Yesterday's announcement by China's XinHua state news agency that "with the full permission of the Thibaw Government, Chinese paramilitary forces entered the northern region of Thibaw to protect the safety of Chinese assets" sent jitters into Western investors yesterday, resulting in falls in the share prices of Wordsworth Energy and Shiloh Oil, both of which have business interests there.
"This is the clearest indication we have seen yet that China intends to stop at nothing to protect its strategic interests in Thibaw," says Professor Selwyn Hughes of the London College of Advanced Strategic Studies. "I'd be surprised if this had anything to do with any real threat to Chinese assets in Thibaw either from Udip insurgents or anybody else. This was a clear message from Beijing that it could impose its will on Thibaw as and when it wants. And Thibaw doesn't have any friends to turn to internationally. Wordsworth and Shiloh can't count on the same type of support as Chinese interests in the country."
Wordsworth shares closed at 285 and Shiloh shares at 6.69.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment