Boom in China’s Coal Industry Draws Increasing Interest from Americans – AP
American companies are investing in China’s coal industry, despite the almost daily mining accidents that plague the country. From AP:
Look no further than China Shenhua Energy Co., the Beijing giant that produces about 170 million tons of coal a year from 21 mines and builds power plants. While about 80 percent of the company’s stock is owned by Shenhua Group in Beijing, the rest of its shareholders reads like a who’s who of U.S. investors: Fidelity Investments, OppenheimerFunds, Merrill Lynch, even the Teachers Retirement System of Texas.
The performance of Shenhua’s Hong Kong-listed shares explains why U.S. investors love Chinese coal. Shenhua gained almost 65 percent from July through September, while American company Peabody ” a favorite of analysts who follow U.S. coal companies ” lost more than 3 percent over the same period. Shenhua’s initial public offering in Shanghai in September raised $8.9 billion (‚Ç¨6.25 billion), a record for mainland China. [Full text]
AP also reports on how coal mines are impacting the health and well-being of nearby residents.