What is the Australian Federal government’s position on Chinese investment in Australian resources? Yesterday the Foreign Investment and Trade Board told Sinosteel to cool its heels for 90 days while the government figures out how much of Australia it will sell to foreign investors. Sinosteel, which, as you might guess, is a Chinese steel company, already owns 43.6% of iron ore junior Mid West (ASX:MIS) and was given permission to buy all of the company.
June 26th, 2008 | Dan Denning | 3 comments | ContinuedAll Posts Tagged With: "australia"
The ASX Bubble, Fueled by China
The price action in the Aussie share market is starting to look like a pinball game. BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO), Woodside (ASX: WPL)… some of Australia’s biggest resource stocks made 52-week highs yesterday. Both BHP and Rio gave investment presentations in London yesterday, highlighting their various degrees of exposure to China’s urbanisation. The current cycle-or super cycle if you prefer-is still a cycle. But just how long might it last and how high might it take Aussie stocks?
May 15th, 2008 | Dan Denning | 0 comments | Continued
Wage Pressure in China to Drive Up Cost of Goods in Australia
Wage pressures in China may finally be driving up the price of Chinese exports… and signaling an end to the long period of disinflation in manufactured goods. Your white goods may start to get more expensive. But who knows? That is the one element we neglected to include in our analysis of the Aussie-China relationship last week. Both economies are running at near capacity.
April 21st, 2008 | Dan Denning | 0 comments | Continued
Australia & China: Already Partners in the Commodity Boom
Australia and China are already joint venture partners in the commodity boom. But if China is suggesting a government-to-government relationship over resources and not a market-to-market relationship, well that’s different kettle of fish altogether isn’t it? Is it a proposal? A suggestion? Or an indication of how China would like things to be in the future, in order to remain a reliable customer for Aussie resources? The current system, of course, is the share market.
April 15th, 2008 | Dan Denning | 10 comments | Continued