2009-05-07

2009/05/07 News

Light posting lately. I've been studying up on the German hyperinflation (德国恶性通货膨胀) of the early 1920s, and will post about it in future.

Markets are gaining on no news and bad news (stress tests at U.S. banks). China's PMI numbers indicate economic expansion in April, and positive reports from companies such as Alibaba (1688.HK) have helped send the market higher. Optimism is in charge.

On to gold and gold miners:
From the Financial Times: China to continue buying gold
China is likely to buy more gold as a means of diversifying its foreign exchange reserves, after having recently doubled its holdings of the precious metal, the Financial Times reported, citing gold analysts.

The newspaper said analysts believe China will buy gold mostly from domestic producers to avoid pushing international prices higher.
More here:中国将继续增加黄金
Domestic producers include Sino Gold (1862.HK), Lingbao Gold (3330.HK), Zijin Mining (2899.HK), and Jinshan Gold (JIN.TO).

From Caijing:
Zijin Mining Shareholder Cuts Stake
Zijin Mining Group Co, China's largest gold producer, said its second-largest individual shareholder has lowered his stake to 1.72 percent from 2.24 percent.
Ke Xiping sold around 74.8 million Zijin Mining shares between April 27 and May 5.
After the sale, Ke and Hengxing Group, in which Ke holds 95.4 percent, held a combined 4.99 percent of Zijin Mining.

紫金矿业第二大自然人股东减持7477万股

And finally, the big news:
Taiwan and China are planning to permit trading of each others’ shares for the first time as ties improve 60 years after their civil war ended.

A so-called trading platform may list as many as 30 stocks from each market, said Schive Chi, chairman of the Taiwan Stock Exchange. Now, investors are restricted from directly investing in each others’ equities. An agreement on the dual-listing of exchange-traded funds is also expected this year, he said.

iShares Taiwan (EWT)is 65 percent off it's lows this year. The potential gains for Taiwan's economy and stock market are much greater than for China, due to their relative size, but the cross-straits trade will be a boost to the entire region's economy.

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