2016 CHINESE NEW YEAR
THE YEAR OF MONKEY
The ChinaInvestors Team
The world's largest funding and investments network
for Chinese Investors and Global Investees.
Chinese real estate investors have set their sights on Dubai as a destination for investment and opportunities in China will lose its luster after the recent turbulence in the stock markets.
In Dubai, rental yields of residential properties are 8 percent on average annually, driven by demand from expatriates strong, stable, according to the agent Lisa Luo property, which has been based in the city in the UAE States for eight years.
This compares with yields of only 2-3 percent in China, Luo, property consultant Knight Corte Real Estate said.
"Expatriates account for about 80 percent of the population of Dubai," he said. "There are also a growing number of Chinese companies setting up offices in Dubai, which is driving the demand for rental."
Luo said that an investor could buy a one bedroom apartment in Dubai for 1.5 billion yuan (HK $ 1.82 million) and receiving up to 150,000 yuan rental income a year, for example. Seeing an opportunity, he said, Chinese investors are increasingly willing to enter the real estate market of Dubai.
China's property market, by contrast, had lost its appeal due to their low rental yields, Luo said. It was also difficult to find investments with good returns amid turmoil in the stock markets of the country and under its environment of low interest rates, he added.
Luo said the tourism business in Dubai and next World Expo 2020 will further buoy the property prices in the city.
The Chinese buy real estate abroad, revealed that the number of Chinese citizens interested in purchasing property in Dubai has increased 1,200 percent last month in the same period last year.
Dubai Properties real estate developer Damac - showing a luxury project with villas and golf courses in an exhibition Guangzhou property - said investing in this project could provide an annual return of 8 percent in the first three years.
The return rate was achievable as leasing market of Dubai was stable and driven by demand from expatriates working in the business center of the Middle East, said sales manager Wang Huimin Damac.
"Chinese investors are trying to diversify their portfolios abroad ... Dubai, where the housing market is well regulated, has been a top pick for those looking to invest in the Middle East," he said.
Wang said that property prices in Dubai had seen little change since June last year due to an increased supply of new homes and a drop in oil prices, but the emerging market had good potential for appreciation over the long term.
Farid Jamal, sales and leasing of houses Cayan senior manager, said the lifestyle of the city and the safety and perpetuity of the property has also contributed to the rising interest of Chinese investors. Cayan arm Casas realtor developer Cayan Arabia Group, which developed the iconic twisted Cayan Tower in Dubai Marina del.
"The Chinese investors are interested in Dubai property. We received good questions to our [luxury residential] project," Jamal, who presented the project in Guangzhou show property last week he said.
Annual rental yields in Dubai could reach 8-9 percent in terms of projects and areas, Jamal, adding that properties priced between US $ 200,000 and US $ 400,000 would be more affordable for Chinese investors and said also it offers good performance.
"Dubai provides a better return on property investments that other countries do," he said.
An Increasing number of investors lower down the ladder wealth overseas are buying private islands in pursuit of a holiday retreat and a reliable investment.
"I see good potential for islands [as an investment] as prices Have yet to see a sharp rise," Said Zou Gang, the head of an immigration consulting company in Shenzhen.
"It's quite a bargain as you can spend just a few million yuan to buy an island, while an apartment in Shenzhen whos costs the same."
Zou was Among the visitors at the Luxury Properties Showcase in Guangzhou last week, Where I was on the lookout for islands in the South Pacific and his friends Where I Could holiday.
Haiyang Wang, general manager at Vladi Private Islands, an international broker an island Said Increasing number of Chinese entrepreneurs HAD Expressed an interest in investing in islands in recent years.
"They have noticed That this type of land resource is rare, and every island is unique With its own ecosystem and environment," Wang Said.
"Wealthy Chinese hope to own a piece of private territory in the world and They can even name Their own island - They can not do something on the mainland."
The pristine environment and fresh air Were Also attracting buyers, WHO Were seeking an escape from the near-permanent smog blankets That MOST mainland cities, Wang Said.
Investors preferred islands That Were not too remote and priced from tens of millions of yuan to 100 million yuan (HK $ 121.6 million), Said Wang, but added selection was limited.
As the supply is rare, the investment offers good appreciation valueWANG HAIYANG, VLADI PRIVATE ISLANDS
"There are just a few dozen of Those available on the market. As the supply is rare, the investment offers good value appreciation."
Fiji in the South Pacific and Canada Were Among popular choices, Wang Said.
Grammy Leung, an information technology expert in Guangzhou bought a small island in Canada last year for not more than one million yuan. I Said The outlay was manageable for him.
"I think it's a good place for my family to spend holidays. My two children can enjoy the seaside environment and culture on the island," He Said. Finding a flat at that price in mainland China would be difficult.
The island was small and I would need to build a house and basic facilities: such as a power generator, but I was optimistic Leung Said About ITS future worth.
Another investor attending the expo was Mike Garnham, a businessman from New Zealand Whose company owns one-third of Nananu-i-Ra, an island in Fiji. I was seeking to sell land parcels to Chinese investors.
"There are a lot more wealthy Chinese traveling to see what else the world has Offered," Garnham Said, adding some Were in the market for beachfront properties as a second home.
Chinese President Xi Jinping addresses a gathering of some of the biggest names in Chinese and US businesses Wednesday, they may be more interested what it says on progress towards a treaty among nations to provide a framework for the broader investment in the economy of each.
Apple CEO Tim Cook, Satya Nadella of Microsoft, Amazon, Jeff Bezos, the investor Warren Buffett and Jack Ma of Chinese e-commerce giant Alibaba are among the top 30 executives attending a closed-door discussion remain moderate by former US Treasury Secretary, Henry Paulson, who has called for a treaty of this kind. American CEOs all participants signed a letter to Xi and US President Barack Obama, urging them to support an agreement.
Bilateral Investment Treaties provide the rules of the road for companies doing business in other countries, and can help ensure that the rights of foreign investors are protected and that foreign companies operate on an equal footing with nationals. An agreement with China would open the huge US market to American companies, establish clearer rules for Chinese investment in the US, and create jobs on both sides, supporters say.
Such treaties "can be a powerful catalyst for further economic growth," Evan Feigenbaum, vice president of the Institute of Paulson, which is co-hosting the meeting on Wednesday, said on Tuesday.
Xi arrived in Seattle on Tuesday for a three-day visit before he travels to the White House later this week. He expected to make brief remarks to attendees before the session is closed to the press.
Notable absentees in business discussion Wednesday were representatives of Twitter, Facebook and Google. These websites are blocked in China companies.
In a speech Tuesday night Xi spoke on a variety of topics, including the need for a bilateral investment agreement.
Earlier this summer, US Treasury Jacob Lew said the two sides had a long way to go in negotiating a bilateral investment treaty, but had agreed to reduce their respective lists of industries that would be exempt from foreign investment this month.
In his policy speech Tuesday night - attended by dignitaries including former US Secretary of State Henry Kissinger, former US Treasury Secretary Hank Paulson and Penny Pritzker, Commerce Secretary Obama - Xi said China and the United States could work together to tackle cyber crime, a problem that has caused tension with each other.
Xi also said China will continue its policy of aggressive development to help more Chinese people "live a better life."
Reaching agreements to ensure continued robust international trade was a priority, he said. "China will never close its door open to the outside world," Xi said, according to a translation of his words.
He said China was a strong supporter of cybersecurity, but was also a victim of piracy.
Recognizing that China and the United States do not always see eye to eye, Xi said China is willing to establish a joint effort with the United States to fight against cybercrime.
The issue is sensitive cyber attacks between the two nations. US officials say hacking attacks from China are approaching epidemic levels.
As Xi spoke Tuesday night, protesters gathered near the downtown hotel he was staying in opposing things like the country's policies in Tibet.
Earlier, the meetings with the governors of the five states of the US and Chinese local officials produced the agreement to work on clean energy.
"We can be the core of our national leaders to learn from," Michigan Gov. Rick Snyder, who has made five trips to China in five years, told his counterparts.
With an estimated 170 million people growing at over two percent annually, Nigeria is the seventh largest country in the world. According to the United Nations (UN) statistics, Nigeria's population will reach 230 million in the next 20 years. Representing more than 65 percent effective market West Africa, the country remains the most competitive for the establishment of medium and large manufacturing destination.
As the morning up early, China has already positioned to take advantage of this growing market by unleashing your horde of investors and businessmen in the manufacturing sector. Textile for clothing; appliances, automobiles; consumables and iron and steel, as well as ICT products, China has taken over, producing tons of products for different market segments.
