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China's 4 trillion Yuan stimulus package: Israeli opportunities

週四, 21 五月 2009 03:15 Lily Wang

China is emerging as a new land of opportunity amidst the floodwaters of the global economic crisis. Buoyed by strong fundamentals and sound management, China appears to be weathering the crisis better than most. As world economies are set to contract, China’s will continue to grow at an annual rate of 6.8%, according to the latest forecast of the World Bank. China would like to see this figure improve. Analysts point to an 8% target growth rate for future years. Article continues after advertisements The Chinese government is poised to disburse some ¥4 trillion of its reserves to reach its target growth rate. China’s massive economic stimulus package provides hope not only for the Chinese economy, but for enterprising foreigners as well. With expertise in key areas of interest for the Chinese, Israelis are positioned to participate constructively in China’s economic recovery. Chinese Plans for Economic Stimulus Beijing plans, with provincial and municipal Chinese governments, to pump close to ¥4 trillion in the coming years into national rural infrastructures and to stimulate domestic consumer growth as the turn-around driver of its slowed economy. The money will be channeled into new and existing transportation projects. These include 90 new airports, electric power, and railway lines and freeways connecting rural areas from Sichuan to Xinjiang provinces. The projects aim to boost the economies of central and western China, to develop their natural resources, and to bring political calm to the region's 60 million Chinese Muslims. The Chinese stimulus plan also offers investment incentives focusing on education and communication through hi-tech innovation in cooperation with local universities, start-up hi-tech parks and Internet expansion through TV networks. Other sectors include environmental issues, specifically polluted and waste water treatment installations, as well as intensive agriculture-related conservation technologies such as smart (drip) irrigation and new fertilizers to boost land yields and enhance the quality of their produce. Health care facilities and mobile hospitals are also targeted for construction throughout central and northern China. These sectors of the Chinese economy all offer Israeli businesses excellent investment opportunities. New Israeli entrants to the Chinese economy China-Israel Value Capital (CIVC) equity fund and Infinity Private Equity Fund are both Israeli ventures that wish to capitalize on China’s massive growth potential. According to Ami Dotan, a Beijing-based general partner with China-Israel Value Capital (CIVC) equity fund, Israel is considered second to the United States in software development, internet and alternative energy applications, telecommunications, water treatment, biopharmaceuticals and medical technology. CIVC funds growth-stage Chinese companies whose sales are mostly focused on mainland Chinese markets They hope to get a piece of the growing demand in tenders generated by the stimulus plan for projects which are also, but not exclusively, government-funded. CIVC’s Dotan notes that Israelis have experience in the areas that China is currently developing. China is "greenfield" for Amir Gal-Or, the Hong Kong based founding manager and partner of Infinity Private Equity Fund. Infinity ties local Chinese start-up companies with Israeli technologies. It plans to shift from information technologies (IT) to more resilient life science investments such as the telemedicine provider China Medicine On-Line Ltd. "You'd have more competition in the US," Gal-Or recently told The Wall Street Journal. "Culture-wise, you are not competing with the Chinese. You are adding value. Either you bring the experts, or the initial plan, or the strategic partnerships." Li Yaoting, the foreign affairs coordinator for Jinan Municipal Government in Shandong Province, confirms that Israeli companies should apply their hi-tech expertise in IT, metallurgy, machinery and chemical industries to China's newly focused infrastructure development projects and facilities constructions. Jinan's steel industry could especially benefit from Israeli steel manufacturing know-how, said Li, who was in Israel in March with a delegation from his city to promote opportunities for further economic, commercial, educational, cultural and sporting partnerships with the Israeli city of Kfar Saba with which Jinan (a city of six million residents) is formally twinned. Israeli pragmatism and conceptual flexibility "The Israeli mix of good, practical technology and pragmatic managers and entrepreneurs is highly rated in China," says Ornit Avidar, a former Israeli commercial attaché in Hong Kong and Israel-based partner with CIVC equity fund. Israelis have always had "a very open and conceptually flexible approach" allowing changes, which depart from the original Israeli model to be integrated at China’s request, she says. This has given them a qualitative edge over their American and European competitors. Chinese and Israelis think similarly, and this can account for 70% of a good business relationship, says Avidar. The 'cultural phenomenon' has been confirmed to her by some Chinese who claim that they "speak on the same wavelength as Israelis." She advises Israeli first timers seeking to break into the Chinese market to learn Chinese business culture and practice, warning that the ignorant can unknowingly offend the other side. When that happens, second chances to repair the damage are rarely given. "You can't unthinkingly plunge into Chinese business. Do your homework first. Read and clue up, make pilot visits to see the opportunities and become aware of the different facets. Take business courses and talk to people who have done business in China and learn from their mistakes This involves a sizeable initial outlay in time and money, but is absolutely necessary, stresses Avidar. The recently formed Israel-China Chamber of Commerce in Beijing held a seminar in March attended by several dozen participants to evaluate the Chinese government stimulus plan. The discussion was led with presentations by Zhang Liquin, a senior fellow in the Department of Macroeconomic Research at the State Council Development and Research Center and China economic analyst Arthur R. Kroeber of Dragonomics Consulting. Representatives of leading Chinese industries later shared personal experiences on ways of responding to uncertain markets. Israeli technology, adaptable know how and expertise is well placed for Israeli business and investment to reap the new horizons presented by China's economic stimulus plan which guarantees a continuing high rate of annual growth and exciting opportunities to tap into China's undeveloped resources. Transforming a crisis into an opportunity Shanghai-based Israeli-American attorney Amit Ben-Yehoshua, a specialist in Chinese law and Partner in Shibolet & Co. Advocates & Notaries, sees the current crisis as an opportunity. He believes that local governments in China will be more willing to approve foreign investment projects because of the economic downturn. “I predict that it will be easier to receive approval for an investment with less minimum registered capital. Moreover, I know that several local governments agreed to extend the time and to allow the investors additional time prior to injection of additional equity into the company notwithstanding the mandatory legal requirements according to the Chinese Company Law.”

