Commodities – China Finance Advisor

China’s Green Bonds

China has been the dominating figure in the “green” bonds around the globe for the last two years. This is an indication that they are trying to take on a larger role to contain climate change. By the end of November 2017, China was the leader in the green bond issuance with their 66 deals that raised $24.89 billion.

As Alban de Fay, a portfolio manager at Amundi Asset Management, said “China is one of the countries most exposed to pollution, particularly air pollution. Following the Paris 2015 United National Climate Change Conference, they have shown keenness to fight climate change.”

Learn more here.

Enhancing Food Production in Asia

Rabobank, a Dutch bank, wants its $1 billion program that they’ve launched with the UN to help with food production around the world and to help farmers across Asia to increase their productivity. The “Kickstart Food” program is intended to lend money to clients and partners around the world who can help farmers to increase their knowledge and production techniques.

As Diane Boogaard, the chief executive for Asia at Rabobank told the South China Morning Post, “We want to see an increase in agricultural productivity in a sustainable manner, and to reduce food waste in all agricultural supply chains across Asia to ultimately help Asian farmers make a living.”

She continued, “The programme is not a pure charity but it is a finance programme and network to help solve the world’s shortage of food. Our target is to increase food production by 60 per cent while reducing the sector’s environmental footprint by 50 per cent by 2050.”

China Heading for a Slump?

China may be in a slump, according to end of the year figures, raising fears that could influence the global commodity prices and damage British industry. China’s manufacturing sector showed a decline for the third consecutive month in October. Their service sector grew, but at the slowest pace that it has had since 2008’s financial crisis.

The expectations for the manufacturing sector was that the reading would be set at 50, while the actual number was 49.8, below the 50 mark which separates contraction from expansion.

As economists at ANZ Bank said, “As deflation risks intensify, a further RRR cut [the reserves a bank must hold against lending] before the end of this year is still possible.”

Read the entire report here.

China Finance Online Co. Limited Makes Announcement

In a recent press release China Finance Online Co. Limited, a leading web-based financial services company that provides Chinese retail investors with access to securities, commodities and wealth management products, announced that Changjiang Securities Company Limited (“Changjiang Securities”) has now joined their company. As Mr Zhao, the Chairman and CEO of the company said,

“I am pleased to announce that Changjiang Securities has gone live on Securities Master more and more securities firms choose Investment Masters and Securities Master to provide advisory and trading services to their clients, which shows our accurate market positioning and technological advantages to lead the transition of Chinese online finance. China Finance Online will continue to be committed in building an ecosystem for our users to allocate assets and to invest easily across products and markets.”

Learn more with their press release.

Apple and China Mobile Teaming Up

Apple and China Mobile have just teamed up and will soon announce a deal. The deal will allow Apple to get into the massive Chinese market. This includes China Mobile’s 760 million subscribers.

With the agreement, iPhone 5s and 5c models will be available at China Mobile and Apple retails stores throughout mainland China from January 17^th.

As China mobile Chairman Xi Gouhua said, “We know there are many China Mobile customers and potential new customers who are anxiously awaiting the incredible combination of iPhone on China Mobile’s leading network.”

Apple chief executive Tim Cook said: “China is an extremely important market for Apple and our partnership with China Mobile presents us the opportunity to bring iPhone to the customers of the world’s largest network.”

Apple iPhone5 Makes Quiet Entry Into China

Certainly, for anyone interested in investing in China and in understanding the Chinese financial mentality, the debut of the iPhone 5 is big news. Apple Inc.’s iPhone 5 debuted in mainland China on Friday…to very little reception.

The arrival of the iPhone 4S in January sparked a fury of interest – but this one was just the opposite. Two iron fences were actually placed in front of the Joy City Apple store this week to control the crowds, but there were not crowds in site.

As Wang Lu, a woman in her 20s said, “I was told that I had to make a reservation online first. Even if I apply right away, there is no chance I can pick up a phone today.” Apple actually created a reserve-and-pickup policy after the chaos that they experienced in January. Therefore, it’s hard to know if the quieter atmosphere was entirely due to a lack of interest or to the new processing system. Customers today have to apply online and then attend a drawing to secure a phone.

Analysts have said that, in addition to the new selling policy, the ample distribution channels and stock has resulted in a much lower-key welcome for this phone.

As one Beijing-based telecom industry insider, Xiang Ligang, said: “If customers can buy the iPhone 5 anywhere, why bother to buy one at Apple flagship stores or from scalpers?”

Gap Stores Coming to China

China has been targeted as a new location for Gap, the US apparel retailer. Gap has announced that, by the end of 2012, they plan to triple the number of stores they have in China. Trying to counter their less than stellar sales in North America, Gap Inc, which includes Gap, Banana Republic and Old Navy, is outlining a strategy to increase its total sales.

Gap opened its first store in China in November 2010. Now, they plan to expand from their current 15 stores to more than 45 by the end of fiscal 2012.

As Glenn Murphy, Gap chairman and chief executive said in a statement, “The combination of our global strategy and formidable growth platform puts us in a strong position to expand our reach into the top 10 apparel markets worldwide.”

Yanzhou Coal Mining: Bought Canadian potash exploration

Yanzhou Coal Mining [ 29.07 0.28% of shares it research report ] (600188) wholly owned subsidiary of Yanzhou Coal Canada Resources Ltd. for 260 million dollars , Saskatchewan, Canada bought 19 of potassium and mineral resources exploration. The company said the acquisition of China and the Government of Canada has been approved by the competent authority, Yanzhou Coal has completed the Canadian exploration company changed the registration process.

Following the initial establishment of Australia’s coal business in the development of the base, and the establishment of subsidiaries in Canada as a platform for future resource development, international strategy to achieve new progress. Company on July 18 with Canada and Potash Corporation of North Devon Nirvana Atlantic [ 12.36 0.24% share it research report ] K signed a “purchase agreement.” Among them, from Nirvana German potash fertilizer company, and the acquisition of the North Atlantic and eight 11 potash exploration, with a total area of 5363.87 square km.

Saskatchewan’s potash resources accounted for more than half of the world, is Canada’s major mining and potassium fertilizer production base. The company acquired potash permit to be relatively concentrated blocks, with an area of high grade, abundant, stable occurrence, the estimated total potential resources of not less than 39.76 billion tons. Deputy General Manager Zhang said the company was “not limited to, the future will take, do not rule out the introduction of strategic investors, selective extraction, part of the sale, the disposal of a variety of reasonable means.”