Approvals for small coal mines in China are to be halted

Approvals for small coal mines in China are to be halted

David Nealis President of  Ceres Ltd.

 

The Chinese State Administration of Work Safety stated on February 25, 2013 that it will no longer approve new coal mines that do not meet production capacity requirements in 2013.

High-Gas Coal mines with an annual production of less than 300,000 metric tons, as well as coal and gas outburst mines with an annual production of less than 450,000 tons.

The reason stated were for safety issues, but in my opinion I believe it’s an attempt to drive up slumping  domestic coal prices and to be able to better regulate producers in the future.

China’s farm produce prices declined

 

David Nealis President of Ceres Ltd

 

China’s farm produce prices declined in 36 major Chinese cities the week after Chinese New Year according to the Ministry of Commerce. The average whole sale price of 18 monitored vegetables declined 7 % month on month from Feb 18^th in addition 8 aquatic produce items declined 0.9% accounting to the report by Ministry of Commerce.

Chinese Scientist decoded the bamboo genome for moso bamboo

 

David Nealis President of Ceres Ltd.

 

Chinese Scientist decoded the bamboo genome for moso bamboo in hopes of improving the breed and using bamboo as an alternative to wood. China is the world’s largest producer and consumer of bamboo with of 3.86 million hectares of moso bamboo which is roughly 72% of China’s bamboo growing area.

Suntech-Guosheng Ferry Uses a Solar Sail

I thought this was a cool concept and I wanted to share it; Suntech-Guosheng Ferry Uses a Solar Sail for Power.

The Suntech-Guosheng ferry made its maiden voyage on June 5^th, 2010. At 31.5 meters or 103 feet in length, the ferry set sail on the Huangpu River in Shanghai, as part of the Shanghai World Expo. The vessel features proprietary 'solarsail' technology developed by Australia-based Solar Sailor, a leading innovator in maritime solar technology. The boat is a series hybrid, meaning its propellers are driven solely by electric power, generated by the sun or by the diesel engine that acts as a secondary source of power.

In theory the boat would the ferry’s  moving photovoltaic sails would not only track the sun to gather energy, but also serve as sails, giving the boat various power source options such as solar, diesel or wind power. When docked, the boats panels would still gather solar energy, which they would feed into the power grid that would either store the collected energy or use it directly to power the ferry.

The owners of the ferry are Suntech Power one of the world’s largest producer of crystalline silicon solar panels, and Shanghai Guosheng Group which is a Chinese state-owned investment holding company.

Is being a Cubs fan hurting my business?

David Nealis

Is being a Cubs fan hurting my business?

 

It's not easy being a Cubs fan!

If you don't know who the Cubs are they are Chicago’s (baseball) National League team.

They tend to play so poorly that we call them “the Loveable Losers”.

In 2012 they lost 101 games and they won 61. And it wasn’t just this year that was off, as a matter of fact they haven't won a World Series championship in over 104 years. Since 1908, generations of Cub fans have suffered. 

The Cubs are often out of the chance to go to the World Series by the end of July.

Often half way through the baseball season you can hear Cubs fans repeat the very popular saying “well we always have next year" - I've heard and repeated this very saying since I can remember.  

As a child sitting in the car with my father, going home after a Cubs game, I would repeat after him and say “yeah Dad, we always have next year". This ritual was repeated year after year with friends and family; we have repeated the same mantra “well we always have next year" for generations.

 

My fear is that that Cub’s mantra is working its way into the other decisions I make.

For example; while working, occasionally I run across that likeable loser, who is looking for his next thing. I am sure you know the type; he has several years in the industry, he  knows some people, but he just seems to always end up not producing anything.  

When I meet these people it seems my need to cheer for the underdog over takes my business sense and I give them a chance. That Cubs fan mentality of "maybe this year will be different" seems to translate to “maybe this time this guy will be successful”. It has never ended well; they always seem to keep making the same mistakes that they have made year after year. They, like the Cubs, live in a world used to and/or expecting to lose all the time. 

I don't want to give up hope for those under dogs of the world, but after several disappointments and a life time of being disappointed as a Cubs fan; I think it's time to watch more Yankees games!

 Should I feel guilty for being no longer willing to work with likeable losers? Or am I just suffering from a case of the Cubbie Blues?

 

I think I have closed the door on being willing to work with likeable losers, but as for the Cubs well we always have next year.

 

Chinese listed firms go Hog Wild

Chinese listed firms go Hog Wild

Chinese A-share listed firms get into the hog business

The global slowdown has many Chinese A-share listed firms looking for new sources of revenue outside of their core businesses and it seems that the rise in pork prices and issues with food safety in China have several of them looking at opportunities in the hog business.

It’s estimated that there are nearly thirty companies in the A-share market (Domestically listed in China) who are already involved in the hog breeding business; many of these companies originally had nothing to do with the agricultural industry but have found it to be an attractive business.

David Nealis

Some concerns for their success in this new industry are that with draughts in China and in the Midwest of the USA this year, livestock feed costs have increased dramatically and to avoid social arrest the central government may put price controls in place which could reduce profits in this industry.

What many analyst are watching is how do these firms manage their new ventures on a day to day basis after they have injected their capital into them, in addition to the other hog industry risks like a disease outbreak.

Critics are complaining that these companies are not focused enough on their core businesses, but for many of them who are tightly connected to the global economy finding new growth industries may be vital to their survival.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

Futures and Options Risk Disclosure
Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

 

858 new rural financial institutions established in China

858 new rural financial institutions established in China

I have always said to be able to grow your firm you need to be where the growth is and if you happen to be involved in business in China that place is going to be in the second and third tier cities in the interior of China.

 

The China Banking Regulatory Commission (CBRC) said it has been taking proactive measures to promote the establishment of rural banks. Their goal is that 75 percent of the new rural financial institutions would be set up in central and western regions of China.

 

Proof of the rapid development in rural financial services is since the beginning of the year China has established 858 new rural financial institutions, including rural banks, credit companies and capital cooperatives, according to China’s banking regulator. Of the financial institutions there are 799 new rural banks, with 60 percent (481) of them located in central and west China according to the CBRC.

By the end of this past June, the total assets of all operating rural banks stood at 319 billion RMB, with the capital adequacy ratio at 28.6 percent and outstanding loans totaling 178.2 billion RMB. Private investment has been a major capital source for rural banks, according to the CBRC of the 47.7 billion RMB (7.57 billion U.S. dollars) total share capital of all rural banks; 74 percent was held by private investors.

David Nealis in Shandong, China.

In May, the CBRC introduced several guidelines to encourage the participation of private capital in the banking sector, including lowering the minimum shareholdings of the main initiator for rural banks from 20 percent to 15 percent. The CBRC also allows the main initiator to adjust shareholding ratios with other holders once banks enter into a “sustainable development track”.

The old American saying of “Go West Young Man” applies here, though Shanghai and Beijing will remain the centers of commerce and power, the new business development is in the interior.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

 

Futures and Options Risk Disclosure
Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

Chinese Premier Wen wishes to boost Agriculture trade with Argentina

Chinese Premier Wen wishes to boost Agriculture trade with Argentina

Chinese Premier Wen Jiabao recently expressed an interest in expanding direct trade in agricultural and livestock products with Argentina.

Premier Wen was speaking while visiting a farm close to the Argentinian capital of Buenos Aires, he stated that the two countries' agricultural industries are highly complementary as Argentina has rich resources and advanced technologies while China enjoys a huge market potential.

"China is ready to expand direct agricultural trade with Argentina and enhance cooperation in the investment, infrastructure and technology sectors," Wen said while meeting with Argentine agricultural officials and businesspeople.

Statistics showed that agricultural trade between China and Argentina reached $5.5 billion last year; most of the trade volume was agricultural exports from Argentina to China

Argentina is the world's top exporter of flour and soy oil, and 3^rd largest soy bean exporter and second largest corn exporter.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China? 

Futures and Options Risk Disclosure
Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.