Capital controls are too late. The horse has bolted. Trying to prevent Chinese residents from moving their capital to a safer climate is as effective as herding cats. The only way depreciation can work is "shock and awe": a massive once-off devaluation of the Yuan. Gradual weakening of the currency will simply reinforce the panic.
I shudder to imagine the effects a dramatic fall in the Yuan would have on global capital markets. Chinese companies would be forced to default of USD-denominated debt. Trading partners, including the US and Europe, forced to respond with competing devaluations to avoid the contagion. I hope that Chinese officials have been persuaded this is not an option.
....Which leaves capital controls, and eating through China's $3 trillion plus of foreign reserves to support the Yuan, as the least-worst option. Or is that simply kicking the can down the road?
After initial declines in the Chinese market to start the year, the past few weeks have seen signs of what some would call a rebound. Lending in China rose by 67% in January, iron-ore prices initially rallied by 64% and housing sales in the top four markets surged.....
Chinese authorities have been trying to bring back the old, quasisuperstitious belief in Beijing's omnipotence. But the political desperation behind these efforts betrays a different story: that an impending currency crisis is a signal of the dream's undoing. That's why in China getting money out of the country is now the major preoccupation of both families and corporations.
One way to stem the crisis would be through depreciation. That would be sound policy for the people of China, but it's a dreaded last resort for a leadership that wants, more than jobs for its people, to bolster buying power and save political face overseas. Yet history shows that holding the line on the currency is a losing strategy. Tightened liquidity causes more pain to the economy and simply delays the inevitable.
In other countries, currency crises usually followed a sudden and irreversible loss of confidence. The Asian Tigers were booming and then fell apart rapidly. Same in Russia. China faces the added difficulty of having little institutional memory and few tools to manage the economy in a time of capital scarcity. And there is no sign that capital-outflow pressure will ease.
Yes ! You're making a bit of a leap there in joining the dots, though obvious dots do exist. personally think Elon will be too busy with his tesla, spaceX, hyperloop but who knows. Is there / are there American competitors to Inspirit/Flow at the moment?
lol... certainly feels like it ! some small progress but still no sales expected until end of year and also the FIT to be applied for. so going by my basic calcs, there will be no income for 8 of the 12 months for the tax year 2016-2017 (apr-apr). Think i'll revist this in September and see where the company is at then..timelines stated previously once again not kept..
look, the big holders want this de-listed..period. Speculating on making a 100% + rtn on current SP is highly dangerous in my view. If you hadn't sold already you've lost even more today with the RNS this morning. This company was always going to leave investors out of pocket unless you traded the medium term swings..
Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, is pleased to announce an update with respect to its financing strategy for its future pipeline of projects. As previously stated, the Company is committed to raising the total funding of approx. £5.4m required for each 20MW project of flexible power generation, including capital expenditure, working capital, fees and contingency, with minimal dilution to shareholders.
To date, the nine projects for which PPG has management contracts have been equity funded by third party investors whereby PPG does not hold a majority shareholding in these vehicles. In order to capture a greater return for the Company and to maximise the Company's exposure to project uplift in the future, PPG is aiming to secure larger majority equity stakes in projects (between 80-100%) going forward. The Directors believe that the funding for each new project could typically comprise of 80% debt and 20% equity funding and it is expected that the equity portion will be funded by PPG. Accordingly the Company has appointed a corporate finance house to raise a minimum of £3.5 million by way of a five year listed bond the proceeds of which are intended to fund the PPG equity component for three additional 20MW projects where PPG controls a majority stake. Concurrently the Company is in discussions with a range of third party debt providers for senior lending for the debt component of the individual projects which will be majority or wholly owned by PPG. The Directors are confident the projected cash flow from these 20MW projects is capable of servicing both interest and capital repayments on this increased element of debt funding. In addition, it is envisaged that each new project will pay a management charge to PPG. The management fees received from the new majority owned projects are expected to be more than sufficient to pay the interest on the proposed listed bond.
PPG CFO James Longley said, "We believe that the next important milestone for PPG is the delivery of non-dilutive financing for individual projects in which the Company has a majority or 100% stake. Our success in gaining £33.2 million from Rockpool for our first nine projects is testament to the strong appetite for flexible energy generation projects in the UK due to the considerable supply/ demand imbalance, and in consideration of this, I am delighted to have commenced work to raise a minimum of £3.5 million via a listed bond."