DOCSLIB.ORG

China 2025 16

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
China 2025 16 China | Equity Strategy China 14 December 2014 EQUITY RESEARCH China The Year of the Ram: Stars Aligned for a Historic Bull Run Key Takeaway The Ram, the Bull and the Heavenly Twins – the stars are now aligned for China’s historic bull-run. China's stock market offers massive untapped potential given the high savings rate and low penetration. “Keeping Growth Steady” is a top priority for 2015; we expect SHCOMP and HSCEI to test 4,050 and 15,420, up 38% and 37% from current levels. As confidence gains momentum, volatility becomes the investors’ best friend. CHINA China Gallops into a Historic Bull Run. On Nov 20, 2013, we wrote “The Year of the Horse will see China unleash its full potential, as President Xi ushers in a new era of profound change.” “We expect capital markets to gradually gain confidence in China’s ability to drive fundamental reforms and expect Chinese stocks to enter a historic multi-year bull run.” Indeed, 2014 has been a remarkable year. As of Dec.12, SHCOMP surged 39% to 2938, breaking a seven-year bearish trend to become the best performing index in the world. China Stock Market: Massive Untapped Potential. According to China Household Finance Survey, property accounted for 66.4% of total Chinese household assets in 2013. Financial assets accounted for a mere 10.1% of household wealth. While over 61% of Chinese families have bank deposits, only 6.5% of them invested in the stock market. Given China’s high savings rate and low stock market penetration, we believe the A-share market offers significant upside potential. We believe the rationalization of risk, increasing comfort with online transactions and the impact of social media will help accelerate asset re-allocation and drive stock market participation higher. Stars Are Aligned; Keeping Growth Steady a Top Priority. As highlighted at the Christie Ju, CFA * Central Economic Work Conference, the key focus in 2015 is to keep economic growth Equity Analyst +852 3743 8012 [email protected] steady. Rising disposable income, lower energy costs and a US recovery will drive domestic Laban Yu * consumption and export growth. We believe the surprise rate cut is a clear “step up” in Equity Analyst government’s pro-growth policy. China has entered a monetary easing cycle; we expect +852 3743 8047 [email protected] Venant Chiang * more RRR and rate cuts ahead to drive a broad based demand recovery. Equity Analyst +852 3743 8013 [email protected] Our Bull Case for A-Share is Gaining Momentum. China’s citizens display remarkable Sean Darby * confidence in the government and its leaders. The Third Plenum outlined a clear roadmap Chief Global Equity Strategist towards future prosperity. China is still the largest contributor to global economic growth. +852 3743 8073 [email protected] Jessie Guo, PhD * Chinese stocks are minimally correlated to the rest of the world. We expect the foreign Equity Analyst ownership of A-shares will increase from 1% to 15-20% by 2020. +852 3743 8036 [email protected] Johnson Leung * How to Position for the Big Rally? We are bullish on the outlook of A shares, and expect Equity Analyst HSCEI to play catch up, as foreign investors gain confidence with reduced risk premium, +852 3743 8055 [email protected] Jessica Li, Ph.D. * reform dividends and improving fundamentals. We recommend investors to buy the airline, Equity Analyst bank, broker, clean energy, conglo, consumer staples, environmental service, healthcare, +852 3743 8010 [email protected] insurance, Internet, IPP, machinery, property and shipping sectors, and underweight coal, Leon Liao * Equity Analyst gold and steel. 852 3743 8021 [email protected] Cynthia Meng * Jefferies’ 2015 Top Picks. Among overseas listed companies, our Top Buys are Baidu, Equity Analyst Bank of China-H, CEI, CGN Power, CITIC Securities-H, COLI, CPIC-H, Haitong Securities-H, +852 3743 8033 [email protected] Ping An-H and Sinopharm. For A-share investors, we like the outlook of Anhui Conch-A, Bank Baron Nie, CFA, AIAA * Equity Analyst of China-A, CITIC Securities-A, Haitong Securities-A, Ping An-A, SAIC and Vanke. Investors +852 3743 8747 [email protected] may find Daqing Railway, Kweichow Moutai and Tongrentang interesting as leaders in their Po Wei * respective sectors. Equity Analyst +852 3743 8067 [email protected] * Jefferies Hong