With China as Israel's second largest importer, he insists that the question today is not whether to invest in China, but rather what is the wisest way to invest.

HK Stocks Up as Pressure Eases

週一, 18 五月 2009 09:45 Lily Wang

Hong Kong stocks opened up by 277 points and expanded the gains despite being volatile. However, the test at the 17,000-line was unsuccessful. The HSI stayed in a narrow range in the afternoon session, and closed at 16,791 points, up 249 points or 1.5%. Turnover fell to $58.4 billion. The HSI index future contract in the spot month closed at 16,705 points, up 274 points and was 86 points lower than the HSI index. 63,167 contracts were traded. The Hang Seng China Enterprise Index closed at 9,607 points, up 159 points or 1.7%.

Stock markets in Asia mostly rebounded. The Nikkei 225 Stock Average closed at 9,265 points, up 171 points or 1.9%. The stock market in Taiwan closed at 6,489 points, up 125 points or 2.0%. The Shanghai A-Share Index closed at 2,777 points, up 6 points or 0.2%.

Blue Chips:

After a period of consolidation, blue chips regained support as pressure on profit-taking eased. 35 out of the 42 constituent stocks were up, active buy orders dropped slightly to 52%, while turnover dropped to $58.4 billion.

Boosted by the rally of financial shares in the US last night, HSBC (5) surged over 3% to $64.30. However, China Mobile (941) retreated in the afternoon and closed at $72.20, down by over 1%.

FIH (2038) rebounded after dropping near the 20-day moving line yesterday. It closed up by 6%, which was the biggest advance among blue chips. Tencent (700) was under selling pressure after rising to a new high and closed slightly down by 0.5%. It was at a record high of $83.15 in the morning session.

Property stocks rebounded. Cheung Kong (1) and SHK PPT (16) were both up by more than 1%. Sino Land (083) rose even more by nearly 6%. Banks were mostly soft. Hang Seng Bank (11) rose slightly by 0.1%. BOC Hong Kong (2388) was almost unchanged, while Bank of East Asia (023) rose by more than 2%.

