Thursday, June 19, 2008

Asia Business and Trade

The better website to find lots of Asia businesses and tradings information. We provide information on business, trade, export, import especially in Asia area. You will find some valued articles as well as business information, new and ongoing trade policy developments, information on national and international trade-related legislation, links to international, regional and national sources of trade policy information and more!

Wednesday, June 18, 2008

Asia Commodity Exchanges

When you think of commodities in Asia what do you think of? Do you think of the Tokyo Commodity Exchange (TOCOM) and its Gold contract? Or do you think of the Greasy Wool futures of the Sydney Futures Exchange? Perhaps you may even think of Oman Crude Oil of the Dubai Mercantile Exchange (DME). Have you ever heard of the Multi Commodity Exchange (MCX) of India or The Agricultural Futures Exchange of Thailand (AFET) or how about the DaLian Commodity Exchange (DCE) in China?

Perhaps you may think that Bursa Malaysia trades only its benchmark Kuala Lumpur Composite Index (KLCI) and the country's equity issues but it's the home of the Crude Palm Oil future (FCPO). Malaysia is the worlds largest exporter of palm oil accounting for around 50% of the world production. Palm oil is used in margarine and shortening fats among others. In addition the palm oil fruit, the source of palm oil, also produces palm kernel oil a non-edible oil used in cosmetics. For every 10 units of palm oil there is 1 unit of palm kernel oil.

India has a long history of futures commodity trading. During the American Civil war (1861-1864) the British where buying cotton or the "white gold" from India to feed the looms in Lancashire and Manchester when they could no longer buy from the Americans. As early as 1875 the Bombay Cotton Exchange was established only 5 years after the Chicago Board of Trade.

Today, the National Commodity & Derivatives Exchange (NCDEX), Multi Commodity Exchange of India (MCX) and the National Multi Commodity Exchange (NMCE) comprise the bulk of commodity exchanges in India. There are 73 products offered by India's largest commodity exchange, the MCX, alone. Spices such as Cardamom or Jeera, Metals including Aluminum (Aluminium for some), Lead and Nickel. Rice, Maize and Soybeans are just some of the grains also available for trading. It is an impressive basket of goods.

The second commodity exchange, the National Commodity & Derivatives Exchange offers an equally broad product range such as Guar Seeds and Mustard oil but trades many of the same products as the MCX. These exchanges will undoubtedly consolidate in time which will increase liquidity, lower costs and improve price discovery.

Apart from TOCOM there is the Tokyo Grain Exchange (TGE). The TGE was founded October 1952 and offers futures and cash settled futures in its agricultural products Azuki Bean, Coffee (Robusta and Arabica), Corn, Raw Silk, Soybeans, Soybean Meal and Raw and Refined Sugar. The exchange currently has 134 member firms which is 30% more than TOCOM with just 102.

Electronic trading to the TGE is available from the comforts of your own home too. When electronic trading went live at the exchange October 1 2007 GL Trade was ready with its new SLE (Server Link to Exchange) via Fimat (Now part of Newedge).

There is also the Central Japan Commodity Exchange (CCOM) trading 10 products Gasoline, Kerosene, Gas Oil, Eggs, Ferrous Scrap, RSS3,TSR20, the Rubber Index, Aluminum and Nickel. In September 2007 CCOM rolled out the upgrade of its electronic trading system called "Trinity-X" and has 37 members. It also signed an MOU with the Shanghai Futures Exchange late last year.

The Agricultural Futures Exchange of Thailand trades "White Rice 5%" (5% means that a maximum of 5% of the rice can be broken) and "Natural Rubber Ribbed Smoked Sheet No.3" or RSS No.3 (the number 3 is the middle grading of the quality on a scale from 1 to 5 with 1 being the best as stipulated by the international Rubber Quality and Packing Conference).

Thailand is also the number one producer of rubber in the world. Further still they produce "Tapioca Chip" and "Tapioca Starch Premium Grade". Tapioca is produced from the cassava plant and Thailand is the number 3 producer in the world behind Brazil and Nigeria.

In China there is the DaLian Commodity Exchange (DCE) as previously mentioned and there is also the Zhengzhou Commodity Exchange (ZCE) trading in cotton, sugar, hard winter wheat and strong gluten wheat, PTA (Pure Terephthalic Acid) and rapeseed oil. The DCE trades Corn, 2 types of Soybeans, Soybean Meal, Soybean Oil, LLDPE (Linear Low Density Polyethylene) and RDB Palm Oil (Refined, Bleached and Doedorised). The Corn futures rank in the top 3 commodity futures in the world by volume and the Soymeal futures in the top 20.

