China to speed up the acquisition of overseas resources _m522

China to speed up the acquisition of overseas resources? the Wall Street Journal, 2010 11 08 March this year China overseas iron, oil, copper, the first time in the history of the United States national debt exceeded the investment. The first half of this year, on hard assets investment (hardassets) is 410 billion on United States bonds investment is 230 million. Experts say that each class of assets throughout the investment will reach 550 billion. However, even if two of the same type of investment, which also marks the China compared with past practice has a significant turning point. Over the years, the continent on hard assets investment abroad has been close to zero, and the purchase of United States Government bond funds a year maximum achievable 1,000 billion. China now on hard assets have so greedy appetite why? mentioned most frequently due to support its rapid expansion of industrial infrastructure needs. Are right. But it is equally important to the United States national debt reduction in the purchase of China, a substantial increase in hard assets purchase behavior as its foreign exchange reserve part of the strategy. There is general agreement that the dollar is undervalued Yuan, underestimate the range maximum or up to 40%. According to the last few years, the measures taken by China, Chinese officials seem likely to allow fixed-dollar RMB against the dollar per year 2% to 3%. In US dollars so weak, continue to invest heavily in government bonds or any other United States dollar assets are not much sense. Annual interest income can easily be dollar losses exceeded. Beijing on United States debt credit also has a strong concern. As the dollar continued to depreciate, smarter gambling is the investment that might hedge, or even value assets. Sierra Leone, South Africa's mining of iron ore, coal and natural gas in Australia, Brazil, Venezuela's oil, and even Canada's wood industry is also affected by China demand pull and achieve recovery. Only last week, China has increased its nuclear power plant in the required quantity of uranium. The Fed has recently begun the billion Treasury bonds purchased 6,000 measures, that is, the second round of the quantitative easing (QE2), will enable China to further accelerate the pace of acquisitions of hard assets. Macquarie Bank (MacquarieBank) London commodities department heads Lennon (JimLennon) said that, since the QE2 actually printing banknotes, it makes a further decline in the dollar attraction; decentralized reserves must be a policy orientation, and they purchase a commodity is a strategic investment, and the camera. For several years, China has been characterized by the accumulation of hard assets of rhythm. This year the largest acquisitions include: China's largest offshore oil production enterprises, the most powerful State-owned enterprises in China National offshore oil Corporation (CNOOC) is $ 22 billion acquisition of shale ChesapeakeEnergy in United States, oil and gas assets and the acquisition price of US $ 31 Argentina BridasEnergy under a company 50% of the shares. State grid Corporation of China has invested $ 1 billion acquisition of Chile's copper mine. China Petrochemical Corporation (Sinopec) out of 46 billion acquisition of ConocoPhilips 9% stake in the company, in addition to the price of 71 million acquisition of Repsol company Brazil branch 40% stake. When China can not be acquired enterprise, it would purchase related commodity. Sinochem fertilizers (Sinofert) considered the acquisition Canada PotashCorp. to counter the BHP Billiton (BHPBilliton) of hostile takeovers, but later abandoned, last week it announced the acquisition from the Canpotex billion and potassium. Canpotex is a monopoly organizations, three members of the company out of Potash. China on hard assets investment is increasing rapidly. In June, the net cast 156 million in the United States Treasury and agency bonds at the same time, it also took out 11 billion acquisition of Canada's mineral and coal reserves in Mozambique. Chinese Foreign Ministry in North America Oceania continental very generous, Deputy Director-General explained that China's industry is being upgraded, the use of these materials are very large. For the moment, however, hard assets investment that China has become the focus. Colombia University (Columbia University) Willie sustainable investment acting Center (ValeCenter for Sustainable Investment) researcher Davis (KenDavies) pointed out that, in 2008, in the countries of the global investment flows declined 15%, China has more than doubled. In 2009, the global investment flows declined by 43%, and China has increased by 1%. If the holdings of mining giant force a sub-company of extension of