Kong Limited Jefferies does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that Jefferies may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see analyst certifications, important disclosure information, and information regarding the status of non-US analysts on pages 154 to 158 of this report. Equity Strategy China 14 December 2014 Exhibit 1: HSCEI target 15,420 (10x 2016 P/E) Exhibit 2: SHCOMP target 4,050 (15x 2016 P/E) 6000 19000 15,420 5000 4,050 15000 4000 +37% 11000 +38% 3000 7000 2000 3000 1000 2015 2015 Target Target Source: Bloomberg price as of Dec 11, 2014, Jefferies estimates Source: Bloomberg price as of Dec 11, 2014, Jefferies estimates Exhibit 3: JEF sector allocation Sector Allocation Over-weight Equal-weight Under-weight Sector Fundamental Sector Fundamental Sector Fundamental Airlines Positive Autos Neutral Coal Negative Banks Neutral Cement Neutral Gold Negative Brokers Positive Consumer discretionary Neutral Packaging Paper Negative Clean Energy Positive Gaming Neutral Steel Negative Conglomerate Positive Oil/Gas Positive Consumer Staples Positive Ports Neutral Environmental Positive Tech Neutral Healthcare Positive Telecom Neutral Insurance Positive Internet Positive IPPs Positive Machinery Positive Property Positive Shipping Positive Source: Jefferies Exhibit 4: Top picks for overseas stocks Exhibit 5: China A share stock ideas Mkt Cap Price PE PB Mkt Cap Price PE PB Company Ticker US$ mn trading 2014E 2015E 2014E 2015E Company Ticker US$ mn trading 2014E 2015E 2014E 2015E Baidu BIDU US 78,929 225.12 36.0 25.9 9.2 6.8 Anhui Conch 600585 17,447 19.96 8.8 7.9 1.6 1.4 Bank of China 3988 HK 149,991 4.10 5.7 5.5 0.9 0.8 Bank of China 601988 149,991 3.34 5.9 5.6 0.9 0.8 CEI 257 HK 6,605 11.42 30.9 24.3 3.2 2.9 China Vanke 000002 21,694 12.03 8.1 7.3 1.5 1.3 CGN Power 1816 HK 20,605 3.62 19.3 20.6 2.4 2.2 Citic Securities 600030 43,421 24.71 40.5 32.1 2.9 2.7 Citic Securities 6030 HK 43,421 27.15 27.4 17.9 2.5 2.3 Daqin Railway 601006 24,678 10.27 10.1 9.0 1.8 1.6 COLI 688 HK 24,199 22.95 8.3 7.0 1.5 1.3 HT Securities 600837 29,098 19.55 36.9 29.6 2.9 2.7 CPIC 2601 HK 36,310 32.65 19.7 17.1 2.1 1.9 Kweichow Moutai 600519 32,466 175.89 12.9 11.8 3.7 3.2 HT Securities 6837 HK 29,098 18.32 20.6 15.2 2.1 1.9 Ping An 601318 79,362 56.82 11.5 9.9 1.9 1.5 Ping An 2318 HK 79,362 73.70 11.9 10.2 2.0 1.6 SAIC 600104 40,043 22.47 8.6 7.6 1.6 1.4 Sinopharm 1099 HK 10,030 28.10 20.0 16.9 1.7 1.6 Tongrentang 600085 4,688 22.12 37.5 31.5 5.2 4.7 Average 20.0 16.1 2.8 2.3 Average 18.1 15.2 2.4 2.1 Source: Bloomberg, Jefferies, priced as of Dec 11, 2014 Source: Bloomberg, Jefferies, priced as of Dec 11, 2014 page 2 of 158 Christie Ju, CFA, Equity Analyst, +852 3743 8012, [email protected] Please see important disclosure information on pages 154 - 158 of this report. Equity Strategy China 14 December 2014 The Year of the Ram: Stars Are Aligned China Stock Market - Massive Untapped Potential 4 The Third Plenum: A Roadmap for Future Prosperity 8 2015: Keeping Growth Steady a Top Priority 11 The Bull Case for China A Shares 13 Our Journey Begins with China 2025 16 China Macro: Monetary Relaxation 26 Jefferies Sector Allocation & Top Picks 2014 Sector Performance 33 Summary of Sector Views 35 2015 Sector Allocation & Top Picks 37 China 2015 Sector View Autos & Machinery 72 Consumer 76 Conglomerate & Gaming 81 Energy (Oil & Gas, Coal) 87 Financials (Banks, Insurance & Brokers) 92 Healthcare 95 IPPs, Clean Tech & Environmental Services 101 Metals & Mining (Cement, Steel & Gold) 113 Property 126 TMT (Telecom, Internet & Tech) 131 Transportation (Airlines, Ports & Shipping) 139 page 3 of 158 Christie Ju, CFA, Equity Analyst, +852 3743 8012, [email protected] Please see important disclosure information on pages 154 - 158 of this report. Equity Strategy China 14 December 2014 China stock market – massive untapped potential The potential for asset reallocation With an extraordinarily high savings rate, Chinese citizens should have ample liquidity to invest. In the past decade, much of this liquidity was funnelled towards real estate. The remainder was kept as bank deposits, with some yield chasing through shadow banking products. Equity markets were given short thrift. According to China Household Finance Survey (CHFS), property accounted for 66.4% of total Chinese household assets in 2013. Financial assets accounted for a mere 10.1% household wealth.
