Is Manufacturing Integration Technology solar customer Hanergy having cashflow problem?

According to Barrons “First Financial Daily, a well-respected financial newspaper in China, had a damning investigative report on Hanergy Solar‘s parent Hanergy Group today.

According to First Financial,since 2009, Hanergy Group has raised billions from bank loans, trusts and peer-to-peer lending in the name of funding solar projects. But many projects are stalled.

Hanergy Group sounds like it was hanging with the right crowd. Last January, it said that it has raised at least 20 billion yuan from reputable financiers such as the Minsheng Bank and Minsheng-affiliated Asia Financial Cooperation Association, and back in 2011, it raised 30 billion yuan from China Development Bank.

But First Financial was unable to obtain details on these mega financing deals.

Rather, Hanergy Group has been funding from small, regional banks, as well as trusts.

Last October, Hanergy borrowed 200 million yuan from Minsheng in the form of a trust product. That trust had 4 tranches; the shortest tranche was only 3 months and charged an annualized 7% interest rate.

Why did Hanergy take out these expensive loans if it could have access to China Development Bank? And where did all of its money go? Is it cash squeezed? The newspaper asked.

First Financial’s reporters also went to the 9 solar project construction sites Hanergy operates and found that many sites were falling way behind the company’s own targets.”

April 25, 2015 at 2:54 pm Leave a comment

Prediction: Shaun Chen will win 2015 Star Award for Best Actor

陈泓宇八字的前六字是 戊午    壬戌    己巳(日柱) 正走丙寅大运,形成三合火局。估计他是从旺格,喜火土。
2015年 乙未年, 形成三会火局,锦上添花,所以上个礼拜日得了飞跃奖(庚辰月,戊午日).明天是壬申日,如无意外,应能一举夺下最佳男演员奖。预测是否正确,拭目以待。

April 25, 2015 at 12:45 pm Leave a comment

Pot calling the kettle black

From Wall street Journal,
“The Obama administration on Thursday chastised Europe and Japan for excessive reliance on monetary policy to revive stagnant growth, worried that a failure to use other policy tools could further undermine an already gloomy global economic outlook.

In its semiannual currency report, the U.S. Treasury Department also took China and South Korea to task over currency policies that it says hurt other trading partners including the U.S. ”

Isn’t US the first to start Quantitative easing? When others copy it or adopt defensive measures to avoid being hurt by currency volatility, they are blamed for it.

April 10, 2015 at 3:22 pm Leave a comment

Watch out for the automobile downturn cycle

Automobile market is on a roll for several years but signs of a downcycle is appearing.

1) when subprime auto loans in US crumbles like the subprime mortage market years ago, expect a downturn in US auto market. Wells Fargo recognises the danger and is putting a cap on the subprime auto loans it deals in.

2) China’s slowing car sales due to slowing economy and restrictions on car sales in big cities(because of pollution and congestion concerns). According to this wall street journal article, ” But in China auto makers typically cite wholesale deliveries to dealers and not sales to end consumers.

One way of gauging just how many consumers are buying cars is to look at car-registration data. While this data is more dated, it does provide another glimpse of demand—one often not as rosy as the auto makers’ figures.

Analysis of registration data by compiled by investment research firm JL Warren Capital released over the weekend suggests 2015 got off to a slow start. Around 46,000 BMWs were registered in China in January, a decline of 4% compared with the same month last year. Mercedes-Benz was up 2% to just over 32,000 cars, according to JL Warren. Audi registrations held up better–some 65,000 cars were registered by drivers in the first month of this year, up 13%.

JL Warren analyst Junheng Li is particularly cautious on BMW. “We continue to believe that BMW has given too high a sales target for its China market and a potential dealer revolt in its fastest growing market is probable due to the unresolved tension and conflict from last year,” she said.”
http://blogs.wsj.com/chinarealtime/2015/03/03/is-it-full-speed-ahead-for-luxury-car-makers-in-china/

March 3, 2015 at 3:58 pm Leave a comment

Is the bear market extinct?

Equity markets around the world are breaking new records. Quantitative easing by central banks is the force behind it. But a rubber band stretch to the max will break sooner or later. The bear market is not extinct and will return once earnings start to disappoint and/or black swans start to appear. When will that happen is anyone’s guess but be prepared for it is the best way to survive the next bear market.

February 26, 2015 at 4:42 pm 1 comment

Do the obvious:Cut minimum brokerage fee

A forum letter from Straits times right on the mark

“With computerisation, every transaction, whether 1,000 or one million shares, is just a transaction taking the same computer cycle to handle.

With the rapid decrease in computing costs over the years, transactional costs are drastically reduced.

When online trading was introduced, brokers really had no more excuses for charging higher fees for low-valued trades.

To compete in the global market, SGX brokers have to align their fee structure or risk losing clients.

The SGX, too, should improve its cost-effectiveness and lower the fees charged to the brokers, in tandem with today’s cheaper computing costs.

The same computer system is used in stock trading in markets like India, Malaysia and Thailand, wherein transactional values are much lower, partly by virtue of their lower currencies.

If these stock exchanges can survive, there is no reason why the SGX cannot be very profitable. This, however, requires the SGX to be truly committed to automation and productivity.

After spending hundreds of millions to purchase a system for “high-speed” trading, the low priority given to reducing retail investors’ costs makes the SGX’s call for more retail investors very hollow.”

February 12, 2015 at 3:11 pm Leave a comment

Straco’s potential competitor in Shanghai

As reported by shanghaiist, “Haichang, a leading developer and operator of theme parks in China, just obtained land-use rights for the project for around 120 million USD. The Shanghai Haichang Polar Ocean World isn’t your traditional marine theme park, according to the developer, as it “will position itself as a world-class marine life culture experience complex,” whatever that means. It will consist of an amusement park, a themed resort hotel and scores of commercial facilities. The marine park will also be home to 13 exhibition halls, four animal interaction plazas and four large cinemas (including an omnimax movie theater), among other entertainment activities…..The Shanghai Haichang Polar Ocean World is scheduled to go into operation in 2017″

January 21, 2015 at 8:51 pm Leave a comment

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