Coal Miners 'Victims' of China's Economic Spasm
Chinese coal miners are expected to report weak Q2 results following the 12% year on year and 7% quarter on quarter decline in spot coal prices and higher mining costs, DBS says in its China Coal Sector report. Higher-cost producers have started reacting to the low prices by downsizing labor and delaying projects. There is limited downside to coal prices as they are near production cost for higher-cost miners. The lack of major fiscal stimulus resulted in weak demand for coking coal, and slowing industrial activity has resulted in weaker power demand growth. Expansion of coal power plants will also slow down following calls for environmental protection in favor of gas and renewable power plants.

Li Confirms Issuance of 4G License by 2013 End
China will issue 4G licenses by the end of 2013 because investment in telecommunications and information technology is critical to economic restructuring, premier Li Keqiang said at a State Council meeting on July 12, clearing the last regulatory approval. Nomura thinks this announcement had allayed market concerns on potential delay of 4G network rollout in China, and believes this decision was made based on both China's maturing 4G technology as well as the new leadership's strategy to boost the economy via technological innovation instead of stimulus policy.

China Steps Up Developing Solar Energy
China's State Council issued a document calling for sounder development of the solar industry as foreign barriers to solar imports and lower equipment costs are set to bolster domestic demand. The State Council hopes to install 10 gigawatts of solar power annually between 2013 and 2015, or totally 35 gigawatts by the by 2015.

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