Chinese stocks:

Mainland banks were all up. CITIC Bank (998) rose by nearly 5%. ICBC (1398) rose by 4%. China Construction Bank (939) rose by nearly 2%. Bank of China (3988), China Merchants Bank (3968) and Bank of COMM (3328) were all up by about 1%. Insurance stocks also rose with the market. China Life (2628) rose by nearly 1%. Ping An Insurance (2318) and PICC P&C (2328) both rose by nearly 2%.

Mainland housing shares were mostly up. R&F Properties (2777) and Shimao Property (813) rose by 2%. Country Garden (2007), Sino-Ocean Land (3377) and China Aoyuan (3883) rose by more than 5%. Greentown China (3900) and Franshion Properties (817) both rose by more than 10%. In addition, Costal GL (1124) surged by 24%, while Zhongan Real Estate (672) rose even more by 41%.

Oil stocks were all up. CNOOC (883) and Sinopec (386) rose by 2%, while PetroChina (857) rose by 1%. CNPC Hong Kong (135) would be injected from its parent company assets of Kunlun gas, boosting its stock price up by 18%. Coal stocks also rose. China Shenhua (1088) stabilized and rose by nearly 1%. China Coal (1898) and Yanzhou Coal (1898) rose by 2%. Hidili Industry (1393) rose by 8%.

Gold mining stocks were mixed as Zijin Mining (2899) fell slightly, Zhaojin Mining (1818) rose by 2% while Lingbao Gold (3330) was flat. Angang Steel (347) and Chongqing Iron (1053) were both up by 1%. Maanshan Iron and Steel (323) rose by nearly 3%. In addition, Chalco (2600) rose by more than 2%. Jiangxi Copper (358) stabilized and rose slightly, while Hunan Nonferrous (2626) was unchanged.

Others:

Water Industry (1129) proposed to acquire the entire interest or part of the interest in 8 sewage treatment plants in Guangdong province as well as a water plant in Tangshan at a total consideration of $660 million. The consideration would be settled by a mixed way in cash and the issue of new shares, convertible preference shares and convertible bonds. If the convertible preference shares and convertible bonds are fully converted, the vendor would hold nearly 64% interest in Water Industry. The share price was stimulated to soar 33%.

There were rumors that shareholder of BYD Company (1211) disposed 11.2 million shares at $25 per share for $280 million in cash, dragging the share price down 2%.

Hua Han (587) proposed a 1-for-2 rights issue with a significant discount to raise $220 million, and the proceeds would be used for the repayment of banking syndicate loans. The share rose 4% despite opening lower.

GCL-Poly Energy (3800) placed new shares with significant discount to raise nearly $80 million, and the proceeds would be used as general working capital and for future business development. The share price was down by 4%. Poly Development Holdings (1141) proposed to issue new shares to raise about $10 million, and the share price soared 32%.

Changsha County Awarded as 1st Water Conservation Model City

週一, 18 五月 2009 08:37 Lily Want

On May 10, the Changsha County pioneered in Hunan to be officially approved as "Water Saving City" for its effective measures in water resource management such as increasing the fee of water that surpasses the prescribed quantity and strengthening the diversion of rain and sewage water.

　　Though Hunan boasts more abundant water resources compared with the northern cities, it is also faced with very arduous task of water-saving. Especially in recent years, the dry season of Xiangjiang River comes earlier and lasts longer, resulting in the increasingly serious seasonal shortage of water. What's worse, due to the discharge of pollutants, the water quality has been obviously destroyed to a great extent and the shortage of water has become more serious, which in turn obstructs the economic and social development.

　　To solve the problems mentioned above, Changsha County has proposed a number of useful attempts and tried hard to build itself into a water saving city. According to Yang Yiwen, the magistrate of Changsha County, some normative documents concerning urban water supply and water saving have been set down in the local area to make water-saving work gradually step into a legal management system. By establishing in-depth water saving enterprises, the water saving appliances have been more widely promoted, and water technology and facilities have been constructed and improved more reasonably. With the price of water in the city adjusted and a progressive increase fee system carried out, the economic leverage has played a better role in regulating the water demand. With the construction of sewage treatment projects accelerated and the implementation of "diversion of rain and sewage water ", the facilities of water supply, water saving and sewage have been further improved.

