Adam Roseman, CEO of ARC Investment Partners, a Beverly Hills-based private equity firm.
In: Adam Roseman
18 Nov 2011In an article in ARC China’s newsletter, Adam Roseman discussed property prices in China. The property market, a primary player in Chinese economy, has shown signs of an increasing slowdown as prices flatline. The average housing prices throughout the nation has risen just 0.01% since Agust.
“Cooling red-hot housing prices is just like putting out a wildfire,” explained Wang Haibin of Shenzehn World Union Properties Consultancy Co. “Now we can say the fire won’t spread further, but it will still take time before its extinguished.”
In: Adam Roseman
9 Nov 2011In the company newsletter, Adam Roseman of ARC China discussed the sales in Shanghai during National Holiday. Local shoppers were thrilled with the significant discounts offered during the week-long shopping festival, sending the city into a shopping frenzy and raising reatail sales by 18%.
In the report, Roseman writes: “Consumers spent a record high 7.1 billion yuan ($1.1 billion), up an annual 17.6%, at 5,000 stores of 456 large and middle sized local retailers during October 1st to 7th.”
Though last year’s National Holiday week yielded more sales, this year’s increase still holds a 6.1% higher record than the Spring Festival.
In: Adam Roseman
26 Oct 2011Adam Roseman of ARC China publishes a newsletter discussing China’s economy. In a recent article, he explains that measures were drafted in an effort to promote domestic sales of products originally made for export.
Chen Linhui of the Department of Foreign Trade and Economic Cooperation explained that the measures will induce a slowdown in export growth as well as boost domestic consumption. “They will include simplifying the approval process for domestic sales, establishing convenient financing, expanding sales channels and enhancing brand image,” he said.
Adam Roseman of ARC China recently updated the company’s newsletter, explaining that China is focusing on its goal to reduce carbon intensity in the region.
He quoted Xie Zhenhua of the National Development and Reform Commission, stating: “China will soon release detailed plans on ensuring that its goal for reducing carbon intensity from 2011 to 2015 is attainable, and it has started looking at technical options for cutting carbon dioxide emissions after 2020.”
Su Wei of the Department of Climate Change of the NDRC also said “The targets surely need to be handed over to local governments, and a specialized blueprint for cutting greenhouse-gas emissions is a necessity.”
In: ARC China
6 Sep 2011According to official surveys, China’s manufacturing sector has showed recent signs of stabilizing, after a slight drop in July. The PMI, which indicates industrial conditions, fell from 50.9 to 50.7 in June, and the drop was less significant than previous predictions had indicated.
Adam Roseman of ARC Investment Partners explained in a newsletter, stating that:
“A figure above 50 denotes expansion, while a reading below that level points to contraction. At its current level, the Chinese PMI suggests that manufacturing growth has nearly stalled in month-on-month terms. The question now is whether the next step for Chinese factory growth will be outright contraction or stabilization. A separate PMI published by HSBC a week ago had pointed at contraction, but the official PMI on Monday offered grounds for cautious optimism.”
In: ARC China
5 Aug 2011Adam Roseman of ARC Investment Partners discussed China’s IPO volume in a newsletter. The report states that IPOs on China’s capital market may hit $61.9 billion this year, which is a decrease of 16% from last year.
Jean Sun, a partner at PricewaterhouseCoopers China, said “Despite the decrease in China’s IPO market activity in the first six months this year, we believe the momentum remains robust for 2011, due to high confidence in the growth of China’s economy and domestic demand. Other factors, such as the large amount of capital and limited investment channels, will also help stimulate the market.”
PwC also predicted that China’s IPO market leaders will be the manufacturing industry, information technology, financial services and retail, consumer goods and services.
In: ARC China
26 Jul 2011In an effort to further develop the cultural industry, China has set up its first state-level investment fund with this focus, according to Adam Roseman of ARC Investment Partners.
Aiming to raise 20 billion yuan, or $3.1 billion, the China Culture Industrial Investment Fund was launched by the Ministry of Finance and three other companies.
“The cultural industry still lacks vitality and companies find it hard to raise funding and invest in others; the fund is intended to ease these problems,” explained the Vice-Minister of Finance Li Yong.
The China Culture Industrial Investment Fund is one of many new investment funds in the field. Venture capital and private equity companies are also taking interest in the cultural sector.
“The market is full of potential but many cultural companies are not competitive enough to thrive. That’s why culture has to marry industry to make itself big,” Yu Feng of the Yunfeng Fund said.
In: ARC China
17 Jul 2011Adam Roseman of ARC China recently discussed Prada’s initial public offering in Hong Kong in the company’s newsletter. He explained that Prada SpA hopes to raise as much as $2.6 billion in the offering.
According to Scilla Huang Sun, equity head at Swiss & Global Asset Management, on average, Chinese consumer companies “have a higher valuation that consumer companies elsewhere. But that’s also due probably to their higher growth potential. Also, all these Chinese companies have almost 100 percent exposure to the Chinese market, whereas luxury companies including Prada have only a partial exposure.”
In: Business News
11 Jul 2011According to an article written by Adam Roseman in ARC China’s newsletter, Starbucks Coffee Company has recently announced that it plans to acquire ownership of all its stores in China from Maxim’s Caterers Ltd.
Starbucks said the transaction would enable it to increase profitability in China, because it would give the company more direct control of the stores in Chongqing municipality as well as five other provinces.
The agreement states that Maxim’s will be given 100% control over Starbucks branches in Hong Kong and Macao.
According to the company, they intend to have 1,500 Starbucks-branded stores opened in China by 2015.
In: ARC China
4 Jul 2011ARC China’s recent newsletter reported that Coca-Cola Co., the largest soft-drink producer in the world, announced that it is exploring a possible listing in Shanghai.
Coca Cola stated that it will invest $2 billion into China, as well as opened three new plants in Mongolia late last year.
“We are interested in exploring the opportunity of listing our stock on the Shanghai Stock Exchange,” explained Geoff Walsh of Asia Pacific Coca Cola. “Obviously, we need to better understand the regulatory framework and listing requirements. We continue to have positive discussions with Chinese government officials as we look at this opportunity.”
Coke is one of many companies currently looking into opportunities in China due to its rising economy. ARC China with Adam Roseman is an example of another such firm.
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