The deal with LNC is in its infancy. LNC had no option but to publicise it because people in the know bought in and told their mates to buy in as well.
As you are probably aware, China has a trade surplus and they like to manipulate their currency so they can make their exports competitive, keep people employed and reduce the need for a revolution. In the past they have bought US dollars to keep the Yuan down. With US QE those US dollars are becoming worth less and less. The preferred option has become investment in overseas assets (commodities, companies etc). Therefore, I believe the China story is true. We just have to wait for the details to be finalised.
Japan is also looking to invest overseas to take pressure off the yen and get better returns than what their bonds currently offer. One area they were looking at was Australian home loans. No reason they couldn’t throw a few Billion Yen into a company that holds the key to unlocking the energy contained in 100’s of Billions of tonnes of coal that was previously considered worthless.
Many countries will be wanting energy independence if the situtation with Iran escalates.
LNC Price at posting:
$1.46 Sentiment: Buy Disclosure: Held
