Hebei Dawu Group,河北大午集团,Dawu Group,大午集团,孙大午
Chinese man called 'Ma' was detained. The news wiped $26 billion off Alibaba's stock
Analysis by Nectar Gan, CNN
Updated 1039 GMT (1839 HKT) May 4, 2022
Alibaba, the Chinese e-commerce giant Ma co-founded, saw its Hong Kong-listed shares plunge as much as 9.4% Tuesday after Chinese state media reported that an individual surnamed "Ma" in the city of Hangzhou — where Alibaba is based — had been detained on national security grounds.
According to China's state broadcaster CCTV, the suspect was placed under "compulsory measures" on April 25 on suspicion of "colluding with overseas anti-China hostile forces" to "incite secession" and "incite subversion of state power."
"I thought this was kind of an odd episode," said Victor Shih, a political science professor at the University of California San Diego. "Whether that was a warning of sorts to the technology sector as a whole, or perhaps Jack Ma personally. Who knows?
Both Russian and Chinese billionaires are walking on egg shells.
Moskva sinking: What really happened to the pride of Russia’s fleet?
Analysis by Brad Lendon, CNN
Updated 3:09 AM EDT, Fri April 15, 2022
Timothy Heath, senior international defense researcher at the RAND Corp. think tank, said the strike on the Moskva would underscore to both China and the US“the vulnerability of surface ships” in any potential military clash.
Thomas Shugart, a former US Navy submarine commander who is now an analyst at the Center for a New American Security, said there were too many differences between the situations.
The Moskva’s air defense systems are not in the same league as the more modern Aegis systems on US Navy destroyers, and Ukrainian anti-ship missiles are not as good as Chinese ones, Shugart said.
Anton Kuprin, the captain of the missile cruiser Moskva, has been killed, says Ukraine.
Now, Ukraine claims Moskva’s captain was also killed in that explosion.
In a statement on Telegram, Anton Gerashchenko, an adviser to Ukraine’s ministry of internal affairs, said:
1st rank captain, cruiser Moskva flagship commander of the Black sea Fleet, Anton Kuprin died during the explosion and fire on board.”
China Calls Out U.S. Dollar Dominance As It Buys Russian Coal With Yuan
May 01, 2022
According to data released by China’s General Administration of Customs in mid-April, the quantity of imported coal and lignite to China dropped 39.9 percent year-on-year in March and 24.2 percent year-on-year in the first quarter. However, Russian imports not only retained the top spot in China’s coking coal imports in March, the quantity more than doubled year on year.
China’s total imports from Russia are also growing significantly. The latest mid-April report from the General Administration of Customs showed that in the first quarter of 2022, its total imports from Russia increased to $21.73 billion, a jump of 31 percent year-on-year, ranking second only to Indonesia’s 31.4 percent.
Normally, the story of a Chinese billionaire known as "Big Shot" garners little interest except among an elite group of commodity traders. However, it caught the attention of the author early on. It did so because the billionaire had developed a new technique to process nickel. More recently, though, "Big Shot" has been shorting the nickel market on the London Metals Exchange (LME). If you don't know his name then its time to learn. It is XIANG Guangda of Tsingshan Holding Group.
"Big Shot" began shorting nickel on the LME last year. The technique of shorting can be risky or conservative depending on whether it is uncovered or covered. In this case, the distinction is not so clear; although, an explanation will not be forthcoming here as it is too technical.
You may notice though that the author does like to mention personal anecdotes for the purpose of tweaking the reader's attention. Decades ago, the author was in Beijing. He was trading in Class A and B shares. He would visit the exchange on a frequent basis. He was approached by two well-healed, knowledgeable and connected Chinese. They wished to hire him to manage "short sales" in their new commodity trading company. By the way, the author has also had training and personal trading experience in a wide range of financial instruments including commodities. They wanted him to manage uncovered, naked, short sales. He declined the offer for the reason that it was too risky. Let's say he didn't want to earn the nickname "Big Short".
Big Shot perhaps justifiably believed that demand for nickel would decline. What he didn't anticipate-- along with almost everyone else--was a Russian invasion of the Ukraine. As a result, nickel prices doubled in price. In layman's language, he was on the wrong end of the stick.
There were two factors though in Big Shot's favor. The LME had been bought out in 2012 by the Hong Kong Stock Exchanges and Clearing. Furthermore, he had friends in high places in Beijing. What is known is that trading was suspended on March 8 and five thousand nickel trades were cancelled. What is not known because it is a state secret is information about China's strategic nickel reserve and how it may relate to the present situation.
To the author this situation is reminiscent of a story involving an American gold mine, a Canadian company, a gold discovery and Canada's gold reserve. It was a shocking situation involving both the Canadian and US governments. The author wrote a fifteeen page explosive report on the issue but did not dare to publish it. However, it was disseminated through a private newsletter. The true story which generally involved the defence of the US dollar vis-a-vis gold has never been revealed or disclosed.
The last time the LME suspended trading was on October 24, 1985 with respect to tin trading. The tin market was glutted. At that time, The International Tin Council had trouble making its commitments. The LME Chief Executive Mike Brown said “We explained to him the gravity of the situation and that, if nothing happened, we were seriously talking about probably the end of the London Metal Exchange, total chaos, lack of confidence, the bankruptcy of the exchange spilling over into other markets." 2.
The situation today really is its opposite, but one can argue it dwarfs the tin crisis of 1985. Nickel prices are surging. Nickel trades were suspended. The trades on the LME were nullified. It is "shorts" who must honour their commitments. The situation is extremely serious. Anyone in mining knows that tin is mostly a by-product. On the other hand, nickel is a primary product while platinum and palladium are by-products at least in the case of Russia's mines and the Sudbury mines in Canada.
The reader is no doubt aware of US sanctions on Russia for its invasion of Ukraine. Generally, the author doesn't think much of sanctions because they can so easily be circumvented. They may also hurt those who do the sanctioning. Furthermore, sanctions are usually selective. It is this selectivity which stands out in the case of US sanctions.
You are aware of US sanctions on Russian oil and gas entering the United States. That is basically symbolic. You are aware that oil and gas shipments from Russia to Europe are flowing as usual--mainly on the insistence of Germany. This is basically hypocrisy. What you may not be aware of is Russia's continuing ability to use the LME in order to bring in foreign currency to support its economy and war effort.
Read this announcement as reported by Reuters on March 22, 2022. "The London Metal Exchange has no current plans to ban from its system metal from Russian producers, such as nickel and copper from Norilsk Nickel or aluminium from Rusal". 1. Now, Russia is the first producer of palladium in the world. Russia is the second producer of platinum in the world. Finally, Russia is the third producer of nickel in the world. In other words, it can be involved in the commodity of nickel and its by-products, for example, on the LME which is owned by the Hong Kong Stock Exchanges and Clearing. Russia can benefit by surging nickel prices on the LME. There is something rotten in London and it is not fish from the Thames.
D. Carlton Rossi
corrected March 27, 2022
China And Russia Make Critical Mineral Grabs in Africa While the U.S. Snoozes
January 13, 2022
Amidst the rising social and environmental costs of mining in the West, less scrupulous countries like Russia and China are capitalizing on soaring demand. Despite Russia holding the 4th largest global supply of REEs, with an estimated 12 million tonnes, they – along with China – have decided to use political leverage to secure mining deals throughout Africa, where labor is cheap, and regulations are virtually nonexistent. While China has entered the region through billions of dollars in Belt and Road financing, Russia is making inroads through the strategic deployment of mercenaries.
Canada had many chances to develop an integrated, domestic industry. It threw them away!