Any Non-US Investors feel like they may have missed the boat for the Energy Trade? Well, the recent US Blacklisting of US firms may have offered a second chance. CNOOC, China's 3rd largest oil producer.... with diversified oil assets around the world, a strong balance sheet and a 2022 Projected Free Cash flow yield ($65ish oil) of over 35% has broken out in trading in HK Today. The US ADR Symbol is CEO. Recommend buying under $100 with a target of $200 within this year and if you believe in the longer term story for EEM, China, Oil & Gas it could be a multi-bagger. The forced liquidations by US investors (due to the Blacklisting) appears to be over.
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If you have heard about Intel, AMD, Nvidea, taiwain semiconductor, ASML but you don't really know what it is they make, this primer is for you.
At least read chapter 1&2:
There are rumours that the leases have been given to a Chinese firm
Perhaps relevant going forward for the Gold Mining bugs. (Me included)
From a Market Announcement by Sundance Resources https://www.sundanceresources.com.au/irm/PDF/c67e99f9-3ea4-4394-8dae-99b33e7a86ee/MarketUpdateonCongoDispute
MARKET UPDATE ON CONGO DISPUTE Sundance Resources Limited (“Sundance” or “the Company”) (ASX Code: SDL) advised on 16 December 2020 it had become aware that the Republic of Congo (“Congo”) had issued a decree on 30 November 2020, which purported to withdraw the mining permit from Sundance’s subsidiary Congo Iron (“Congo Iron”). This decree has now been confirmed as it has been published in the Official Journal of the Republic of Congo. The decree confirms the removal of the Nabeba mining permit from Congo Iron. A second decree, also in the Official Journal, has announced the issuance of a mining permit for Nabeba to Sangha Mining Development Sasu (“Sangha Mining”). The Official Journal also contains decrees affecting the permits and licences of iron ore projects held by other companies, including: • Removal of the mining permit for the Avima iron ore project; and • Issuance of mining permits for Avima and the Badondo exploration license to Sangha Mining. Sundance does not know who or what Sangha Mining is or who Sangha Mining’s beneficial owners are
Today's issue will be shorter than usual as there is really one story that really matters in the news cycle. That is the drama concerning the Chinese debt markets and the rising number of defaults among Chinese State-Owned Enterprises. This saga runs counter to the narrative that Chinese quarterly GDP and export numbers give the impression of a resurgent and seemingly unstoppable Chinese economy.
What companies have defaulted so far?
- Yongcheng Coal & Electricity
- 1 Billion Yuan ($152 million)
- Huachen Automotive Group (BMW/China Joint Venture)
- 990 million Yuan ($149.1 million)
- Tsinghua Unigroup (Chinese Semiconductor Manufacturer)
- 1.1 Billion Yuan ($199 million)
What has changed?
On Wednesday Chinese backed chipmaker Tsinghua Group announced that it would fail to pay its principle on a $450 million Eurobond and a $40 million interest payment for an onshore yuan bond. With the default on this second tranche of issuances, it likely means the dollar-denominated debt owed by the Tsinghua Group totaling $2 billion is likely in default also.
This is a considerable escalation in the nation's sting of defaults in Chinese State-Owned Enterprises as all previous defaults were only in Chinese Yuan, shielding international investors who hold Chinese euro or dollar-denominated debt. That has now changed as the default of Tsinghua Group likely indicates more defaults are yet to come.
However, what is beginning to worry local and provincial officials is the possibility of contagion within public spheres. Not only have provinces bailed out their state-owned champions in the past, but they could... (More)