More Chinese companies are expanding their investments in the manufacturing sector ostensibly hoping to technology transfer and staff training to increase local employment opportunities. For example, metal products proprietary Chinese Western Company Limited (WEMPCO) a multi-million naira integrated steel factory, located in Magboro in Lagos-Ibadan Expressway, Ogun State, is the first of its kind in Africa . The steel plant manufacturing expansion boasts a production capacity of 700,000 metric tons and production machinery five support Tandem Mill.
The factory, according to the Group Managing Director, Mr. Lewis Tung, plate produce cold rolled steel up to 0.15 mm thick coils of the same size and above. Other facilities at the plant are: 52 MW generator for food; water treatment and recycling plant; acid a generating plant; an air purifier and annealing line.
The economic benefits of investment are enormous. In addition to boosting the economic activities of the communities immediate, local, state and federal government acceptance, increased post stimulate economic activities and create jobs for artisans, such as technicians, drivers, technicians and automobile manufacturers. Mr Tung added that also improve training and technology transfer. More importantly, the investment will fill the void left by the dying Ajaokuta Steel Company in Kogi State.
Another area witnessed massive investment in China's agriculture. A Chinese leader, New Hope Liuhe Company Ltd., said the investment interest in agribusiness. In a meeting with the Executive Secretary of the Commission of Nigeria Investment Promotion (NIPC), Mrs. Uju Hassan-Baba, at the headquarters of the committee in Abuja, he said it plans to invest in other sectors such as manufacturing, processing and feed sale of raw materials additives, dairy and agricultural bye products, among others.
Chinese companies are also investing in seed cultivation and have become suppliers of seeds of the Federal Government, a development that has high local grain production.
The Chinese have been visible in the transport sector, especially in rail transport. The contract trains Lagos-Ibadan $ 1,490,000,000 has been awarded to China Civil Engineering Construction Corporation (CCECC) and the Olokola Deep Water Port project awarded to the China Ocean Shipping Group. The CCECC is also managing the project 27.5 kilometers Marina-Ido-Okokomaiko Lagos Light Rail. The governor of Lagos State has said that Akinwunmi Ambode naira billion project will be completed in 12 months.
According to a report by Ernst & Young on Nigeria issued for the World Economic Forum on Africa 2014, CCECC is the prime contractor for engineering, procurement and construction for the mass transit rail project Lagos. The first phase of the project -'Blue Line '- is scheduled for completion later this year.
The state-owned Export-Import Bank of China (EXIM Bank) is also providing a fully developed $ 500 million concessional loan for the modernization of 186 kilometers of railway line Abuja-Kaduna, which includes the construction of 36 bridges and nine stations . The Federal Government source the balance of $ 374 million. Continue along that line single standard width was formally launched in July 2013.
Before his inauguration on May 29, Buhari received a delegation of the CCECC, who paid a visit to present a prototype of its proposed high-speed train. Observers described the visit as an indication that the Buhari administration may be seeking to develop a high-speed rail network across Nigeria.
Before his departure from office, former President Goodluck Jonathan raised the rail network in a coma with N24 billion ($ 151.7 million) lifeline involving upgrading of tracks and signaling equipment. With the purchase of 25 GE locomotives, 500 wagons and renovation of passenger cars, services have resumed at 1126 kilometers from Lagos-Kano train route. The route had been closed for a decade.
The rebirth occurred immediately after the inauguration of some, automotive diesel air conditioning coaches 68 seats six long distance air conditioning in June last year. The new rolling stock was acquired by the Nigerian Railway Corporation (NRC).
It was part of the Federal Government Strategic Plan '25 -year train ', designed to encourage private investment in the renewal of existing lines narrow gauge railroad in the country and the construction of new standard gauge lines.
This was supplemented by China in 2012 with the formal opening of a training center for CCECC Railway Technology in Abuja to help in the development of Nigerians needed to support plans for rail and mass transit systems skills. The China Railway Construction Corporation Limited described its $ 8.3 billion project to modernize the rail network in the country as its "largest overseas project."
In addition to plants and power train, the Asian nation is also essential to support Nigeria with financial arrangements and investments in strategic infrastructure projects, including roads, airport terminals and free trade zones, among others. For example, China and Chinese companies are primarily interested in the Lekki Free Trade (LFTZ), Lagos. Upon completion, the project will attract international investors in manufacturing, trade and tourism, among other sectors.
It is expected that the project to provide 300, 000 direct and 600 000 indirect jobs in the coming years. Informed that the description of the LFTZ as one of the biggest Chinese projects in the country by former Industry, Trade and Investment Minister Olusegun Aganga.
Chinese companies have reaped a substantial part of the burgeoning telecommunications / ICT market in Nigeria. Chinese companies, in collaboration with telecom operators, are essential to the unprecedented growth of the telecommunications industry in Nigeria. Through the active participation of Chinese companies and investors, mobile phone subscription in Nigeria has increased from below 400, 000 in 2001 to over 140 million. Teledensity has also grown more than 100 percent.
The popular Global System for Mobile Telecommunications (GSM) villages in Lagos and Abuja, and various other commercial cities across the country bear tracks dominance of China sector. Most mobile phone shops in the two city centers are full of Chinese products, ranging from mobile phones to laptops, Bluetooth headsets and devices for hands-free devices, among others.
To Seye Olatunji, a GSM operator in GSM / Computer Village, Ikeja, the business of selling products in China it has been exciting and rewarding.
His words: ". Usually, it is more expensive to buy products from other Western countries, but that is not the same for China Most of us here can now go to China ourselves and buy products at very flexible terms and conditions" .
Even buyers share the same sentiment. "If China's smartphones are compared with those of other countries, there is little or no difference at all. And the Chinese are even cheaper. So, why should I spend more money on something equivalent to it?" Hassan Audu , a client computer in the Village he asked.
Dozens of Chinese companies dominate the retail market segment in various parts of the country. Viju milk brands such as Huawei, ZTE, Alcatel and others are household names Chinese restaurants, such as the Golden Gate, Lagos; Oasis Bakery everything in Lagos and several other business outlets dotting the landscape and are enjoying huge sponsorship.
Since 2005, when it was established, China Town in Lagos, has been serving as a one-stop shop for goods and services, ranging from textiles, shoes, jewelry, electronics, kitchenware and other items. Visit the city of China, with its competitive prices and accessibility has become a necessity for most buyers of Nigeria.
Nigeria has become the beautiful bride for Chinese investors is an open secret. Abundant but largely untapped natural resources; large domestic market of more than 170 million; a growing middle class with purchasing power and an increasingly stable political, among others, have become irresistible to China and Asian investors.
Vast energy reserves of Nigeria, especially in oil and gas, may be all that is needed to feed the growing industry of China. Most populous and biggest economy in Africa with the size of GDP of about $ 500 billion is also the largest market for industrial products of China in Africa. Nigeria imports from China alone account for over one third of its total trade with West Africa.
The volume of imports is expected to increase in coming years as Nigeria favors various agencies and international ratings analysts to overtake South Africa in 2025 if the current growth rate of GDP is maintained. Nigeria relatively stable democracy also is believed to be one of the main factors for investors around the world especially in China see the country as an investment destination.
In addition, ease of start-ups in Nigeria has improved through ongoing reforms in the area of trade and investment. The returns on investment in Nigeria are relatively high, especially considering the exchange rate of the dollar to naira with major Western currencies and the Chinese yuan.
The pattern and dynamics of the Nigerian economy may have also opened the gate for Chinese enterprises to invest heavily. For example, experts say Nigeria's transition from a manufacturing and producing agricultural nation to an economy dependent on imports may have expanded the retail sector, which now accepts virtually anything from anywhere in the world. This is the leeway through which investors and Chinese products have taken root in Nigeria. The emergence of a vibrant retail sector in Nigeria is also said that as a result of various porous borders of the nation.
Akabogu As noted, Nigeria has benefited over Nigeria. According to him, the trade balance between both countries has tripled since the return of democracy in 1999.
"It has been a mutually beneficial business relationship. China takes oil from Nigeria as the barter trade for construction activities, the Chinese government subsidizes. What Nigerian exports to China are oil and some agric products," he said . Akabogu added that Nigeria has been sending engineers to substitute Chinese engineering system at a subsidized rate.
