Economy/Resources - 27. page

Chinese media reported that Brunei’s Gallop Air has signed a letter of intent to purchase 30 aircraft. The purchase wil l include fifteen C919 models and fifteen ARJ-21 models from the China Commercial Aircraft Co. This marks the first C919 order and the second ARJ-21 order from an overseas airline. The deal was valued at US$2 billion.

The C919 is China’s first domestically-developed jetliner, seating 158 to 192 passengers and having a range of 4,075 to 5,555 kilometers. The ARJ-21 is a Chinese-produced regional airplane seating 78 passengers.

It turns out that this international order actually originates from a Chinese company.

Chinese media reported that the Gallop Air (骐骥航空), though operated in Brunei, is a private company based in China. The company was established in August 2021, registered with 10 million Yuan capital. Its full name is “Qi Ji Aviation Industry Development (Shaanxi) Co.” (骐骥航空产业发展（陕西）有限公司).

The first international sales of the Chinese ARJ-21 model, sold to Indonesia’s TransNusa, was also backed by China’s state-owned funds.

Source:
1. Lianhe Zaobao, September 25, 2023
https://www.zaobao.com.sg/realtime/china/story20230925-1436527
2. NetEase, September 26, 2023
https://www.163.com/dy/article/IFJLG81D0552PFYH.html

Vietnam will restart its largest rare earth mine next year according to a recent report by United Daily News (UDN), one of the primary Taiwanese news groups. Two companies participating in the bid told Reuters that this Western-backed mining project will be the largest rare earth mine in the world. According to estimates from the U.S. Geological Survey, Vietnam ranks second in the world in rare earth reserves. A large part of these reserves remain untapped.

U.S. President Biden recently visited Hanoi with the aim of deepening relations between the United States and Vietnam. He signed an agreement enhancing Vietnam’s ability to attract U.S. investors for the purpose of developing rare earth mines.

Analysts and foreign officials say the purpose of the U.S. investing in Vietnam’s rare earth mines is to lighten dependence on China and reduce supply chain risks. Given China’s near-monopoly position as the world’s biggest rare earth metal producer, China has been able to set low prices so as to discourage other countries’ willingness to invest in their own rare earth mining operations. Refining rare earths metals is a very complex process, and China has mastered many related processing technologies.

Source: UDN, September 25, 2023
https://money.udn.com/money/story/5599/7463726

Mingpao, one of Hong Kong’s primary newspapers, recently reported that business has decreased at Hong Kong’s container terminals. This decrease contrasts with prior expectations that demand would increase following the easing of Covid-related commerce restrictions between Mainland China and Hong Kong. Hong Kong’s ports have taken a greater hit than the nearby Mainland Shenzhen Port in the Pearl River Delta.

Hong Kong’s container throughput during the first seven months of this year fell by 15.8 percent year-over-year, totaling 8.32 million TEU (standard containers). Container throughput for the month of July was 1.2 million TEU, down 17.9 percent compared with July of 2022. Meanwhile, the nearby Shenzhen port saw only a 4 percent decrease in year-over-year throughput during the first seven months (16.35 million TEU) and had a 7.6 percent increase in year-over-year throughput for the month of July (2.82 million TEU).

There has been basically no expansion of Hong Kong’s terminals in the past decade. Meanwhile, the layouts of the ports in Guangzhou and Shenzhen have become increasingly complete. Thus, some goods are no longer shipped through Hong Kong.

According to the Hong Kong Marine Department’s April 2023 ranking of the world’s top ten container ports, Hong Kong ranked ninth from 2020 to 2022, surpassed by Shanghai, Shenzhen, Guangzhou and other Greater Bay Area ports. Hong Kong was still ranked among the top three ports in the world between 2008 and 2012. It ranked fourth from 2013 to 2014 and fifth from 2015 to 2017.

Source: Mingpao, September 18, 2023
https://news.mingpao.com/pns/%E7%B6%93%E6%BF%9F/article/20230918/s00004/1694969700318/

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, according to a research report by Morgan Stanley, overseas institutions’ participation in Hong Kong stocks has dropped by one third since 2021. Overseas funds are gradually withdrawing from the Hong Kong stock market.

In the years 2016 to 2020, participation of overseas institutions in Hong Kong stocks accounted for 39.5 percent, 37 percent, 36.6 percent, 32.1 percent and 39.5 percent, respectively. In 2021, participation dropped sharply to 26.7 percent, and dropped to 23.1 percent last year and 24.6 percent today. Morgan Stanley’s research showed that overseas institutional funds continue to withdraw and continue to reduce allocations to Mainland China and Hong Kong stocks. Foreign investors are less interested in participating in Mainland Chinese and Hong Kong stock markets due to uncertainty in China-US relations, political instability across the Taiwan Strait, risks in the Mainland’s real estate market, and uncertainty about the pace of China’s economic recovery.

Source: CNA, September 12, 2023
https://www.cna.com.tw/news/acn/202309120033.aspx