CCTV.com - CNTV English - CCTV News

Video: Strong interest in China shale-gas sector

11-01-2012 10:40 BJT

Last week, CCTV reported China’s Ministry of Land and Resources received strong interests in an auction of the country’s shale-gas blocks. Although the official results of the auction have yet to be published, the auction has already ignited a storm of interest for shale-gas companies in China's capital markets.

A bullish corner in a bearish market.

Pei Yunpeng, chemical industry researcher of Shanxi Securities, said, "The whole sector have risen nearly 9 percent recently."

These stellar returns are happening in China’s shale gas sector. The share price of Shandong Molong Petroleum Machinery, which mainly designs and produces machinery for the oil sector, has seen its shares surge 200 percent since the start of the year. Another company which sells shale gas products has seen its share price jump 88 percent year to date.

Pei said, "In the field of shale gas, we believe investors could put their money to work through either speculation or strategic investment. For the short run, we think there are opportunities in natural gas exploration and mining."

So what’s behind this enthusiasm for shale gas? For starters, China has huge demand for energy. Shale gas is also cost competitive once fully developed. Hence analysts say shale gas companies are worth holding for the long term.

 

 

Editor:James |Source: CCTV.com

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program