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Cash Converters replies to price query

Thu, 06 Jun 2013 08:30:00 +1000

Cash Converters (ASX:CCV) has replied to a share price query that a new regulatory change has meant a transition period but would not impact the overall demand for its financial products over the longer term.

Certain provisions of the new Consumer Credit Legislation Bill commenced on 1st March, 2013.

In fact, Cash Converters said in a statement it expects net profit after tax for FY2013 to be slightly higher than for FY2012.

New legislation for consumer lending had leant itself to speculation that the sector would be affected, the reply by the company would indicate the regulatory outcome provides more certainty.

Management had achieved strong compound average revenue growth rate of 33% per annum and 18% per annum net profit over five years.

It was also gearing up with new financial products and acquiring new stores and new geographies.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

The Lind Partners: Media sponsor of "Stars in 2013" Industrial Forum

Fri, 31 May 2013 13:00:00 +1000

The New York-based asset management firm 'The Lind Partners' is Media Sponsor of Proactive Investors' "Stars in 2013" Investor Forum to be held in Sydney on Tuesday 4th June 2013. Attendance is free but registrations are essential as seats are limited.

CLICK HERE TO REGISTER

The Lind is a New York-based asset management firm that manages a family of institutional investment funds focused on small- and mid-cap publicly traded companies with an emphasis on Australia, Canada and the United Kingdom.

Since 2009, the core team at Lind has worked on direct investments with a total transaction value in excess of $385 million.

Jeff Easton is the founder and managing director of The Lind Partners, and has spent over 15 years in the funds management business, and in 2009 co-founded SpringTree Global Investors, a New York-based institutional investment firm.

Easton has since been instrumental in developing and implementing an institutional investment platform that has made investments across a wide range of industries including biotechnology, healthcare, oil & gas, coal and other natural resources.

EVENT DETAILS:

Start time: 5:30pm SHARP - Please arrive before 5:15pm.

Date: Tuesday 4th June 2013

PRESENTING COMPANIES

TZ Limited (ASX:TZL)

Chairman Mark Bouris' TZ Limited (ASX: TZL) leverages its Intellectual Property and technology and over 180 patent applications in process, the distributed intelligence of TZ SMArt Devices™ and SMArt Systems™ provide solutions including the Automated Delivery Asset Manager (ADAM) locker system for online shoppers.

Novogen (ASX:NRT)

Novogen (ASX: NRT) has set itself the lofty goal of conquering cancer by developing the CS-6 comprehensive cancer therapy. A bold endeavor that Novogen is passionate about, committed to, and focused on. See why Novogen believes it can succeed where so many others have not fared well.

Cellmid (ASX:CDY)

Cellmid (ASX: CDY) is focused on developing innovative new therapies and diagnostic tests for heart attack, inflammatory diseases and cancer. Cellmid set up a dedicated subsidiary, Advangen International Pty Ltd, for the development of midkine for hair growth. In May, Cellmid made a transformative acquisition of Advangen Inc., Japan, the company that owns the FGF-5 inhibitor hair growth technology.

E&A Limited (ASX:EAL)

E&A Limited (ASX: EAL) is a dividend-paying company based in South Australia and operates nine wholly owned operating businesses providing services across the financial services, mining, defence, water, wind power and heavy industry sectors.

Bluechiip Limited (ASX: BCT)

Bluechiip Limited (ASX: BCT) is global technology company that provides a unique chain‐of‐custody tracking and monitoring tool which is initially focused on the life science market. Biobanking is the company's first market, where there is a broad and rapidly growing demand.

ThinkSmart reaffirms six month net profit guidance of $0.5M

Thu, 23 May 2013 10:20:00 +1000

ThinkSmart (ASX: TSM) has reaffirmed its guidance that it will report a net profit after tax of $0.5 million for the six months ending 30 June 2013.

This is due to ongoing strong growth from its UK business as well as good progress with its payment plan product, Fido.

The result is a $2 million improvement from the corresponding prior year period for the provider of point of sale financing solutions in Australia and the UK.

ThinkSmart’s UK business had achieved a record set of results in 2012 and is expected to deliver further growth in 2013 with both volumes and profit building well.

