Adam Roseman Online

Learn More About Adam Roseman

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.”



Nike, one of the most popular sports brands in the world, revealed its plans to double its revenue in China over the next four years.

“I think China is probably more important than anywhere else in the world,” Charlie Denson, Nike Brand  president, said. “We will be pretty aggressive as we continue to look at the expansion of our distribution.”

According to an article by Adam Roseman, Nike products are currently available in over 7,000 stores throughout China.

Denson is optimistic about Nike’s advancement in China.

“I think we still have a huge amount of growth opportunities as we see that economic development moves into smaller cities. We believe that it is still an infinite market. Our job is to grow the market and lead that growth,” he said.

According to a newsletter written by Adam Roseman of ARC China, Tata Motors’ Jaguar Land Rover has revealed its hopes to manufacture its vehicles in China, and has already met with numerous potential partners in the region.

“We have previously said that we would like to manufacture our vehicles in China for Chinese customers and this remains our ambition,” said Del Sehmar, Jaguar Land Rover spokesman.

“There are many stages in discussions and we have spoken to a number of parties and we continue to respect the official process and we have no news or further comment to give at this point in time,” he added.

In a Chinese economy newsletter, Adam Roseman of ARC China discussed the country’s manufacturing growth. He explained that manufacturing slowed less than economists projected, though smaller businesses were hurt by limiting credit and the decreasing export demand.

“Growth has decelerated in the face of the global soft patch in export demand and the weight of tightening,” said David Cohen, an economist at Action Economics in Singapore. He continued, stating that the government “will be able to achieve a soft landing, tightening enough to prevent inflation from getting out of hand but at the same time allowing continued growth.”

Last month, CRT examined China’s GDP data and reached the conclusion that while the government’s tactics for calculating growth have improved, there is still room for significant growth. Some claim that electricity statistics are a better judge. Electricity output has an important role in China’s economic data, as officials may lie, but volts do not. Therefore, electricity is viewed as a reliable proxy for economic growth.

Adam Roseman of ARC Investment Partners agrees. In a company newsletter he wrote: “The manufacturing and industrial sectors are major consumers of electricity; changes in output should be reflected in changes in electricity production. Over the last several years, growth in electricity output has moved more or less in line with growth in industrial output.”

In a recent company newsletter, Adam Roseman of ARC Investment Partners explained that although the country’s export levels have dropped, China’s economy is continuing to thrive despite the global economic crisis.

According to David Cohen of Action Economics, “Growth has decelerated in the face of the global soft patch in export demand and the weight of tightening.” He added that the government will be able to “achieve a soft landing, tightening enough to prevent inflation from getting out of hand but at the same time allowing continued growth.” China’s central bank has also stated that the fundamentals of economic growth are still good.

China’s middle class is rising- and appears to be ready to take off by 2023.  As reported by Adam Roseman, Founder and Managing Partner at ARC China, approximately half of the urban population in China will be middle class by 2023.  At the moment, as documented by the think tank Chinese Academy of Social Science, China’s middle class population is 230 million in the cities, which accounts for 37% of its urban population.

The National Bureau of Statistics determined in 2010 that about 25% of the Chinese population is in the middle class bracket. China has made its intentions clear, hoping to move more citizens into the middle class bracket while also helping to grow the wealth of the current middle class.

One unique feature of China’s rising middle class is its age.  They are going to be unusually young.  Statistics have pinpointed that Chinese consumers between 18 and 29 are actually those with the highest income on average in the area because of their economic levels and other factors.

Certainly, as Adam Roseman points out, this is one location and one group of emerging people that is worth watching.

Adam Roseman of ARC Investment Partners wrote an article discussing China’s role in the world’s economy today. According to the International Monetary Fund, China has contributed greatly to the global economy during the financial crisis, and is expected to continue doing so.

IMF’s executive directors explained their belief that “expansionary policies in China during the crisis has played an important role in bolstering global stability and growth, and expected China’s positive externalities to continue, especially for regional economies.” IMF continued, stating that “a major disruption in China’s so-far-steady growth would have material adverse consequences for the rest of the world.”

Nigel Chalk, Senior Advisor at IMF’s Asia and Pacific Department said “Chinese economy will continue to be a ‘bright spot’ in the global growth. We do see the growth is very healthy, and inflation is declining.”

In recent news in China, Christine Lie is being appointed as Senior VP and Head of Listings to Singapore Exchange (SGX).  Lie will be attempting to beef up attempts to make it easier for Chinese based companies to make inroads into the global capital market.  In addition, it will be her responsibility to give over 150 China companies certain services that will make their packages more attractive to foreign investors such as Adam Roseman’s ARC Investment Partners.

Today, more than 20 percent of SGX’s 776 listed companies are Chinese.

Christine Lie will be working directly for Lawrence Wong, Executive VP & Head of Listings.  She has a background in the field, having worked for Hong Kong Exchanges and Clearing (HKEx) for more than a decade.  Her last position at the firm was VP of the Issuer Marketing Department.

It is a great privilege for SGX to have Lie join the team.  According to Wong, “we are pleased to have Christine join our Listings team and lead our efforts in helping China companies access global investors via the Asian Gateway.  Her appointment underscores our continued commitment to the China market and our focus on growing the pool of SGX-listed China companies.”

In a recent article in The Vancouver Sun, the question was asked, is making an investment in Chinese forestry today, a risk or an opportunity?  Well, perhaps one needs first to take a look at the Chinese language and how successful Chinese investors such as Adam Roseman of ARC Investment Partners make it in the investing world.  Doing this, one will soon realize that it could be one and the same.  For example, in Chinese, the character for crisis is comprised of two characters: danger and opportunity.

It seems like the main concern right now for Chinese investors is that neither China nor Canada seem to be in possession of “any type of formal agreement on cooperative investigations and inspections in the field.”  This has to be worrisome because most of these operations are actually taking place in China.  As well, there is the issue of the country’s “continuing forest tenure reform, to relocate its traditional collective-owned forests to individual farmers under a ‘forest contract responsibility system.’”  The goal however, is a very admirable one – to try and give farmers a bit of a lift and at the same time, build a more “harmonious society.”

Whatever  happens, at the end of the day if the problems aren’t sorted out, the situation could indeed put off Chinese investors such as ARC Investment Partners Adam Roseman.  On the other hand, they could do like the Chinese do and see the potential “crisis” as “danger” with “opportunity” and take the plunge.