But as rewarding as the relationship may be to Nigeria, there is concern about alleged unfair practices by Chinese companies, anti-union practices and the perceived dominance of the market for fake and shoddy products from China. The idea is that the West may be delayed in the Nigerian market because of the quality of their products compared to the cheapest and lowest standard Chinese products. This is true especially in Nigeria, where consumers cheaper products more sponsor while remaining indifferent about the quality.
But as regards the Director General of Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) Sir Emeka Okereke, China is not to blame for the prevalence of substandard products in the market. He blamed the situation of weak institutions in Nigeria. "It is because of our inherent weak institutions that are unable to check the influx of substandard products," he told La Nacion, asking, "Where is our customs?"
She said Customs and other regulatory agency must wake up to its responsibilities. "Our borders and ports should it be effectively monitored especially given that we are an economy dependent on imports," he said.
Akabogu agrees with him. He said that blaming China for standard and fake products in Nigeria amounts to throwing punches in the wrong direction.
His words: "It (inferior products) is a default by the regulatory bodies is why we have been Canvassing strengthening institutions rather than individuals.".
The lawyer said there was the need to revitalize the institutions such as the Police, the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and other Related Offences Commission (ICPC) and the Code of Conduct Bureau (CCB), among others. "It comes down to the question of leadership, it is a lack of credibility, a problem of powers by the institutions of Nigeria", he insisted.
He also said that every capitalist is in business to make profits and China is no exception. According to him, it is left for the host country to put in place measures to check possible excesses of foreign countries and companies operating in their territory. Also, quoting the Halliburton scandal, which involved a US company, he said sharp business practices are not limited to China alone.
According to The Street, Chinese investors are seeking refuge in the United States real estate especially insurance companies that stand to premiums up to $ 3.32 trillion in 2020. Apparently, these companies are they looking for solid returns after China's stock markets suffered a recent setback and its currency being hit. In August, China devalued its own money to try to soften the blow of falling 8 percent on the Shanghai Stock Exchange.
Wealthy Chinese with various entities of money from his country are the target of stable and reliable investments especially in commercial and residential income generating projects compared to luxury properties that are considered for personal use. This is according to Edward Mermelstein who is a veteran of 20 years of age, consulting for clients in the real estate business. This game plan is similar to the game "Monopoly", where players pay to acquire money-making real estate such as hotels and houses. "There is an argument that is a flight to safety," said Mermelstein. "This is largely a flight to safety," he said.
This movement is consistent with the pouring investment in Europe and the USA by Chinese investors with a significant purchase in the last couple of years it is becoming a beacon of hope for many of them - the acquisition of the Waldorf Astoria in New York by an insurance company Anbang of $ 1.95 billion.
Meanwhile, in The Guardian, President Barack Obama is reportedly not staying at the Waldorf Astoria the UN General Assembly in October. The White House, however, refused to confirm if the reason for skipping the traditional hotel of many presidents of the United States is the fear of espionage by Chinese-owned hotel now.
The real estate market in the United States is at the center of a new brewing crisis, but unlike his usual playing bully in the world economy, this time is seen as a source of hope for Chinese investors looking for a stable place to dump your wealth.
The Government has approved the offer Chinese firm Shanghai Maling Aquarius' to buy a 50 percent Dunedin cooperative Silver Fern Farms.
"Potentially very good," said Prime Minister John Key.
"It's a very significant injection of capital, this is a company that has long had a large amount of debt and has been under pressure."
The Chinese company, partly owned by Bright Foods, submitted a bid on Tuesday to inject $ 261 million into capital than half of the largest exporter of meat in the country.
The total deal will be worth approximately $ 331 million.
Mr. Key says it's a vote of confidence in the industry in New Zealand Silver Fern Farms and give an opportunity to improve their access to the huge Chinese market.
It was announced as a game changer Silver Fern Farms by President Rob Hewett with the board unanimously recommend shareholders take the deal.
"I do not think there is any doubt of our strategy is the right strategy," he said.
"We will be released and the capital they are providing to be able to do that."
As part of the agreement, the Chinese firm Silver Fern Farms help eliminate all your debt while providing more investments to strengthen its balance sheet.
"At year end we will have no debt, no money in the bank," he said.
"It will turbocharge our China strategy, no doubt about that.
"We've had comments made about us in the market, this should shut them up."
As a sweetener, a special dividend of 30 cents per share be paid to shareholders.
The company also outlined plans to return half of its annual net profit to shareholders through dividends and bonuses.
Shanghai Maling Aquarius manufactures and sells canned foods, bottled water, flavor, frozen food, and other related to more than 800 supermarkets across China products.
Chinese companies are increasingly looking at opportunities in Malaysia, with mergers and acquisitions (M & A) by Chinese private investors to become the main drivers of outward direct investment in China, said HSBC Bank Malaysia Bhd.
Mergers and acquisitions have become the fastest way for Chinese companies to tap foreign markets and move further up the value chain, the bank said.
Depreciation of foreign currencies against the yuan, he said, provided a favorable environment for M & A activities in China.
He added that the increase in disposable income among the 1.4 billion Chinese consumers was also fueling interest in acquisitions in the leisure and consumer goods sectors.
"This has been reflected in the Chinese investment in Malaysia. So far this year, mergers and acquisitions of Chinese in Malaysia have been the most active in history, both in terms of volume and number of large deals.
"Real estate, consumer products and retail were the most active sectors," he said in a statement Thursday.
In the first seven months of this year, the total value of Chinese M & A in Malaysia stood at US $ 830mil (RM3.35bil), nearly four times the figure for all of 2014.
The deals include the purchase signal Southern Crest Development Sdn Bhd, Greenland Holding Group at US $ 658mil (RM2.66bil), the purchase of Pearl Longcheer Holdings Sdn Bhd Discovery Development in US $ 89mil (RM359.7mil) and Parkson Retail purchase YeeHaw Best Practices Group Sdn Bhd on dining and lodging industry.
The bank said several factors were driving the growth of China's outbound direct investment (ODI).
"First, in our opinion, ODI China to keep growing by 20% a year, with China overtaking the US as the world's largest outbound direct investor in the coming years.
"This year, the pace of investment will accelerate, driven by large infrastructure investments in Asia and Europe are expected in the 'One Belt, One Way" initiative, "he said.
He added that Chinese companies were turning to agriculture, manufacturing technologies high-end consumer goods, real estate, services and brands.
Another important trend is that private investors are becoming the main driving force of the ODI.
"The privately owned companies are investing in more industrial sectors such as value-added agro-technology, high quality manufacturing and real estate in most countries and regions.
"They are looking for the intellectual property and brands to deploy in the Chinese market," he said.
Increased Chinese ODI is driven by a strong central government stimulus to national to invest abroad in a bid to boost their international competitiveness companies.
ODI from China grew by 19% year on average between 2009 and 2014.
In comparison, foreign direct investment (FDI) in China grew on average by 5% in annual terms during the same period.
Last year, China's ODI reached US $ 116bil (RM469bil), almost the same as the total foreign direct investment of US $ 120bil (RM485bil).
"As Chinese companies accelerate the pace of overseas expansion, the number of renminbi (yuan) denominated in deals is likely to increase.
"Overall, the overseas investment of Chinese enterprises is supported by the central government and is helping to encourage the participation of China in the world economy.
"This is a new era of global cooperation, and history is a clear win-win," he said.
Individual and corporate investors in China have been buying properties in major cities in Europe, especially in London for a number of years. Following the recent turmoil in the stock market of China, many European markets are welcoming a further influx of Chinese investors.
Prolifically Chinese investors already invest in real estate assets in Europe and worldwide, and recent years have seen China's activity in foreign investment markets are increasing rapidly. In 2009, the total value of property abroad owned by Chinese investors - both private and corporate - stood at $ 600 million according to the best estimates of Knight Frank. Last year, this figure had risen to about US $ 15 billion.
London is a particularly popular market among foreign investors, including Chinese buyers of properties. According to Savills, 70% of real estate in London, which was sold in 2014 went to a foreign buyer, and these transactions were for a total of £ 14.6 billion. Chinese investors make up a significant portion of this, second only to the US in total investments, especially at the high end of the market. Chinese investors put a total of £ 2.2 billion in property in London last year, and accounted for 11% of all transactions worth more than a million pounds. As recently as 2012, the latter figure was only 4%.
Chinese investors are taking an interest in all property types, including commercial, residential and mixed developments, as well as the location assets such as hotels and student accommodation. China's interest in all sectors a trend continues to rise, even without the prospect of an increase in investment driven by internal problems of the stock market of China. A series of recent high-profile and high value deals have been announced. Chinese state-owned developer Greenland Group Holding is investing £ 1.2 billion over two residential development projects in London and, last summer, China Construction Bank paid £ 110 million to acquire property in the heart of the city. While London is a particularly well favored market, the Chinese investment boom is far from being a UK-only phenomenon. Real estate agencies in countries such as Spain and Germany have also reported that investment by individuals and Chinese companies is increasing.
