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ArgentineLuomidaer “lightning” to enter the China Eastern

November 20th, 2007

Announced finance 647 million US dollars to buy China Eastern Holdings (China Eastern, 0581. HK) 28% interest shortly after, the world’s largest steel producer AfghanistanLuomidaer Corporation (ArcelorMittal) and “Flash” overweight 1.3 billion shares , and in this domestic well-known private enterprises to solicit their command. This is also holding for the first time in a domestic steel enterprises.

HKEx latest notice issued by the changes in ownership, in the November 9, AzerbaijanLuomidaer company shares held by China Eastern about 820 million shares on November 9 in future, the company increased holdings of about 1.32 billion shares the latest holdings total of 2.14 billion shares. At the same time, this steel giant in China Eastern’s stake from 28.02 percent at one stroke to 73.13%, achieving Holdings. Before “MBO Wang Gang,” said Chairman of the China Eastern Hawkes far China Eastern shares held by many small happened to be 1.32 billion shares, accounted for 45.11 percent, the industry thus speculated that AzerbaijanLuomidaer companiesholdings of shares is most likely far from Hawkes. Although the ArgentineLuomidaer unclear holdings price, but as a reference, the company had a 647 million US dollars at high prices to buy China Eastern in full before the second largest shareholder Ning - Ning Chen hands of the 820 million shares of equity .Converted to share 6.15 Hong Kong dollar, the acquisition price than China Eastern suspension before 5.4 Hong Kong dollar 14% premium.

Thus, AzerbaijanLuomidaer companies finally are closely guarded in China’s steel industry to find a crevice. And compared to the original shares Valin pipeline, AzerbaijanLuomidaerin compensation Holdings aspiration and its strategic significance is unusual.China Eastern on the two major shareholders - Ning - Ning Chen and Hawkes far, they equally abundant harvest by the acquisition. The shares, China Eastern suspension before the stock was 5.4 Hong Kong dollar, compared listed at the beginning of the 2.75 Hong Kong dollar has almost doubled.

Rather is that in the transfer of China Eastern stake ago, Ning - Ning Chen and Yuan just Hawkes scenes staged for the holding of the “serial” and even once for this court. While the media Hawkes far have said, there was indeed a number of enterprises and institutions linked with China Eastern, open to question the equity of cooperation, China Eastern hopes to find one pair of proficiency in the capital markets partner, as long as the conditions are right, even if the other party holding also the expense.

“This is the infiltration of foreign investment in China’s steel industry is a signal. Due to the acquisition of the holding, prior to the Valin pipeline than the equity acquired greater significance to the future domestic steel industry will be changes in the pattern of a certain impact.” Orient securities Bao-Feng Yang told reporters. “But considering the domestic steel combined capacity has reached 500 million tons, China Eastern in which occupy only a small part. Coupled with the current state of the iron and steel production capacity to restrict investment policies, the future expansion of production capacity can not casually, the actual impact is relatively limited. “Bao-Feng Yang said.

“The domestic steel industry holding the impact will not be too great, and after all, China Eastern is private enterprises, mainly useful person mainly in the market does not have enough influence.” Shanghai steel Wu, general manager of Information Consulting Ltd. an article yesterday in a press conference that. In his view, Mittal This can be understood as an integral part of the global strategy means that its entry into China’s strategic another step forward.

After several ArgentineLuomidaer profile acquisitions in China

Time takeover target price

In July 2005 Hunan Valin pipeline 37% stake in more than 2.6 billion yuan

In February 2006, purchasing Shandong Laiwu Steel Group of 354 million shares 2.086 billion yuan

In November 2007 China Eastern 28% interests of 647 million US dollars

Former opponent, “both leaver” China Eastern and greet “third party”

Is the so-called “fluctuate from time to time.” China Eastern had to play right Surrounded by holding the “iron Princess” Ning - Ning Chen and “MBO Steel King” Hawkes far, now has a complete departure, and the other may also have been selling shares at high prices, while ArgentineLuomidaer then realized his dream to become the “third party.”

As Hong Kong’s capital market this year on a big show by the merger of attention, China Eastern control of the dispute began in the first place to promote its listing of the two hero: Hawkes far and Ning - Ning Chen.By the end of 1999, as director of the much-led Hawkes completed the core assets of China Eastern’s shares subsidized steel to the West. 2002??In 2002, capital Hawkes far with the operation of the Ning - Ning Chen longer cooperate. In 2004, China Eastern listed in Hong Kong, and created two Regal shareholders, which is far and Ning - Ning Chen Hawkes. However, this year, Ning - Ning Chen launched acquisitions, trying to replace the control of China Eastern Hawkes far. Two subsequent appeals due to a variety of problems to the Hong Kong Stock Exchange and to prosecute to the court, the conflicts intensified. However, Ning - Ning Chen acquisition finally failed, she herself was dismissed executive director post. Since then, Ning - Ning Chen immediately announced that AlbaniaLuomidaer the transfer of ownership. China Eastern said the press release issued later, I believe AfghanistanLuomidaer international perspective and global business experience will help enhance China Eastern’s overall competitiveness.The company in accordance with the established direction of the development will be committed to 2010 before upgrading its overall production capacity to 10 million tons above.

With ArgentineLuomidaer further Holdings, the former controlling stake in the dispute was finally “third party” intervention of the quietly ended. Because of this merger opera staged in the process of China Eastern stock has climbed steadily, the ArgentineLuomidaer more on this basis, premium acquisitions, it has no merger itself, and the loser, the only suspense left is the original holding the right to dispute what to what?

