Tencent Music aims to raise $1 billion by going public in the US www.cnn.com

Tencent Music has filed plans to go public in the United States in what could be one of the biggest recent US IPOs by a Chinese company.
The company set a placeholder target of $1 billion, which could value the company between $25 and $30 billion, according to its SEC filing.

Mongolia aims to earn 1 bln USD from gold sector www.china.org.cn

ULAN BATOR, Oct. 3 (Xinhua) -- Mongolia has set a goal of earning one billion U.S. dollars from the gold sector in coming years, the country's Minister of Mining and Heavy Industry Dolgorsuren Sumiyabazar said Tuesday.

DAN recognition system introduced www.montsame.mn

Ulaanbaatar /MONTSAME/ Mongolian National Data center has introduced DAN digital recognition system to the public during ICT Expo 2018, held between September 30 and October 2.

Meeting with authorities of Rosneft Public Joint Stock Company of Russia www.montsame.mn

Chief of Staff of the President of Mongolia Mr Z.Enkhbold received on Tuesday top officials at the “Rosneft” Public Joint Stock Company, including the First Vice-President Pavel Fedorov, Vice President Otabek Karimov, Vice President Yuri Kalinin and Chief Geologist Andrey Lazeev. At the beginning of the meeting, the officials of the Russian company touched upon the increasing oil demand in Mongolia and held an extensive discussion on means to meet this demand and the exploitation, refinery and export of oil in Mongolia. At the end of the meeting, Rosneft Company informed that it will be donating EUR 8 million for the purpose of redeveloping the Khalkhgol soum center, Dornod province, in frames of the Mongolian-Russian joint celebration of the 80th anniversary of the victory of the battle in the Khalkha River. Chief of Staff Mr Z.Enkhbold expressed his gratitude for the donation and wished a bright future for the Company.

Dutch Development Bank Arranges USD 120 million loan to Khan Bank www.montsame.mn

Ulaanbaatar /MONTSAME/ The Dutch Development Bank FMO arranged a USD120 million loan to Khan Bank, Mongolia’s leading universal bank. This USD 120 million loan (equivalent to MNT 300 billion) is the largest loan in Khan Bank’s history and will strengthen its strategy to reach out to even the most remote areas of Mongolia. The financing signals FMO’s long-term commitment to the Mongolian market and is expected to pave the way for additional funding from other financial institutions.

Khan Bank is a robust institution with prudent management and a leader in digital banking. The loan will support Khan Bank’s successful growth and will expand access to financing for small and medium-sized enterprises.

Through its extensive network of 536 branches nationwide, Khan Bank provides banking services to an estimated 70% of Mongolian households. The bank provides comprehensive banking services and access to finance to individuals, small and medium-sized enterprises (SME) and corporate customers in even the most remote areas of the vast country. Khan Bank has been a client of FMO since 2009 and is an important partner in Mongolia.

The USD 120 million syndicated loan facility supports Khan Bank's ambition to remain the country’s leading SME and retail bank reaching out to most people in Mongolia. The term facility will also contribute to Khan Bank’s funding stability. In addition to the loan facility, capacity development support will be provided to further strengthen the bank’s environmental and social management system. The inclusiveness and developmental impact of the facility is good through the bank’s strong remote outreach, significant SME portfolio and the bank’s steps to further digitalize banking activities.

FMO commits USD 45 million and in addition mobilized funding from diverse international financing partners: The German development finance institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH commits USD 23 million. The International Investment Bank (IIB) commits USD 20 million, the Belgian Investment Company for Developing Countries (BIO) commits USD 17 million and the Development Bank of Austria (OeEB) commits USD 15 million.

John Bell, CEO of Khan Bank commented to the occasion, “With shrinking foreign investment in Mongolia due to an economic downturn in recent years, this syndicated loan facility of USD 120 million from leading international financial institutions is critical not only for Khan Bank’s customers, but also for the overall economy. It is a promising manifestation of increasing confidence of investors in Mongolia. Khan Bank is honored to be leading the way forward.”

Linda Broekhuizen, Chief Investment Officer of FMO commented: “We feel privileged to build further on our warm and longstanding relationship with Khan Bank. This facility will help ensure that more than 2.4 million people from every part of Mongolia can benefit from the country’s development”.

Mongolia's central bank purchases 14.3 tons of gold in 1st 3 quarters www.xinhuanet.com

ULAN BATOR, Oct. 2 (Xinhua) -- The Bank of Mongolia has purchased 14.3 tons of gold from legal entities and individuals in the first three quarters of the year.

Spy arrest! Foreigner arrested in Ulaanbaatar www.news.mn

A foreign citizen was taken into custody in C block of the Golomt apartment complex, which is located near the Western Road Intersection in Ulaanbaatar, earlier today (2 October). According to the General Intelligence Agency of Mongolia, the unnamed foreign national living in Ulaanbaatar was arrested on Tuesday for allegedly spying. Furthermore, intelligence officers have seized four boxes of evidence from the home the suspect. The special operation lasted for two hours and shocked neighbours.

Partners announce $31bn Canada LNG project gets go ahead www.bbc.com

A major C$40bn ($31.9bn; £24.6bn) liquefied natural gas (LNG) project in Canada has received the go-ahead from its partners.