　　In recent years, Changsha County has invested plenty of funds in improving facilities of water supply, in building workshops of water quality control and water pollution management and thus paved the way for a water saving city.

　　At present, the water quality of Changsha County is in full compliance with the requirements; the treatment rate of life sewage and industrial wastewater reaches over 90%; the urban water-saving apparatus are provided to every necessary place; and all other indexes concerning water are up to domestic advanced level.

　　From May 10 to 16 is the "2009 All-China Water Saving Promotion Week". Some relevant persons revealed that the city would use this activity as an opportunity to further carry forward the water saving concept, to let the concept prevail in every corner of the city, to reduce carbon emission by water saving, to change the water using method, to optimize the water using structure, to strengthen the usage of irregular water resources, and thereby to make Changsha's water saving work move up to a new stage.

International Water Forum focuses on sustainable water management in China

週一, 18 五月 2009 07:58 Lily Wang

SHANGHAI, China, May 13, 2009 -- The 2nd International Water Forum, organized by Noppen Co Ltd covers two windows: Shanghai Urban Water Forum and Industrial Wastewater Forum held on 18-19 May in Shanghai and 1-2 June in Shenyang respectively.
Shanghai Water Forum, 18-19 May, Crowne Plaza Century Park, Shanghai is hosted by the College of Environmental Science and Engineering, Tongji University, and the National Engineering Research Center for Urban Pollution Control.

The event is supported by the Science and Technology Commission of Shanghai, Shanghai Water Authority, and Shanghai Environmental Protection Bureau. Topics that will be addressed are regulations and policies for urban water supply and systems, drinking water safety and stability, wastewater plant reconstruction and wastewater treatment innovations and technologies. In-depth case-studies will discuss on-going projects in Shanghai.

Attendees will hear from more than 20 key figures in the industry. Among the presenters are top-level decision makers and experts from and related to Shanghai Water Authority.

China Industrial Wastewater Forum, 1-2 June, Shenyang Kempinski Hotel, Shenyang is endorsed by both the Shenyang government and Harbin Institute of Technology.

The forum will be a high-level gathering of domestic and international industry players and project owners. Representatives from industry parks, pharmaceutical, chemical and steel companies from all over the country will hear and learn from industry leaders, scientific institutions, technology providers and policy makers.

Topics addressed include industry water conservation and emission reduction, recycling and reuse of wastewater, wastewater depth treatment, desalination and water supply. In addition themes on innovation and new technologies for water treatment will be elaborated on. Co-host of the event, Bayer BTES is hosting a technology workshop on Day 1 afternoon.

Dr. Dieter Heinz, Head of Process Division, Bayer Technology Engineering Service (BTES) will speak about "Industrial Waste Water Technology Tailor-Made Concepts and Economic Implementation Across the Globe." Dr. Heinz will share relevant case studies and elaborate on Bayer's successful strategies, which have been developed and continually updated over the last 30 years.

BTES will also host the workshop: "Modern Industrial Park Waste Water Treatment" which will outline their cost-effective waste water treatment system that is integrated with advanced biological treatment processes and air floatation technology developed by Bayer Technology. When compared with conventional centralized waste water plants for industrial parks, this new technology possesses numerous benefits such as: low energy consumption, low running cost, compact size, minimum secondary pollution, low maintenance demand and easy management. Mr. Andreas Theunissen, Head of Fluid Processing Division, BTES, will conduct the workshop.

