China Merchants Holdings Pacific

[CityFarmer]

if the dual listing goes through, how would it benefit current shareholders ?

In terms of market cap, they are ranked 7th in the world (http://www.sfc.hk/web/EN/files/SOM/Marke...cs/a01.pdf) and in terms of geography, they are closer to China. A listing there may mean better appreciation of the true value of CMPacific compared to SGX and consequently see a gap up in price.

vested.

A close in gap can easily trigger the start of a positive feedback cycle: Reduced yields make yield accretive acqusitions easier. Yield accretive acquisitions further increases the critical mass, which attracts more acquisitions and easier funding options to reinforce the feedback loop.

This shows an alignment between OPMI, and the management on the dual-listing initiative.

[greengiraffe]

High-speed rail shortens 'economic distance'
744 words
1 Jul 2015
The Australian Financial Review
AFNR
English
Copyright 2015. Fairfax Media Management Pty Limited.

I was back riding China's railways on Saturday at the same time as my sister was making a similar journey by train in Australia.

The contrast could not have been greater. My trip of 1200 kilometres from Shanghai to Beijing took just four hours and 55 minutes, with one stop in the old capital of Nanjing and another at the industrial city of Jinan.

Despite persistent rain, our train, known as Harmony, sat on 302km/h and my first-class ticket cost $186.

My sister's journey was somewhat slower. Despite having to travel 280 kilometres less from Brisbane to Sydney, her trip was an epic 16 hours on the XPT, or Express Passenger Train - a misnomer if there ever was one. It averaged 63km/h and was delayed for more than an hour after hitting two cows near Maitland.

It made me wonder which one of us was living in a developing country.

China does of course have some of the world's best infrastructure and over the past decade has built more high-speed rail lines than any other country. That network now extends 16,000 kilometres across the country and will double in size over the next five years.

"These trains have totally transformed China," says Yang Yao, dean of the National School of Development at Peking University.

"If you look at purely the economic returns, they are quite low but the social benefits are much higher."

Yang says the high-speed rail network has changed the idea of geography in China and opened up the country.

Take Hangzhou, a city of 8.8 million people 250 kilometres from Shanghai, which is most famous for its West Lake and being home to internet giant Alibaba. Before the high-speed train arrived, it was a grinding four-hour drive from China's commercial capital or a much-delayed flight. These days, it's like an outer suburb of Shanghai, taking just 45 minutes on the train.

"I know lots of people who live in Hangzhou and work in Shanghai," Yang says.

More than this, the high-speed rail network has connected Shanghai to manufacturers throughout the Yangtze River Delta, allowing foreign and domestic buyers to easily visit their suppliers.

Similar effects have been felt around the Bohai Bay in northern China and Pearl River Delta in the southern province of Guangdong.

Indeed, the World Bank estimates the high-speed rail network has halved the so-called "economic distance" in Guangdong, delivering a 10 per cent rise in "average business productivity".

"China's high-speed rail network is the largest and fasting expanding in the world, bringing significant impacts on labour productivity, jobs, industrial growth and regional development," the Bank said in a report last year.

On the downside, only a handful of routes across the network are profitable when taking into account the 1.9 trillion yuan ($400 billion) spent in the five years to 2015 on capital expenditure. The roll-out was plagued by corruption and heavily criticised for the brutal forced evictions of those living along planned routes. And the network's safety was severely undermined by the Wenzhou crash in July 2011, which killed 40 people.

But it should be remembered the network began as a stimulus measure during the global financial crisis and therefore played a big part in keeping the economy out of recession.

In this context, it appears a far better long-term investment than the school halls built across Australia and the $900 cash bonus, which fuelled sales of flat-screen TVs and PlayStations.

For China, the embrace of high-speed rail could also turn into a significant export industry. Premier Li Keqiang has made himself the country's "No. 1 train salesman" and China tasted its first export success earlier this month when it secured a deal with Russia.

The Premier has mentioned Australia as a possible export market, but this seems unlikely unless unions are prepared to compromise on the importation of foreign labour and governments abandon local procurement requirements.

If that were to happen, a high-speed rail line on the east coast might just be viable when the broader benefits were taken into account.

The World Bank estimates Chinese technology and construction is about half the price of countries such as Germany and South Korea.

That's a big saving and if embraced, would confine the XPT to the museum where it belongs.


Fairfax Media Management Pty Limited

Document AFNR000020150630eb710001x

[greengiraffe]

Actually, CMP's journey to the west is a deliberately caliberated one.

Most of the coastal cities would have been linked by HSR by now and hence road transport may have heightened competition.

The inner west which remains relatively under-developed probably holds more promises as HSR economics probably doesn't make much sense at the current stages until these areas matured in economic development.

GG's concept... appreciate any buddies' view. Of course, the price that CMP is paying is another separate matter.

GG

High-speed rail shortens 'economic distance'
744 words
1 Jul 2015
The Australian Financial Review
AFNR
English
Copyright 2015. Fairfax Media Management Pty Limited.

I was back riding China's railways on Saturday at the same time as my sister was making a similar journey by train in Australia.

