China to ban new projects in sectors facing overcapacity, including steel, aluminium, shipbuilding and cement

October 16, 2013 Leave a comment

China to ban new projects in sectors facing overcapacity

3:50am EDT

BEIJING, Oct 15 (Reuters) – China said it would block new projects in a number of sectors suffering from overcapacity, including steel, aluminium, shipbuilding and cement, according to a statement issued by the government on Tuesday. The long-awaited plan to tackle long-standing supply gluts in five industrial sectors was published by China’s cabinet, the State Council, according to the statement on China’s official government website, www.gov.cn. Margins in sectors like steel and aluminium have been affected for years by a massive supply glut, leaving many firms suffering heavy losses and reliant on government subsidy. According to the new plan, China will also seek to absorb overcapacity by stimulating domestic demand, relocating plants overseas, restructuring and merging existing firms and eliminating plants by strengthening environmental, safety and energy standards.

Filed under Macro Trends

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment