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Volume I, Episode 35
October 9, 2007
Chinese Stocks Up & Up - IPOs - Iron & Steel - Pacific Pipeline - more
Sinomania.TV

October 4, 2007

Hong Kong Booms - Commodities, Inflation, Oil at $100 a barrel? - more
September 25, 2007

UAW Tells GM No Jobs For China - Markets Hit 5,500 - China's Auto Industry - IPOs

September 19, 2007

New IPOs Rock Shanghai! But is Resistance Building? A Big Push for Private Equity…

September 10, 2007

Report on APEC 2007 - Energy Security - Markets Update - IPOs in Hong Kong

August 30, 2007

Chinese Stocks Stay Up - Big Bond Sale - IPOs - Upcoming Party Congress

August 22, 2007

China Stock Markets Get Higher But For How Much Longer? - Surprise Rate Hike - IPO Update

August 14, 2007

China Toy Recall - Markets & IPOs - Western Banks Catch Asian Flu?

August 6, 2007

Shanghai Composite Busts Past 4,600 - Beijing Bets on Banks - Chinese IPOs in Japan

July 31, 2007

China Stocks Up Again & Again! - Pussyfooting Around Currency? - Democracy in Japan?!

July 25, 2007

Will Barclay's Turn Chinese? 2Q/H1 Macro Report + IPOs!

July 19, 2007

Food Fight! China-USA sling hash / Peak Oil? / Markets Flat Line...

July 10, 2007

Chinese markets confused? Big IPOs - Chery+Chrysler

June 27, 2007

COSCO - China Mobile - IPOs - Telecom Mergers & Acquisitions

June 21, 2007

New Record Highs in Hong Kong, Shanghai: Will Beijing Put On the Squeeze? - IPOs & more

June 15, 2007

Fundamental Misalignment: US-China currency war - stock markets up & IPOs

June 7, 2007

China Stock Pop - Hot News items - climate change, tainted food...

May 31, 2007

Chinese stock markets hiccup - IPOs - USA-China Trade Gap

May 25, 2007

Report on the 2nd USA/China Strategic Economic Dialogue: Win-Win or When-When? - Market numbers - New IPOs


May 18, 2007

New life for Hong Kong? IPO Update - USA/China summit


May 11, 2007

Will Shanghai end up like NASDAQ or Nikkei? - IPOs


April 30, 2007

Tulips to Dotcom - is Sino Mania the next big bubble?


April 20, 2007

The Heat is on! - IPO Report - Air Pollution in China


April 15, 2007

China markets, IPO update, Beijing Ready for Olympics?


March 30, 2007

China markets up, up, up! Sinomania! goes to China


March 23, 2007

Focus on National People's Congress... Hi-Tech, IPOs


March 17, 2007

China's new investment strategy, IPOs, the Wrap...


March 7, 2007

China syndrome or hong bao bounce? New IPOs... more!


February 27, 2007

China Stock Market Yo-Yo, new IPO issues, the wrap


February 17, 2007

Chinese New Year edition! Will China buy Chrysler & more!


February 9, 2007

The USA-China WTO trade dispute and New IPOs


February 1, 2007

IPOs: New Red Chip — Bubble Burst? — USA-China


January 26, 2007

BUBBLE TROUBLE? — IPOs on NASDAQ — Renminbi Yuan


January 20, 2007

IPOs in 3 hot sectors — BAOSteel — Macro Report


China MARKETS » China WEATHER »
HKEX Hang Seng Shanghai
SSE Shanghai Hong Kong
SZEX Shenzhen Beijing
MUSIC in China: Listen!
 

TRANSCRIPT: Chinese stock markets continue to reach new records, big new China infrastructure IPOs, hints at iron and steel consolidation, and the Russia-China Siberian Pacific Oil Pipeline moves forward...
Sinomania! Volume I Webisode 35, October 9, 2007

Big Markets Get Bigger!
Big Changes for Iron & Steel!
More Big IPOs!
And Big Oil Gets A Pipeline!

NEW RECORD HIGHS

The rally continues on Chinese markets as records are smashed with no end in sight. The Shanghai Composite Index was up two and a half percent on Monday to a new record high closing at 5,692.755 and is just a hair under 5,700 as we speak. The CSI 300 index reached yet another record as well closing October 8 at 5,653. Shanghai B shares inched their way to a new record high of 368.485 on Monday although ShenZhen Bs suffered a slight dip. In Hong Kong the Hang Seng Index is down a fraction but remains well above 27,000.

In macro news, China's National Bureau of Statistics revealed that retail sales were up almost 17 percent year-on-year during the week long National Day holiday with close to $47 billion US dollars worth of consumer spending. It was a big week for tourism as millions traveled around China. 363 million people traveled by road up almost ten percent from 2006 and far exceeding air and railway traffic both also up double digits. This is an interesting trend and gives a signal to future growth as China rushes to complete its version of the US interstate highway system. Think gas stations, convenience stores, and motels for future investing opportunities.

IPO REPORT

The big talk so far this week is the IPO of China Digital TV that debuted at $16 dollars on the New York Stock Exchange last Friday under symbol STV. The stock gained 75 percent on its first day and closed October 8 at $39.49, a gain of almost 11 and a half percent from Friday! Of course some success is expected when your stock is featured on the front page of the Investor's Business Daily and the online Motley Fool.

Alibaba, the big Chinese e-commerce portal partly owned by Yahoo! got approval from the Hong Kong exchange for its IPO, expectations are it will raise up to $1 billion US dollars and be the biggest Chinese Internet play of the year.

Despite Chinese regulators uncertainty about Hong Kong listings over domestic listings or vice versa, three big infrastructure plays are in the works for the Hong Kong exchanges:

Beijing based China Railway Engineering Group, China's largest construction company, ranked by Fortune magazine as one of the top 10 engineering and construction firms in the world with 2006 revenues close to $19 billion US dollars, is planning an IPO on Hong Kong that could raise $2 billion US dollars. The move is going ahead despite reports last week that Chinese regulators prefer domestic listings prior to Hong Kong listings for state-owned conglomerates.

The resources shipping unit of Sinotrans Group is planning an IPO on Hong Kong valued at up to $1.3 billion US dollars. The shipping core currently operates bulk carriers and oil tankers and has assets including terminals and storage facilities. Another arm of the group, Sinotrans Limited is already listed as an H share stock in Hong Kong.

A rival in the bulk shipping business, North China Shipping Holdings, a branch of HOSCO or Hebei Ocean Shipping group out of Hebei Province, is already based in Hong Kong and also plans to get in on the IPO action with a listing that may raise $700 million US dollars.

Both companies hope to expand and capitalize on record high freight rates.

IRON & STEEL CONSOLIDATION

Clues to the long-anticipated consolidation of China's iron and steel industries were revealed by Zhang Xiaogang, the head of Anshan Iron & Steel, China's oldest steel conglomerate with iron works dating to 1915. Zhang is also chief of the China Iron and Steel Association so his words are to be heeded. Zhang indicated at the International Iron and Steel Institute conference in Berlin that the central government will close ("phase-out") outdated pig iron and steel capacity within the next three years.

China is far and away the world's iron and steel leader but the industry is scattered all over the country with many small and inefficient operators with insufficient transport access. For examples, there are literally dozens of steel mills in relatively remote inland areas with 2,000 tons or less capacity. Old pig iron and ferroalloy mills also abound.

Zhang spoke of conglomerates with 50 million tons per year capacity so the question is be which of the big iron and steel centers will emerge as the new giants -- Anshan in Liaoning Province? Shanghai and Wuhan? Or Sichuan and Tianjin? If Zhang is right, look for a wave of mergers and acquisitions soon.

PACIFIC PIPELINE

Finally, big news on the big oil and gas front: the controversial Pacific Pipeline linking the vast underdeveloped east Siberian oil fields with the Pacific Ocean on the border of China and Russia may soon move forward. An agreement for construction of the pipeline is to be signed in November when Prime Minister Wen Jiabao goes to Moscow according to Russian sources.

Russian Deputy Prime Minister Alexander Zhukov has said the two sides have agreed on construction of a pipeline spur into China from the border city Skovorodino not far from the Heilongjiang river.

Meanwhile China National Petroleum Corporation and Russia's state-owned Rosneft oil concern are still negotiating prices but it is believed China will get development deals as part of the complex arrangements. China National Petroleum is the parent company of PetroChina whose stock trades on the Hong Kong, New York, and Shanghai exchanges, and could benefit hugely by future deals making it even more valuable than it is today.

I'll see you next time!

© Sinomania! 2007 All Rights Reserved.

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