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32 fund net below face value of the Fund calmly face redemption

November 20th, 2007

The recent stock market continued to adjust to a large fund net diminished. At present, including four QDII Fund, has 32 funds dropped to 1 yuan denominations following. However, as the fund relatively adequate funds in hand, sufficient to meet the redemption of a slight increase.

32 funds below face value

since October 16 hit 6124.04 points after entering the new high shock adjustment period, the current decline has reached 13.95 percent, the biggest decline in the period amounted to 17.82%. Involvement in the market continued to drop, the recent net general fund shrink. As of yesterday, 328 open-end fund, some 32 funds below face value, including four just issued QDII funds and another 52 fund net down to one yuan denomination nearby.

Blue chips in the market continued to rise 9,10 month, the Fund had net rapid rise in the ranks of high-value fund expansion. To October 16, has 43 fund units net more than three yuan, more 10 Fund net of five yuan and above.

Galaxy Securities senior analyst Wang Qun Air Fund Analysis, below the face value of the Fund is divided into three conditions: First, the issue since the second half of the new fund; second is a pre-split Marketing Fund; Third, a large proportion of dividends Fund . September has been issued in a new fund suspended state, but after two or three months of the new fund issued under prospectuses, to be set up in a not more than six months Jiancang.Therefore, these funds if they opt in???in the stock market at a high Jiancang, now could fall below face value.

Statistics reveal that up to now this year, yielding more than 100% of the fund volume to 124, and in October 16, there have been as many as 183 fund net doubled. The Post was more entrepreneurial core optimization, and other three fund income over 200%, but the yield is now at 200 percent above the Fund has disappeared. In the October 16 start of this round of market adjustments, net shrinkage in 10% above the volume has reached 142.

While some active funds if the shares held by the poor, then the net may also decreased from 10 to 20 percent. Although the Fund has shrunk the prevalence of the net, but the majority of the fund income so far this year is still the. Even so, some investors access to a specific time, because there will be norhythms loss, we can see that fund investors can not compensable.

The bullish stock market to yield substantial increase in funds, especially the second half of the blue-chip prices rise, the Fund has become a “money tree” and even bought a fundnot compensable argument. Many people have joined the ranks of investment funds, almost two-thirds of the Christian Democratic newcomers are.Especially the “5 30″ In the future, a large number of shareholders also to the public. “The stock market adjustment of the net value of the Fund decreased from the investors is a good risk education.” Said Wang Qun flights.

Fund than adequate funds in hand

It is worth noting that the stock market adjustment and the “5 30″ when the situation is different plummeted. General Fund positions was maintained at more than 80 percent, some fund positions proportion is as high as 90 percent. If there was a large-scale redemption of the people, then the fund will be forced to sell stocks to cope with the influx redemption. This will further aggravate the volatility in the market, thus creating a vicious cycle, the situation will not optimistic. Fortunately, after a few days when the stock market plummeted after rebound quickly stabilize, and constantly reaching record highs.

Relatively speaking, the current situation would ease much. It is understood that some banks have recently recommended for the position of the appropriate redemption, the best positions will be reduced to half the level positions to lock profits, control risks.Therefore, the recent slight increase in the redemption fund, but the fund company is still sufficient to meet. “The recent liberalization of the management of the Fund also timely marketing, in order to ensure market supply and demand balance.” Said Wang Qun flights.

The recent stock market adjustment and the “5 30″ at the different positions Fund generally low cash position is sufficient.

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Zhou Xiaochuan: interest rate increase this week is not satisfied with the current interest rate

November 20th, 2007

People’s Bank of China Governor Zhou Xiaochuan recently said that the current interest rate level is satisfied with, the central bank will continue to pay close attention to the future of statistical data; China does not need to adjust interest rates too frequent level, but does not rule out the possibility of adjustments to continue.??Asked again in the near future the possibility of raising interest rates, Zhou said, do not want to talk about long-term prospects, but at least it will not be on the 19th this week. “Always depends on the level of central bank interest rate the state of economic data, therefore, we will continue to pay close attention to future economic data.”Of particular concern for the central bank will be the economic data, Zhou Xiaochuan said: “Many economic data analysis are very complicated.” He said, the central bank expects next year’s inflation pressure will not be great, the annual inflation target set when the central bank will consider the original price correction traditional distortion factors.
In South Africa to participate in the Bank for International Settlements break of the meeting, Zhou Xiaochuan, said to reporters that will continue to improve the deposit reserve ratio to recover mobility; reserve ratio further enhance the space is still very great.  In fact, raising the deposit reserve ratio of pace will continue. He said that the effect of any of the tools are limited, but continued to space still exists. Zhou Xiaochuan also said that the existence of too many on the international market liquidity, China’s foreign exchange reserve increased the relative speed or faster.

He said that, despite the volatility of monthly inflation data, but most economists expect the inflation rate this year is about 4.5 percent; central bank expects next year’s inflation pressure will not be great. As China is gradually moving from a planned economy transition to a market economy, the central bank corrected the original face of public transport and facilities, and other areas within the mandate of price distortion, which means that the inflation rate will rise.

In the ensuing attend G20 finance ministers and central bank meeting, Zhou Xiaochuan also said upgrading the RMB flexibility are various ways.  Currently the RMB exchange rate floating range of reasonable, necessary, will consider expanding the exchange rate floating range, depending on the global economic situation.He said that China will do its utmost to support a strong dollar, would like to see a strong dollar.

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