There is also the Shanghai Futures Exchange (SHFE) primarily specializing in metals namely Aluminum, Copper, Gold, Zinc, Rubber and Fuel Oil. The gold future was launched only on January 9, 2008; a 1kg contract just like the one on TOCOM. All we need now is a standard Yen/Renminbi currency future contract and we are ready to arbitrage. Incidentally, MCX gold in India is a 1kg contract too. Vendors?

As the world grows richer and consumption grows with it commodities in Asia can only flourish. Nations and her farmers will seek to hedge their crops and extra-exchange arbitrage trading of similar commodities will increase as regulation matures and trade continues to open. Prescient regulators, brokers, risk managers and ISVs stand to benefit.

Visit http://www.AsiaEtrading.com the electronic trading resource for Asia. Are you Connected?

Article Source: http://EzineArticles.com/?expert=Stephen_Edge

The Economic Ascendancy of China - China as a Major Player in World Economics

China has experienced unparalleled economic growth within the last two decades. This growth has undoubtedly earned China the position of a major economic power in Asia. China ranks slightly behind Japan in economic power and marginally behind the United States in purchasing power. In world rankings, China is the sixth largest merchandising nation in the world, the twelfth largest exporter of commercial services, and the largest beneficiary of foreign direct investments. China's ascendancy has been furthered by its entry into the World Trade Organization in late 2001. Although there is some argument that the actual growth of China's economic status is not as high as the Chinese government presents, however there is little doubt that China has officially entered the global stage as a major economic player.

Many experts are so impressed by the exponential growth of China's economy in recent years that they have referred to the nation as "the worlds manufacturing center". Surely, as China has become a major exporter of world goods, this description, although exaggerated, is largely descriptive of China's position in the world economy. However, this growth has been questioned by some experts and has worried other Asian nations. China's growth within the Asian market itself has increased steadily in the last two decades; a phenomenon largely unequaled by any other nation in the world.

With other nations within Asia, as well as with nations outside of the geographic area, China's exports have far exceeded their imports. This growth has excited the investment sector and resulted in the inflow of global capital into the nation's economy. Although China's exports are still a relatively small portion of the Southeast Asian totals, most experts insist that China will be the areas largest exporter of goods within the decade. Experts have also noted a steady trade surplus with western nations such as the United States and the European Union that are likely to sustain and encourage China's economic growth.

Part of this economic growth has been fueled by China's attraction as a tourist destination. The past two decades has seen a rise in the influx of tourists as well as the increase in both inbound and outbound business travel. Just like the rise in China's economic growth, its tourism market has also experienced significant increases. Currently, China has the world's fastest growing tourism market with over two million visitors each year in recent years. And as the nation continues to grow in a business sense, more and more individuals will be traveling into and out of the nation. There has been some concern that China's growth as an exporter of consumer goods may render other exporters somewhat impotent in the global consumer goods market.

However, some experts argue that this will not occur because the increasing globalization of the world consumer goods market is likely to render other nations equally competitive in the production and exportation of such goods as communication technologies and electronics and that the production chain that exists throughout nations, especially in the case of Southeast Asia, will only be enhanced by the growth of such nations as China and their ascendancy as a world economic player. However, experts also predict that, especially in the areas of clothing and textiles, China's growth may result in increased competition in the Southeast Asian market that may render competing markets unable to keep up. Although this will surely keep market prices low, it will also give China a distinct advantage over its Southeast Asian neighbors and have an undesired effect on the wages and profit margins of industries in those other nations.

There is also some concern over the amount of funds that are flowing into China as opposed to the investments that are entering other Southeast Asian nations. China has a decidedly larger share of foreign investment funds than its neighbors. Especially in Southeast Asia, the competition for foreign investors is intense with almost half of these funds now going to China and the rest of the nations of the area realizing an almost 50% reduction in foreign investment funds. Many experts note that the majority of China's growth has been a result of the opening of China's markets to foreign investors. Although doing business in China remains difficult in some sense, the opening of the economy has been a boon not only to investors, but, obviously to China as well. Before China's economic rise, Japan was the only nation in Southeast Asia to be recognized as a major world economic player and they were also the recipient of the majority of foreign investment funds.