the company (RioTinto) transactions is not cracked, China 2009 foreign investment will increase by 36%. According to data provider Dealogic, last year China from the United States purchased the assets of the United States for the first time in more than the purchase of assets in China. United States Heritage Foundation (Heritage Foundation), a researcher at the tournament Cess (DerekScissors) said that in 2010, China in a global context of non-bond investment will reach $ 55 billion, primarily commodity. The Foundation has a database that records the size of more than $ 100 million investment in China. The Foundation's data to the Chinese Ministry of Commerce each year published official data to track. U.s.trust Chief market strategist Queensland (JoeQuinlan) said, at the same time, this year China on United States Government bonds net purchases likely from last year's 1000 billion decline from the $ 55 billion. QueenslandSaid that they just dollars too much, a second round of quantitative easing will make the purchase of United States bonds will further reduce. Most of China's hard assets investment comes from the State-owned enterprise, which is part of China's industrial strategy, the Government-owned companies secretly enjoy. They typically hold minority interest, because the big Takeover Act makes people nervous. Risk management consulting agency VeracityWorldwide China expert BOR Kanamori (MichaelPerkinson) said that the company has always been considered, China National offshore oil co., Ltd. 2003 acquisition of Union Oil Co. of California (Unocal) of transactions subject to United States Congressional block, a Chinese company that suffered setbacks. Also some investment from China investment co., Ltd. (hereinafter referred to as CIC company) and foreign exchange, the two sovereign wealth Fund shall bear the scale up to 2.5 trillion in foreign exchange reserves in a wide range of tasks. During the financial crisis, the investment company in the Blackstone (Blackstone) and Morgan Stanley (MorganStanley) most of the downturn in the equity value, then cast the company in its strategic reassessment, a Hong Kong last year investment to Po Group (NobleGroup), Russia NOK BERU petroleum (Nobel Oil) and Canada South Gobi energy co., Ltd. (South Gobi EnergyResources) and other bulk commodities company. In 2001, China began to implement the "going out" strategy to promote Chinese companies toward globalization, thus developing a world class brand, promote the import resources to diversify, expand markets, strengthen competitiveness and reduce low return foreign exchange reserves. United States is "going out" ideal destinations: China holds a large number of United States dollars, is China's numerous types of required resources. For example, Lenovo has acquired IBM's global computer business. Former United States diplomats, CLSA Asia-Pacific market (CLSAAsia-Pacific Markets) China market senior analyst Luo million (AndyRothman) said that they promote resource demand growth but not a place, which made them depressed. Then, in 2005, the United States Congress unanimously opposed, CNOOC withdrew on Union oil of California, transaction failed. In the United States after setbacks, China started in other parts of the world seeking assets investment. But Western multinational corporations will most of the resources at hand clenched. Chinese economist, former Central Bank Advisor fan gang, the problem is that existing monopoly system difficult to break, as "late comers" is very difficult, we were late, and forced into a corner. This will push the world in China more dangerous areas, large scale into the rich resources of Africa. China will as of 2006, starting from Africa, where to buy resources. Commercial Bank of China buys Africa's largest financial institutions, Standard Bank (StandardBank) 20% of the shares. China is Sudan's financial support of the Presidency, also built numerous football field. London Chartered Bank (StandardChartered) Middle East, Africa, Europe and the Americas Chief Executive Officer, said, General V.Shankar multinationals do one-time transactions, and China will be the construction of a port or at an oil refinery, China on Africa valuable projects put in a lot of time. Think of the United States oil Kosmos Energy carried by a large Ghana offshore oil co., Ghana's national oil company (Ghana NationalPetroleumCorp.) And CNOOC both State-owned enterprises, joint bids $ 5 billion bid for the oil and gas fields. Because there are signs that Ghana tended to China to participate in the offer, then the ExxonMobil (ExxonMobil), cancel its US $ 4 billion offer. Export-Import Bank (China Export-ImportBank) September to Ghana offers 104 billion in loans for infrastructure projects. In the same month, China Development