Jinyun news: on October 22, 2020, China Mining Conference and Exhibition 2020 (the 22nd session) (hereinafter referred to as "CHINA MINING") was held in an online way.
Onsite speakers of Capital Market symposium (first half)
In the first half of the Capital Market symposium, Cao Yuanzheng, former chief economist of Bank of China and chairman of BOCI Research Limited, Ba Shusong, chief China economist of HKEX, Li Chaochun, managing director of China Molybdenum Co., Ltd., and Christopher Fix, managing director and head of Asia Pacific at Chicago Commodity Exchange Group, discussed the impact of capital market on the mining industry, and put forward suggestions on how mining companies should develop under the epidemic situation.
Li Chaochun, managing director, China Molybdenum Co., Ltd. (CMOC)
Taking the interaction between China Molybdenum Co., Ltd. and the capital market as an example, Li Chaochun pointed out that “mining companies not only have traditional elements but also some modern elements, such as hedging, which requires some financial tools. Mining companies have the characteristics of capital intensive, quasi- investment and quasi-finance. The mining industry and the capital market are mutually related. The capital market gives a lot, but at the same time it turns the company into a public and open company, which needs to bear corresponding responsibilities and obligations." Li Chaochun said that in the future, he has a dream and hopes that the international market can use share-based payment in mergers and acquisitions.
Christopher Fix, managing director and head of Asia Pacific at CME Group
Christopher Fix shared the relationship between gold, copper and other mineral transactions and finance in the international market by way of video link. "With the increasing demand for minerals in the international market and the increasing scale of investment, it is necessary to innovate the capital market system to fit the unique financing characteristics of the mining industry,." said Christopher Fix.
Ba Shusong, managing director & chief China economist of HKEX,
chief economist of the China Banking Association (CBA)
Ba Shusong believes that the epidemic has accelerated the digital and intelligent transformation of the economic system. "Human history shows that epidemics and wars sometimes promote the great development of human culture and science and technology." Ba Shusong said that World War II gave birth to the development of the electronic computer field and the nuclear technology field. SARS accelerated the process of Chinese e-commerce on the stage. The epidemic of COVID-19 will have an impact on human beings in terms of scientific and technological research and development, industrial organization, artificial intelligence, and public service forms.
Cao Yuanzheng, former chief economist of Bank of China,
member of Chinese Economists 50 Forum, chairman of BOCI Research Limited
Cao Yuanzheng said: “The mining industry is a capital-intensive industry. In addition to debt, the corresponding financing will also obtain capital in the capital market. So financing activities are inevitable. The demand for mining in China is very large, but there are relatively few mines in China. Therefore, mining companies are the most internationalized companies in China. This means that only by using two kinds of funds in the mainland and overseas markets can make the mining industry bigger. Now the world’s macro- economy is in confusion, especially under the impact of the epidemic situation, the risk is increasing. In order to maintain stability and achieve long-term success, capital markets such as futures can be used to hedge risks. Therefore, the use of capital market tools has also become the internal demand of mining companies.” (Reporter/ Dong Lijing)
Speakers of Capital Market symposium (second half)
Wei Jiaming, deputy general manager, China ENFI Engineering Co., Ltd., Weng Yuying, managing director & head of energy and mining, BOCI, Fu Zuoqiu, executive director & head of M &A team, BOCI, Ms. Xiao Fu, head of commodity markets strategy at BOCI, Paul Schroder, senior partner, King & Wood Mallesons Australia, Nick Harridge, transaction services partner, KPMG Australia, attended the second half of the Capital Market symposium.
Wei Jiaming, deputy general manager, China ENFI Engineering Co., Ltd.
Wei Jiaming introduced that China has 11 kinds of minerals with foreign dependence of more than 50%, and some key minerals have reached more than 80%. In view of this, ENFI has built an international mining investment platform. On this platform, there is a lot of first-hand information on investment and mergers and acquisitions. In addition, ENFI can also provide one-stop services such as financing, underwriting, and transportation. It is not only for domestic companies, but also for foreign companies that plan to invest in China. Since the establishment of the platform, many foreign clients have come to inquire about investment in China. Wei Jiaming also welcomes Chinese entrepreneurs to consult. ENFI can provide Chinese-style solutions for everyone.
Weng yuying onsite made a speech titled Risk Management of Mining Enterprises. Besides this, by way of video link, Fu Zuoqiu, Xiao Fu, Paul Schrode and Nick Harridge, delivered their speeches separately and took part in the discussion. Fu Zuoqiu’s speech is titled Analysis of International Mining M&A Practice, Xiao Fu’s is titled Basic Metals Market Outlook: Seeking A New Balance, Paul Schroder’s is Mining Trading Opportunities and Investment Directions and Nick Harridge’s is Importance and Common pitfalls of financial due Diligence in Overseas Mineral M&A. (Edited and Translated by Tianjin Minexpo)
About CHINA MINING
China Mining Conference and Exhibition (CHINA MINING) is officially supported by Ministry of Natural Resources China. Since first held in 1999, CHINA MINING has become one of the world’s top mining events and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including survey and evaluation, exploration and mining, techniques and equipment, investment and finance, trade and services, etc., playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
China Mining Conference and Exhibition 2020 will be held in Tianjin China on October 22-24, 2020. We invite you to join the event and to celebrate the 22nd anniversary of CHINA MINING with us. For more information about CHINA MINING, please visit: www.chinaminingtj.org