Leaving aside the strong investment growth is now expected, increasing Chinese investment in foreign ownership has been reduced to a series of factors (and it is these same factors are expected to maintain the upward trend beyond any short-term increase coming from recent market activity. China's property market itself is slow moving, leading many investors to seek more easily in property abroad than at home. The economic crisis also played a paper. When he arrived, Chinese investors moved to diversify their portfolios in terms of currency exposure, and this remains one of the main attractions of investing in the UK and Europe. Others have been taken to invest in foreign properties not only as an investment but as a future way to move abroad themselves, driven by health care and air pollution problems in the home.
Two Chinese investors go head to head in a battle to buy Dublin-based aircraft leasing group Avolon in a deal that could be valued at $ 2.5 billion. Bohai Leasing, a unit of aviation and shipping Chinese company HNA, has offered to buy Avolon of $ 31 per share, two weeks after reaching an agreement to take a 20 percent to $ 26.
The offer, announced by Avolon traded on NYSE on Friday, it came after an unsolicited takeover approach $ 30 per share. This is understood to AVIC Capital, a subsidiary of Aviation Industry Corp of China. AVIC made a tentative move to buy Avolon a year ago.
Avolon floated on the Nasdaq last December at $ 20 Avolon said Friday that its board "has not accepted or rejected, whether the offer and continues to carefully evaluate these offers with its financial and legal advisors". It said it had authorized its financial advisers, led by JPMorgan, to continue talks with the two bidders.
Avolon shares rose 15.5 percent to $ 28.73 at the close of trading in New York on Friday. The company did not identify the second suitor and refused to comment beyond a statement it issued.
An agreement on the price of the offer, either represent a good return for investors Avolon. Its main shareholders are private equity groups Cinven, CVC and Oak Hill, who collectively own more than half of its assets. Founder and CEO Dómhnall Slattery holds a 1.36 percent.
Mr. Slattery is a former GPA executive who became head of the finance business aviation RBS after the sale of that business to another bank in the UK. Established Avolon in 2010, one of the fastest growing companies leasing aircraft in the world and part of a group of similar companies based in Dublin led by alumni of GPA, which pioneered the industry in the 1980s of It based at Shannon Airport in the west of Ireland. Avolon has 153 aircraft leased to 56 airlines around the world from its base in Dublin, and has another 107 on order. In a note to clients, Andrew Light, an analyst at Citi, said an acquisition of Avolon to $ 31 per share could re-rate the sector. Avolon said it would assess a price-earnings ratio of 14.2 times estimated 2015 earnings before taxes, compared with an average for the sector of 8.8 times.
Increased state investment fund China bought 10 shopping centers in France and Belgium by around € 1.3 billion ($ 1,440,000,000), one of its biggest acquisitions in Europe. China Investment Corp., together with affiliates AEW Europe, bought the shopping center portfolio of CBRE Global Investors, according to company statements.
Chinese investors have been collecting international property in an attempt to diversify their holdings. In Europe, they bought $ 4,700,000,000 of property in the last 12 months, including this latest agreement CIC, according to Real Capital Analytics.
The level of investment is on par with the previous 12 months. But as Chinese investors become more familiar with the European market, considering increasingly active beyond the cornerstone cities like London and Paris.
The main Asian investors "are looking for a wider range of investments," said Sophie van Oosterom, chief investment officer at CBRE Global Investors, which manages over $ 87 billion of real estate assets. CIC latest agreement includes two prominent malls near Antwerp, Belgium. The other eight shopping centers were in France, including La Vache Noire in Paris.
Chinese conglomerate Fosun Group earlier this month promoted expansion plans in European ownership, forming a joint venture with Resolution Property Investment Management UK LLP. It Fosun based in Shanghai in April bought an office building in Milan for $ 372 million, according to Real Capital.
Chinese investors bought 50 billion rubles ($ 875 million) and 60 billion rubles worth of Russian national treasury bonds this year, Russian Finance Minister Anton Siluanov said Thursday.
Moscow has increasingly sought east for investors, even for internal debt, after the West imposed economic sanctions against Russia last year for his role in the crisis Ukraine.
"I think after purchasing volume and realize that this is a good investment, cost-effective, reliable, our Chinese partners the volume of investments in the Russian economy will grow," Siluanov said in an interview with television Russia-24 on the sidelines of the BRICS summit in the Russian city of Ufa.
President Vladimir Putin, whose country needs investment to exit a recession driven by sanctions and falling oil prices, has been changing its economic and political approach towards Asian markets and to China in particular.
Putin called for closer bilateral ties during talks Wednesday in Ufa with the president of China, Xi Jinping. The leaders of India, Brazil and South Africa are also attending the summit of BRICS.
The Russian Finance Ministry plans to borrow around 800 billion rubles in the domestic market in 2015. Bond purchases by China suggests high-performance Russian assets remain attractive to certain foreign investors, despite the sanctions and volatility in the Russian ruble, which are denominated called OFZ bonds.
A detailed analysis of the Australia-China free trade agreement proposed believes that Chinese investors benefit more than the Australians.
It carried out by the Network of Fair Trade and Investment Australia and limited to capital investment and facilitation agreement on investment, is that while companies with Chinese participation can bring Chinese citizens to work in Australia there is no provision equivalent for Australian companies to bring Australians.
Australian companies are limited to the importation of specifically senior managers and skilled workers.
China's willingness applies to companies with at least projecting 50 percent of Chinese capital or when no single company is 50 percent of capital, a project in which a Chinese company has a "substantial interest". A substantial interest is defined as occurring when a single foreign person owns 15 percent of a project or several foreign and associated persons own 40 percent.
The project must be related to infrastructure development in food and agribusiness, resources and energy, transport, telecommunications, energy supply and generation, the environment and tourism.
The minimum wage to be paid to imported Chinese workers will be negotiated between the project company and the immigration department rather than the minimum of Australia.
Whereas Australia is subject to a general provision preventing discrimination against Chinese investment, China does not have this general provision and is only required not to discriminate against investments in the transport, tourism, hospital, nursing care, education and financial services.
The terms of investor-State disputes in the agreement are less open than the provisions of other agreements such as the free trade agreement between Australia and Korea, not being subject to the requirement that hearings disputes and associated documents will be public. They are unfinished, the subject of a review within three years.
"The unbalanced access to markets and lack of complete negotiations seem as if the Australian government was desperate to seal the deal at any price, and that China has succeeded in defending many of his limitations," said coordinator Network, Patricia Ranald.
A spokesman for the Trade and Investment Minister Andrew Robb said the settlement procedure including investor-state disputes in the agreement was not new. Australia and Chinese investors were already subject to that procedure under existing investment treaty.
Chinese investors are in talks to demolish Chamber of Commerce of the House and rebuild the landmark site Edgbaston another potential coup ownership superpower Far East.
No name developers, backed by investment funds in China, are in detailed negotiations with the business organization of the city on the future of the house chamber 50.
If it is agreed, the preferred option is the demolition of the office building, which was designed by renowned architect John Madin city and was completed in 1960.
Camera outgoing CEO Jerry Blackett said the decision on the future of the project was likely within six months. The project has been under discussion for several months to help take down a pension deficit of £ 3,000,000 to £ 4,000,000, but Mr. Blackett said that talks were now in "more sustained.
"We are still willing to redevelop the site and are in discussions with a potential developer and some Far Eastern investors - it is Chinese money.
"The discussions we're having right now are the most sustained since the start of the recession. We would have to decamp at the point where the operation is performed.
"It's a matter of if we return, and we are minded to stay. We do not believe that a location in the city center is quite right for us.
"We can sit out, we are not a distressed seller, have very low costs being here, we're not in a rush to sell."
The plans come amid a growing wave of Chinese investment capital in Birmingham.
Tower Pier Broad Street became the first building in the city to be bought by investors from the Far East in November 2013.
Since then, there have been a series of deals with Chinese investors in development 130 Colmore Row, soon to be a restaurant Nosh and Quaff, and Franklin House, a former Cadbury factory will be converted into apartments.
The Post has reported in recent weeks how Chinese billionaires are interested in financing major regeneration schemes as Curzon Street and Icknield Port Loop.