However, as can be imagined, Japan has suffered financially as a result of China's growth in that as foreign investors recognize China's economic potential, the bulk of foreign investments funds have shifted away from Japan and into China. Additionally, Japan has had to decide whether to invest some of their own funds into China's economic market and growth. Although they have been reluctant to invest in China's growth in the past, there may now be a growing trend toward Japanese investments in China with the planned relocation of several Japanese businesses. Some experts predict that China's growth will benefit its neighbors as China begins to invest in other Southeast Asian nations. In fact, China herself has asserted that her economic growth should not make the surrounding nations nervous but should instead be a welcomed part of the entire area's growth as China promises to share the wealth.

Although some individuals see China's explosive growth as a recent event, it has actually been a long time coming. Since China opened its economic and physical borders to investors in the early 1990's, the nation has been the beneficiary of much of the world's investors who were searching for new markets in which to invest. However, some experts predict that the general political instability of the region may well be the downfall of China's economic growth as these experts wonder how long such growth can be sustained especially to the disadvantage of the rest of the area. These same experts predict that the only way for other Southeast Asian nations to compete will be to develop similarly effective trade policies as has China. However, these nations, bogged down by internal political problems and poor leadership may not be able to keep up. China's rise in recent decades from a poor country with a stagnant economy has been noted as a huge success story.

China has been one of the few nations to realize steady economic growth even during periods of economic depression. Some analysts insist that this growth has put China behind only the United States as a total world power and some even assert that the next few years may indeed see China overtake the United States as a major world power in every respect, not just economically. Certainly, China's rise as a world player in economics as well as politics has opened communications between China and the U.S. as well as with the rest of the world. China is now the United States' second largest trading source and many U.S. investors have flooded China with U.S. investment funds. However, as some analysts predict that China will overtake the U.S. as the world's largest economy within the next decade, other analysts argue that, even if China continues to realize sustained economic growth, it does not have the political structure to overtake the U.S. as a world superpower.

Rebecca J. Stigall is a full-time freelance writer, author, and editor with a background in psychology, education, and sales. She has written extensively in the areas of self-help, relationships, psychology, health, business, finance, real estate, fitness, academics, and much more! Rebecca is a highly sought after ghostwriter with clients worldwide, and offers her services through her website at http://www.forewordcommunications.com/

International Trade Park to Redefine Jaipur Real Estate

Jaipur real estate will soon have a new milestone in the form of an international trade park, World Trade Park (WTP), to its credit. The project boasts of an eco-friendly office property with water and energy conservation techniques, automatic sensors for power saving, centrally air conditioned, wireless LAN and IT friendly environment.

The foundation stone for the World Trade Park, a business-cum-shopping centre was laid in 2005. Established by RF Properties and Trading Pvt Ltd, the park spreads over an area of 20,000 sq. yard. It has offices, a convention centre, retail outlets, exhibition halls, a five-star hotel, and a two-screen multiplex, trade lobbies, an art gallery and a computer-controlled parking for 1,100 vehicles.

The trading park is perceived as a nucleus of world trade in South Asia. It will provide Global Business amenities under one roof, further crafting Jaipur as the international trade capital of the country.

Project update

Commercial property market in Jaipur is being redefined with landmark constructions like the World Trade Park. The WTP is surrounded by posh shopping malls like The City Pulse, Crystal Mall, Crystal Palms and the Crystal Court. Other mega projects that are about to come up in Jaipur include, Mahindra World City project in collaboration with RIICO, which will be a multi-product Special Economic Zone. A film-city project worth Rs 1,900-crore on 1,000 acres in Jamdoli is also on the cards.

In March 2007, the State government, proposed a Science City in Jaipur to be developed with the International Convention Centre. A "Mini India" theme park on 50 acres sharing space with a golf course and a cricket academy is also there in the foresight.

Amid a number of forthcoming huge commercial projects the real estate in Jaipur is resolved to continue its vigorous upward trend. "With WTP playing a perfect escort in a new age world of trade and industry, it would help put Jaipur on the world map", property experts of Jaipur comment.

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Trading - Online Trading India

Trading : Online Trading India, Internet Trading, Net Trading, e-TradingAccording to the World Bank, India was already the fourth largest economy in 2001 in terms of Purchasing Power Parity. With a consistently high GDP, and a buoyant and dynamic economy, India continues to outpace other economies in the region. According to the IMF, India has accounted for around a fifth of Asian growth and a tenth of world growth over the past two years.