The contrast could not have been greater. My trip of 1200 kilometres from Shanghai to Beijing took just four hours and 55 minutes, with one stop in the old capital of Nanjing and another at the industrial city of Jinan.

Despite persistent rain, our train, known as Harmony, sat on 302km/h and my first-class ticket cost $186.

My sister's journey was somewhat slower. Despite having to travel 280 kilometres less from Brisbane to Sydney, her trip was an epic 16 hours on the XPT, or Express Passenger Train - a misnomer if there ever was one. It averaged 63km/h and was delayed for more than an hour after hitting two cows near Maitland.

It made me wonder which one of us was living in a developing country.

China does of course have some of the world's best infrastructure and over the past decade has built more high-speed rail lines than any other country. That network now extends 16,000 kilometres across the country and will double in size over the next five years.

"These trains have totally transformed China," says Yang Yao, dean of the National School of Development at Peking University.

"If you look at purely the economic returns, they are quite low but the social benefits are much higher."

Yang says the high-speed rail network has changed the idea of geography in China and opened up the country.

Take Hangzhou, a city of 8.8 million people 250 kilometres from Shanghai, which is most famous for its West Lake and being home to internet giant Alibaba. Before the high-speed train arrived, it was a grinding four-hour drive from China's commercial capital or a much-delayed flight. These days, it's like an outer suburb of Shanghai, taking just 45 minutes on the train.

"I know lots of people who live in Hangzhou and work in Shanghai," Yang says.

More than this, the high-speed rail network has connected Shanghai to manufacturers throughout the Yangtze River Delta, allowing foreign and domestic buyers to easily visit their suppliers.

Similar effects have been felt around the Bohai Bay in northern China and Pearl River Delta in the southern province of Guangdong.

Indeed, the World Bank estimates the high-speed rail network has halved the so-called "economic distance" in Guangdong, delivering a 10 per cent rise in "average business productivity".

"China's high-speed rail network is the largest and fasting expanding in the world, bringing significant impacts on labour productivity, jobs, industrial growth and regional development," the Bank said in a report last year.

On the downside, only a handful of routes across the network are profitable when taking into account the 1.9 trillion yuan ($400 billion) spent in the five years to 2015 on capital expenditure. The roll-out was plagued by corruption and heavily criticised for the brutal forced evictions of those living along planned routes. And the network's safety was severely undermined by the Wenzhou crash in July 2011, which killed 40 people.

But it should be remembered the network began as a stimulus measure during the global financial crisis and therefore played a big part in keeping the economy out of recession.

In this context, it appears a far better long-term investment than the school halls built across Australia and the $900 cash bonus, which fuelled sales of flat-screen TVs and PlayStations.

For China, the embrace of high-speed rail could also turn into a significant export industry. Premier Li Keqiang has made himself the country's "No. 1 train salesman" and China tasted its first export success earlier this month when it secured a deal with Russia.

The Premier has mentioned Australia as a possible export market, but this seems unlikely unless unions are prepared to compromise on the importation of foreign labour and governments abandon local procurement requirements.

If that were to happen, a high-speed rail line on the east coast might just be viable when the broader benefits were taken into account.

The World Bank estimates Chinese technology and construction is about half the price of countries such as Germany and South Korea.

That's a big saving and if embraced, would confine the XPT to the museum where it belongs.


Fairfax Media Management Pty Limited

Document AFNR000020150630eb710001x

[Nick]

My very simplistic thoughts - if tiny Singapore with well developed public transport infrastructure and highly priced cars can still cause its citizens to be car-crazy and have traffic jams at peak hours, I don't imagine a very large China will suddenly go 'anti-car'.

[greengiraffe]

http://infopub.sgx.com/FileOpen/Cancella...eID=358627

CONVERTIBLE BONDS DUE 2017 -
CANCELLATION OF BONDS DUE TO CONVERSION
The board of directors (the “Board”) of China Merchants Holdings (Pacific) Limited (the “Company”) wishes to announce that HK$12,000,000 in aggregate principal amount of HK$1,163,000,000 1.25 per cent. convertible bonds due 2017 (credit enhanced until 2015) (the “Convertible Bonds”) have been converted and cancelled pursuant to the exercise of conversion rights by the holder thereof (the “Conversion”). Accordingly, following such conversion and cancellation, the aggregate principal amount of the Convertible Bonds remaining outstanding as of 3 July 2015 is HK$487,000,000.
Arising from such conversion, 2,440,990 new ordinary shares in the capital of the Company (“Shares”) have been issued at the conversion price of S$0.776 and the total number of issued and paid-up Shares of the Company has increased to 1,166,243,858.
BY ORDER OF THE BOARD
Lim Lay Hoon
Company Secretary
Singapore, 3 July 2015

Based on outstanding HK$487m worth of CBs, the potential shares to be converted at $0.776 is 99.064m.

[CityFarmer]

My very simplistic thoughts - if tiny Singapore with well developed public transport infrastructure and highly priced cars can still cause its citizens to be car-crazy and have traffic jams at peak hours, I don't imagine a very large China will suddenly go 'anti-car'.