Load more

Recommended publications
  • TEACHERS' RETIREMENT SYSTEM of the STATE of ILLINOIS 2815 West Washington Street I P.O
    Teachers’ Retirement System of the State of Illinois Compliance Examination For the Year Ended June 30, 2020 Performed as Special Assistant Auditors for the Auditor General, State of Illinois Teachers’ Retirement System of the State of Illinois Compliance Examination For the Year Ended June 30, 2020 Table of Contents Schedule Page(s) System Officials 1 Management Assertion Letter 2 Compliance Report Summary 3 Independent Accountant’s Report on State Compliance, on Internal Control over Compliance, and on Supplementary Information for State Compliance Purposes 4 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 8 Schedule of Findings Current Findings – State Compliance 10 Supplementary Information for State Compliance Purposes Fiscal Schedules and Analysis Schedule of Appropriations, Expenditures and Lapsed Balances 1 13 Comparative Schedules of Net Appropriations, Expenditures and Lapsed Balances 2 15 Comparative Schedule of Revenues and Expenses 3 17 Schedule of Administrative Expenses 4 18 Schedule of Changes in Property and Equipment 5 19 Schedule of Investment Portfolio 6 20 Schedule of Investment Manager and Custodian Fees 7 21 Analysis of Operations (Unaudited) Analysis of Operations (Functions and Planning) 30 Progress in Funding the System 34 Analysis of Significant Variations in Revenues and Expenses 36 Analysis of Significant Variations in Administrative Expenses 37 Analysis
    [Show full text]
  • Announcement Report for the First Quarter of 2021 Of
    Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ANNOUNCEMENT REPORT FOR THE FIRST QUARTER OF 2021 OF CHINA CITIC BANK CORPORATION LIMITED This announcement is made by CITIC Limited (the “Company”) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The Company notes the announcement (the “CITIC Bank Announcement”) of today’s date made by China CITIC Bank Corporation Limited (“CITIC Bank”), a principal subsidiary of the Company, in relation to the unaudited consolidated results of CITIC Bank and its subsidiaries for the first quarter ended 31 March 2021. The CITIC Bank Announcement is available on the website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk and is set out at the end of this announcement. By Order of the Board CITIC Limited Zhu Hexin Chairman Hong Kong, 29 April 2021 As at the date of this announcement, the executive directors of the Company are Mr Zhu Hexin (Chairman), Mr Xi Guohua and Ms Li Qingping; the non-executive directors of the Company are Mr Song Kangle, Mr Liu Zhuyu, Mr Peng Yanxiang, Ms Yu Yang, Mr Liu Zhongyuan and Mr Yang Xiaoping; and the independent non-executive directors of the Company are Mr Francis Siu Wai Keung, Dr Xu Jinwu, Mr Anthony Francis Neoh, Mr Shohei Harada and Mr Gregory Lynn Curl.