Indian companies are making their mark globally with remarkable progress being made in IT, ITES, Pharmaceuticals, Biotechnology and a host of other sectors. There is reason enough to believe that these sectors will source the stock markets as a prospective avenue to source capital for expansion plans.

India has a vibrant domestic credit market with an active corporate and government bond market, interest rate and credit derivative markets. More importantly, the interest rates in India are determined by the market.

The Bombay Stock Exchange, founded in the 1870s, is the oldest stockexchange in Asia. With 6,000 companies listed from every imaginable industry, investors have a plethora of options to participate in India's growth. Most FII'S have started investing heavily in the Indian stock markets and with most industries giving healthy returns on investments, indications are that the markets will continue to perform above expectations.

With over 20 million investors, India boasts of the third highest investor base in the world, unthinkable till a few years ago.

Trading, Online Trading India, Internet Trading, Net Trading, e-Trading

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Option Trading Software - 12 Valid Reasons To Go In For Option Trading Software

Even in earlier days, most people looked upon the trading business as a lucrative one. The scene is no different today. As a matter of fact, the business is attracting more and more people all the time! Along with "people" growth, there has also been "technological" growth. The result is sophisticated softwares that provide help to the trader/investor in realizing his/her dream of generating huge revenues. The latest one to join the bandwagon is option trading software!

Below is a detailed commentary on the trading world, and how it has ultimately led to the development of option trading software--

(1) Looking at the history of the trading business, it has brought about so many changes. The business has expanded globally, giving rise to international trading markets and exchanges. For example, the New York Stock Exchange and the London Stock Exchange. The capital turnover is quite massive. And people are rushing to invest in stocks and bonds, hoping to get a share of the profits!

(2) All courses on economics focus on trade now-a-days; it has become so much a part of our lives! Actually, regional and international trade have become sources of wealth for developed countries like the United States. Looking at their progress, other developing countries (especially those from Asia) are also jumping into the fray.

(3) What Asian countries do is, export the products that they manufacture to other countries. The payment is made in dollars. These dollars are in turn used to import foreign products. Thus, the performance of the export trade decides the economies of the respective countries.

(4) More lucrative is the foreign currency exchange market, otherwise known as Forex! The capital in circulation daily is around $1.5 trillion, making it the cynosure of all eyes! Of course, there is commodities trading too, and some people are very interested in venturing into that arena also.

(5) What does one have to do in "trading"? Be like a sales agent. The investor/trader purchases what he/she wants, and then tries to sell it at a greater price. With more and more successful trades, the profits keep growing! Sometimes, the revenue generated in a single day itself is quite large!

(6) There is a certain term that the investor/trader needs to be familiar with, when venturing into the trading world--that is, options trading. There are particular "options" that are selected and that work better than others in the market. It is to this end that the option trading software was developed later on.

(7) What exactly are "options"?

They are actually contracts that afford "buyer rights". The investor/trader is free to buy or sell any amount that he wants to, of a particular security, which could be stocks/commodities. The price for buying, and the price for selling are already determined beforehand (depending on market trends). The purchase/sale has to take place within specified time limits only. The investor/trader is not bound by any obligations.

(8) Contrast option trading with futures trading. The buyer who goes in for futures trading is under an obligation to pay the ordered security at the price asked for. Also, the pre-determined date has to be adhered to. In the same way, the seller is under an obligation to deliver the ordered security on the particular date specified and stick to the price asked for.

(9) In option trading, as mentioned before, the buyer is not obliged to do something that he/she does not want to do. If he/she feels that the security is not going to yield any profits, he/she can allow the option to lapse. What is lost in the process? Only the initial payment made.

(10) The person who chooses to take up options trading would be well advised to also go for option trading software so that risks are minimized. The software can be a guide to some amount of profit, if not 100% profits.

(11) The price may seem too high--$400. In fact, many may feel it is an unwanted luxury, well worth staying away from. But for a neophyte in the trading world, option trading software promises to be an extremely useful tool. It helps in making the right decisions.

(12) Finally, how is option trading software valuable to the trader/investor?

To illustrate with an example, there may be a "call" (for selling) option or a "put" (for buying) option that the investor/trader is dealing with. Despite knowing the market movements, if the buyer pays too much for a particular commodity, he/she stands to lose. The reverse is the case with an under priced commodity. The risks are therefore lessened by the option trading software.

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