Bank (China DevelopmentBank) to Ghana in addition provides a $ 30 billion in loan size, used for the construction of oil and gas industry. Last week, the headquarters is located in the United States Texas KosmosEnergy to offer too low as rejected the CNOOC bid, but observers believe CNOOC also will continue to work. KosmosEnergy shareholders including Pincus co., Ltd. (Warburg Pincus) and private equity firms the Blackstone Group. China in Kazakhstan and Uzbekistan were built the oil pipeline, and has started in Afghanistan's capital, Kabul, southern mining copper mine. China hopes in Pakistan and Afghanistan to build throughout the two-state highways and oil pipelines. These are United States officials on pins and needles. United States Embassy in Asia a senior diplomat said that the Chinese people are not particularly concerned about the political, they are the oligopoly buyers, pushing up the price of goods around the world, the United States in the formulation of trade policies need to take into account China guide its ways and means of State-owned enterprises. In contrast, China in Australia investment disputes. China business in Australia's huge, Australia foreign investment Review Board (Foreign InvestmentReviewBoard) suggested that China has equity interests should be below 50%. China acquirers in Australia 2009 all immigration mining transactions accounted for as high as 40%. China has committed from Chevrolet (Chevron) Australia, Cay (BarrowIsland) value of 37 billion project to purchase 20 years of natural gas. China now has the force of Billiton co., Ltd. (RioTinto) 9% stake and attempted to purchaseMore shares, the acquisition was unable to reach, and later on the grounds of suspected of bribery in China to the arrest of an extension in Chinese executives. China plans to put into effect at the beginning of a new five-year program will pay more attention to sustainable economic growth, increasing consumption, reduce reliance on exports, increasing wages and improving energy efficiency. United States Heritage Foundation (HeritageFoundation) history of Kendo (Scissors) said, this may slow down in "China" on resource needs, but in commodities and primary products still appear insufficient supply situation, China will be invested in order to protect the supply. The next few years, China will face other fast-developing countries more competition for resources, these countries are in the process of industrialization, and has massive dollar foreign exchange reserves. According to the United States shopping center (EastWest Center) Jimmy Chi-Tao (ChristopherMcNally) said that in 2009 the world total of foreign currency reserves 8.1 trillion, over 60% of foreign exchange reserves for all 11 countries in Asia. Citigroup (Citigroup) in Asia-Pacific region merger heads Peng high year (ColinBanfield) said that in 2008 the outbreak of the financial crisis and encouraged people to invest in hard assets, not the United States national debt, the mind is willing to put money into solid business, instead of the dollar. Standard Chartered Group (StandardChartered) Shankar (Shankar), saying, it is due to the acquisition of African resources, China is a considerable margin ahead of the India. The appreciation of the Renminbi has also meant that the Chinese people to overseas acquisitions will more easily. CLSA Asia-Pacific market (CLSA Asia-PacificMarkets) said that the Renminbi exchange rate 1 US dollar is $ 6.65 today could drop to $ 5, will reduce the phenomenon of "economic distortions" and contribute to the establishment of a consumer economy, Chinese market will suddenly increase to 33%. CLSA prediction, if Exchange rates by $ 5, China's foreign exchange accumulation and its official United States Government bond rate of purchase and the current slowdown compared to great. The attraction of Chinese manufacturing will decline, while the United States industrial plants attractiveness is enhanced. Is already the world's second largest economy of China, which is expected in the next ten years will exceed production family 3.5 billion. Imagine the future of the product price will mean nothing. China is the world's current copper, Tin, steel, coal, aluminum and maritime transport of iron ore largest oil-consuming countries, the second largest consumer. Investors are now on a series they think would benefit from the Chinese consumer companies bet. T.Rowe Price for investment companies, these companies including the world's largest manufacturer of Freeport McMoran Copper market Copper Gold (FCX) &, Bo and energy company (Peabody Energy (BTU)) and JoyGlobal (JOYG). T. Rowe Price company engaged in the raw materials industry research RickdelosReyes said, now the situation is that any commodities are subject to strong demand in China.