action, IMO. YZJ's HTM provides short-term loans, and able to recover in full within slightly more than one year. That enable it to react swiftly upon any market changes, and avoid any losses occurred.
One of the financial liberalizations is to bring in private capital into financial system. One possibility is establishing private banks to boost financial support for cash-starved SMEs. YZJ's HTM might transform itself from "shadow bank" into a private bank. As you already highlighted, banking license from Jiangsu government might be the 1st move. A RMB 12.5 billion fund is as big as a medium local bank in China, IIRC
I am optimistic on YZJ, not only on shipbuilding segment, but also the lending business segment, and property development segment.
(vested, and biased too)
Since it is relevant, I post the news here. Is YZJ part of the first batch of private banks? or among the 70 in later batches?
(vested)
China to allow fully private banks this year
[SHANGHAI] China will allow three to five fully private banks to be set up this year as part of efforts to further open up the sector, the banking regulator said.
At a work conference on Monday, the China Banking Regulatory Commission (CBRC) said it will allow private capital either to take part in restructuring existing banks or set up new ones at their own risk, according to a statement.
"The first batch of three to five private banks will be set up on a trial basis," the CBRC said, adding they will be approved when conditions are "mature".
Communist authorities retain a strong grip on the economy. At present almost all banks are state-owned, either at the national or local level, although some have floated minority stakes.
Senior bank officers must be approved by the CBRC.
The latest move is in line with a document released in November after a key Communist Party meeting at which Beijing pledged to open up its financial sector to both foreign and private capital.
But in a sign that controls would only be loosened so far, the regulator said the new entities would be subject to strict procedures and enhanced supervision.
So far nearly 70 private banks have won tentative approvals from China's industry and commerce authorities, the state-backed Securities Daily reported.
Companies keen to establish private banks include home appliance retailer Suning and Internet giant Alibaba, which has an existing third-party payment business division, state media said.
The CBRC also pledged gradually to relax restrictions on foreign capital entering the domestic banking sector and conducting yuan business. - AFP
Source: Business Times Breaking News
Oldendorff exercises option at Yangzijiang:
http://www.sinoshipnews.com/News/Oldendo...c2312.html
including this option exercised at 55 million, YZJ has 235 million new orders not announced since last announcement.
Not including the PPL order of 2 billion...
hmm... surprise party??
(27-01-2014, 09:59 PM)Greenrookie Wrote: [ -> ]rumors? Because the amount involved will be too big not to make announcement to sgx.
Yangzijiang wins $2bn of semi-sub orders
http://www.sinoshipnews.com/News/Yangzijiang-wins-$2bn-of-semi-sub-orders/3w3c2302.html
I am not able to verify the news. If it is true, than it is another milestone for the company. The company just started on the rig for shallow water, and the semi-sub drilling platform is for deeper water, which required higher skillset, and of course higher value-add.
I had accumulate more on the company shares around $1.1 per share, over the recent "market correction".
(vested)
(10-02-2014, 10:18 AM)CityFarmer Wrote: [ -> ] (27-01-2014, 09:59 PM)Greenrookie Wrote: [ -> ]rumors? Because the amount involved will be too big not to make announcement to sgx.
Yangzijiang wins $2bn of semi-sub orders
http://www.sinoshipnews.com/News/Yangzijiang-wins-$2bn-of-semi-sub-orders/3w3c2302.html
I am not able to verify the news. If it is true, than it is another milestone for the company. The company just started on the rig for shallow water, and the semi-sub drilling platform is for deeper water, which required higher skillset, and of course higher value-add.
I had accumulate more on the company shares around $1.1 per share, over the recent "market correction".
(vested)
Hi CF,
Amedeo Resources plc also confirm the 2+2 semi-sub drilling platform in their announcement.
Im tempted to act on this news but I am also very worried about the paring down of all the share from Xiangjiangjun.
Do you think this will be a Eratat replay? (touch wood..)
Arent you worried about the insider disposing all their shares?
Ken
(vested)
(10-02-2014, 04:02 PM)Ken123456 Wrote: [ -> ] (10-02-2014, 10:18 AM)CityFarmer Wrote: [ -> ] (27-01-2014, 09:59 PM)Greenrookie Wrote: [ -> ]rumors? Because the amount involved will be too big not to make announcement to sgx.
Yangzijiang wins $2bn of semi-sub orders
http://www.sinoshipnews.com/News/Yangzijiang-wins-$2bn-of-semi-sub-orders/3w3c2302.html
I am not able to verify the news. If it is true, than it is another milestone for the company. The company just started on the rig for shallow water, and the semi-sub drilling platform is for deeper water, which required higher skillset, and of course higher value-add.
I had accumulate more on the company shares around $1.1 per share, over the recent "market correction".
(vested)
Hi CF,
Amedeo Resources plc also confirm the 2+2 semi-sub drilling platform in their announcement.
Im tempted to act on this news but I am also very worried about the paring down of all the share from Xiangjiangjun.
Do you think this will be a Eratat replay? (touch wood..)
Arent you worried about the insider disposing all their shares?
Ken
(vested)
Hi ken,
Is Amedeo Resources a news website? I think the only reliable source is from the cilent itself, in this case PPL. News get copy here to there .
Hi Greenrookie,
Amedeo Resources Plc has hold indirect interest of 18.6% stake in
Jiangsu Yangzijiang Offshore Engineering. To be exact,they have 46.5% JV with YZJ, and the JV has a 40% stake in Jiangsu Yangzijiang Offshore Engineering.
The Semisub will be completed by 2016 and 2017. You can see here of the bottom two.
http://www.infield.com/rigs/manager/prim...d-gas-rigs
I remember reading somewhere that their Explorer I is ahead of schedule, therefore it may be very possible for new entrant like them.
However im curious why there was still no announcement make by YZJ. Either they take time to confirm the contact, can take weeks or this is just rumour. Another things is still why XiangJiaJun reducing his stake.
Ken