I am with Nick. Private car, serves different purpose than HSR. One is point-to-multi-point, and the other is point-to-point.

HSR is good for business trips, but private car is more suitable for leisure trips.

Furthermore, the logistic for commercial goods, relies on highways, than HSR.

(sharing view)

[LionFlyer]

My very simplistic thoughts - if tiny Singapore with well developed public transport infrastructure and highly priced cars can still cause its citizens to be car-crazy and have traffic jams at peak hours, I don't imagine a very large China will suddenly go 'anti-car'.

Cars here exhibit the veblen effect; e.g demand increases even as price increases, and has moved beyond a mode of transport.

I don't see such extreme happening there. Although a foreign car does have a status symbol, it is inline with aspiration based consumption. What is missing is the whole "anti-car" or congestion charging approach which would really heighten it to a veblen good like Singapore. Politicians there talked about, but the local governments usually lack the political will to impose it due to the perceived social backlash.

I had the opportunity to speak with Chinese city officials in various cities in Guangdong over what we do in Singapore. Sure, they were interested in ERP, but were hesitant over the social and financial cost. Back in March, I was with a local colleague, driving between cities in PRD. I do notice that there were long stretches where we were practically alone on the roads. I supposed only specific routes are profitable; with the shortest and most direct routes, without any viable alternatives.

Edit: I was in the consulting business, public sector domain.

[specuvestor]

Usually things are not binary but a continuum

HSR and rails link commerce and interactions, and cheapest mode of transport over long distance, to quote Buffett. And with increased commerce, ironically the car traffic will increase as well over time. So to have a simple linear argument is flawed, and the worst is people argue mass transportation doesn't solve the congestion problems based on their observation over time.

This statement is also partially true:
"If you look at purely the economic returns, they are quite low but the social benefits are much higher."

The economic benefits are huge but usually not to the rail operators in the long run. Similarly the ISP and network providers of Internet are not the main beneficiaries, but the economic benefits from internet from e-commerce to social media is immense, and it started with government funded projects. That's why public goods have to be non PnL based.

[greengiraffe]

http://www.valuebuddies.com/thread-843-p...#pid116217

There is an interesting comparison table of listed Chinese toll road players on MIIF's circular to holders on disposal of HNE on page 13

[greengiraffe]

Jul 15 2015 at 3:07 PM Updated Jul 15 2015 at 8:10 PM

Slump in car sales another problem for iron ore miners

For an industry which grew at nearly 14 per cent in 2013, the slowdown has been extreme. Bloomberg
by Angus Grigg

Obscured by the surprise pick-up in Chinese growth over the second quarter is a warning for the broader economy coming via the auto sector, which slowed then abruptly turned negative last month.

For an industry which grew at nearly 14 per cent in 2013, the slowdown has been extreme.

"Our car dealership has become a parking lot," said Zhang Muyang, a Skoda dealer in the eastern city of Nanjing who said his sales were down 30 per cent this year. "This is just the beginning of very hard times."

On Wednesday, accompanying the release of China's GDP numbers were figures to back up this anecdotal decline.

The National Bureau of Statistics said car and sedan production declined 11.4 per cent in June from a year earlier, following a 15 per cent annual decline in May.

Such sizeable production cuts are a result of flagging vehicle sales, which in June fell for only the third time since mid-2012.

Unlike the two previous falls, which were driven by political tensions with Japan and the Lunar New Year holiday, there was no obvious reason for June's 3.4 per cent annual drop.

"We should still be seeing good growth in the auto sector," said ANZ's chief China economist Liu Li-gang. "It shows people are uncertain about the future."

For Australia the decline in car sales is a further blow to the big iron ore miners, as China's auto sector was one of the few areas where steel demand was expected to grow strongly.

The sector is China's fourth largest consumer of steel – behind property, machinery and railways - and was expected demand 5 per cent more steel in 2015 than the previous year.

Such were the hopes for the auto sector, Fortescue Metals Group chief executive Nev Power has repeatedly singled out China's relatively low car ownership as source of new demand for iron ore.

His hopes now look misplaced. But he's not the only one caught out.

The rapid slowdown in Chinese car sales is all the more surprising given the government was trumpeting the sector's prospects just three months ago.

Sheng Laiyun, spokesman for the National Bureau of Statistics, noted that China had only 35 cars for every 100 households, a fifth of the level in the United States.

"China's auto sector still has lots of room to grow," he said when releasing the first quarter GDP figures.

At Wednesday's GDP release, Mr Sheng was silent on the prospects for the car industry.

His omission was understandable as the slide has prompted a swift down-grade to the full year outlook, with the China Association of Automobile Manufactures now expecting vehicle sales to grow by 3 per cent in 2015, compared to its previous forecast of 7 per cent.

If this forecast eventuates China's vehicle sales will have slowed from 14 per cent to 3 per cent in just two years.

Such is the impact that Barclays' auto analyst, Brian Johnson, believes General Motors will need to issue a profit downgrade due to falling sales in China, home to 20 per cent of its earnings.