Mr. Blackett said the Chamber of Commerce of the House, which was valued at £ 2.93 million on a turn-key basis March 2012, was the most valuable camera 'assets. "
"It's probably demolish and start a new stage. We have seen the cost of reforms, but there is more value in the demolition of renewal."
The camera has seen its workforce more than half since 2007, largely due to the loss of Business Link, which has substantially affected their sources of income of about 36 million pounds to the current figure of 6.5 million pounds.
Its workforce of around 70, compared to 200 before, now considered too small for the size of the Chamber of Commerce of the House.
If the project goes ahead of China, the camera will effectively resurrect an 11-year-old scheme dating from March 2004.
The plans were revealed to demolish the building and build a new headquarters for £ 90 million. But the scheme to provide three new main buildings at the corner of Harborne Road and Highfield Road, is inactive after the recession hit.
The camera, which has been in talks with the landlord Calthorpe Estates on the future of construction, already has a license of demolition and reconstruction scheme.
If Chamber of Commerce of the House was demolished, it would become the latest in a growing list of buildings to be razed Madin in Birmingham.
Most famously, the demolition has begun in the Central Library Chamberlain Square and is expected to be completed by the end of this year.
Madin other buildings have been demolished include the former home of the Birmingham Post & Mail, Pebble Mill Studios in Edgbaston and the building of the AEU in Holloway Circus, replaced by the Radisson Blu hotel.
Meanwhile, 103 Colmore Row, known as NatWest Tower, also expected for 2016 is gone and replaced with a new brand, office tower of 26 floors.
Chinese investors have become the second largest foreign players in French vineyards after Britain, according to a study recently published by Vinea Transaction, a French agency network transactions wine.
Twenty percent of the vineyards in the hands of foreign investors in France belong to Chinese investors, with 22% owned by British investors, according to the study, noting that foreign investors have totally 12,000 hectares, only 1.98% of 600,000 acres of French vineyards covered by the study.
The study was carried out with care over the vineyards of major labels, excluding Champagne and Cognac.
While UK investors widely cover six of the seven regions of vine investigated by the study, Chinese investors are almost entirely concentrated in the Bordeaux region.
According Vinea Transaction, 47% of the 193 areas of Bordeaux held by foreigners are held by Chinese investors, as areas of prestige as Bellefont-Belcier, Laulan Ducos, Chenu-Lafitte or were bought by them.
In addition, 90% of foreign investments are concentrated in the Bordeaux and Mediterranean areas, said Vinea Transaction.
China and the United States exchanged initial demands of an investment treaty as soon as Monday, sources said, but US investors are already worried that an emerging China raft of regulations could jeopardize the future of the talks.
In the exchange of lawsuits, two largest economies in the world outline industry sectors that each party considers to be closed to investors of the other party. Such "negative lists" the scope of the Treaty are defined and late months now.
China has more restrictions on foreign investment in the United States, and US investors hope that a treaty that will give them greater access to tightly controlled many industries in China, in financial services to healthcare.
But three sources familiar with the negotiations of the treaty say Beijing US negotiators hope to reach a broad "negative list", noting that it has carried out in recent months the new rules that could further restrict foreign access to sensitive sectors.
"After 35 years of reform and opening up in China, there are enough data points out there to suggest that we are now seeing a shift," said a source.
Ministry of Commerce in Beijing could not be reached for comment, but has said that foreign investors enjoy ample opportunity in China. Beijing has also complained of restrictions on Chinese investment in infrastructure and technology in the United States, and said that their companies are listed in US national security reviews.
However, China is carrying out the law, including the rules on national security and non-governmental organizations (NGOs), which are considered aggressive and overreaching by some within the foreign business community.
For example, the project of China National Security Law and the Anti-Terrorism Act, which could be adopted this year, call for the use of "safe and controllable" technology developed in China or using the source code released Chinese checkers.
Another pending bill on foreign NGOs, including many business groups, would give the police broad powers of supervision over their budgets, agendas and personnel decisions.
These movements, along with the fear that Chinese regulators are targeting foreign companies in competition probes have led to decades of high levels of pessimism among foreign investors.
The American Chamber of Commerce in China wrote to the Chinese government last week to complain about the security law.
"Fundamental questions about whether future commitments from China to open its markets to foreign investment will produce the expected results arises," the chamber said in a letter seen by Reuters.
He said the bill risked "undermining the ongoing BIT (Bilateral Investment Treaty) negotiations."
Trade relations have also deteriorated by Washington's accusations that Chinese hackers have been behind the recent attacks on government agencies in the US and American companies.
Last week, US officials accused Chinese hackers breach of government databases to steal files on four million federal employees, the latest in a series of charges of espionage directed against China. Beijing officials said the claims were unscientific and irresponsible.
All this will hang on high level US-China strategic and economic talks in Washington in late June.
"This is the hardest time I've seen in China for multinationals - and I've been here about 30 years," said James McGregor, president of the American public affairs consultancy APCO Worldwide in China.
"I have clients who ask me if they will be welcome here much longer," he said.
http://www.reuters.com/ (Reporting by Michael Martina and Matthew Miller, edited by Mark Bendeich)
Chinese investment in Sri Lanka is causing major problems for the president of Sri Lanka Mathripala Sirisena and has become a point of tension in relations between Sri Lanka and China.
Before taking office, Sirisena had promised that he would investigate alleged corruption, indicating that Sri Lanka would investigate how it is' foreign obtained by paying a ransom to a handful of people. " His electoral program at the same time acknowledged the economic difficulties of Sri Lanka. It reads: "Sri Lanka is a country with excessive state debt and a dangerous relationship with respect to the payment of the loan and state revenues."
During the previous regime, led by former President Mahinda Rajapaksa, Sri Lanka borrowed billions of China to develop megaprojects that many thought were economically unviable. Critics also feared that Sri Lanka would not be able to repay the loans and, as a result of China can take control of these vital infrastructure projects, providing a strategic presence in the country.
At that time, there was no information available in the public domain in relation to interest rates on loans. There were also allegations of corruption and bribery, which may have allowed Chinese firms to secure these projects without open bidding process. As a result, Sirisena incoming government promised it would re-evaluate all mega-projects undertaken by the previous government.
A particularly controversial project is the Colombo Port City project. The Colombo Port City project is being built by China Communication Construction Company (CCCC), a subsidiary of China Harbour Engineering Company, in collaboration with the Port Authority of Sri Lanka. The project amounts to US $ 1.4 billion investment, but - according to government spokesman Rajith Senaratne Sri Lanka -. The project was awarded "without appropriate approvals' Interestingly, the World Bank has banned CCCC on corruption charges to 2017.
During his visit to Beijing after being elected president, China Sirisena said that "the current problems facing the Colombo Port City is temporary and the problems do not lie with China." President of China, Xi Jinping, in turn, expressed his hope that "Sri Lanka could guarantee the legitimate rights and interests of Chinese enterprises."
But in an interview with CNN Money, the finance minister of Sri Lanka Ravi Karunanayake said, "Chinese companies took the opportunity of a corrupt regime to move to other companies that come ... there was not even playing field".
Other Chinese projects have also been criticized for being unproductive investments and are considered bad loans. Chinese companies built the port of Hambantota Mahinda Rajapaksa International Airport (MRIA) and a cricket stadium in the policy of former President Rajapaksa, Hambantota district. These are incurring losses because they are not commercially viable. In September 2013, the interest rate for MRIA, which cost US $ 209 million to build, was increased from 1.3 percent to 6.3 percent.
The Rajapaksa government took several steps to make the commercially viable airport. For example, according to the Civil Aviation Authority Annual Report 2014, Rajapaksa's government implemented a policy of "open skies" for granting rights of third, fourth and fifth freedom traffic MRIA foreign airlines. It also provided facilities for landing and parking. But MRIA attracted only 20,474 passengers and 2,984 international flights according to the report. In the same year, it incurred a loss of LKR2.75 million (approximately US $ 20 million).
Hambantota port has not been able to return the promised economic dividend. The port was built with US $ 306 million loan, 85 percent of which was provided by the Exim Bank of China with a fixed interest rate of 6.3 percent. Chinese SOEs in September 2014, reportedly gave Sri Lanka, China Merchants Holdings International and CCCC, the exploitation rights to four berths in the port of Hambantota, providing nearly 65 percent stake in the project agreement with the agreement reached with China in 2010. But Hambantota it is still to attract investment despite being declared a "free port" with Colombo Port, in July 2013.