    [Show full text]
  • Jefferies Financial Group Inc. 2019 Investor Meeting
    Jefferies Financial Group Inc. 2019 Investor Meeting Wednesday, October 16, 2019 Presentations and Q&A Note on Forward Looking Statements Certain statements contained herein may constitute "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and/or the Private Securities Litigation Reform Act of 1995, regarding Jefferies Financial Group Inc., Jefferies Group LLC, Spectrum Brands Holdings, Inc. and Global Brokerage, Inc., and their respective subsidiaries. These forward-looking statements reflect the respective issuer’s current views relating to, among other things, future revenues, earnings, operations, and other financial results, and may include statements of future performance, plans, and objectives. Forward-looking statements may also include statements pertaining to an issuer’s strategies for the future development of its business and products. These forward- looking statements are not historical facts and are based on the respective issuer’s management expectations, estimates, projections, beliefs and certain other assumptions, many of which, by their nature, are inherently uncertain and beyond management’s control. It is possible that the actual results may differ, possibly materially, from the anticipated results indicated in these forward-looking statements. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, the cautionary statements and risks set forth in the respective issuer’s Annual and Quarterly Reports and other reports or documents filed with, or furnished to, the SEC from time to time, which are accessible on the SEC website at sec.gov.
    [Show full text]
  • Shanghai Municipal Commission of Commerce Belt and Road Countries Investment Index Report 2018 1 Foreword
    Shanghai Municipal Commission of Commerce Belt and Road Countries Investment Index Report 2018 1 Foreword 2018 marked the fifth year since International Import Exposition Municipal Commission of Commerce, President Xi Jinping first put forward (CIIE), China has deepened its ties releasing the Belt and Road Country the Belt and Road Initiative (BRI). The with partners about the globe in Investment Index Report series Initiative has transformed from a trade and economic development. to provide a rigorous framework strategic vision into practical action President Xi Jinping has reiterated at for evaluating the attractiveness during these remarkable five years. these events that countries should of investing in each BRI country. enhance cooperation to jointly build Based on extensive data collection There have been an increasing a community of common destiny and in-depth analysis, we evaluated number of participating countries for all mankind , and the Belt and BRI countries' (including key and expanding global cooperation Road Initiative is critical to realizing African nations) macroeconomic under the BRI framework, along with this grand vision. It will take joint attractiveness and risks, and identified China's growing global influence. By efforts and mutual understanding to key industries with high growth the end of 2018, China had signed overcome the challenges ahead. potential, to help Chinese enterprises BRI cooperation agreements with better understand each jurisdiction's 122 countries and 29 international Chinese investors face risks in the investment environment. organizations. According to the Big BRI countries, most of which are Data Report of the Belt and Road developing nations with relatively The Belt and Road Country (2018) published by the National underdeveloped transportation and Investment Index Report 2017 Information Center, public opinion telecommunication infrastructures.
    [Show full text]
  • Shanghai, China's Capital of Modernity
    SHANGHAI, CHINA’S CAPITAL OF MODERNITY: THE PRODUCTION OF SPACE AND URBAN EXPERIENCE OF WORLD EXPO 2010 by GARY PUI FUNG WONG A thesis submitted to The University of Birmingham for the degree of DOCTOR OF PHILOSOHPY School of Government and Society Department of Political Science and International Studies The University of Birmingham February 2014 University of Birmingham Research Archive e-theses repository This unpublished thesis/dissertation is copyright of the author and/or third parties. The intellectual property rights of the author or third parties in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or as modified by any successor legislation. Any use made of information contained in this thesis/dissertation must be in accordance with that legislation and must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the permission of the copyright holder. ABSTRACT This thesis examines Shanghai’s urbanisation by applying Henri Lefebvre’s theories of the production of space and everyday life. A review of Lefebvre’s theories indicates that each mode of production produces its own space. Capitalism is perpetuated by producing new space and commodifying everyday life. Applying Lefebvre’s regressive-progressive method as a methodological framework, this thesis periodises Shanghai’s history to the ‘semi-feudal, semi-colonial era’, ‘socialist reform era’ and ‘post-socialist reform era’. The Shanghai World Exposition 2010 was chosen as a case study to exemplify how urbanisation shaped urban experience. Empirical data was collected through semi-structured interviews. This thesis argues that Shanghai developed a ‘state-led/-participation mode of production’.
