Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (105273)	3/27/2014 8:46:24 PM
From: TobagoJack	Respond to of 217685

watch & brief now that rare earths trading starts on china exchange, its pricing should float up, net net if so ... closely related plays on usa exchanges should also ... bloomberg.com Chinese Exchange Starts Rare Earths Trading Trial Today China’s first rare earths exchange starts trading today as the biggest producer of the elements seeks to increase the role of the free market at home amid criticism overseas for limiting exports. Baotou Rare Earth Products Exchange in Inner Mongolia province begins trading of europium oxide, praseodymium-neodymium oxide and cerium oxide at 9 a.m. local time, it said in a statement. The daily price movements of the contracts, denominated in yuan and for physical delivery, will be limited to a 6 percent range, except for the debut day, which allows for 15 percent, according to the exchange. China is bringing exchange trading to rare earths as it consolidates miners and refiners of the group of 17 chemically similar elements used in products from smart phones to helicopter blades to hybrid-car batteries. The trial comes after the World Trade Organization ruled against the country this week, agreeing with the U.S. that limits on its exports violate trade rules. “China wants to use its mineral resources in a sustainable way that maximizes the interests of all participants,” Peng Bo, an analyst at Huachuang Securities Brokerage Co., said by phone from Shenzhen yesterday. “A vibrant trading platform that helps regulate supply and demand can also deflect foreign criticism of the government’s heavy hand in the industry.” China accounts for 90 percent of the world’s production of rare earths and cut mining permits and imposed production and export quotas in 2007 to reduce pollution and conserve supplies. The export controls have soured relations with the world’s major users, including the U.S. and Japan, and spurred investments in Australia, Malaysia and the U.S. Price MovesThe opening-reference price of europium oxide will be set at 4,000 yuan ($644) a kilogram, praseodymium-neodymium oxide will be 320 yuan and cerium oxide 19.5 yuan, according to the Baotou bourse. Lockheed Martin Corp.’s F-35 fighter jet is among weapons that contain neodymium iron-boron magnets made using rare earth material from China, a U.S. Defense Department study in 2011 showed. China typically releases two export quota batches every year, and from time to time makes purchases for government stockpiles when prices drop, Peng said. A dispute-settlement panel at the Geneva-based WTO on March 26 determined that China didn’t adequately justify imposing export duties and quotas. The Association of China Rare Earth Industry will study details of the WTO report and evaluate its impact, Chen Zhanheng, a deputy general secretary at the association, said in a text message. China is trying to promote six companies including Baogang Group and Aluminum Corp. of China to lead acquisitions in the rare earth sector, Peng said. The State Council in January also said it approved in principle for Ganzhou city in the eastern province of Jiangxi to set up the largest rare earth group in southern China, under the Ganzhou Rare Earth Group, according to a National Business Daily report. To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at frong2@bloomberg.net To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net Sungwoo Park

To: 2MAR$ who wrote (105273)	3/27/2014 8:49:11 PM
From: TobagoJack	1 Recommendation Recommended By 2MAR$ Read Replies (1) \| Respond to of 217685

given that american-inspired tyranny has done a border-crossing to china and that the geopolitical world is going pear-shaped leading to probable breakdown of the existing world orders econo-politico-financial-etc, am generally encouraged that the four essential metals (pt, au, ag, pd) shall become evermore essential scmp.com China to chase tax evaders with own version of US foreign account law China is expected to introduce its own version of the new US tax law that requires financial institutions around the world to provide Washington with information on US taxpayers, analysts say. Such a law would make it more difficult for corrupt Chinese officials and their relatives to park their wealth in Hong Kong. Secretary for Financial Services and the Treasury Professor Chan Ka-keung has signed an agreement with the US to allow Hong Kong to pass tax information of Americans working in Hong Kong to their US counterparts under the Foreign Account Tax Compliance Act (Fatca). China, as a G20 member state, would probably follow suit, said Richard Weisman, of the Hong Kong office of law firm Baker & McKenzie. He said China would probably use a version of Fatca to collect tax information about Chinese citizens around the world including Hong Kong. "Fatca is only the beginning of what will become a major new compliance obligation for financial institutions. The next major development with respect to Fatca will be the G20's proposal to multilateralise Fatca. China, as a member of the G20, has endorsed this proposal. China can obtain tax information by joining the G20's approach to Fatca. That is a likely scenario," Weisman said. On March 18, Chinese deputy tax commissioner Zhang Zhiyong said China must strengthen its international tax collection, take part in international exchange of information on tax avoidance, and curb cross-border tax evasion. At the G20 summit in St Petersburg last September, it was agreed member states would start exchanging tax information automatically by the end of 2015. If China implements its own version of Fatca and it applies to Hong Kong, it may affect Chinese nationals' desire to deposit funds with banks in the city. But Hong Kong would be no worse than any other non-mainland jurisdiction because all would be equally affected, said Patrick Yip of Deloitte Touche Tohmatsu. Yip said that many financial institutions in Hong Kong were finding compliance with Fatca costly and difficult. "Fatca is sending a clear signal to Americans about the seriousness with which the US government is pursuing tax evaders," he added. Many banks in Hong Kong would not be ready when Fatca takes effect on July 1, said Gene Buttrill of US law firm Jones Day. "Perhaps they are hoping to bargain down their level of compliance. This is going to create a lot of work for US lawyers." Fatca will have an impact on the private banking sector globally, with US and European banks likely to be shunned by wealthy Asians doing their banking in Hong Kong, said Buttrill. "It makes life much harder for my friends in private banking." Fatca would "have a great deal" of impact on Hong Kong people in general, added Buttrill. "In addition to wealthy individuals and green card holders, it affects the financial industry as a whole."