Yingli Green Energy Becomes the First China-Based Company to Join PV CYCLE

週六, 16 五月 2009 04:20 Lily Wang

BAODING, China, May 11 /PRNewswire-Asia-FirstCall/ -- Yingli Green Energy Holding Company Limited (NYSE: YGE) (''Yingli Green Energy'' or ''the Company''), one of the world's leading vertically integrated photovoltaic (''PV'') product manufacturers, today announced that it has become the first China-based company and the 40th member to join PV CYCLE, an organization based in Brussels, Belgium that promotes voluntary take-back and recycling of end-of-life PV modules. As a member, Yingli Green Energy will participate in PV CYCLE working groups whose aim is to define collection and recycling targets for the PV industry, develop voluntary agreements among members and hone PV CYCLE's business model and outreach strategy.''As one of the world's leading vertically integrated photovoltaic product manufacturers, Yingli Green Energy is committed to helping lead the search for a truly sustainable energy solution to reduce life-cycle energy consumption and the environmental impacts associated with PV production. Our membership to PV CYCLE will substantiate our commitment to customers, authorities and stakeholders, while allowing us to join a global team of industry leaders that are similarly committed to preventing climate change tomorrow,'' said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy.''We are honored that Yingli Green Energy has become the first China-based PV manufacturer to join our organization. We hope Yingli Green Energy's commitment to reducing the environmental impact of PV production will encourage other Asian manufacturers to take steps towards developing a sustainable PV solar industry,'' said Jan Clyncke, Managing Director of PV CYCLE. ''PV modules are designed to generate clean, renewable energy that can last for more than 25 years. The first significant installations took place in the early 1990s, and full-scale end-of-life recycling is still another 10 to 15 years away. It is with this in mind that we aim to bring industry leaders together to devise solutions that will have the maximum impact when the time comes.''The PV CYCLE membership, which began on April 29, 2009, represents another step forward in Yingli Green Energy's commitment to developing sustainable energy solutions throughout all stages of the PV value chain. In addition to module recycling, Yingli Green Energy has also developed award-winning water treatment procedures which have received ISO 14000 and 14001 certification.About Yingli Green EnergyYingli Green Energy Holding Company Limited is one of the world's leading vertically integrated PV product manufacturers. Through Baoding Tianwei Yingli New Energy Resources Co., Ltd., an operating subsidiary of the Company, Yingli Green Energy designs, manufactures and sells PV modules and designs, assembles, sells and installs PV systems that are connected to an electricity transmission grid or operate on a stand-alone basis. With 400 MW of total annual production capacity in each of polysilicon ingots and wafers, PV cells and PV modules, Yingli Green Energy is currently one of the largest manufacturers of PV products in the world as measured by annual production capacity. Additionally, Yingli Green Energy is one of a limited number of large-scale PV companies in the world to have adopted a vertically integrated business model. Through its wholly owned subsidiary, Yingli Energy (China) Co., Ltd., Yingli Green Energy currently plans to expand annual production capacity of polysilicon ingots and wafers, PV cells and PV modules to 600 MW in the third quarter of 2009. The Company, through Fine Silicon Co., Ltd., its wholly owned subsidiary, also plans to begin production of solar-grade polysilicon in the second half of 2009. Yingli Green Energy sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. About PV CYCLEPV CYCLE was founded in 2007 with the specific purpose of implementing the photovoltaic industry's commitment to set up a voluntary take-back and recycling program for end-of-life waste PV modules. To produce green and renewable energy, end-of-life modules need to be recovered and recycled. This will minimize waste and allow the re-use of valuable raw materials to produce new modules. The members of PV CYCLE are in the final stages of developing the scheme and aim to present it to the European Commission by spring 2009 for formal acknowledgement. By closing the life cycle of photovoltaic modules, industry players take their responsibility and are ''Making the photovoltaic industry Double Green.''Safe Harbor StatementThis press release contains forward-looking statements. These statements constitute ''forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as ''will,'' ''expects,'' ''anticipates,'' ''future,'' ''intends,'' ''plans,'' ''believes,'' ''estimates'' and similar statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yingli Green Energy's control, which may cause Yingli Green Energy's actual results, performance or achievements to differ materially from those in the forward- looking statements. Further information regarding these and other risks, uncertainties or factors is included in Yingli Green Energy's filings with the U.S. Securities and Exchange Commission. Yingli Green Energy does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

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