Energy Insider: Power Shortage Worsens in Guangxi; Geely Joins With Renault in Hybrid Vehicle Push
In today’s Caixin energy news wrap: Coal prices in China are expected to hover at a high level amid strong demand; Renault partners with Geely to introduce Renault-branded hybrid vehicles in China; Guangxi presses aluminum producers to cut production amid worsening power shortage.
Guangxi Power Grid urges aluminum producers to cut power usage
Guangxi Power Grid Co. Ltd. called on local aluminum producers to cut production as the southwest province struggles with a worsening electricity supply shortfall amid surging demand driven by economic recovery. Guangxi is likely to experience a widening gap between power supply and demand in the third quarter, with an estimated shortfall of 7 million kilowatts. The gap will further expand to 9 million kilowatts as winter falls. Guangxi plans to press local aluminum companies to reduce power usage by an average of 30% by Aug. 15.
Geely and Renault to jointly explore hybrid vehicles
Geely Holding Group, China’s largest privately owned automotive group, signed a framework agreement with French carmaker Renault Group to create an innovative cooperation on hybrid vehicles, the two companies said Monday. The collaboration will target fast-growing Asian markets, with China and South Korea as they initial key core markets. In China, the two companies will produce Renault-branded vehicles based on Geely's technologies and manufacturing plants, while Renault will contribute branding strategy, sales channels and service development. In South Korea, Renault will introduce Geely's upscale brand Lynk & Co.'s platforms for localization of vehicles at its joint venture, Renault Samsung Motors, according to the agreement.
Shanxi Coking Coal to acquire 51% of Huajin Coking Coal
Shanxi Coking Coal Energy Group Co. Ltd. (000983.SZ) plans to buy 51% of Huajin Coking Coal from its controlling shareholder Shanxi Coking Coal Group, China's largest coking coal producer. Trading in the company’s stock will be suspended starting Aug. 9 to protect investors and avoid a major impact on the share price, the company said.
Zhejiang Huatie denies allegations for financial fraud
Zhejiang Huatie Emergency Equipment Science & Technology Co. Ltd. (603300.SH) denied a series of fraud allegations made by Hu Dong, chairman of Chinese crypto mining giant Ebang International Holdings Inc. The company said it had no irregularities such as serious financial fraud, serious information disclosure violations, or embezzlement of assets by controlling shareholder Hu Danfeng and his wife Pan Qian. Hu made the compliant against Zhejiang Huatie to the provincial securities regulator.
Tibet mining company profits surge on EV-driven lithium salt demand
Chinese mining and metal processing company Tibet Summit Resources Co. Ltd. (600338.SH) reported a 248% jump in first-half profit reflecting rising commodity prices, especially for lithium salt products used in electric vehicle batteries. The company’s net profit was 418 million yuan ($64.5 million) in the first half. Revenue rose 40% to 994 million yuan. Tibet Summit projected that strong demand for lithium products will continue until the first of half next year driven by the boom in EV sales.
Shuangliang Eco-Energy to raise $540 million for monocrystalline silicon project
Shuangliang Eco-Energy Systems Co. Ltd. (600481.SH) plans to raise 3.5 billion yuan ($540 million) through a private placement. Proceeds will be mainly invested in a 20 gigawatt (GW) large-sized monocrystalline silicon project in Inner Mongolia Autonomous region’s Baotou city, the first phase of a 40GW project with a total investment of 7 billion yuan.
Coal prices to fluctuate at a high level, report says
Coal prices in China are expected to fluctuate at a high level as power plants in coastal regions still face restocking pressure amid high daily consumption, Cinda Securities said. Meanwhile, as China has taken more steps to boost supply and cool prices of the commodity, some traders are willing to ship products. As of Aug. 5, coal stocks in eight coastal provinces were 22.75 million tons, down 3.7% from a week earlier.
China launches $15.4 billion second batch of SOE structural adjustment fund
China launched a second batch of a national fund for structural adjustment of state-owned enterprises (SOEs) as part of efforts to advance supply-side restructuring. The batch, with capital of at least 100 billion yuan ($15.4 billion), was initiated by China Chengtong Holdings Group Ltd. and a number of central and local SOEs. The fund was established in 2016 with a focus on improving resource allocation and on raising the efficiency of SOEs. As the nation’s largest private equity fund, it has estimated capital of 350 billion yuan that it planned to launch in three batches.
Contact editors Han Wei (firstname.lastname@example.org) and Bob Simison (email@example.com)
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