Monday, April 29, 2013

Singapore is China's second choice for direct investment


Singapore is China's second choice for direct investment
David Nealis Ceres President in Singapore
A report by the Economist Intelligence Unit (EIU) revealed that Singapore ranks second as the most attractive destination for direct investment flowing out of China. The United States remains the most favorable destination for investments coming from China, the EIU report said. Singapore is ahead of Hong Kong based on the EIU's China Going Global Investment Index, which balances opportunities against risk for Chinese FDI in 67 countries.

China, Australia to launch currency trading


China, Australia to launch currency trading



A report by Reuters revealed that China and Australia are on their way to forging an agreement that will officially launch trading between the countries' two currencies. The source said the move will be announced on Friday when Australian Prime Minister Julia Gilliard visits China. The new currency deal will lower trade transaction costs, sources said. China and Australia have a combined two-way trade of USD120bn.

George Soros warns China on risks


George Soros warns China on risks

 




Billionaire investor George Soros has praised China's system of financial regulation in the past, but he warned that China faces "exceptional difficulties" in its economic transition in the near future.

Nepal Welcomes Chinese Banks


Nepal Welcomes Chinese Banks

Is there a shift in the Geo-Political influence of Nepal as Chinese banks enter the market place?




The Central Bank of Nepal said it is eager to open its doors to Chinese banks. Yubaraj Khatiwada, governor of Nepal Rastra Bank, the country's central bank, said it is willing to loosen its restrictions regarding providing new licenses to strategically important foreign banks that may invest in the country. He added that officials from the Export-Import Bank of China have “unofficially approached Nepal's central bank” with regard to launching their new venture.

Is this a new shift in regional influences or a temporary swing , only time will tell.

Friday, April 26, 2013

Ceres Ltd visits the Shanghai Futures Exchange


Ceres Ltd visits the Shanghai Futures Exchange
David Nealis President of Ceres Ltd.
 

It was a great experience at the exchange talking with exchanges officials about contract volumes and product development as well as learning the rich history of the Shanghai Futures Exchange.

David Nealis and Robert Meara of Ceres Ltd
 
Jane Yang, Robert Meara and Wenxi Qu of Ceres Ltd

Shanghai Futures Exchange
 

Thursday, April 18, 2013

CNPC bids for Marathon's Angola oil fields


CNPC bids for Marathon's Angola oil fields

David Nealis  President Ceres Ltd
China's largest oil and gas producer, China National Petroleum Corp (CNPC), is among the list of bidders for Marathon Oil Corp's stake in two offshore oil and gas fields in Angola, Africa. CNPC as well as Malaysia's Petronas are reportedly bidding for Marathon Oil Corp’s Block 31 and 32 offshore fields in Angola, Marathon Oil Corp is a Houston, Texas based company, they have recently put the oil fields up for sale. Sources close to the deal have said the American oil company is focusing on the home market and scaling back global ambition, partly due to the boom in American oil production. Both CNPC and Petronas have not issued any official statements regarding their bids.

ICBC to acquire 20% of Taiwan’s SinoPac


ICBC to acquire 20% of Taiwan’s SinoPac
 
The Industrial and Commercial Bank of China (ICBC) announced that it plans to purchase a 20% stake in Taiwan’s Bank SinoPac. The acquisition is worth TWD18.7bn (USD625m). If the plan pushes through, it will be the first mainland Chinese investment in the Taiwanese banking industry. The deal still has to be approved by Taiwan’s banking regulatory office.

Iraqi Oil Minister is eager to supply oil to China


Iraqi Oil Minister is eager to supply oil to China
David Nealis President Ceres Ltd.
Iraqi Oil Minister Abdul-Kareem al-Luaybi was quoted by Iraqi media as saying that his country is ready to establish a long-term agreement with China to supply all of China’s needs for crude oil. The Oil Minister said Iraq seeks to bolster its oil ties with China and considers China to be a strategic partner. He also stated that China imports more than 500,000 barrels per day from Iraq. Chinese companies have been aggressively working with Iraq in extracting and bringing to market crude oil. The oil minister did not state the exact number of additional barrels per day that would be put on the market.

France offers incentives to attract Chinese investors


France offers incentives to attract Chinese investors

David Nealis Ceres Ltd
France's minister for small and medium-sized enterprises, innovation, and digital economy announced that the country is offering a range of incentives in an effort to attract investment from China and Hong Kong.


The move by the French government comes as the country's economy shrank in Q4 of 2012. Fleur Pellerin, France’s first South Korean-born minister said her government is offering various incentives to Hong Kong and mainland China investors who will come to invest in the country. Some 200 mainland Chinese companies are already operating in France, she said.

 
Wenxi Qu Ceres Ltd.
Wenxi Qu of Ceres Ltd pointed out that the main motivation of many Chinese people who invest abroad is for a citizenship and they tend not to focus on running a highly profitable company in a new environment that they might not understand the regulatory environment and in addition the extremely high tax system in France, would force many Chinese to keep their main assets of shore. In short they would have a French citizenship but make money outside of France. 

China and Taiwan agree to further financial cooperation


China and Taiwan agree to further financial cooperation
 
David Nealis President of Ceres Ltd in Taiwan
Mainland China and Taiwan have agreed to further reduce investment caps in each other's financial institutions. Banks in mainland China will be allowed to obtain a maximum of 10% of Taiwan-listed banks, while the previous limit was just 5%. Shareholding in mainland China can amount to as much as 15%. Taiwanese banks are also permitted to increase their businesses into mainland China’s rural areas.

CAO launches operation of storage terminal in South Korea


CAO launches operation of storage terminal in South Korea
David Nealis President of Ceres Ltd.
 

China Aviation Oil (Singapore) Corp Ltd announced that its new oil storage terminal facility in South Korea’s Yeosu has begun operating. The terminal has a total capacity of 1.3 million cubic meters and was developed by Oilhub Korea Yeosu Co Ltd, which is CAO's associated firm. The oil storage terminal took two years to build, costing around USD500m.

Shorter grain hours meet with mixed response


Shorter grain hours meet with mixed response
David Nealis President of Ceres Ltd.

After expanding to 21 trading hours in May, the Chicago Board of Trade (CBOT) is cutting its hours back to 17.5., For firms without a global view this is much welcomed news, but many feel that decreasing hours simply increases the amount of time where market participants are unable to hedge. For those of us based in Asia, I feel it might push us to trade other markets.