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Chinese companies have been investing more in non-financial overseas sectors this year. The first three quarters of 2011 saw them invest $40.8 billion in these sectors, a 12.4% increase from a year earlier.
As Adam Roseman of ARC China reported in his weekly newsletter, “The NDRC granted its provincial arms more authority in approving overseas investment in February, a step toward giving enterprises a greater say in investment project decisions.
Under the new rule, companies planning to invest less than $300 million in the resource sector, or less than $100 million in other industries overseas, only need approval from provincial economic planners, and not from the NDRC.”
Adam Roseman also reported on updates provided by Zhang Xiaoqiang, the deputy director of the National Development and Reform Commission (NDRC). During the third China Overseas Investment Fair in Beijing, Xiaqiang reported that, “Chinese companies have been investing vigorously in foreign countries this year, despite the global slowdown in international investment activity caused by faltering economic recovery.”
According to a newsletter article by Adam Roseman of ARC China, it is definitely possible for China’s banking economy to exceed that of the U.S by 2023.
PricewaterhouseCoopers’s chief economist John Hawksworth has stated that current banking leaders should accept the shift in power and begin to prepare by acquiring shares of emerging markets’ unbanked populations.
“With populations of well over a billion each, access to markets like China and India is critical for growth,” he said.
Adam Roseman writes “Chinese banks already dominate global rankings by market value, and some lenders have already secured heavy emerging market exposure to tap into booming demand for financial products from young and increasingly wealthy populations.
“Banks in the fast-growing emerging markets (E7) of China, Brazil, Russia, Mexico, Indonesia and Turkey have been relatively shielded from the financial crisis that brought many western peers to their knees and sent asset values plunging.”
Hawksworth also noted “The E7 doesn’t need the G7 for capital, decision making or consumers, so the established economies will have to make a strong case to convince new economy policy makers of the benefit of inviting foreign competition in.”
In a fascinating recent article on Bloomberg.com, NYU professor Nouriel Roubini discusses the global economy. While he explains that it is possible that the world economy will see “anemic but OK” global growth, or perhaps even more optimistic scenarios, he says that we may, instead, see stunted growth from 2013.
He discusses the slowdown in China, which is a focus of companies like ARC China with Adam Roseman, the “perfect storm” of fiscal woe in the U.S. and many other factors influencing the global outlook.
The article, by Shamim Adam, is certainly worth a read by anyone in the financial sector or anyone interested in global economic issues.
Adam Roseman, Founder and Managing Patner of ARC China, recently wrote about the 3rd Nobel Laureate Symposium on Global Sustainability that was held in Stockholm, Sweden. Participating in the event were many distinguished leaders, including the former Norwegian Prime Minister Gro Harlem Brundtland.
During the conference, 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 the reliance on coal as the main source of energy in China is expected to change in the future. He explained how they plan to do so, and what the cost will be to the country. He concluded by saying, “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.”
As part of the ARC China monthly newsletter, Adam Roseman, ARC China Founder and Managing Director, explained that China’s economy will surpass America’s in 2016. He explains that this is actually ten years earlier than was forecast under current exchange rates.
The China GDP has increased by 9.7% just in the first quarter of 2011 from 2010, as reported by the National Bureau of Statistics of China. This is higher than China’s target that they set for 8% for the full year 2011.
As Adam Roseman: ARC China explained, “Consumer spending, among the three engines of China’s economic growth, has contributed the most to the first quarter’s GDP growth, at 5.9 percentage points out of the 9.7 percent growth. Retail sales surged 16.3 percent year on year in the first quarter.”
In conclusion of his article, Roseman explained that ARC China anticipates equilibrium between economic growth and price growth for the Chinese economy by the end of 2011. They assume that stabilization will continue in 2012, as reported by Adam Roseman. ARC China concludes by saying that, “The march of China’s economy to pass that of the US by 2016 should be viewed as the major economic story over the next decade.”
