Blog | Adam Roseman Investments

Chinese Brands and International Consumers

On January 25, 2012, In Adam Roseman, By

According to a newsletter article by ARC China’s Adam Roseman, consumers beyond China are unfamiliar with Chinese brands.

Millward Brown and WPP went over the facts and found that 83% of consumers outside of China have not heard of or don’t remember the name of a single Chinese business.

The newsletter writes, according to Adrian Gonzalez, that “that message is significant, given that China wants badly to create its own global brands… Chinese companies like appliance maker Haier and computer electronic company Lenovo that aspire to be global household names will need to better distinguish themselves to become more recognizable to the world’s consumers.”

Nestle to Buy 60% of Hsu Fu Chi

On January 5, 2012, In Adam Roseman, By

According to a newsletter article by Adam Roseman, Nestle, the Swiss food company, recently announced plans to buy 60% of Hsu Fu Chi in a deal worth 3.5 billion Singapore dollars. The transaction allows Nestle to open new opportunities and styles, as well as cater to local tastes.

“China is now saying that it’s open to multinational companies,” explained Frank Schoneveld of McDermott Will & Emery.

He added that antitrust authorities have said that as foreign companies get closer to acquiring Chinese brands or consumer companies, challenges will heighten.

Marc Waha of Norton Rose added “China’s regulators are now attempting to present a level playing field for foreign and domestic companies.”

Tagged with: Adam Roseman • China Business • Frank Schoneveld • Hsu Fu Chi • Nestle

China’s Investments in Western Infrastructure

On December 20, 2011, In Adam Roseman, By

In a newsletter article, Adam Roseman of ARC China discussed China’s approach to Western infrastructure. He wrote that according to Lou Jiwei, chairman of China Investment Corporation, the organization plans to invest in the run-down infrastructure of developed countries around the world. The fund intends to begin with buildings in the UK.

The Chinese fund “is keen to team up with fund managers or participate through a public-private partnership in the UK infrastructure sector as an equity investor,” Lou wrote in the Financial Times. “We at CIC believe that such an investment, guided by commercial principles, offers the chance of a win-win solution for all.”

Roseman explained in the newsletter: “The British government is looking to UK pension funds and sovereign wealth funds in the Middle East and Asia to help finance upgrades of roads, railways, ports and social housing.

Tagged with: Adam Roseman • ARC China • China Investment Corporation • Lou Jiwei • Western Infrastructure

Rachel Kyte on China’s Carbon Market

On December 8, 2011, In Chinese investments, By

According to Rachel Kyte of the World Market, China’s carbon market has “substantial potential” and will be significant in the global carbon pricing when the national system is initiated.

Australia is also planning to institute a carbon tax, Kyte said, clearing a path for carbon emissions trading and setting an example for other countries currently struggling with environmental policy debates.

“As China embarks on pilots of a carbon market nationwide, if these pilots emerge into a national system by 2015, it has the substantial potential to help set the carbon price globally or at least set a signal of the carbon price as a substantial factor,” Kyte said.

According to an article by Adam Roseman of ARC China, Kyte added that China is currently working to expand its green economy measures, and innovative technologies will undoubtedly originate there.

“For example, China’s ‘green credit’ policy to link environment performances to the availability of credit is highly innovative and important because countries like Thailand, Laos, and Vietnam are trying to replicate this policy,” she said.

Tagged with: Adam Roseman • ARC China • China Economy • Chinese Carbon Market • Global Carbon Pricing • Rachel Kyte • World Market

More Than One HUndred Million 3G Cellphone Users in China

On November 25, 2011, In Adam Roseman, By

China’s 3G cellphone users reached 102 million by the end of September, according to an article by Adam Roseman of ARC China. According to the Ministry of Industry and Information Technology, 43.16 million of the mobile phone users used China’s self-developed TD-SCDMA standard.

Mobile phone users have been on the rise over recent years, resulting in a record-high of 1.24 billion telephone users in China, said Xiao Chunquan of the Bureau of Operation Monitoring and Coordination of MIIT.

According to Xiao, the 3G network covered all cities, counties and several villages in China. During the first three quarters, China’s telecom sector publicized a 10% yearly growth in revenues from its primary business.