The government of Sri Lanka has also stated that Katunayake Export Processing Zone, Koggala EPZs and MRIA are bonded areas in an attempt to attract investors. According to the Minister of Ports and Transport Loss Hambantota port in 2012 was LKR678 million (approximately US $ 5 million). Hambantota port was maintained from the profits made by the Port of Colombo. The Port Authority of Sri Lanka, formerly providing fueling services, has asked private companies to acquire or develop a joint venture for bunkering operations.
China has invested about US $ 5 billion in Sri Lanka. The Sirisena government faces a dilemma. While Sri Lanka is unable to reject Chinese investment, or to pay huge loans, they also do not know how secure these mega infrastructure projects profit to help pay for the loans. It is under tremendous pressure from China in the Colombo Port City project, where CCCC is reportedly claiming to be losing $ 380,000 a day. It would be financially difficult for the government of Sri Lanka to provide such a huge compensation in case you decide to cancel the project.
At the same time, there is a tremendous internal pressure to leave the Colombo Port City project because it has no environmental clearance and is likely to offer China a strategic foothold in the Indian Ocean, which could draw the ire of India and the US .S .. The Chinese Foreign Ministry spokeswoman Hua Chunying Colombo said he hopes to 'preserve confidence Chinese companies to invest in Sri Lanka in the overall interests of China-Sri Lanka friendly and the fundamental interests of national development "of Sri Lanka.
Sri Lanka has always tried to exploit their ties with Beijing in its relations with India and the West. But the previous government Rajapaksa went too far in courting China and did not consider the strategic consequences. It would be difficult for Sri Lanka to support Chinese pressure. But China is likely to be in no hurry to take punitive action if the Colombo Port City project does not materialize. After all, Colombo remains an important cornerstone in the Maritime Silk Road of China and is an important partner in the wider geopolitical game.
http://www.eastasiaforum.org/ by Smruti S Pattanaik, IDSA
Baidu is pushing into the public WiFi space, after the Chinese internet giant — responsible for the country’s most popular search and maps services — led an $11.5 million investment in Qianhai Mobile, a company that gets China’s commuters online.
Qianhai Mobile, which is an affiliate of NASDAQ-listed media firm ChinaVision, provides wireless internet access on a range of commuter routes, including bus services across 18 cities in China. That deal covers around 35,000 buses in major cities that include Shanghai, Shenzhen and Guangzhou.
The company, which claims to reach over 7.5 million Chinese commuters via its ‘VIFI’ service, revealed that private investors Guangdong Zhongke Baiyun New Industry Venture and Dongguan Zhongke Zhongguang Venture also participated in the round. The fresh capital, it said, will be put to use expanding its infrastructure and securing more deals and deployments.
Baidu’s involvement in the deal is strategic — and pretty interesting. The Chinese firm said it will work with Qianhai Mobile to “jointly develop and monetize mobile app distribution and other mobile passenger services powered by Baidu Map.”
Clearly, commuter WiFi services have vast potential. They offer more reliable (and potentially faster) internet access to millions while they commute to work and seek to fill dead time. That lends such services to becoming hubs for others.
Likewise, map services like Baidu’s are inherently at their most useful when a person is in transit. Thus, combining these two could create some interesting synergies and the potential to pipe in other relevant services — for example e-commerce deals, location-based promotions and other initiatives. The golden rule, of course, is to avoid abusing the position and ensure that each integration provides ‘value’ to users.
“We are very impressed with VisionChina Media’s many years of experience operating the leading public transit-based media platform in China, and the Company’s ongoing transition to an Internet-focused business. We are excited about the opportunity to work with VisionChina Media to truly address the needs of urban commuters and realize the significant long-term value of the Company’s public transit Wi-Fi network,” Baidu’s Peter Fang said in a canned comment.
Chinese enterprises have been making major investments in Europe, most notably for the purchase of brand names and technologies, as well as in the fields of agriculture, foods, and leisure activities, a marked difference from past investments which focused mainly on energy resources in developing nations, according to Sina's finance news portal.
In addition, Chinese investors have also been major buyers on Europe's realty market, as 1,909 of 2,378 foreigners up to April this year who spent €500,000 (US$560,775) or more purchasing houses in Portugal in exchange for immigration visas came from China.
Chinese investors have also figured prominently in Europe's financial sector, such as Fosun International and Anbang Insurance which may jointly bid for Novo Banco, Portugal's third largest bank, with an offer exceeding €40 billion (US$44.8 billion).
Chinese investments in Europe topped US$18 billion in 2014, with many cases exceeding US$1 billion in scale, boosting China's share in foreign investments in Europe to 3%. The UK was the largest outlet last year, accounting for US$5.1 billion, mainly for property, followed by Italy with US$3.5 billion, Holland, Portugal, and Germany. Germany sees much investment for for cutting-edge technologies and machinery factories.
Chinese private investors are playing an increasingly prominent role, as they accounted for 30% of total acquisitions, in terms of value, by Chinese in Europe during 2011-2013, compared with only 4% during 2008-2011.
Chinese investors have set their sights on businesses capable of meeting the new lifestyle expectations for middle class and wealthy Chinese, including those sectors related to upgraded consumption, such as beauty treatments, health, and elderly care and experience-based consumption, such as high-end travel and dining, and personal finance, according to Sina's finance news portal.
Chinese private investors began to step into Europe's commercial-property market in 2013, sinking US$2.8 billion in the sector, in such properties as hotels and wineries, which increased to US$3 billion in 2014.
Andreas Scriven, managing director for international business Christie + Co's, a hotel consulting firm, said many Chinese investors are interesting in buying medium-priced hotels, in order to accommodate growing numbers of Chinese travelers in Europe.
Earlier this year, he wrote in his blog about the excitement in China generated by the news that the Dalian Wanda Group plans to invest $ 1.09 billion to build and operate a luxury hotel in London. At the time of its announcement (made in the summer of 2013), it was the first luxury hotel venture announced by a Chinese company outside China. Since then, Dalian Wanda has added a luxury hotel project in Madrid just last summer, it advises Chicagoans a third-tallest skyscraper $ 900 million building in the city will open, housing Lakeshore Drive East a luxury 240-room, five-star hotel, luxury apartments and commercial premises in 2018. The US markets also led by Dalian Wanda include New York, Los Angeles and San Francisco.
This is only the beggining. Recently, Anbang, eighth largest insurance conglomerate China surprised the entertainment community with $ 1,950 million acquisition of the iconic Waldorf-Astoria-the highest price ever paid for an existing hotel in the US .. Not to be outdone, in October China Insurance Group Corp. invested Sol AUS $ 463 million (about US $ 399 million) in the high-profile Sheraton on the Park Sydney, the payment of approximately $ 716,000 per room; and in November, based in Shanghai Jin Jiang International Holdings Co. bought Louvre Hotel Group based in Europe for about $ 1.2 billion.
Hotels are not the only targets as Chinese investors to explore investment opportunities abroad. Last year, the food industry of America was a hotbed for the purchase of Shuanhui of Smithfield Foods for $ 4.76 billion and, in June, people in Virginia noted that Tranlin Paper Co. of China had invested about $ 2 billion in a paper plant and fertilizer are expected to create 2,000 local jobs by 2020.
In recent years, Chinese money has flowed into the US, compared with $ 58 million in 2000 to $ 14 billion in 2013. Overall, the Chinese investment in the US currently amounts to about $ 40 billion, according to Deloitte, Chinese investors are now the second largest foreign investor group, after Canada, the commercial real estate market, with a share of 8% of the total cross-border investment. As the South China Morning Post said recently, Chinese investment in the US now exceeds US investment in China.
Boosting Chinese investment here and elsewhere are the forces that are almost identical to those that attracted the Japanese investment abroad three decades. Fortune magazine reports China has excess savings ($ 4 trillion in foreign exchange reserves), so the valuation of US and European assets attractive due to Chinese private investors, foreign assets delivered exceptional performance.
At the same time, Chinese consumers are interested in buying everything American. They also feel that their assets are better protected in the US .. Today, these consumers represent more than 85% of investors who have applied for US EB5 visas that foreigners will invest more than $ 500,000 each in the CNBC reported US .. these people mostly put their money in assets that considered the safest: US real estate.
So, given this context, what can we expect for the hospitality industry? Simply this: the transformational change is coming here in the US and abroad. Note that 100 million Chinese are now traveling outside China and industry leaders expect this number to grow to 200 million in the next five years or less. Chinese hotel companies such as Dalian Wanda expect their compatriots to provide a solid customer base that can draw as they expand abroad-like American and European travelers provide the basis and impetus for global expansion mass of its brands, powerhouse grown as Hilton, Sheraton, Accor, Marriott and other decades.