Adam Roseman, Founder and Managing Director of ARC China, announced on September 20, 2010 that he would be moderating a panel discussion. The panel discussion, titled “Examining the Development & Growth of a Sustainable Domestic Private Equity & Venture Capital Ecosystem In China: What More Is Needed For The Long Term Strength Of The Industry?” was part of the China Summit at SuperReturn Asia 2010.
SuperReturn Asia 2010 is the region’s main annual Private Equity and Venture Capital Industry event, and it was co-sponsored this year by Adam Roseman’s investment firm, ARC China. This year’s conference was held from September 27-30 at the JW Marriot Hotel in Hong Kong.
The panel examined a number of current topics including exit strategies and the need for transparency in China’s domestic listing process.
Adam M. Roseman is the founder and CEO of ARC China Inc., a private equity firm specializing in investing in and partnering with domestic Chinese companies with potential for high growth. ARC China has offices in New York, Los Angeles, Chengdu, Beijing and most recently in Shanghai.
ARC China Inc., an affiliate of ARC China Investment Partners LLC, headquartered in Beverly Hills, California, recently expanded its China operations to include a new office in Shanghai which will be the Chinese headquarters, thereby enlarging its staff and bringing the total number of employees in its China locations to approximately 12. The new staff will focus their efforts on deal sourcing, providing support for its existing portfolio companies and on-the-ground due diligence.
Among the industries which ARC China Inc. focuses on are healthcare, resources, consumer industries and clean-technology.
On a business trip to China in May 2008, Adam Roseman, CEO of ARC China, Inc. was visiting the city of Chengdu in the Sichuan Province. While there the region experienced a massive earthquake that killed over 69,000 people and injured more than 374,000. Witnessing firsthand the devastating aftermath and effects on the largely rural population, Roseman vowed to give back to the community and help re-build the area that has become such an integral part of his appreciation for the Chinese people and culture.
Upon returning to the U.S., Roseman quickly organized a large group of professional athletes, political leaders, entrepreneurs, and influential members of the Chinese community to take part in a fundraiser.
Speaking at the Fourth ” Leader’s Summit of the International Chambers of Commerce and Business Talks on Green Industries”, Adam Roseman of ARC China stated that there is a great potential for growth for the renewable energy industry in China.
Roseman’s knowledge of the renewable energy sector stems from his experience at the helm of ARC China, where he has been heavily involved working with biofuels, solar, and energy efficiency companies from rapidly growing economies around the world and now exclusively focusing on domestic Chinese companies. ARC China manages multiple investment funds and maintains extensive relationships with strategic venture capital, private equity firms, private investors and other financial institutions in North America, Europe, Asia and the Middle East, which invest with ARC China to provide capital to a wide range of companies to ensure their growth and continued success. ARC China also provides full assistance and advisory in M&A transactions.
“Building a society focused on resource conservation and environmentally friendly practices are important factors in China’s modernization efforts and provide great opportunities for Fujian businesses and green industries as a whole. We very much appreciate the informative presentation given today by Mr. Adam Roseman from ARC China, Inc. It is our hope that Fujian businesses will benefit from Mr. Roseman’s vast knowledge pertaining to the future of green industries as well as ARC China’s expertise in renewable energy and utilize this information to further expand within the green sector,”
said Mr. Xu Meidi, Vice Chair, China Council for the Promotion of International Trade (CCPIT), Fujian Sub-Council and Fujian Chamber of International Commerce.
FUJIAN, China, May 18, 2008 – Adam Roseman, CEO and Founder of ARC China, Inc., presented to attendees of “The 4th Leaders’ Summit of International Chambers of Commerce & Business Talks on Green Industries” on trends in the clean energy sector and the immense growth potential for renewable energy industries in China. The international conference was held in conjunction with the Commodities Fair Fujian China (CFFC) 2008.
Since 2006, the conference has focused on topics such as environmental protection, clean energy, energy saving practices, and green industries. The themes of the 2008 conference included green energy, green agriculture, green architecture and building materials and related services. State and Fujian provincial officials and over 100 Chinese and foreign business and professional people attended the conference.