This is due to high demand for its consumer rental product Infinity and its highly scalable operational capability which resulted in fixed costs in the UK remaining largely flat despite the growth in volumes.

Its Fido payment plan product is also building volumes steadily and in line with expectations.

Rio Tinto expects China's demand for iron ore to rise in 2013

Thu, 09 May 2013 16:50:00 +1000

Global miner Rio Tinto (ASX: RIO) expects that China's demand for iron ore to rise this year.

China's demand for steel is expected to rise at a compound annual growth rate of 3% in the next decade, Alan Smith, president of Rio Tinto Iron Ore Asia, said at an international conference in Singapore.

Rio Tinto's iron ore sales to China were 147 million tonnes in 2012, a record total that Smith expects to be beaten this year.

China has imported the highest amount of iron ore in four months in April as greater steel production boosted demand.

China imported 67.15 million tonnes of iron ore in April, an increase of 16.4% from the same month last year.

April imports rose 4% on month.

China imported 253.6 million tons of iron ore in the first four months, up 3.9% on year.

China's iron ore imports increase to four month high

Wed, 08 May 2013 15:50:00 +1000

In mid-day trading, BHP Billiton (ASX: BHP) was up 1.54% to $34.19, Rio Tinto (ASX: RIO) gained 1.92% to $58.49, Fortescue Metals (ASX: FMG) rose 5.56% to $3.895 and Atlas Iron (ASX: AGO) climbed 10.44% to A$1.005.

This follows gains made in the past two trading days.

On Monday, Port Hedland, the world's largest iron ore export port shipped four per cent more iron ore in April over March as re-stocking by China at lower prices took effect.

China’s April trade growth accelerates; confounds critics

Wed, 08 May 2013 14:12:00 +1000

China posted an $18.16 billion trade surplus in April after reporting an unexpected $884 million deficit in March.

The median forecast by 12 economists in a Dow Jones Newswires survey was for a $15.55 billion surplus.

Exports rose by 14.7% in April from a year earlier. This was faster than March's 10% rise and well above the economists' median forecast of an 8.6% expansion.

Imports rose 16.8% from a year earlier compared with a 14.1% rise in March and beating the economists' median forecast of an 11.6% increase.

Together, the data would seem to defy predictions of gloom and doom.

Chinese export data in recent months has seemed to signal to a gradual revival of external demand.

The most likely scenario is a steady and gentle economic recovery this year, as investment growth quickens and retail sales stabilize from the second quarter onwards as government policies to stimulate growth kick in.

Monthly data reads are also prone to heavy fluctuation, which seems to be the case in China data at present.

Investor First appoints new CEO to forge growth in HUB24 platform

Tue, 07 May 2013 09:44:00 +1000

Investor First (ASX:INQ) has apppointed a new chief executive officer in Andrew Alcock, who is currently employed by Genesys Wealth Advisers which is a part of the AMP Group.

In March 7,755,000 ordinary shares were placed to sophisticated and professional investors at an issue price of $0.60 per share, raising $4.5 million.

The placement, which was oversubscribed, attracted significant interest from new institutional investors, existing shareholders including Thorney Group who have maintained their position on the share register, and also existing and prospective customers.

The funds raised are to be used to fund the HUB24 platform through to scale efficiencies. The company's HUB24 investment and superannuation platform leadership recently won a Platform Industry Award by Investment Trends.

Australian iron ore exports rise in April

Mon, 06 May 2013 16:15:00 +1000

Port Hedland, world's largest iron ore export port shipped four per cent more iron ore in April over March as re-stocking by China at lower prices took effect.

Exports to China increased by one per cent in total volume while South Korea and Taiwan imported greater amounts of Australian iron ore in April.

Port Hedland is the home port to BHP Billiton (ASX:BHP), Rio Tinto (ASX:RIO) and Fortescue Metals (ASX:FMG).

Exports rose 26% in April compared with the same month a year earlier as Australian iron producers expanded production. Shipments to China rose 30% on year.

Last Thursday, Port Hedland recorded its biggest shipment, breaking a previous iron ore export record as a bulk carrier PSU carried 255,000 tonnes of iron ore to China.

