Anod Bank Dissolved
July 27 (UB Post) Anod Bank has been dissolved, announced S. Enkhbat, plenipotentiary representative of MongolBank, the central bank of Mongolia, to Anod Bank.
MongolBank Board of Directors passed such a decision at its meeting last weekend. According to Enkhbat, this is not the announcement of bankruptcy of the Bank but the forced dissolution. It is the law that a bankruptcy of banks is announced by the court, he added.
U.S secretary of state to visit Mongolia next year
ULAN BATOR, July 26 (Xinhua) -- U.S. Secretary of State Hillary Clinton will pay an official visit to Mongolia next year, Mongolian media said Monday.
Mongolian Foreign Minister Zandanshatar Gombojav met Clinton on the sidelines of the foreign ministers' meeting of the Association of Southeast Asian Nations (ASEAN) held in Hanoi, Vietnam, from July 22 to 23.
Clinton accepted the invitation and agreed to visit Mongolia at that time.
Moreover, she congratulated Mongolia on the 20th anniversary of Mongolia's democratization and on leading the League of Democratic Nations from 2011.
Clinton visited Mongolia as U.S. first lady.
Legal Battle between State General Prosecutor and IAAC
July 27 (UB Post) A legal “battle” between the State General Prosecutor and Independent Authority Against Corruption (IAAC) has been a centerpiece of Mongolian media last week.
The State General Prosecutor D.Dorligjav has requested, a third time in a row, the Speaker of Parliament D.Demberel to dismissal of chief commissars of the anti-corruption agency in a bid to continue criminal investigation whether he breached law while investigating higher ranking public officials.
Interview with the NEA official G. Bayasgalan
July 27 (UB Post) It has not been a long time since the Administrative Court of Mongolia hears the case between the Nuclear Energy Agency (NEA) and the Canada’s Khan Resources Inc. regarding cancellation of the Khan’s unit Khan Mongolia licenses to explore uranium in Dornod Province.
G. Bayasgalan, head of the NEA’s Department of Nuclear Materials, gives some clarifications on issues regarding the case and on the exploration of uranium.
- There are news past few days that Khan Resources won the court case and its unit Khan Mongolia is set to commence the prospecting and exploration of uranium in Dornod Province. What would you say about that?
- First of all, I would like to responsibly state that there are some misleading news and information regarding this court case. People think that the NEA cancelled the Khan’s license before its expiration term, which is a wrong understanding. Indeed, this matter is not connected to the term of Khan’s license. …
- What is the development of the matter regarding the incorporation of “Dornod Uranium” company jointly with Russian? The NEA must be the agency to issue the special license to this company if it is established. Will the exploration license or the prospecting license be issued first?
- I hope the Cabinet of Ministers will discuss this matter in the nearest future. We have introduced the amount of registered capital and other proposals to the Government, including the proposals from Russian side. The working group headed by the Foreign Minister G. Zandanshatar might introduce the issue of the joint company soon. It is too early to talk about the special license because the Company is yet to be established. We will sign investment agreement with Russian side according the law and only after that we can talk about the special license.
Mongolians control riot at ECP
July 26, Marine Corps Base Japan (marines.mil) FIVE HILLS TRAINING AREA, Mongolia — Guards in full riot gear behind the fence of Five Hills Training Area watched intently as their brethren, also in full riot gear and full body shields, formed a wall between the front gate and the menacing crowd that was starting to get more daring.
Approximately 120 Mongolian Armed Forces and Internal Force members recently participated in this training evolution designed to familiarize the participants with effective crowd control techniques. The participants were divided into two parts; a control force and a crowd, to practice crowd control at an entry control point, skills that they learned as part of Non-Lethal Weapons Executive Training Seminar 2010.
Stocks eke out third day of gains as banks advance
July 27 (AAP) Australian shares edged higher, stretching gains into a third day, with bank gains eclipsing miners' losses.
The big four banks led the market higher in morning trade and held on to gains during the afternoon session.
Westpac closed up 55 cents at $23.70, National Australia Bank was 20 cents higher at $24.97, Commonwealth Bank rose 59 cents at $52.08 and ANZ was up 20 cents at $22.93.
Miners mostly fell, with market heavyweights BHP Billiton down seven cents at $39.75 and Rio Tinto 16 cents weaker at $70.09.
Macarthur Coal finished down 50 cents, or 3.7 per cent, at $12.92 after it abandoned plans to buy a greater stake in a Queensland coal project.
Gold miners were also lower.
Newcrest fell 29 cents to $33.06, while takeover target Lihir Gold fell two cents to $4.09 ahead of its quarterly production figures, expected to be released tomorrow.