In today's world, while other markets such as Russia, Korea and Japan are growing, only China has the resources and the volume of travelers to follow the pattern of growth in the United States. Now, one of its brands, Home Inns, classified in the top 10 global hotel brands in the world in terms of rooms. Others will soon follow suit.
The conclusion is clear. At the global level and in the US, brands and Chinese investors will grow significantly. This trend is important not only for students of the industry, educators and strategists of the company to pay attention, but also for local communities and the traveling public in general.
http://www.forbes.com/ by Ed Fuller
Representatives from various European regions on Thursday (June 4) tried to convince the four major Chinese banks to invest in projects in new investment program of the EU.
At a workshop in Brussels, regions and cities, including Berlin, Catalonia, Ile-de-France, and Lodz, made presentations of ideas for ICT projects.
Their releases were heard by officials of European departments of ICBC, China Construction Bank, Agricultural Bank of China and Bank of China, four of the seven largest banks in the world. HSBC representative was also present.
ICBC is the largest bank in the world with $ 3.3 trillion in assets, followed by China Construction Bank.
The investment program, often called the Juncker background after the president of the EU Commission, intends to unlock private sector investment by guaranteeing part of the investment with money from the EU budget and European Investment Bank.
The fund is expected to reach a total of € 315 billion to spend on infrastructure projects Kickstart EU economy.
The four Chinese banks in addition to HSBC, "are ready to evaluate with great interest the opportunity to invest in Europe," said Luigi Gambardella, chief of the International Association ChinaEU, which aims to promote business cooperation between China and Europe.
A Chinese banker, who spoke to this website on condition of anonymity, said the Chinese financial market is limited in opportunities.
"The European market is a very important strategic market for us," said the banker.
"I have not yet spoken with the EIB, but I think that Chinese banks would like to participate in this plan, provide some funding."
Fear of 'Chinese money'
An audience member from Austria noted that promoters of regional projects funded are wary of Chinese funds.
"For regions is very sensitive to talk about Chinese money coming into the region. We do not want to need money, that does not come from Europe or Austria, or the region," he said.
But that fear is unwarranted, said Alessandro Carano, chief adviser on employment to the commission.
"China is already a major investor in EIB bonds. China [has] already [been] indirectly financing the European economy for many years," Carano said, adding that some Europeans might not be aware of it.
"But we have no problem with this. On the contrary, we welcome," Carano said.
Gambardella told this website that many countries are not as interested in investing in Europe as China is.
"There are not many in the world. Maybe there Qatar, Emirates. Very few."
A study published in May by EY found that Europe has become the "most attractive investment destination", beating China's number one position.
But respondents do not necessarily put their money where their mouths are. The study showed that while 59 percent of investors are confident in the prospects for Europe for the next three years, only 32 percent of executives plan to invest, or invest more than they already do in Europe during next year.
"Europe must do this with all the different regions of the world," Gambardella said, referring to the workshop.
Meanwhile on Thursday evening in Brussels Moreover, negotiators from the EU institutions agreed to the last technical details of a political agreement that was necessary to implement the Juncker background.
The commitment will be put to the vote in the European Parliament on 24 June, with national governments are expected to endorse in the next few days, so that the fund will be operational on July 1.
https://euobserver.com By PETER TEFFER
Detroit is known as the epicenter of the US auto industry. But it is also a city with strong global links, according to Laurent Bresson, president and director of global operations Nexteer Automotive.
"Within a radius of 50 miles, has all the international executives from the automotive industry, and is so connected community," Bresson said. "That's a positive side that frankly do not see anywhere else in the world."
The combination of legacy Detroit auto and touch seems made to order for a company of Michigan 109 years old, led by a French executive and owned by Chinese investors internationally.
Formerly a division of General Motors GM -1.18% and its spinoff, Delphi Corp., Nexteer was bought by Pacific Century Motors based in China 465 million US dollars in 2010.
"Since then we have really been experiencing astronomical growth worldwide," Bresson said.
The manufacturer of steering systems and advanced driver line expanded its global workforce of 7,700 in 2009 to 11,000 in 2014, said Luis Canales, director of corporate affairs Nexteer. US workforce of the company rose from 3,000 to 5,000 during the same time, Canales said, including the addition of 90 engineers in 2014 and hire at least 65 new employees in 2015.
Nexteer also launched an initial public offering of $ 260 million on the Hong Kong Stock Exchange in late 2013, and completed a bond offering $ 250 million last year. The company ended 2014 with $ 2.98 billion in revenue, a 25 percent jump over the previous year.
To feed its strong growth cycle, the company will continue to seek new innovations and technologies, investing in research and development and invest in capital expenditures worldwide, Bresson said.
These investments allow Nexteer to win additional business from existing customers and win new business in emerging markets. For example, last year launched Nexteer brush support column electric power steering (EPS) tailored for the Chinese market. Today, the company provides direction for all minivans in China, Bresson said.
Nexteer is also leading converting industry for hydraulic power steering, allowing automakers to both fuel economy and reduce emissions increase, the company said.
"We have a strong portfolio, enabling us to direct all cars, a compact city car to a full-size heavy truck," Bresson said. Nexteer is currently directing October 9 full-size pickups in North America, he added.
With strong demand in North America and China, the company currently has a backlog that will be in production in the next two to three years $ 9 billion, Bresson said.
In 2016, the company based in Saginaw plans to create new global headquarters in northern Detroit. The move will allow Nexteer be closer to its customers and suppliers as well as important industry conferences and networking events.
Seven automakers are headquartered in the Detroit area and around 60 of the leading automotive suppliers in North America, Bresson said. "The concentration of experience and leadership in the metropolitan Detroit area automotive industry is really incredible," he said.
Nexteer next chapter will use these connections to increase growth and global brand awareness of your company. The company also sees an opportunity in the evolution of self-driving cars, for which management plays a key role. "Certainly, we are focused on capturing our fair share of the market opportunity," Bresson said.
Prototype car with self-driving Google hit the road this summer, and automakers such as Audi, Mercedes and Nissan introduction of self-driving features such as lane keeping assistance and automatic braking, Bresson has no doubt that over time drivers will travel in truly autonomous cars. "It's just a question of when," he said.
But first, the company will have to overcome a new set of challenges, including stay agile as the company grows, finding and hiring strong global talent, and adopt the mindset of a business as opposed to autonomous corporate division.
"It's a development that increases the level of responsibility of everyone in the organization," Bresson said. "These are good challenges to have."
http://www.forbes.com/ By Lisa Wirthman
Sponsors Chinese are behind three of the hottest Broadway shows as part of a broader effort to expand the musical theater in China.
Three of the hottest musicals on Broadway have Chinese as China advocates the expansion of live theater in the house starts and looks to New York for specialization.
China Media Capital, a private equity fund backed by the state, has invested in the production company behind Tony-nominated "Hand of God" and "Something rotten!" Beijing-based China Entertainment Broadway is a sponsor of "An American in Paris," which was nominated for 12 Tony Awards.
"This is the first season that Chinese companies are investing in Broadway," said Simone Genatt, president of Broadway Asia, a production company and entertainment licenses based in New York focused mainly on Asia. "They have been doing Broadway musicals in mainland China over the last decade, but this is the first time China is here in New York."
New York investments are part of a broader effort to expand the musical theater inside China. Big Broadway shows as "Cats" and "The Sound of Music" has been touring China for years. In a next step, "Cats" and "Mamma Mia" have been translated into Chinese. In recent years, the government has built over 25 new rooms for live musical productions, each with 1,200 to 1,800 seats capacity across the country.
Chinese investors say they are hoping to leverage their investments in Broadway shows to gain experience in US productions, bringing entertainment to China and eventually developing the most original Chinese musical produced.
CMC based in Shanghai last year invested in Broadway Kevin McCollum Global Ventures (BGV), who produced "Hand of God" and "Something rotten!" Mr. McCollum, a veteran producer whose credits include "Avenue Q" and "Rent", refused to reveal the size of the investment, but said CMC can help your company to expand its production to China, and said he is ready for consumption and theatrical creation.
"They are ready," says Mr. McCollum. "This is the source material that could work well there."
Finally, Mr. McCollum says he hopes to create the original musical theater artists and writers from the US and China. The idea is to create music that "is a fusion of the two cultures" and "could be realized both here and there."