    [Show full text]
  • ANNUAL REPORT 2020 Annual Report 147402 (Zoomlion Eng) 00
    中聯重科股份有限公司 ZOOMLION HEAVY INDUSTRY SCIENCE AND TECHNOLOGY CO., LTD. ANNUAL REPORT 2020 Annual Report 147402 (Zoomlion Eng)_00. IFC (eng)_(210x285) \ 14/04/2021 \ X11 \ P. 1 Important notice • The Board of Directors and the Supervisory Board of the Company and its directors, supervisors and senior management warrant that there are no misrepresentation, misleading statements or material omissions in this report and they shall, individually and jointly, accept full responsibility for the truthfulness, accuracy and completeness of the contents of this report. • All directors attended the Board meeting at which this report was reviewed. Definition Unless the context otherwise requires, the following terms shall have the meanings set out below: “The Company” or “Zoomlion” refers to Zoomlion Heavy Industry Science and Technology Co., Ltd. “Listing Rules” or “Listing Rules of Hong Kong” refers to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. 147402 (Zoomlion Eng)_00. IFC (eng)_(210x285) \ 14/04/2021 \ X11 \ P. 2 CONTENTS Company Profile 2 Chairman’s Statement 4 Principal Financial Data and Indicators 7 Report of the Board of Directors 10 Management Discussion and Analysis 24 Environmental, Social and Governance Report 34 Significant Events 63 Changes in Share Capital and Shareholders 66 Directors, Supervisors, Senior Management and Employees 71 Share Option Scheme 82 Corporate Governance 86 Independent Auditor’s Report 101 Financial Statements prepared in accordance with International Financial Reporting Standards and Notes 109 147402 (Zoomlion Eng)_01. Company Profile_(210x285) \ 13/04/2021 \ X11 \ P. 2 Company Profile I. Company Information Company name (in Chinese): 中聯重科股份有限公司 Chinese abbreviation: 中聯重科 Company name (in English): Zoomlion Heavy Industry Science And Technology Co., Ltd.* English abbreviation: Zoomlion Legal representative of the Company: Zhan Chunxin Secretary of the Board of Directors/Company Secretary: Yang Duzhi Representative of securities affairs: Xu Yanlai Contact address: No.
    [Show full text]
  • In a Year of Contraction, Asia Feels the Ripple Effect of Mifid II 2016 Greenwich Leaders: Asian Equities
    In a Year of Contraction, Asia Feels the Ripple Effect of MiFID II 2016 Greenwich Leaders: Asian Equities Q1 2017 Three global brokers are pulling away from the pack in the Asian equity research/advisory business—a break from historical patterns characterized by a more gradual slope among major competitors. Credit Suisse, Bank of America Merrill Lynch and Morgan Stanley are statistically deadlocked atop the list of 2016 Greenwich Leaders in Asian Equity Research/Advisory Vote Share. These three firms have opened a significant lead over UBS, CLSA Asia-Pacific Markets and J.P. Morgan, which are also virtually tied in terms of vote share and round out the list of this year’s winners. In Asian Equity Trading, the same three firms are statistically tied for the top spot in overall share, but in this business, their lead over fellow Greenwich Share Leaders CLSA, UBS and Citi is much narrower. In the growing algorithmic trading business, Bank of America Merrill Lynch widened its lead over the competition. Credit Suisse and Morgan Stanley claim the title of 2016 Greenwich Quality Leaders in Asian Equity Research Product & Analyst Service, and Greenwich Share Leaders — 2016 GREENWICH ASSOCIATES Greenwich Share20 1Leade6r Asian Equity Research/Advisory Vote Share Asian Equity Algorithmic Trading Share Broker Statistical Rank Broker Statistical Rank Credit Suisse 1T Bank of America Merrill Lynch 1 Bank of America Merrill Lynch 1T UBS 2T Morgan Stanley 1T Morgan Stanley 2T UBS 4T Credit Suisse 2T CLSA Asia-Pacific Markets 4T Goldman Sachs 5T J.P. Morgan 4T Citi 5T ITG 5T Asian Equity Trading Share, Options & Volatility Product Important Relationships—Asia Broker Statistical Rank* Broker Statistical Rank Morgan Stanley 1T Morgan Stanley 1T Bank of America Merrill Lynch 1T Goldman Sachs 1T Credit Suisse 1T Bank of America Merrill Lynch 3T CLSA Asia-Pacific Markets 4T Deutsche Bank 3T UBS 4T J.P.
    [Show full text]
  • STOXX Hong Kong All Shares 50 Last Updated: 01.12.2016
    STOXX Hong Kong All Shares 50 Last Updated: 01.12.2016 Rank Rank (PREVIOUS ISIN Sedol RIC Int.Key Company Name Country Currency Component FF Mcap (BEUR) (FINAL) ) KYG875721634 BMMV2K8 0700.HK B01CT3 Tencent Holdings Ltd. CN HKD Y 128.4 1 1 HK0000069689 B4TX8S1 1299.HK HK1013 AIA GROUP HK HKD Y 69.3 2 2 CNE1000002H1 B0LMTQ3 0939.HK CN0010 CHINA CONSTRUCTION BANK CORP H CN HKD Y 60.3 3 4 HK0941009539 6073556 0941.HK 607355 China Mobile Ltd. CN HKD Y 57.5 4 3 CNE1000003G1 B1G1QD8 1398.HK CN0021 ICBC H CN HKD Y 37.7 5 5 CNE1000001Z5 B154564 3988.HK CN0032 BANK OF CHINA 'H' CN HKD Y 32.6 6 7 KYG217651051 BW9P816 0001.HK 619027 CK HUTCHISON HOLDINGS HK HKD Y 32.0 7 6 HK0388045442 6267359 0388.HK 626735 Hong Kong Exchanges & Clearing HK HKD Y 28.5 8 8 CNE1000003X6 B01FLR7 2318.HK CN0076 PING AN INSUR GP CO. OF CN 'H' CN HKD Y 26.5 9 9 CNE1000002L3 6718976 2628.HK CN0043 China Life Insurance Co 'H' CN HKD Y 20.4 10 15 HK0016000132 6859927 0016.HK 685992 Sun Hung Kai Properties Ltd. HK HKD Y 19.4 11 10 HK0883013259 B00G0S5 0883.HK 617994 CNOOC Ltd. CN HKD Y 18.9 12 12 HK0002007356 6097017 0002.HK 619091 CLP Holdings Ltd. HK HKD Y 18.3 13 13 KYG2103F1019 BWX52N2 1113.HK HK50CI CK Property Holdings HK HKD Y 17.9 14 11 CNE1000002Q2 6291819 0386.HK CN0098 China Petroleum & Chemical 'H' CN HKD Y 16.8 15 14 HK0688002218 6192150 0688.HK 619215 China Overseas Land & Investme CN HKD Y 14.8 16 16 HK0823032773 B0PB4M7 0823.HK B0PB4M Link Real Estate Investment Tr HK HKD Y 14.6 17 17 CNE1000003W8 6226576 0857.HK CN0065 PetroChina Co Ltd 'H' CN HKD Y 13.5 18 19 HK0003000038 6436557 0003.HK 643655 Hong Kong & China Gas Co.
    [Show full text]
  • The Trade War and China's Oil and Gas Supply Security
    HIGH ANXIETY: THE TRADE WAR AND CHINA’S OIL AND GAS SUPPLY SECURITY BY ERICA DOWNS NOVEMBER 2019 “If Oil Supplies Are Cut Off, How Much Oil Does China Have?” —Cover of the June 15, 2019, issue of China Petroleum & Petrochemical1 “Is China’s Oil Supply Still Secure?” —Cover of the August 15, 2018, issue of China Petroleum & Petrochemical2 Introduction In summer 2018, China’s president Xi Jinping, facing pressure from the US-China trade war, intervened in a long-running debate within China’s oil industry about the extent to which national security concerns or market forces should determine domestic oil and natural gas production. Xi effectively tipped the scales in favor of advocates of prioritizing self-sufficiency over cost as part of a broader push for self-reliance amidst trade tensions. As a result, China’s national oil companies (NOCs) are accelerating investment in domestic exploration and production. While this ramp-up in spending is likely to result in an increase in output, especially of natural gas, it is unlikely to alter China’s substantial and growing reliance on oil and natural gas imports. However, the trade war probably will continue to contribute to shifts in the composition of China’s import portfolio, with both traditional and new suppliers gaining shares as a result of the slowdown in the flows of US liquified natural gas (LNG) and crude oil to China and decreases in deliveries of Iranian and Venezuelan crudes due to US sanctions. Xi instructed China’s NOCs to ramp up domestic exploration and production of oil and natural gas to enhance national energy security in July 2018.
    [Show full text]
  • 2020 Annual Report 2020
    VPower Group International Holdings Limited (根據開曼群島法例註冊成立之有限公司) 股份代號： 年度報告 ANNUAL REPORT 偉能集團國際控股有限公 202 0 2020 司 Annual Report 2020 CNCNTICT IC VVPOWERPOWE R CNTIC VPOWER 年度報 告 CONTENTS INTRODUCTION Company Profile 02 Awards and Recognition 03 Year at a Glance 04 Chairman’s Statement 06 MANAGEMENT Management Discussion and Analysis 10 Biography of Directors and Management Team 22 Corporate Governance Report 29 Directors’ Report 38 Risk Management 53 FINANCIALS Independent Auditor’s Report 57 Consolidated Statement of Profit or Loss 64 Consolidated Statement of Comprehensive Income 65 Consolidated Statement of Financial Position 66 Consolidated Statement of Changes in Equity 68 Consolidated Statement of Cash Flows 69 Notes to Financial Statements 71 Five Year Financial Summary 170 CONTACTS CNTIC VPOWER Corporate Information 172 COMPANY PROFILE VPower Group International Holdings Limited (the “Company”, or together with its subsidiaries, the “Group”) is one of the world’s leading large gen-set system integration providers and one of the leading gas-fired engine-based distributed power generation (“DPG”) station owners and operators in Asia, with more than 20 years of proven operational excellence in the energy market. We deliver much-in-demand electricity to keep industries running and power the regional economic growth through (1) designing, integrating and selling gen-sets and power generation systems that primarily run on natural gas or diesel; and (2) designing, investing in, building and operating DPG stations for off-takers. Together, they make up our two principal business segments: (1) System Integration (“SI”) business; and (2) Investment, Building and Operating (“IBO”) business. Our fast-track power solutions generate stable and reliable electricity in emerging markets to improve the living standards of people; as well as provide flexible and efficient electricity in developed markets to supplement the increasing use of renewable energy due to power reform.
    [Show full text]
  • LAZARD GROUP LLC (Exact Name of Registrant As Specified in Its Charter)
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2008 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 333-126751 (Commission File Number) LAZARD GROUP LLC (Exact name of registrant as specified in its charter) Delaware 51-0278097 (State or Other Jurisdiction of Incorporation (I.R.S. Employer Identification No.) or Organization) 30 Rockefeller Plaza New York, NY 10020 (Address of principal executive offices) Registrant’s telephone number: (212) 632-6000 Securities Registered Pursuant to Section 12(b) of the Act: None Securities Registered Pursuant to Section 12(g) of the Act: None Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
    [Show full text]
  • Dams and Development in China
    BRYAN TILT DAMS AND The Moral Economy DEVELOPMENT of Water and Power IN CHINA DAMS AND DEVELOPMENT CHINA IN CONTEMPORARY ASIA IN THE WORLD CONTEMPORARY ASIA IN THE WORLD DAVID C. KANG AND VICTOR D. CHA, EDITORS This series aims to address a gap in the public-policy and scholarly discussion of Asia. It seeks to promote books and studies that are on the cutting edge of their respective disciplines or in the promotion of multidisciplinary or interdisciplinary research but that are also accessible to a wider readership. The editors seek to showcase the best scholarly and public-policy arguments on Asia from any field, including politics, his- tory, economics, and cultural studies. Beyond the Final Score: The Politics of Sport in Asia, Victor D. Cha, 2008 The Power of the Internet in China: Citizen Activism Online, Guobin Yang, 2009 China and India: Prospects for Peace, Jonathan Holslag, 2010 India, Pakistan, and the Bomb: Debating Nuclear Stability in South Asia, Šumit Ganguly and S. Paul Kapur, 2010 Living with the Dragon: How the American Public Views the Rise of China, Benjamin I. Page and Tao Xie, 2010 East Asia Before the West: Five Centuries of Trade and Tribute, David C. Kang, 2010 Harmony and War: Confucian Culture and Chinese Power Politics, Yuan-Kang Wang, 2011 Strong Society, Smart State: The Rise of Public Opinion in China’s Japan Policy, James Reilly, 2012 Asia’s Space Race: National Motivations, Regional Rivalries, and International Risks, James Clay Moltz, 2012 Never Forget National Humiliation: Historical Memory in Chinese Politics and Foreign Relations, Zheng Wang, 2012 Green Innovation in China: China’s Wind Power Industry and the Global Transition to a Low-Carbon Economy, Joanna I.
    [Show full text]