Tagged with: 3G China • Adam Roseman • ARC China • China • China Cell Phones • Telecom Industry

China Commits to Currency Reform

On November 17, 2011, In Adam Roseman, ARC China, By

According to an article by Adam Roseman of ARC China, China has reaffirmed its commitment to reform its currency, albeit gradually, as it would be unreasonable to expect China to strengthen the yuan in such a short amount of time.

“We will continue to steadily promote currency reforms, but the process will be gradual. It is unjustifiable to require China to appreciate its currency substantially within a short time,” said Foreign Ministry spokeswoman Jiang Yu.

The comments came following an accusation by the US House of Representatives claiming that China has limited the value of the yuan to benefit its export industry.

Tagged with: Adam Roseman • China Currency • China Economy • Finance • Jiang Yu

China’s Domestic Demand

On November 4, 2011, In Adam Roseman, By

In ARC China’s newsletter, Adam Roseman quoted Peter Lacy, a managing director at Accenture.

In an interview with China Daily, Lacy explained that “China has a robust domestic demand and encouraging growth figures. While the wage arbitrage between China and Western markets is closing up, many multinationals are still keen to be a part of China’s growth story.

“What we see in China is rapid urban development, increasing awareness of corporate social responsibility and energy security- all factors creating a stable investment environment for foreign businesses.”

Tagged with: Accenture • Adam Roseman • ARC China • China Economy • Peter Lacy

China’s Property Prices Give Banks Confidence

On October 5, 2011, In Adam Roseman, By

In a company newsletter, Adam Roseman of ARC Investment Partners discussed property prices in China. China’s banking regulator recently stated that the country’s lenders are capable of handling a 50% fall in property prices. Chairman of the China Banking Regulatory Commission Liu Mingkang said the regulator had performed the stress tests mainly on domestic banks.

“The stress tests do not reflect the CBRC’s view about the property market’s direction, but the results should strengthen the confidence of all banks in implementing the property controls,” Liu said.

In the article, Roseman explained that “Mortgages and credit to property develppers account for about 20% of banks’ loan books in China, so stress tests that are confined to the direct impact of falling house prices have produced only mildly negative results in the past. But the property sector is a pillar of the Chinese economy and the indirect impact of a downturn on other industrial sectors and sentiment more broadly could be severe.”

Tagged with: Adam Roseman • ARC China • China Banking • China Economy • China Property

Jungdong Mall and Other IPO News

On September 14, 2011, In Adam Roseman, ARC China, By

Certainly, companies like ARC China with Founder Adam Roseman always have their eyes set on China and its latest developments. In recent news, Jungdong Mall, which operates one of China’s largest e-commerce sites, may be set for some big advancements. They are looking to raise up to $5 billion next year in New York for what may be the largest internet-related IPO in history.

As the Wall Street Journal reports, this Beijing-based company which operates the e-commerce site 360buy.com is organizing its plan of action at the moment. 360buy.com has investments from Russian’s Digital Key Technologies and other sources, but they face touch competition from other e-commerce giants such as Alibaba Group and Dangdang.

Time will tell how Jingdong Mall will do – and potential investors and those with interests in the Chinese market would do well to keep their eyes set in this area.

Tagged with: 360buy.com • Adam Roseman • ARC China • Jungdong Mall

The Effect of the EU’s Crisis on China

On August 17, 2011, In ARC Investment Partners, By

The European financial crisis has been felt by many other economies across the globe, as one of the largest economies in the world continues to unravel. Adam Roseman of ARC Investment Partners discussed the impact of the crisis on China’s economy.

He wrote: “The EU is China’s largest export market. The current stage of the European crisis will have a significant impact on China’s export trade and there are signs that this is already happening.”

He continues, explaining that “When the financial crisis first struck the US and Europe in 2008, China’s exports to the EU remained unaffected. It was only in 2009 that exports to the EU suffered a large fall. This was followed by a strong recovery in 2010, which brought exports to the EU back up close to their pre-crisis levels. It appeared that the EU and Chinese exports there had returned to normal. This has turned out to be an illusion. The failure of the EU to deal with the problems it faced merely delayed the day of reckoning.”

Tagged with: Adam Roseman • ARC China • China Finance • Chinese Economy • EU Economy • Financial Crisis

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