A Framework Agreement on Hong Kong-Guangdong co-operation was signed earlier in April in Beijing. The Framework Agreement, which builds on years of close co-operation between Hong Kong and Guangdong Province, is a significant embodiment of the principle of “One Country, Two Systems”. It represents a deepening of the co-operation between the two places. It sets clear targets and development positioning for Hong Kong/Guangdong co-operation, and outlines specific polices and measures, including:
- to promote joint socio-economic development in Hong Kong and Guangdong;
- to enhance Hong Kong’s position as an international financial centre and expedite the development of financial-services industries in Guangdong;
- to capitalize on the competitiveness of Hong Kong’s service industries and Guangdong’s manufacturing industries to build an advanced global manufacturing and modern services base;
- to facilitate the flow of key factors such as people, goods, information and capital across the boundary, with a view to building an international aviation, shipping and logistics hub and a world-class modern economic circulation sphere;
- to implement a regional ecology and environment protection regime operating at a leading level by the national standards; and
- to promote collaborative development among Hong Kong and the Pearl River Delta cities to form a world-class metropolis cluster.
To achieve the objectives, Hong Kong and Guangdong have put forward specific policies and measures, and set out major initiatives for 2010.
Following the listing of the world’s biggest aluminum firm, Rusal, and Mongolian coal miner SouthGobi Energy Resources in Hong Kong earlier this year, the Hong Kong Stock Exchange (HKEx) is looking to attract South American and African companies to list on the Hong Kong bourse.
According to the HKEx Chairman Ronald Arculli, it is part of HKEx’s three-year strategic plan to have more international companies to list in Hong Kong and establish the city as an international financial centre. He said mining and resource companies from South America and Africa like Brazil and Nigeria could benefit from proposed improvements in the HKEx rules to make it easier for them to list in Hong Kong. Meanwhile, companies come to list in Hong Kong can tap funds from Asian investors through HKEx, and get closer to the Mainland China and Asian markets, which are the fastest-growing in the world. Since 1993, more than 300 Mainland China firms have listed in Hong Kong, representing 58 per cent of the bourse’s market capitalization.
After a fantastic year for IPO’s on the Hong Kong Stock Exchange (HKEx), it was not at all surprising that a standing-room only crowd at the Prospectus and Developers Association of Canada (PDAC 2010) Convention in Toronto was eager to hear from visiting Secretary for Financial Services and the Treasury, Professor K.C. Chan, and HKEx Chairman, Ronald Arculli, about Hong Kong and on how HKEx has become one of the most active markets in the world.
HKEx ranked Number 1 globally in 2009 for IPO fundraising (US$31.3 billion), and Number 4 globally in terms of total fund raised, including post-IPO, of US$81.4 billion. A total of 73 companies were newly listed on HKEx and they included overseas companies which have listed their Greater China related business operations in Hong Kong. “Companies are attracted to list in Hong Kong to benefit from our market’s liquidity, attractive valuations and access to investors in Asia,” said Professor Chan.
2010 has already started off well, Professor Chan said at the PDAC Seminar in March on “Listing and Capital Raising in Hong Kong for Mining and Natural Resources Companies”, with SouthGobi Energy Resources, owned by Canada’s Ivanhoe Mines, raising USD$439 million through a secondary listing on the HKEx, just days after Russia’s UC Rusal, the world’s largest aluminium producer and the first ever non-Asian company to have a primary listing in Hong Kong, raised USD$2.24 billion.
It is expected that at least nine other foreign mining companies will be listing in HKEx this year, said the Secretary, some of which are from Canada. Professor Chan encouraged Canadian natural resources companies in particular to list on the HKEx so as to take advantage of China’s seemingly insatiable appetite for raw materials, as well as the liquidity afforded by the Mainland’s wealthy, upper and middle-class who are very active investors on the HKEx. He pointed out that companies incorporated in British Columbia and Ontario are acceptable for listing in Hong Kong and that HKEx has adopted international standards and practices to facilitate dual listings, with no capital controls and no capital reporting requirements. Continue reading ‘Hong Kong – A Global Centre for Raising Capital’
Olympic stadium in Beijing, China, for the 2008 summer olympics, so-called "the nest" made of steel; architectural designed by Herzog & deMeuron
China and Brazil announced the signing of trade deals aimed at enhancing trade and energy cooperation. This comes out of the recent BRIC summit held in Yekateringburg, Russia. While the summit was shortened due to the earthquake in Western China, this agreement is slated to be China’s biggest investment in Brazil and also China’s biggest foreign investment in the steel industry.
The deal is estimated to include a $5 billion steel plant in Brazil, and it hinted that China will bid on the rights to construct Brazil’s high speed rail link between Rio De Janeiro and Sao Paulo. All of this is part of five year action plan which builds on Brazil becoming China’s top trade partner in 2009.
Also stemming from the meeting, the BRIC countries, Brazil, Russia, India and China called for their group to have greater influence in the World Bank, International Monetary Fund and other such global financial institutions. They stressed that together BRIC has about 40 per cent of the world’s population along with noting the significance of emerging markets during the financial crisis, they should have more say in global financial matters.
To read more about the summit check out these articles:
China, Brazil sign deals at shortened BRIC summit
China and Brazil sign trade deals at Bric summit
Photo by nozoomii
China replaces the US as the leading investor in renewable energy technology. This is according to Pew Charitable Trusts’ new study that ranks China investing $34.6 billion in 2009. This is almost two times the investment amount as US. Rounding off the top five spots for clean tech investment include the UK, Spain and Brazil, respectively. Pew does note that even despite the global recession, global investment in renewable technology has more than doubled over the last five years. South Korea alone posted a 250 per cent increase in this period.
An article from BBC news quotes Phyllis Cuttino, director of Pew’s climate change movement as saying, “They know that investing in clean energy can renew manufacturing bases, and create export opportunities, jobs and businesses.”
To read more about China’s energy diversification needs/aims head over to the article.
Photo by Sebastiano Pitruzzello (aka gorillaradio)
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