Mongolia to send military personnel to Afghanistan for NATO-led mission www.xinhuanet.com

ULAN BATOR, Oct. 1 (Xinhua) -- Mongolia will send its 8th contingent military personnel to Afghanistan on a NATO-led mission, authorities said on Monday.

What does the China-Mongolia-Russia Economic Corridor mean for Mongolia? www.beltandroad.ventures

(Guest contribution by Connor Judge. Connor is a PhD Candidate at SOAS, University of London specializing in Chinese history and China-Mongolia relations. He holds an MA in International Relations from the University of Nottingham, Ningbo China, where his research focused on Eurasian regionalism and Mongolia’s economic development. His research output is supported by the Wolfson Foundation.)

2019 marks 70 years of diplomatic relations between China and Mongolia. The two countries are eager to use the opportunity to strengthen relations and lay out a blueprint for future cooperation. It was in this context that Chinese Foreign Minister Wang Yi visited Mongolia in late August. During the visit, it was agreed that both sides would accelerate construction of the flagship China-Mongolia-Russia Economic Corridor (CMREC), one of the key corridors under the Belt and Road Initiative (BRI).

The central CMREC route (also known as the “Prairie Road” (Талын зам\草原之路) “starts” at the port of Tianjin, China and heads northwest before entering Mongolia at the Erlianhaote border crossing. In practice however, Siberian and Mongolian resources are exported out of Tianjin. The route then heads through Mongolia before entering Russia along the trans-Siberian express at Ulan Ude. For North East China’s provincial powerhouses, this primary route represents the shortest path to Europe; and Mongolia is keen to position itself as the pivotal logistics hub.

Container trains have already traversed the new corridor. The Mongolian Vector (Mongolia-Brest, Belarus) and Zhengzhou-Hamburg (China-Mongolia-Germany) trains have already been running successfully along the route and are providing European firms with potential for both Mongolian and Chinese market access; as well as vice-versa.

Other CMREC routes face delays

Beyond this central route, alternative ideas have been put forward for CMREC, but progress has been slow.

● Tavan Tolgoi Rail Project: Seeks to link Mongolia's giant Tavan Tolgoi coal mine to the Chinese border. $200 million has already been invested. However, funding for the route, contributed thus far by Shenhua Group and Sumitomo Corporation, falls short by $800 million.

● The Mongolian government was also enthusiastic about integrating a rail route stretching from Choilbasan to the town of Ereentsav near the eastern Russia-Mongolia border within CMREC, but China has been less receptive to this.

● A proposed Sainshand-Ereentsav, Nomrog, Bichil crossrail is also seeking funding from the Silk Road Fund (SRF) and Asia Infrastructure Investment Bank (AIIB).

● The construction of an international UHV electric transmission “super grid” along CMREC routes and existing grid upgrades are also being considered at multilateral dialogues.

Mongolia is pushing China and Russia to turn words into action

Financing, rail gauge incompatibility, customs, environmental and broader conceptual issues continue to be roadblocks for CMREC and the proposed projects mentioned above. Mongolia nonetheless is keen to resolve these issues. As a result, Mongolia is an active and vocal BRI partner, while simultaneously pursuing a self-promotion drive. For example, former Mongolian Transport Minister Jadamba attended a plenary Transport and Logistics in Eurasia conference in Moscow in December 2017 in which he reiterated Mongolia’s pivotal role as the “shortest” path between Europe and Asia, while also emphasizing Mongolia’s desire to seek third-party partners for CMREC and mineral export financing.

More recently in June 2018, the Mongolian President Khaltmaagiin Battulga also spoke at the Mongolia-Russia Economic Forum where he promoted the Altanbulag FTZ at the northern extreme of the central route, efforts to significantly increase trade turnover with Russia by 2020 and establishing of an FTA with the Eurasian Economic Union.

In the same speech, however, Battulga stressed that CMREC “remains no more than a dialogue today” and that Mongolia expects deeper reciprocation of its “robust implementation” of the project. Battulga continues to seek more buy-in from Russian and Chinese partners, and at the Shanghai Cooperation Organization (SCO) summit in June 2018, the three CMREC country leaders arrived at a further consensus on expanding CMREC, but also agreed that Mongolia should engage more with the SCO. Subsequently, Mongolia participated alongside China in the Vostok games, Russia’s largest war games since 1981.

Hedging bets?

Faced with challenging realities of landlockedness, Mongolian officials recognize that rail and road infrastructure remain key to the economy’s sustained growth and development (following a lamentable $5.5 billion IMF bailout package in 2017). As such, Mongolia recognizes that, if implemented well, CMREC could be a game changer and hence is pressing for it with vigour.

At the same time, Mongolia is wary of economic over-reliance on China and the asymmetric implications that may come with CMREC. Already, around 80% of Mongolia’s export volume goes to China (primarily copper, coal and gold). This explains why Mongolia is seeking additional international investment partners and political allies, including agreeing to expand a comprehensive partnership with the US. Additionally, despite Chinese interest, the Mongolian government continues to lease the “backbone” of the Mongolian mining industry, the South Gobi Oyu Tolgoi mine, to Canadian Ivanhoe Mines and multinational Rio Tinto.

Mongolian interests

Nevertheless, the overall trend for Mongolia’s economic engagement with China remains positive. The Mongolian side likewise appears willing and invested in CMREC and stakeholders can safely assume this attitude will persist. For Mongolia, CMREC embodies fervent hopes for sustainable regional collaboration and development.