China Resources Power, China Resources Gas contemplate merger

Mon, 06 May 2013 15:47:00 +1000

China Resources Power Holdings Co. (0836.HK) and China Resources Gas Ltd. (1193.HK) are in talks to merge to form a broadly integrated energy group with a combined market value of A$15 billion.

The merger talks are part of the new administration's aim to improve efficiencies for large state owned and quasi-government entities.

China Resources Power controls China Resource Group, while China Resources Gas is a downstream gas utility.

The companies said the new group would be listed on the Hong Kong exchange under China Resources Holdings.

China housewives stocking up on gold

Fri, 03 May 2013 16:40:00 +1000

Could housewives in China be a major reason why the gold price recovered after the recent fall?

Chinese housewives have reportedly spent 100 billion yuan (US$16 billion) over the past two weeks purchasing 300 tonnes of gold and thus helping to sustain gold prices at US$1,468 an ounce according to the "Voice of China" radio program.

The "Chinese gold rush" has prevented short selling hedge funds from profiting more highly, where gold is sold and then bought back when prices fall.

The practice was seen as a possible bid to shore up the US dollar - gold is often regarded as a means of safeguarding wealth against a weak dollar - and to maintain stable interest rates in the US.

China's latest hunger for gold began in middle of last month following a decline in global gold prices after Cypriot authorities made a commitment to sell excess reserves.

Hong Kong gold bullion buyers exhaust supplies in shops

Fri, 03 May 2013 08:30:00 +1000

Hong Kong retailers have reported they were swamped over the three-day May Day holiday by tens of thousands of buyers from mainland China in search of cheaper prices of gold.

Anecdotally, there were reports of long queues outside jewellery and gold bullion shops each day in Causeway Bay.

Gold prices in Hong Kong are lower than in the mainland.

Many shoppers were looking to buy bullion but supplies had already dried up.

Mainland gold shoppers believe the recent price slump had opened a perfect window to stock up on the precious metal.

Shoppers have been emptying gold stores in mainland China before coming to Hong Kong.

Beijing Caishikou Department Store, the biggest gold retailer in Beijing, has been seeing daily sales worth up to 100 million yuan since late April, several times their usual sales.

The China Gold Association reported that gold sales had tripled on many days.

The price of gold bullion has so far fallen 14 percent this year as investors worldwide sold the metal after a decade-long rally.

Spot gold was last quoted up $9.90 at $1,468.50 in New York on Wednesday, around 7 percent lower than on April 11, the day before a 14 percent two-day tumble, the worst since 1983.

But many institutional investors have viewed the price slump as temporary and an over-reaction.

Over the longer term, central bank diversification into gold is expected to lend some support and limit the pace of the price decline.

HSBC Holdings PLC said it believed a pick-up in demand from China and India, combined with producers cutting their supplies, will support a stable recovery in the gold price.

Chinese customers are not the only ones snapping up bargain gold.

Demand for gold in India, the world's biggest consumer, is double the level for this time of year.

iCash Payment Systems to supply cash handling systems to Hong Kong’s LT Game

Thu, 02 May 2013 15:10:00 +1000

iCash Payment Systems (ASX: ICP) will supply cash handling products to LT Game, one of the major gaming and casino systems providers in Macau and the Asia Pacific region.

Under the distribution agreement, iCash’s 60% owned subsidiary NeoICP will supply LT Game with cash access recycling automatic teller machines (RATM-B4000M and CTAT) and a table deposit machine for use in casinos.

LT Game, a subsidiary of Hong Kong listed Paradise Entertainment, has been appointed as the exclusive worldwide distributor of these products in casino markets.

It is required to use its best endeavours to promote and extend sales of the products and must not manufacture, promote or sell competing goods.

The agreement runs for 12 months and automatically renews every 12 months unless otherwise terminated.

Paradise Entertainment (HKG:1180) is the holding company of a diverse group of companies that engages in casino management, and development, supply and leasing of game machinery and equipment.

The first products supplied pursuant to the agreement, being 10 cash recycling machines, were shipped by NeoICP to Macau on 26 April 2013.

iCash is trading at two thirds of its 31 December 2012 cash backing of $11.9 million, or $0.11 per share. Its current market capitalisation and share price is $15.71 million and $0.15 respectively.

