Nicaragua Canal Project Planning Approved, Benefiting XCMG

July 21, 2014

The Nicaragua Canal Project Planning worth US$ 50 billion, which was sponsored by a Chinese entrepreneur Wang Jing, was approved by the local government. Wang Jing confirmed it last night.

洪都拉斯	Honduras
尼加拉瓜	Nicaragua
马那瓜	Managua
加勒比海	Caribbean Sea
尼加拉瓜运河拟议线路	Planned Route of Nicaragua Canal
巴拿马运河	Panama Canal
巴拿马	Panama

It is reported that on July 7 a Nicaragua committee approved the Nicaragua Canal Project’s route planning which stretches from the Brito Estuary in the west coast to the Punto Gorda River along the Caribbean Coast in the east. The canal has a total length of 278 km, and its planning was devised by Hong Kong Nicaragua Canal Development and Investment Co., Ltd.

According to the previous documents of the Nicaraguan Government, investment in the Canal Project totals about US$ 40 billion (or RMB 245 billion). “So far, the total investment budget for the canal has hit US$ 50 billion,” a senior executive of HKND said yesterday.
In light of the planning, the canal will be completed in 2019 and put into service by 2020. The planned length of the canal will be 3 times that of the Panama Canal.

It is said that XCMG will be the exclusive engineering equipment vendor for Nicaragua Canal Project. On April 23 this year, XCMG announced that it had signed a framework agreement with Wang Jing’s HKND, and planned to purchase 1.5% to 3% of the company’s stock, but the investment amount was undisclosed in the agreement.

日K线图徐工机械

Daily K-line chart, XCMG

On the evening of July 8, XCMG released a bulletin, saying that its majority shareholder would accumulate the company stake by 780,700 shares, making up 0.038% of the company’s outstanding shares. The Big Data Terminal of Dazhihui showed that up to 9:44, July 9, XCMG share price has risen by 4.51%, hitting RMB 7.19 per share.

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