China and Rio Tinto Could Team Up; What It Means for Australia’s ETF
May 15, 2009 at 1:00 am by Tom Lydon
Australia is taking a huge gamble on the recent deal to merge China and Rio Tinto, a move that is laid out in a loosely-constructed contract and more code words than anyone could crack. If this big deal goes through, what could be the impact for exchange traded funds (ETFs) on both sides of the issue?At stake is Australia’s most important economic relationship, one that is hung up to an extraordinary extent on this single deal. In turn, this would be China’s largest overseas deal, in Chinalco’s bid to own 18% of Rio Tinto, explains The Australian.
The deal would make Chinalco Rio Tinto’s dominant shareholder and guarantee it two board seats. There are tow major reasons the presure is mounting for the deal to occur:
A concern that a British-based company has forged an arrangement with a Chinese state giant that does not adequately protect the value of strategic Australian resources, especially iron ore. Core assets would be reorganized.
The premium provided by the Chinalco bid above the then-share price has been swallowed and left behind by the rising value of Rio Tinto stocks. The Chinese-driven demand for the commodities has taken the share prices higher because of a resurgence in overall demand.
If and when the deal goes through, the world will be dominated by four huge global mining giants, with a contraction of the once-broken global mining industry.
iShares MSCI Australia Index (EWA): up 9.2% year-to-date; Rio Tinto is 2.6%
http://www.etftrends.com/2009/05/china-and-rio-tinto-could-team-up-what-it-means-australias-etf.html Australia’s Relationship With China Grows, But Will It Benefit ETFs?
June 04, 2009 at 3:00 pm by Tom Lydon
The news of three Chinese companies buying stakes in Australia’s infamous mining industry has many of those down under riddled with nationalism, as they fear the Aussies would toil while the Chinese profit. What could the moves mean for exchange traded funds (ETFs) that track both countries?
The idea of communist China buying up sections of the continent of Australia and then taking the minerals from the Earth, only to sell them to the Communist People’s Republic of China has the Aussie nation somewhat annoyed. Some 21.3 million people have reacted with aggrieved nationalism, in response to the possible Chinalco merger, where the Chinese would buy stakes in the mining industry totaling $22 billion in Australia, explains Michael Wines for The New York Times.
Rio Tinto may actually be scrapping the deal after all, since an agreeable solution couldn’t be reached, report Amy Or, Jeffrey Sparshott and Dana Cimilluca for The Wall Street Journal.
But it’s far from an end to China’s growing relationship with Australia.
China is Australia’s biggest trading partner, one of its biggest tourism customers, the largest single buyer of its government debt and a major buyer of farmland and real estate. Australia seems to be reevaluating its relationship with a country they don’t know very well.
Meanwhile, the bigness of China is spreading wider, as General Motors (GM) is trying to finalize a deal to sell the Hummer division to a Chinese buyer. Analysts say the brand’s future lies in either slimmed-down SUVs or large special-purpose vehicles not unlike the military-troop carriers that formed Hummer’s roots, says Austin Ramsy for Time Magazine.
The sale of the Hummer to the Chinese is estimated to be valued at $500 million, although a price tag has not been disclosed. The sale would also save 3,000 American jobs for the time being.
http://www.etftrends.com/2009/06/australias-relationship-with-china-grows-but-will-it-benefit-etfs.html刚好在看这两篇文章, 就帮你贴了, 不过不是全面的经济关系。希望对你有点帮助