China manufacturing PMI for April in line with expectations

Wed, 01 May 2013 12:50:00 +1000

China's Purchasing Managers' Index (PMI) for the manufacturing sector fell to 50.6 percent in April from 50.9 percent in March.

The read is pretty much in line with expectations. Above 50 still indicates expansion in the sector.

While lower it is the seventh consecutive month the PMI is above 50 per cent.

This would seem to signify stability but in need of a spur to economic growth either to domestic demand or more investment.

Apple shares jump 3% on news of debt offering

Wed, 01 May 2013 08:00:00 +1000

Apple (NASDAQ:AAPL) shares climbed 2.94% overnight to US$442.78 after launching a massive $17 billion debt offering.

The proceeds will contribute to the $100 billion that Apple plans to give back to investors by way of dividend hikes and share buybacks.

Even though Apple's coffers are stuffed with $145 billion in cash, it's largely tied up overseas. The bond offering is Apple's first in more than 15 years.

Additionally on Tuesday, Russian billionaire Alisher Usmanov invested $100 million in the company.

Investors may also be giddy with news that Apple will likely launch an iPhone 6 next June. Jefferies analyst Peter Misek told the Financial Post that the new device will have a larger display, faster processor and a better camera.

Misek believes the iPhone 6 will also include a mobile payment system and enhanced security by means of fingerprint authentication.

As a means of finding more outlets for its existing software, Apple wants carmakers to offer custom consoles on their dashboards so drivers can have access to its Maps app and voice command function, Siri, according to 9to5 Mac sources.

Apple may reveal more of its machinations to consumers and investors alike at its developer gathering, WWDC, held in June.

Guidance may aid its stock, which has languished since reaching an all-time high of $705.07 on September 21, 2012.

China's Baosteel predicts steady iron ore price in 2013

Mon, 29 Apr 2013 08:30:00 +1000

China's largest listed steelmaker, Baoshan Iron and Steel Corp has predicted iron ore prices will stay around $130 per tonne for the rest of this year.

Last week iron ore prices fell to $134.60 per tonne, with demand in the biggest consuming country China still relatively subdued.

China lifts rare earths export volumes in Q1 2013

Wed, 24 Apr 2013 08:40:00 +1000

Global demand for rare earth metals from China climbed in the first quarter due to falling prices.

Despite this, arge domestic producers and processors reported losses.

Baotou Steel Rare-Earth (Group) Hi-Tech, the country's largest rare earth producer, saw revenues drop 35 per cent while net profit fell 79% in the first quarter, year on year.

China Minmetals Rare Earth Co Ltd announced a 47 percent drop in revenue.

Statistics from the General Administration of Customs suggest that rare earth exports rose 55 percent in March from February to 1,718 metric tons.

The growth in exports volume stems from a price decline in 2011, stimulating overseas buyers who had used up their reserves.

Export volume in the first three months grew 47.3 percent to 3,916 tonnes.

Demonstrating the fall in rare earths prices, export value dropped 71 percent to $91.9 million. Local Chinese producer costs rose during the quarter.

China supplies more than 90 percent of the world's rare earths, and has nearly one-third of the known global reserves.

What has to be taken into account, current prices for rare earths are still higher than the lowest point in the past 10 years.

China stocks rise 2%, economy to power ahead in H2 2013

Mon, 22 Apr 2013 09:00:00 +1000

Chinese stocks extended gains today after reports that regulators are studying plans that would allow "A shares" to be added to international “well-known” indexes to lure overseas funds.

The Shanghai Composite Index climbed 2.1 percent to 2,244.64 which is the capping its biggest gain since March 20. It rose 1.7 per cent for the week.

The CSI 300 added 2.8 percent to 2,533.83. The Hang Seng China Enterprises Index advanced 2.4 percent.

Economic growth to kick in second half

A senior official from China's State Information Centre’s economic forecast department said the nation’s economy may rebound in the second and third quarters of the year.

Zhu Baoliang said China is likely to stabilize money supply growth and loosen fiscal policy to boost economic growth.

The second quarter's GDP growth may rebound to 8 percent from a lower-than-expected 7.7 percent in the first three months, said Zhu Baoliang.

Zhu Baoliang added that it was likely to achieve a 7.8 percent increase for the whole year, 0.2 percentage points higher than the government's target.

