Roseman quotes Liang Haoji, one such consumer, who said “I’ve been fond of high-quality coats since I was very young. A good quality jacket priced at no more than 20,000 yuan is acceptable to me. I work hard, so I should treat myself better,” he added.

Though global growth may have flatlined, China has become one of the primary players in the world’s luxury market.

“Following China’s entry into the WTO, global luxury brands are jostling to expand in a country that opens wider,” explained Michael Ouyang of the World Luxury Association.

“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 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 1^st to 7^th.”

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.

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.

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.”

Lunar Capital, though currently based in Shanghai, has stated that one of its goals is ‘inward and inland growth.’

“We believe if you’re going to be successful in these regions, you can’t just rely on a team that’s sitting in Shanghai, you have to have extra resources, whether it’s in our Chengdu office or people who are based locally with our portfolio companies full time,” explained Derek Sulger, a founding partner of the company.

Adam Roseman and his firm ARC China have recently invested in a tier four city’s clothing retail outlets. He agrees with Sulger’s statement, and believes it is indeed important to be on site in order to manage business and to utilize the potential of these areas. ARC China invests in several second and third tier regions like Fujian, Liaoning and Szechuan.

Certainly, this is important information for companies that invest in China like ARC Investment Partners with Adam Roseman.

Read the complete article for more information.

Their unique structure welcomes non-China LPs to be able to participate in RMB denominated investment with its offshore USD Fund.

The Westly Fund focuses on investing in Chinese domestic enterprises that are profitable and have great potential for growth and that are low in risk.  They say that they focus on industries that are consistent with NDRC’s 5-year plan of looking at domestic consumption, sustainability and healthcare.

As reported on the ARC China site, “ The fund seeks to achieve consistent value realization across the portfolio through multi options, exit driven strategy led by our extensive in-house due diligence team with a strong mix of local Chinese and international professionals.”

At the symposium, Norwegian Prime Minister Gro Harlem Brundtland praised China on its green economy efforts.  Brundtland said, “I think the leadership in China knows that the pattern of development in China cannot be coal-based, oil-based, transport-based in private cars, so they talk about green economy, because they know they have different energy resources, they have to use solar and they are entering into changing all these technologies and implementing them.”

Roseman explained that, according to McKinsey & Company, which is a consultancy firm, China has the potential it needs to build a “green economy” in the coming decade.  To fulfill this goal, however, McKinsey estimated that China will need an investment of up to RMB 1.5 to 2 trillion each year from now until 2030 to implement their green technology plans.

Adam Roseman concludes by stating: “China is taking an aggressive stance to reduce its environmental impact and has all the credentials to serve in the future as a model for other countries wishing to follow a sustainable path of development. “

Roseman explained that China has taken many steps to control the real estate prices.  As he wrote, “Many large to middle sized cities in China now have implemented a limit on loans to non-local buyers and suspended loans for purchases of 3rd homes. For the first property to be purchased by a family, the government has mandated a minimum down payment of 30% of the purchase price if the property has a gross floor area of more than 90 square meters. Families that purchase a second property are required to make a down payment of 60% of the purchase price. For such properties, the interest rate to be charged on the loan must be 1.1 times the People’s Bank of China benchmark interest rate.”

When analyzing the hot-money inflows, Adam Roseman said that the Chinese government is having banks hold more foreign exchange and that they are strengthening their auditing of overseas fundraising.

In addition, as Roseman explained, “Apart from expected contributing factors of inflation, the Chinese Government has also proved its ability to act swiftly and successfully to bring vegetable prices down when there was a sharp increase in those prices in the winter of 2010. In addition, the Chinese Government recently announced limited price control guidelines and said it would put state reserves of grains, edible oils and sugar on the market when necessary in order to increase market supply.”