CHINA LOCAL SUPPORT against STOCK FALL !!!

China stock brokers set up $19 billion fund to stem market rout

The 21 brokers led by Citic Securities will invest the equivalent of 15% of their net assets as of the end of June, or no less than ¥120 billion in total

Beijing: Chinese brokerage firms have come together to set up a stock-market fund, the latest effort to stem the biggest three-week drop in China’s key share index since 1992.

The 21 brokers led by Citic Securities Co. will invest the equivalent of 15% of their net assets as of the end of June, or no less than ¥120 billion ($19.3 billion) in total, the Securities Association of China said in a statement on its website Saturday. The fund will invest in blue-chip exchange- traded funds, it said.

The move comes after measures to shore up equities failed to stop margin traders from unwinding positions at a record pace, with the market losing more than $2.8 trillion of value in three weeks. The People’s Bank of China cut interest rates last week, while margin-trading rules were eased and trading fees were cut Wednesday.

The new fund to bolster equities may have only “a fleeting effect when daily turnover has reached ¥2 trillion”, according to Hao Hong, China equity strategist at Bocom International Holdings Co. in Hong Kong.

“This ¥120 billion won’t last for an hour in this market,” Hong said by phone from Beijing Saturday. “It might benefit blue-chip stocks, as investors may see them as value, but the bursting of the bubble in small-cap/tech stocks is likely to continue.”

Small-Cap stocks

The ChiNext index of smaller companies in Shenzhen traded at a record 131 times reported earnings last month — five times the level of the Shanghai Composite Index -- after tripling over the past year. The gauge had lost 33% from its 3 June peak as of Friday, trimming this year’s gains to 77%.

“The market’s most acute concern is still these smaller cap stocks, as investors levered up to buy them and now margin lending curbs hit them the hardest,” Hong said. “With their valuation in the stratosphere, nobody is willing to step in and bolster these stocks.”

The brokers on Saturday pledged not to reduce any proprietary investments in the equity market as long as the Shanghai Composite Index stays below 4,500, the association said; it closed Friday at 3,686.92. Listed brokers will actively buy back outstanding shares, while encouraging their parent companies to increase holdings, according to the statement.

The group of 21 brokers said the economic fundamentals that had justified the stock market’s rally before the rout hadn’t changed.

“It is therefore our duty to unite in stabilizing this market,” the statement said.

Li-Gang Liu, chief China economist for the Australia & New Zealand Banking Group Ltd., said the market would eventually find its own level.

“If a listed company thinks its shares are undervalued it could buy back shares. Such purchases shouldn’t be triggered by any kinds of administrative calls,” he said. “I believe the market is still under big downward pressure.”

There remain additional steps the government could take to support the market. China’s central bank-affiliated Economic Observer reported last week the government is considering reducing the stamp tax, while the finance ministry said it will allow the national pension fund to invest in shares.

On Friday, China’s securities regulator said it will limit the number of initial public offerings this month and revise rules to encourage foreign investment in the market. Chinese media reported that a unit of China’s sovereign wealth fund has been buying exchange-traded funds in the past week to support the market. Bloomberg

http://www.livemint.com/Money/jy1YOJCdnfUj6ybSLGbTMM/China-stock-brokers-set-up-19-billion-fund-to-stem-market-r.html

$100 bn SOLAR OPPORTUNITY...keep counting!!!!

India’s $100 bn push into solar energy to be driven by foreign companies as locals take backseat

Last week, Softbank became the latest foreign player to enter India's solar market, leading an investment of up to $20 billion.

India’s $100 billion push into solar energy over the next decade will be driven by foreign players as uncompetitive local manufacturers fall by the wayside, no longer protected by government restrictions on the sector.

The money pouring into India’s solar industry is likely to be soaked up by foreign-organised projects such as one run by China’s Trina Solar – not the country’s own solar panel manufacturers.

Last week, Softbank became the latest foreign player to enter India’s solar market, leading an investment of up to $20 billion. The Japanese firm said it would consider making solar panels locally, but with Taiwan’s Foxconn rather than a local manufacturer.

Many Indian solar panel producers have benefited over the past six months from a surge in demand for panels not yet fulfilled by foreign companies. But their small scale and outdated technology will quickly make itself felt when the global players arrive.

“The smaller manufacturers of India, especially the cell manufacturers, will be adversely hit because they are unable to compete both on technology and even on price structures,” said Jasmeet Khurana at solar consultancy Bridge To India.

India’s solar panel makers can no longer turn to the Indian government for help. The government is more concerned about creating jobs quickly and ensuring plentiful power supply in a country known for its many blackouts.

India, in contrast to Chinese and German efforts to protect local producers, has scrapped most restrictions on where equipment that turns sunshine into energy is bought. Last year, it dropped an anti-dumping duty on panel import.

Foreign players making panels in India are expected to compete with local manufacturers to fulfil so-called domestic content requirements for government projects.

Trina has unveiled plans for a $500 million plant and US.-based SunEdison is investing up to $4 billion in a manufacturing facility. Both are tying up with Indian power firms to build the plants.

SOLAR TARGETS

India has said it expects peak power demand to double over the next five years from around 140,000 megawatts today. To help meet that demand, 100,000 MW of new capacity is to come from solar panels, and of that it wants at least 8,000 MW to come from locally-made cells.

Foreign players manufacturing in India will probably win the bulk of those orders.

Indian rivals like Indosolar and Moser Baer produce panels, but they cost 8 to 10 percent more than foreign producers, Khurana said.

It is not yet clear which foreign firms will emerge as the winners, with most of the facilities years away from being built and the big tenders for huge solar parks touted by the government still to be awarded.

But those who can quickly build scale will be the most able to compete on cost.

“The lowest cost in manufacturing will only come from scale and integrated facilities,” said Sujoy Ghosh, India Country Head at U.S.-based First Solar.

First Solar is to build 5,000 MW of solar power before 2020, but will rely on imported panels for now because it is cheaper to buy component parts internationally where they are more readily available.

As for some of India’s small panel makers, they are looking to complement the efforts of foreign players instead of trying to derail them.

Maharishi Solar, a small manufacturer based in Delhi, is looking to tie up with a foreign company, the company’s head Ajay Prakash Shrivastava told Reuters.

It stopped producing solar panels a few years back as it could not compete with foreign manufacturers, primarily Chinese. Shrivastava said import panels are as much as 45 percent cheaper thanks to subsidies in their home countries and lower borrowing costs.

“The Indian manufacturers do have a disadvantage,” he said. “We are trying to find a partner who can bring in the latest technology.”

First Published on July 2, 2015 2:37 pm======================

http://www.financialexpress.com/article/economy/indias-100-bln-solar-push-draws-foreign-firms-as-locals-take-backseat/93546/

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Just imagine the POTENTIAL AVAILABLE. It will be like wireless-mobile revolution.

The companies are going to use the HIGH-WAYS as OPPORTUNITY to Cover the VILLAGES and connect to GRID...Just wait for GESTATION period to explode.