Gold price fall lures Chinese buyers

Mon, 22 Apr 2013 08:40:00 +1000

Gold may have lost some of its lustre but not its allure to buyers of bullion in cities across China.

Beijing's largest gold dealer Caishikou reported no gold bars were left in its storerooms or vaults, completely sold out as the gold price lured bullion buyers to buy at bargain prices.

Gold had almost been exclusively the preserve of wealthy Chinese before the prices plummeted.

However, with prices dropping significantly, those with lesser means have seen an opportunity to invest in the metal themselves.

Buyers are snapping up gold bars and jewellery, with the expection of buying in at bargain prices.

Gold futures on the COMEX division of the New York Mercantile Exchange suffered their biggest one-day decline since the 1980s on Monday.

Prices saw their biggest one-day percentage drop since February 1983. Gold's one-day dollar drop was the biggest since January 1980 and the second-largest in its history.

Gold has become more popular as an investment option in China, as some believe it is immune to inflation.

Gold consumption surged to 832.18 tonnes last year, a 9.35 year-on-year increase.

Jewelry purchases totaled 502.75 tonnes, a 10.09 year-on-year increase, the China Gold Association said.

China's domestic consumption may surprise in 2013

Fri, 19 Apr 2013 15:30:00 +1000

China's domestic consumption contributed to 55.5 percent of growth in gross domestic product in the first quarter, which is 3.7 per cent higher than a year ago.

Transitioning from investment and export led growth to increase domestic consumption was always going to be a challenge.

China may still be able to achieve a 14.5 per cent growth in retail sales this year despite a slowdown in the first quarter.

This is despite a nominal growth of 12.4 percent year-on-year in retail sales in the first three months, which slowed from 14.8 percent in the same period of last year.

The growth rate was also 1.9 percentage points lower than the full-year growth in 2012, triggering concerns over the weakness of the world's second-largest economy.

However, after adjustment for inflation, the retail sales growth in real terms was only 0.1 percentage points slower than a year ago.

The central government's high-profile efforts to promote frugality is having success, today pledging to slash $21 million of public spending on cars, receptions and overseas trips. While symbolic it is an important signal.

Property prices may finally be slowing in the larger cities from measures put in place to clamp down on inflated property prices.

With a greater recovery in the U.S. in the second half of 2013, then consumption and investment would improve which would increase the growth of retail sales in the third quarter in the midst of income distribution reform and accelerating urbanization.

The government is also looking at new subsidies to spur consumption.

Premier Li Keqiang said this week it is the aim of the new government is to introduce more consumer-friendly policies to encourage people to spend more on medical care, personal development during retirement and cultural interests.

Additional funds will be used to develop urban roads and rail transport, as well as public environmental facilities.

China private sector fixed investment rises in March

Wed, 17 Apr 2013 09:20:00 +1000

China's urban fixed-asset investment fell in March but growth from the private sector has begun to pick up some of the slack, according to latest data from the NBS.

Total fixed-asset investment, excluding rural, rose 20.9 percent year-on-year to 5.8 trillion yuan ($937 billion) in the first quarter, from 21.2 percent in the previous two months.

Pleasingly, investment from the private sector rose 24.1 percent year-on-year to 3.68 trillion yuan during the quarter, accounting for 63.3 percent of the overall total investment.

This would seem to indicate government policies on boosting private investment have taken effect.

Private investment spur

Last year the government announced plans to open up key sectors dominated by State-owned enterprises such as energy, banking, railway and healthcare.

Lower gold price lures shoppers in Shanghai

Tue, 16 Apr 2013 14:20:00 +1000

Shoppers in Shanghai have reportedly swamped gold jewellery shops lured by the two-year low price of gold bullion after prices plummeted.

The largest gold producer in China, China National Gold Group slashed the bullion price from 313 yuan (US$50.55) per gram to 298.50 yuan per gram at its largest store in Shanghai, the lowest level in two years.

"Many customers came to shop due to bargain prices," said an assistant at the China Gold store. "The 10-gram and 20-gram bars are sold out, and we don't have many stocks left for the 50-gram and 100-gram."

