Latest news with #CiticSecurities
South China Morning Post
2 days ago
- Business
- South China Morning Post
Hong Kong stablecoin law draws mainland attention as Citic anticipates tokenisation boom
Hong Kong's move to legalise stablecoins – cryptocurrencies that maintain a fixed value by being pegged to a reference asset – is grabbing the attention of mainland institutions, as a leading Chinese brokerage predicts a boom in tokenised real-world assets (RWA) in the city. Advertisement While Beijing has remained largely quiet on Hong Kong's new stablecoin bill in the two weeks since it was passed, paving the way for the issuance of such assets in the city, discussions about the market and geopolitical implications have intensified on the mainland. Analysts at Citic Securities wrote in a note published on Tuesday that stablecoins could help mainland companies roll out their RWA projects in Hong Kong, as they could serve as stabilising tools that increase market liquidity. The new law would also help the city develop interfaces for digital currency payment and settlement, according to the note led by analyst Yang Zeyuan. Ying Ying, an analyst at Chinese brokerage CSC Financial, also wrote in a research note that Hong Kong has entered a stage of 'accelerated growth' of tokenised RWAs. Stablecoins are backed one-to-one with fiat currency like the US dollar. The world's largest stablecoin is Tether, or USDT. Photo: AFP Stablecoins, which are typically backed one-to-one with fiat currency such as US dollars, have recently drawn widespread attention, as financial regulators around the globe have started to focus on the specialised cryptocurrencies, which some see as potentially destabilising. The same week Hong Kong passed its stablecoin bill, the US Senate advanced its own bill called the Genius Act, which also focuses on these assets.
Yahoo
26-05-2025
- Business
- Yahoo
China approves Qatar's 10% stake purchase in ChinaAMC
China's regulatory authority has greenlit the Qatar Investment Authority (QIA) to acquire a 10% stake in China Asset Management (ChinaAMC), the nation's second-biggest mutual fund manager in terms of assets. The China Securities Regulatory Commission announced on 22 May that there is no objection to Qatar Holdings, a wholly-owned subsidiary of QIA, acquiring the stake, reported Yicai Global. Once the deal is finalised, Qatar Holdings will emerge as the third-largest shareholder in ChinaAMC, trailing Citic Securities, which owns 62%, and Mackenzie Investments, with a 28% stake. Qatar Holdings will acquire the shares from Tianjin Haipeng Technology Consulting, owned by Hong Kong-based Primavera Capital. Set up in Beijing in 1998, ChinaAMC manages 471 fund products with a total net asset value of 1.9tn yusn ($264.6bn) as of 31 March, ranking second in the Chinese asset management market after E Fund Management. QIA, established in 2005, is the ninth-largest sovereign wealth fund globally, with assets of $526bn, according to the Sovereign Wealth Fund Institute. QIA has made several investments in Chinese companies, including a $200m investment in Kingdee International Software Group in December 2023. Huichen Asset Management fund manager in Shanghai Dai Ming, as reported by SCMP last month, said: 'For the Middle East nations, they want to reduce their reliance on the US. So strengthening [links] with China is a good option that can probably bring mutual openness. For China, it is also urgent to diversify and look for new trade partners. The Middle East has lots of money in hand and can bring investment.' "China approves Qatar's 10% stake purchase in ChinaAMC " was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Bloomberg
12-05-2025
- Business
- Bloomberg
China's Zijin Mining Is Said to Pick Banks for Gold Unit's Hong Kong Listing
China's Zijin Mining Group Co. has picked Citic Securities Co. and Morgan Stanley for the Hong Kong initial public offering of its overseas gold business as it seeks to take advantage of record bullion prices, according to people familiar with the matter. Details such as the size and timing of Zijin Gold International Co.'s IPO are under consideration, the people said, asking not to be identified because the information isn't public.
News.com.au
29-04-2025
- Business
- News.com.au
How the dawn of the robot age could send rare earth demand ballistic
Rare earths prices have been subdued by oversupply and Chinese market dominance But challengers are emerging in the West And demand continues to grow, with analysts suggesting the next disruptive tech, humanoid robots, could double it by the 2030s Oversupplied and dominated by opaque Chinese market forces, rare earths such as neodymium, praseodymium, terbium and dysprosium have been subject to more than three years of turgid prices, which has subdued earnings for miners and kept prospective projects in the ground. But with supply constrained and China responding to US tariffs with export controls on heavy rare earths, the strategic backdrop for Western explorers and developers is getting brighter. While a weak Chinese economy has played its role in restraining rare earths demand growth in recent years, enabling China to suppress prices with high mining quotas and imports from neighbouring Myanmar, the long-term outlook is better than it appears in the short term. And a key inflection point could be emerging in 2025. Previous trends like Chinese industrialisation, electric vehicles and renewable energy growth may have driven the previous surges in rare earths demand. But a new technological development is taking shape that promises yet another uptick. Citic Securities has declared 2025 could be the first year of the mass production of humanoid robots. A step towards the future envisaged by Isaac Asimov in The Bicentennial Man or the creation of Bender B. Rodriguez, sure. But also a major potential driver of permanent magnet demand – according to Tianfeng Securities there's around 2-4kg of NdFeB magnets in each humanoid robot. At a long-term target of 100m units annually, that's an entire rare earths market worth of additional demand. Breaking out Western analysts have picked up on the trend as well – with Elon Musk's Tesla (now short of magnet supplies thanks to China's ban) among the companies attempting to develop the nascent industry. It could be an important growth sector as EV growth begins to slow down with increased market penetration and policy uncertainty. Canaccord Genuity's Reg Spencer says a number of groups in China and the West are now on the verge of commercialisation. "We think they will be first deployed in industrial/manufacturing applications, but as costs/tech continue to improve, forecast broader adoption (inc. consumer/home use) by the 2030s. In our view, the advent of humanoid robotics could be a major demand driver for NdFeB magnets, with improving dexterity/higher DOF leading to increasing magnet intensity per robot," he said in a note last month. Canaccord thinks magnet demand will grow by 84% to 2035, but in an upside case for the uptake of humanoid robotics, that could increase to 147%. "This clearly has positive implications for key magnet rare earth demand (CGe 90% demand growth by 2035 under our base case)," Spencer said. Canaccord sees rare earth prices remaining subdued in the short term. Chinese NdPr prices, included VAT, are sitting at a touch under US$56/kg today. But long-term prices should rise, with Canaccord setting a long term price of US$105/kg. Goldman Sachs analysts say magnet demand is growing around 15%, with the NdPr market rising 7000-8000tpa. With that in mind, growth plans set out by leading Australian producer Lynas (ASX:LYC) and developer Iluka Resources (ASX:ILU) equate to only just over one year of market expansion. Their long-term price sits at US$75/kg, but by 2029, they think deficits could push NdPr oxide to US$85/kg. Room for new suppliers So while the near term may be muddy, the longer term narrative seems clear – more supply needs to come online as demand rises. And if the upside case for humanoid robots hits, it'll be quicker than the market expects. "There's a real disparity in the market (in) that the demand for the products are quite strong. And ... we're developing new markets for these products all the time," Andrew Reid, managing director of South American developer Brazilian Critical Minerals (ASX:BCM), said. "As the world moves into electrification, there's only going to be more and more need for rare earth and for the permanent magnets they create. "And equally in the defence sector. There's wars all over the world at the moment and certainly in all those products, without them, there are no defence mechanisms for any country." Where that additionally comes from is the question. Reid says you can't count out China, where information on what the Communist Party is planning can be hard to read. It previously responded to a record price environment seen in early 2022 by encouraging state owned enterprises to buy up projects and supply outside of China, as well as using quotas as a mechanism to bring supply on faster than demand was growing. The Western market has been slow to build supply chains that seriously confront this challenge, but may be forced to by the latest trade war salvo from the Middle Kingdom. Lynas, for instance, is expecting to begin producing heavy rare earths dysprosium and terbium at its Malaysian refinery in June, and is engaging with customers in the West in a bid to sell an alternative to Chinese products. "In light of the Chinese government's recent export restrictions on Tb and Dy oxide, LYC has engaged with target Western World customers with pricing offer expected to reflect the high demand for these products outside China," Goldman's Paul Young and Chris Bulgin noted. "This is an important change in LYC's marketing strategy and the broader ex-China RE industry in our view, and signals the potential start of the decoupling of Western world prices from China, with a likely impact to NdPr pricing separate to China also." Standout opportunity BCM's Reid said the company's Ema project stood out among the host of deposits that could be developed in the next wave of rare earth project developments, thanks to the near surface nature of the deposit. A clay-hosted rare earths resource in the Amazonas State, a scoping study placed an industry low US$55m capital estimate on the project, producing 4800tpa of mixed rare earth carbonate contained 2660t of total rare earth oxides at cash operating costs of US$6.15/kg, or US$16.95/kg on a NdPr basis. That means the two-decade-long mine boasts an impressive US$498m post-tax NPV and 55% internal rate of return at prices of only US$74/kg, with payback expected in under 2.5 years. Around 37.9% of its 55.3% mixed rare earth carbonate would be comprised of the magnet rare earths (Nd, Pr, Dy & Tb) prized for use in permanent magnets and motors. Ema currently contains a resource of 341Mt at 746ppm TREO, underpinning a potential expansion to 9600tpa of MREC (5300tpa TREO) from the fifth year of operations. That's before considering the upside from inferred resources contained across the project's 82km2 footprint. That means Ema could be an attractive investment proposition even if China succeeds in continuing to keep a lid on rare earth prices. "Unfortunately many of the world's rarest projects are simply just not economic," Reid said. "It goes for any commodity, only the better ones (get developed) and we think that we're in that basket and we think we've got a good shot at getting up and running. "We've got a clear pathway to development right now and we just need to stick to our guns, keep ticking boxes and making sure we get over those hurdles. "I think that you'll find that BCM will be one of the first new rare earths projects to get into production over the next couple of years."
South China Morning Post
28-04-2025
- Business
- South China Morning Post
China amps up nuclear ambitions with 10 new reactor approvals for fourth straight year
China's State Council has approved 10 new nuclear reactors across five sites, ramping up the development of the nation's rapidly expanding nuclear power industry with a combined investment of more than 200 billion yuan (US$27.4 billion). Advertisement The year's first approval of new nuclear reactors came during a State Council meeting chaired by Premier Li Qiang on Sunday. They will be built in coastal provinces, including Zhejiang, Guangdong, Guangxi, Shandong and Fujian, according to The Paper, a state-run publication. Among the newly planned reactors, eight are Hualong One reactors , which incorporate China's third-generation nuclear technology and are each capable of generating about 10 billion kilowatt-hours of electricity per year – enough to meet the annual demand of 1 million people. As stressed in the meeting, the development of nuclear power must ensure 'absolute safety'. 'The nuclear power industry continues to experience strong growth … China's nuclear power projects are being regularly approved and built according to the highest global safety standards,' analysts from Citic Securities wrote in a research note on Monday. Advertisement This marks the fourth straight year that the State Council has approved at least 10 nuclear reactors. The push to develop nuclear power aligns with China's pledge to achieve carbon neutrality by 2060, as the country remains the world's largest consumer of coal power and biggest emitter of greenhouse gases.