"Kevin is very good for original shows, a skill that seems so vital," said Clark Xu, general manager of CMC. "Because at the end of the day, we want to make our own original shows."
CMC's investment is designed to benefit its portfolio companies, including seven ages of Production, musical-production company based in Beijing that Mr. McCollum adapted from "Avenue Q" in a Chinese version began touring level national in 2014.
CMC is also an investor in new Dream Center Shanghai, a large leisure complex with five theaters, including one dedicated to music, which is scheduled to open as early as 2017. The theater will be able to draw on both productions Sr . McCollum and its own original productions in the future, Xu said. CMC is also learning ticketing and theater management of Mr. McCollum equipment and ensure it is able to maintain the world-class music in the future.
Until now, Chinese investors have preferred classical music with healthy stories. "Something rotten!" - A love letter somewhat obscene musical theater and Shakespeare, and the "Hand of God" are provocative are the boldest offers, but have made no objections from CMC. "The shows are born of the western land and the content caters to local audiences," Xu said. "We do not interfere with the creation of the series and respect the decisions of team creation."
That may change if the shows traveling to China. All scripts must be subjected to censorship for approval. "We hope the shows will tour in China, and certainly make suggestions on this matter then," Xu said.
Mr. McCullom says vanguard "Avenue Q" has not changed for China, but overall, set a program to work in a new place is common. "You have to have partners in the local market to succeed in that market," he said.
"An American in Paris" is the first investment by China Broadway Entertainment, a producer of live entertainment based in Beijing. The company, created last year to invest in and produce Broadway shows in China, was founded by Broadway Asia and two Chinese producers: Ivy Zhong, former managing director of Beijing Galloping Horse Film Co. Ltd., a Chinese film-production independent leader and Sean Hsu, president of China, Digital Culture, an entertainment company based in Beijing. CBE invested "several hundred thousand dollars" in the musical and plans to support future US shows.
Is expected to "An American in Paris" to go to China since 2018, first as a tour through Asia, then as a local language version, said Ms. Genatt. CBE is also planning a production dip "Peter Pan" to visit some cities in China with Randy Weiner, the producer of "Sleep No More".
Don Frantz, veteran producer of "Beauty and the Beast" on Broadway and "The Lion King", says he started getting calls from Chinese investors, as soon as the Tony nominations were announced in April this year. Mr. Frantz, creative director at Town Square Productions is actively involved with local producers in the stage production in China, including a Mandarin-production of "Into the Woods".
"Chinese investors are passionate about the world of Broadway," said Mr. Frantz. Mr. Frantz and helped facilitate Chinese investment in its own production off-Broadway. Zhang Chen, founder of Mahua FunAge Production Co. Ltd., a leading Chinese comedy company decided to invest in "Disenchanted" After attending a lecture in New York in 2013. Produced by Mr. Frantz, the musical is adult princesses.
"My gut says this is an interesting show with good market potential," Zhang said. He said he spent "a very small part" of the total budget of the program to "take the temperature" of the industry. Zhang created a new company, China Musical Theatre in New York last year and plans to spend more. "I'm definitely going to increase my investment in the Broadway musical," he said. "If the program will not come to be in China, you can only stay out of the country as a purely financial investment."
http://www.wsj.com/ by Lilian Lin and Stefanie Cohen
Beijing is preparing to relax restrictions on purchases of foreign securities by people who give retail investors in China greater access to Australian equities market.
Chinese state media reported a test program shortly be launched allowing mainland residents to invest directly in stocks and bonds abroad. That happened because investors hungry assets pushed the Shanghai Composite Index to a seven-year high on Wednesday fresh.
The Qualified Domestic Individual Investor (QDII2) program will be part of a gradual plan by Beijing to liberalize capital flows and eventually make its currency, the yuan fully convertible.
"This opens a whole new investor base for fund management companies in Australia between increasing number of HNWIs in China," said David Olsson, a senior consultant of China law firm King & Wood Mallesons.
"I imagine it would encourage the development of new financial products tailored to the Chinese market."
Under the proposal, which is due to the end of the week was officially announced, six cities shall execute the scheme for people who have at least 1 million yuan ($ 200,000) in investable assets.
With the exception of Hong Kong, Chinese investors wishing to buy in overseas markets today should do so through a mutual fund approved by regulators.
Analysts expect that the total down payment to be invested globally in a relatively small number of 20 billion yuan to 30 billion yuan, which then widened then if the trial runs smoothly.
No indication of the number of individual investors will be approved in the first stage of the plan.
"This indicates that China may soon relax the foreign exchange quota for residents on land," said Liu Li-Gang, chief China economist at ANZ. "This is the last step of China to deregulate capital markets and liberalizing capital outflows."
At present, only residents move $ US50,000 one years in and out of China, legally, although there is no money sophisticated underground market.
Chinese retail investors have driven the current sharemarket boom, shrugging off their traditional preference for physical assets such as property.
This has seen Chinese shares rise 140 percent in the last twelve months and sharemarkets in Shanghai and Shenzhen have become the most liquid in the world.
The value of shares traded in Shanghai is now six times more than the New York Stock Exchange, as retail investors pile into the market.
The Shanghai market has risen for seven consecutive sessions, but failed to break the psychological barrier of 5,000 points on Wednesday. In recent days the market has been driven by the actions of defense, amid growing tensions between Beijing and Washington over disputed waters in the South China Sea.
The next step for some retail investors would move part of their portfolios of stocks on the high seas, reflecting the trend of buying a second home in cities such as Sydney, Vancouver and Los Angeles.
According to a Bain & Company and China Merchants Bank, 37 percent of China's great estates have already made an investment offshore. The report said that half of them had plans to increase their investments abroad this year.
He defined those with investment assets of over 10 billion yuan as "high net worth" and said their ranks in China had a growth of 30 percent in the past two years as more than 1 million people.
The decision to allow direct investment in high sea comes after Beijing allowed investment fund products approved in Hong Kong or the mainland to be sold in any market.
The program will begin on July 1 and will have an initial fee of 300 million yuan.
"This will diversify investment channels for mainland investors and expand access to overseas funds to tap the capital market in the mainland," said Deng Ge, a spokesman for the Securities Regulatory Commission China.
Mr. Olsson of the firm King & Wood Mallesons said this also presents an opportunity for fund managers in Australia, adopted in Hong Kong, to start marketing their products to mainland investors.
STATE-owned Zimbabwe Mining Development Corporation is likely to kick-start a series of mine disposals with the sale of Kamativi Tin Mines to a prospective Chinese investor.
An official told this newspaper that four investors were interested in Kamativi although sources say a Chinese investor is now tipped to snap up major shareholding in the tin mine.
The official said the investment required would depend on the business plan to be drawn after a detailed feasibility study by the investor and the level of mineral beneficiation but indications are that the mine requires around $60 million.
Kamativi, a wholly-owned subsidiary of the ZMDC, closed in 1994 after 58 years of operation.
Closure of the mine was caused by the fall in tin prices in 1985.
“There have been more than four investors who expressed interest in Kamativi,” said an official who requested not to be identified.
“They have made presentations to the board.”
Mines and Mining Development secretary Professor Francis Gudyanga said Kamativi was more than just tin as there was a host of rare earth minerals.
“If it was left to me we would not sell the mine to anyone, we would find the money to resuscitate it. There is a host of minerals such as mica tantalite, lithium and beryl. For us it’s a low hanging fruit,” said Professor Gudyanga.
Sources say while the evaluations are ongoing, indications are that a Chinese investor (name supplied) is well on course to outbid others.
Kamativi, which produced tin and by-products including tantalite niobium and lithium minerals, is among several closed mines under the ZMDC, which require new investment.
“There has been interest in other areas of investment in particular gold, platinum, copper and the diamond sector,” the official said.
Tin prices have been declining since last year and are now close to a five-year low, according to Mining Feed, an online news service.
It says while tin prices have shown some recovery from the lowest point reached last month, the London Metal Exchange cash price at the beginning of May was just above $16 000 per tonne, a decline of about 30 percent in the same period last year and 20 percent down since the beginning of the year.
In May last year, the tin price was relatively stable between $21 000 and $24 000 per tonne for about 8 months.
According to Mineweb, Indonesia, the world’s top exporter of refined tin, will introduce strict new rules for shipments in a renewed effort to stamp out illegal mining and support prices of the solder material. Under the new rules, exporters will need to present proof that the metal comes from Government-certified mines before shipment.
The new rules, first announced last week, would take effect on August 1 and could hinder the supply of tin from Indonesia and help support benchmark prices, Mineweb reported.
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