Another salesperson at Shanghai-based jewelry retailer said "the number of customers doubled" and gold bars were selling like hot cakes at its shops.

China first quarter economic growth 7.7%

Mon, 15 Apr 2013 13:50:00 +1000

Growth hit an annual rate of 7.7% in the January to March quarter. Some analysts had forecast a figure closer to 8% which has caused a sell off in stock markets.

China has been at pains to spur growth after it hit a 13-year low in 2012 but the new administration has been careful not to overheat the economy.

As well, it has had to contend with poor European economies and a slow recovery in the U.S.

Industrial output rose 8.9% in March from a year earlier, much lower than analysts' targets of 10%.

Meanwhile, fixed asset investment, a key driver of China's growth, rose at an annual rate 20.9% in the first three months of year. Analysts had expected growth of more than 21%.

The Chinese economy is showing growth momentum in the first quarter and recovery is within predictable growth bands.

China economic data to be watched closely

Mon, 15 Apr 2013 10:40:00 +1000

China will release a slew of key economic data on Monday, that will be closely watched including GDP, industrial production and retail sales.

GDP is likely to have picked up slightly in the first quarter of this year, according to most analysts, but they say the rebound is fragile.

First-quarter gross domestic product (GDP) for the world's second-largest economy is due to be announced Monday and the median forecast in the poll of 12 economists was for an 8.0 percent increase year-on-year.

China has a growth target for 2013 at 7.5 percent for the year.

China increases copper imports in March

Mon, 15 Apr 2013 08:20:00 +1000

China increased imports of raw copper products by 7.2 per cent in March, relative to the previous month.

On a year on year basis, imports of copper registered a fall of 30.8 per cent.

In 2012, the country's copper imports rose 14.1% to 4.65 million tonnes.

China may reduce brake on monetary tightening to stimulate growth

Thu, 11 Apr 2013 08:20:00 +1000

Policymakers may resort to a slight monetary loosening in the second quarter to stimulate growth in China according to economists at the Industrial Bank.

They made the prediction after newly released figures showed that the rate of inflation eased in March while industrial growth faced challenges.

The consumer price index, the major gauge of inflation, grew 2.1 percent in March from a year earlier, down from 3.2 percent in February, the National Bureau of Statistics said on Tuesday.

The latest figures pulled down the average CPI in the first three months to 2.4 percent, 1.1 percentage points lower than the government's annual target.

Food prices, which account for 30 percent of the CPI calculation, decreased 2.9 percent, the largest monthly fall since July 2003.

Producer price index fall

The producer price index in March decreased 1.9 percent from a year earlier, the 13th consecutive drop, reflecting operational difficulties and pressure on profit growth in the industrial sector amid weak market demand.

The PPI declined 1.63 percent in February and 1.64 percent in January.

A former adviser to the central bank, Li Daokui said inflationary pressure won't be high in the short term and the downside risk of economic growth should be addressed.

"We must be alert to a rapid slowdown," Li said, adding that he foresees a macroeconomic policy adjustment in the second quarter to support growth.

Xiang Songzuo, chief economist at Agricultural Bank of China, said the manufacturing industry is particularly fragile.

"The sector has not shown obvious signs of recovery, while excessive production and sluggish demand are taking their toll," Xiang said.

"The policy focus should move from containing inflation to shoring up the real economy," Xiang said.

On Tuesday, the Asian Development Bank predicted GDP growth of 8.2 percent in China this year, up from 7.8 percent in 2012, boosted by public spending and consumption.

The bank said GDP growth may slow to 8 percent in 2014, as the government may be keen on solving environmental pollution and narrowing the income gap.

China passenger car sales hit 1,459,095 units in March

Wed, 10 Apr 2013 14:50:00 +1000

China registered a return to strong growth in total passenger vehicle sales in March with 1,459,095 units sold compared to 1,040,495 in February, relative to the 1,704,385 units sold in January 2013.

It is still a staggering number of cars sold; the category includes passenger cars, sport-utility vehicles, multi-purpose vehicles and minivans.

The strong performance in March boosted first-quarter domestic passenger vehicle sales to 4.21 million units, up 19.2 percent year-on-year.

Robust growth in April is forecast as the Shanghai International Auto Show, which will start on April 21, will further boost consumption enthusiasm with new models expected to be launched by most brands.