At 1624 AEST the spot price of gold was $US1,185.50 per fine ounce, down $10.63 on Friday’s closing price of $US1,196.13 and the gold exchange traded fund was down $1.63 at $128.17.
Energy stocks were mixed, with Woodside Petroleum off 17 cents at $41.96 and rival Oil Search up nine cents at $5.93.
On the Sydney Futures Exchange at 1615 AEDT, the September share price index contract was four points weaker at 4,472 on a volume of 19,634 contracts.
Aluminum giant Chinalco gets state nod to enter iron ore business
July 24 (domain-b.com) China's state-owned aluminum giant Chinalco this week received approval from the Assets Supervision and Administration Commission of the State Council (SASAC) to include iron ore and other non-ferrous metals to its core businesses.
It also produces non-ferrous metals like titanium and expects to be a leading titanium producer in the Chinese market.
Chinalco applied for the SASAC approval after it formed a joint venture with the world's second-largest iron ore miner Rio Tinto for developing the Anglo-Australian company's Simandou iron ore deposit in Guinea, West Africa.
With a 9 per cent stake, it is also the single-largest shareholder in Rio Tinto and is currently planning to buy a stake in the massive Oyu Tolgoi copper-gold project in Mongolia, which is held by Rio Tinto and Canada's Ivanhoe Mines.
China shares fall after 6 days of gains
July 27, SHANGHAI (AP) -- Chinese shares broke a weeklong rally Tuesday and fell on profit-taking, led by banks.
The benchmark Shanghai Composite Index declined by 13.31 points, or 0.5 percent, to close at 2,575.37. The Shenzhen Composite Index for China's smaller second exchange slipped 0.1 percent to 1,049.44.
The market rose over the past week on hopes for government promises of easy credit over the next half year.
Investors were also worried that planned new share sales might dilute the market and depress prices after regulators on Monday approved Everbright Bank Ltd.'s plans for an initial public offering, Zhang said.
Resource shares also fell. Jiangxi Copper Ltd. was off 2 percent to 28.52 yuan, and Inner Mongolia Baotou Steel Rare Earth Co. down 1.7 percent to 40.2 yuan.
In currency markets, the yuan strengthened to 6.7772 to the U.S. dollar, up from Monday's close of 6.7813
Chinese banks face state loans turmoil
July 26 (FT) China’s banks are facing serious default risks on more than one-fifth of the Rmb7,700bn ($1,135bn) they have lent to local governments across the country, according to senior Chinese officials.
In a preliminary self-assessment carried out at the request of the country’s regulator, China’s commercial banks have identified about Rmb1,550bn in questionable loans to local government financing vehicles – which are mostly used to fund regional infrastructure projects.
A senior official from the China Banking Regulatory Commission told the Financial Times these loans would not necessarily all go bad but that the country’s non-performing loan ratio would almost certainly “increase slightly” at the end of the year.
But analysts say the apparent success of the clampdown on lending disguises a worrying new trend that involves banks co-operating with lightly regulated trust companies to keep loans off their books.
The regulator ordered a stop to this type of lending at the start of the month.
China’s banking system had a non-performing loan ratio of more than 50 per cent a decade ago. Today the country is a breeding ground for the world’s largest and most profitable banks with an average NPL ratio of just 1.3 per cent as of the end of last month.
Asian Stocks Advance on U.S. New Home Sales, Earnings Reports
July 27 (Bloomberg) -- Asian stocks rose, driving the MSCI Asia Pacific Index higher for the third straight day, as better- than-estimated U.S. home sales and earnings reports boosted investor confidence.
The MSCI Asia Pacific Index gained 0.4 percent to 118.49 as of 3:04 p.m. in Tokyo. The gauge has slumped 8.2 percent from its high this year on April 15 on concern Europe’s debt crisis and Chinese steps to curb property prices will slow global economic growth.
Australia’s S&P/ASX 200 Index climbed 0.3 percent. Japan’s Topix index gained less than 0.1 percent. Hong Kong’s Hang Seng Index rose 0.2 percent. China’s Shanghai Composite Index lost 0.5 percent, led by banks on concern over rising credit risks.
Futures on the U.S. Standard & Poor’s 500 increased 0.2 percent. The gauge gained 1.1 percent yesterday after the report on June home sales and after FedEx Corp., the second-largest U.S. package-shipping company, boosted its profit forecast.
“Corporate earnings are good,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. “Companies which reported strong earnings should be targets” for investors to buy.
Bank stocks also rose after the Basel Committee on Banking Supervision, which represents central banks and regulators in 27 nations and sets capital standards for banks worldwide, softened capital rules proposed for lenders. The committee was asked by Group of 20 leaders to draft rules in the aftermath of the credit crisis.
"Mogi" Munkhdul Badral
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