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If you'll excuse me I'll quote from the positive sentiment of Christopher Wood's (Jefferies) Greed & Fear published yesterday as this appears relevant to us:
"There has been a bit of a rebound in the battered Chinese equity class this week. Confidence has been somewhat revived by a flurry of announcements over the past weekend which suggest that the mainland authorities care about the stock market and also want to encourage continued foreign investment into Chinese equities. This is important given the prevailing sentiment amongst many foreigners last week that President Xi Jinping has launched a full-scale attack on capitalism and wants to turn private-sector companies into SOEs."
"It is further worth highlighting, on a related subject, that an interview with Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority, was featured prominently in the mainland press on Monday (see Xinhua article: “HKMA chief says Hong Kong resilient as global financial hub”, 23 August 2021). The interview highlighted a point made here several times before, in terms of the ongoing important role to be played by Hong Kong as an offshore centre in the context of China’s continuing closed capital account."
"Meanwhile it is also worth noting that Joseph Yam, who ran the Hong Kong Monetary Authority for 16 years
until 2009, on Monday floated the idea of allowing investors to trade the 58 constituent stocks of the Hang
Seng Index in renminbi. He was speaking at a briefing in Hong Kong led by Beijing officials on China’s 14th
Five-Year plan."
"Another important development over the weekend, and an unexpected one so far as GREED & fear is concerned, is the news that the CSRC is working on a plan to try and resolve the impasse on the accounting issue for US-listed China ADRs (see South China Morning Post article: “China’s securities regulator signals willingness to work with US over audit inspections”, 21 August 2021). The proposal is apparently for joint audits which would, potentially, allow Chinese listed ADRs to comply with the rules set down by America’s Public Company Accounting Oversight Board (PCAOB), and therefore remove the delisting risk stemming from the Accelerating Holding Foreign Companies Accountable Act.This was passed by the Senate in late June and is awaiting a House of Representatives vote. Remember that the present situation is that 248 US-listed Chinese companies face being delisted if they do not confirm to these auditing requirements within three years, and
the deadline will be shortened to two years if the above-mentioned bill is enacted, as discussed at length recently."
Strontium, is that the price HL quote as market price or their offer price to sell? I have often thought HL seemed guilty of criminal prices both in terms of their bid and offer when I have tried to buy and sell. I cannot stand them especially the oily Mr Hargreaves. But Halifax who I normally use do not cover the full gamut unfortunately.
...on Nasdaq
looks rosy
https://www.tradingview.com/x/cyPodbze/
We should consider ourselves lucky, our neighbours Anglesey are down 7% today on no news...!
Up 12% and no RNS, no comments...
Wassup?
Trinity Delta have issued a new brief update note:-
which reminds us that Taiwan is included in this "Greater China" deal...
Jeremiah, I think the key to success here is not the number of holes drilled as what the results showed. And the thickness of the graphite beds was in several of the holes greater than anticipated. It has to be said the absence of data from sites C and D is disappointing. They have not said when the next drilling programme will take place. June 2022??
Thanks franco, I see serious value here...
Am I right in thinking that we invested in Internet Computer? It crashed by 90% after listing but has staged a remarkable recovery over the past few weeks. I have independently bought into IC via Revolut as I see steady progress in the direction of the listing price over coming months which, if I am correct in thinking KR1 bought in, should help the share price along nicely.
Thanks Daibando, did your gold discovery lead you on to geology? But the fact that the gold is there to be seen is hugely encouraging and I have topped up - yet again
So how does this work, RGO get shares in Conduity (formerly New Trend Lifestyle Group Plc)? Why not cash? This is a shell company whose shares have been suspended for months. Assets appear to consist of a website put up by a couple of wide boys and less than £1m in cash. What's the deal for us shareholders or is it jobs for the boys? Can anyone convince me this is a good deal for RGO shareholders. Seems dire to me
Amones,
Yes, an interesting question and I have no idea what the answer is. But if Christopher Wood is right in his assertion it would appear there will be a wave of delisting in America in coming years. Presumably American investors would then buy in London or Hong Kong so I hope the overall impact is not serious.
I note, Jatw, that HCM is a Cayman based company but as its operations are so heavily focused on China one would imagine they would need to comply with Chinese government accounting and listing rules. The Bloomberg "interview" with CH was as you and Davey say wholly reassuring and measured so I have no concerns. I wonder if an American delisting would lead to a proper listing in London?
From Zak Mir:
The past week has seen investment announcements from star digital asset specialist KR1 (KR1). On Thursday we heard of a $100,000 investment in RedStone Finance, while to end the week it put $269,892 into Interlay, in return for 1,224 Series Seed Shares. KR1 invested in Interlay, with the likes of IOSG Ventures, Zee Prime Ventures and CMS Holdings. Interlay’s flagship product is interBTC, a fully collateralized one-to-one Bitcoin-backed asset. It may be that KR1’s timing on these two deals is on the money given the latest swing in sentiment towards crypto, with Bitcoin back towards $40,000.
This week's Greed & Fear from Christopher Wood focuses on China. He is optimistic and continues to recommend investing in China.
However, we have to consider how much longer HCM can maintain its American listing. I assume we are one of the 14 referred to below:
"This, of course, is in addition to the existing threat posed to Chinese companies already listed in America in
terms of conforming with American accounting regulations, a task it is impossible for them to do without
breaking legal requirements in China. On this point, the US Senate passed on 22 June the Accelerating Holding
Foreign Companies Responsible Act which requires Chinese ADRs, and other foreign companies, to comply
with the Public Company Accounting Oversight Board (PCAOB) audits within two consecutive years instead
of three previously. This suggests that all US listed Chinese companies will need to delist in America sooner
or later; and relist in Hong Kong and/or China. So far 14 have already done secondary listings in Hong Kong
with many more expected to follow."
Nice to see 13 breached the HK$70 mark in morning trading today.
From Wall Street Breakfast on Seeking Alpha:
""Even when you think China risk is priced, it can get worse," Goldman Sachs wrote in a research note. "The government could come down much harsher than expected penalties for Tencent, they could implement much stricter social insurance programs for delivery drivers/temp employees, they could crack down on other industries viewed as a threat to social cohesion (SFV? Livestreaming? Who knows.)"
While Beijing has tolerated conventional regulations on certain sectors in the past, the government now looks ready to kill whole companies or entire industries. One doesn't have to look far to the recent pulling of Ant Group's (NYSE:BABA) IPO or the DiDi Global (NYSE:DIDI) fiasco that shook the investing world earlier this month. China has pointed to financial risk, antitrust concerns and national security violations, but its acceptance of stockholder pain for long-term social control appears to have some market participants reassessing Xi Jinping's Communist Party."
Not a threat to HCM but harming market sentiment
The Chinese government has been attacking Chinese companies listed in the USA and this is making them "uninvestible" in some eyes. Hitherto the self inflicted wounds on Chinese businesses have been largely reserved for people like Jack Ma seen to be becoming too successful. Let's hope sanity prevails as the whole China model depends on buying people off with materialism.
Re 5 Eyes: Thank you Lodes, a very interesting report, thanks for digging that up.
Elir, what's wrong with this board? Some of us don't have and don't want FB. This is the place to turn to.
Thanks for confirming Nick.
SS