Growth in cars on the road

In 2010, China had 90 million vehicles on its roads, by 2012 this had surged to more than 120 million. This is expected to increase to 260 and 330 million passenger vehicles in 2020.

In turn, the growth in passenger vehicles in China will increase the amounts of aluminium, steel, magnesium, platinum, rhodium and palladium and copper consumed.

China GDP growth forecast at 8.2% in 2013

Wed, 10 Apr 2013 13:10:00 +1000

China's GDP growth for 2013 has been forecast at 8.2 per cent according to the Asia Development Bank.

The forecast was predicated on the recovery in the U.S. recovery not worsening and the Chinese government boosting public spending.

Chief economist of ADB Changyong Rhee opined that the new administration in China was focused on a sustainable growth model, not a growth at all costs approach of the past.

Export growth subdued in March

China's exports rose less than forecast in March for the first time in four months, as global demand provides a drag on China growth.

Exports increased by 10 per cent compared with 21.8 per cent growth in February. Most analysts were tipping export growth of 12 per cent. Imports rose by 14 per cent which was higher than expected and a sign of consumption and investment growth.

Europe and U.S. demand for goods from China is not expected to accelerate for some months.

Recent inflation data indicates that Chinese Premier Li Kegiang's administration is having some success with anti inflationary measures.

China stocks higher on lower consumer prices for March

Tue, 09 Apr 2013 17:10:00 +1000

China stocks have surged as consumer prices rose 2.1 per cent in March, lower than the 2.5 per cent median estimate of analysts.

The Shanghai Composite Index was 0.58 per cent higher at 2,223.81 points in afternoon trading.

China is targeting inflation of about 3.5 percent in 2013.

Producer prices were also 1.9 percent lower from a year earlier, the 13th straight decline, in line with a 1.9 percent drop expected by analysts.

Food costs rose 2.7 percent in March from a year earlier, less than half of February’s 6 percent pace.

China to build largest coal-to-gas project

Mon, 08 Apr 2013 11:10:00 +1000

Sinopec Group, China's second largest energy company is to invest up to $11.3 billion (70 billion yuan) to build the country's largest coal-to-gas project in 8-10 years to meet a rising demand for natural gas.

The project will be developed in China's northwestern region of Xinjiang and will have annual production capacity of 8 billion cubic metres of gas.

Coal extracted from two mines in Zhundong will be used to feed coal-to-gas production facilities nearby. The coal mines have annual production capacity of 15 million tonnes each.

The natural gas produced will be transmitted through Sinopec Group's 30 bcm/year pipeline stretching from Xinjiang to Guangdong province in south China to Zhejiang province in east China.

China's Hebei buys into Canada's Labrador Trough iron ore region

Fri, 05 Apr 2013 08:20:00 +1100

Hebei Iron & Steel Group - China's largest steel producer has closed an acquistion of a 25% stake in the Kami iron ore project in eastern Canada's Labrador Trough.

Annual production of about 50 million tonnes emanates from the Trough with names such as ArcelorMittal and Rio Tinto. Wuhan Iron & Steel, Mitsubishi, South Korea's Posco, India's Tata Steel, China Steel and Hebei Iron & Steel in the Trough region.

The iron ore grade is extremely high in the Trough with grades above 60% Fe common which is prized among steelmakers.

This is Hebei's first mining investment in Canada.

On March 27 the Chinese steel producer made the final payment of C$119.9 million for its stake to Alderon Iron Ore, Hebei's Canadian partner and owner of the remaining 75% of the Kami project.

All up, the Hebei province-based steelmaker has paid C$182.2 million for its quarter-share in the project.

Hegang and Alderon agreed a strategic partnership in April 2012 that also saw Hegang buy a 19.9% share in Toronto-listed Alderon last September.

With a capital cost of US$42.2 million, the Kami project envisages a mine life of 30 years at 8 million mt/year of concentrate at 65.2% iron content.

However, commercial mining will not commence in fourth quarter 2015.

Hegang has committed to 60% offtake of Kami's output, with the price based on the monthly Sinter Feed fines price.

This includes an additional quoted premium for iron content greater than 62% but with a 5% discount.