The global private equity group affiliated with Robert W. Baird & Co, Baird Private Equity will set up an investment team focused on offering growth equity capital to smaller, high potential companies in China or with substantial operations and growth opportunities in Greater China.
Baird Private Equity, owning 45 investment professionals in the United States, Europe and Asia, makes venture capital, growth equity and buyout investments in the US, Greater China and Europe. It has raised about $ 2.4 billion in venture and buyout capital across the US and European markets.
Paul Carbone, Director of Baird Private Equity pointed out that as private equity has entered China, smaller high potential companies have been neglected; however, Baird Capital Partners Asia is well-positioned to support smaller, high growth companies and their management teams. BCPA is an ideal choice for companies in China that want have access to the global financial resources and operating expertise.
In fact, BCPA is the second phase of Baird Private Equity’s strategic expansion in China. In 2003, a team of up to 20 operating professionals was built in China. They helped more than 15 Baird Private Equity portfolio companies create value by means of sourcing, manufacturing or distributing in Asia.
Popularity: unranked
China Business, China Business News, Investment China
Baird Private Equity, China, investment, small companies
Planning to expand wireless Internet coverage in the city ahead of 2010 World Expo, Shanghai is on the way becoming China’s first “wireless city”.
The city’s first wireless hotspots created last year has now expanded to cover about 100 hotels and restaurants. According to Shanghai official’s plan, about 2000 extra network access points in the city’s public areas and wireless broadband and service will be completed in the busy commercial districts of Xujiahui, Jiading and Pudong.
The first practice of the plan has recently been carried out in the Nanjing Pedestrian Mall area. The whole wireless areas will be ready for use in 2008.
Wireless broadband network has gradually become an essential part of a city’s infrastructure and Shanghai is not the first city to become wireless. Last year, about 300 cities all over the world were trying to establish wireless broadband services. In China, Beijing, Tianjin, Wuhan, Hangzhou and Shenzhen are competing to become the first “wireless city”.
Popularity: unranked
Internet and Hi-Tech
Expo 2010, internet, Shanghai, wireless broadband network, wireless city
China Life Insurance Co, the country’s biggest life insurer has invested USD 300 million in Visa’s initial public offering, making it the first mainland insurer to make a pre-listing investment in a multinational company.
The purchase is the first major investment by a Chinese insurance company in the America, especially at the time of sub prime mortgage crisis. This investment was intended to put more of the money overseas to diversify risks after China’s benchmark stock index fall. The insurer used its own foreign-currency assets to make the investment, its biggest in the US stock market.
China Life even plans further investment in the US and Europe to diversify its portfolio.
Popularity: unranked
China Business, China Business News
China Life Insurance, portfolio, U.S., Visa
As the Yuan has strengthened 4% against the US dollar so far this year, tax breaks for tax exporters are suggested to change the sluggish situation of textile industry.
Last year, the government reduced rebates on exports including textile, toys and steel products, making efforts to lower energy consumption and ease trade discord with the America and Europe. However, with the shutting down of many textile companies, the government should consider resuming some tax incentives to help them survive.
Aiming to maintain 15% growth in the total value of exports and imports in 2008, the government should take measures to “stabilize” investor’s expectations for the Yuan’s appreciation.
Popularity: unranked
China Business, China Business News
appreciation, China textile export, Chinese government, tax, tax incentives
In 2000, BASF and Sinopec set up their 50-50 joint venture BASF-YPC Co Ltd in Nanjing. This year, the two sides have reached an agreement to spend $900 million to expand their joint project to meet increasing demands in the domestic market.
The two companies have submitted the technical and commercial feasibility study for the expansion of the steam cracker from 600,000 to around 750,000 tons of ethylene per year and the expansion of manufacturing facilities of other petrochemical products. The expansions are expected in phases starting this year and the cracker expansion is scheduled between 2009 and 2010.
“The completion of the feasibility study marks an important step in the cooperation between Sinopec and BASF… it is expected to make a significant contribution to meet the domestic market demand,” said Wang Tianpu, president of Sinopec Corp.
And for the German company, “the expansion strengthens BASF’s close partnership with Sinopec. It is another significant demonstration of the company’s commitment to China’s chemical market,” said Martin Brudermuller, member of the board of executive directors of BASF.
Popularity: unranked
BPO, China Business, China Business News, China Outsourcing
BASF, China Business, joint venture, Sinopec
Ping An Insurance Co last month announced its plan to acquire a 50% stake in Fortis Investment Management for 2.15 billion euros from Fortis Band based in Brussels, aiming to increase its presence on the international asset management market.
In 2007, the company’s net profit rose to 19.2 billion, up by 140.2% compared with the year before, which was attributed to its “comprehensive earning mode” that seeks to balance income from insurance, banking and investment. And the total revenue last year amounted to 137 billion yuan, up 55.4% from the year before. Earnings per share was 2.61 yuan, compared with 1.27 yuan in 2006. Its rate of investment return improved from 7.7% in 2006 to 14.1% in 2007.
“The proposed equity investment in Fortis is an effective way to strengthen our competitiveness in the asset management business,” said Ma Mingzhe, chairman and CEO of Ping An Insurance. “The cooperation will enable both parties to diversify earning resources and seek greater growth in different markets.”
If approved by the managements of Ping An and Fortis Bank, the name of the joint venture will be changed to Fortis Ping An Investments, in which the two sides are equal partners.
The company looks forward to benefiting from Fortis’s asset management expertise of the highest international standard while Fortis is in a position to leverage on Ping An to expand its business in the emerging markets in the Asia-Pacific region.
Popularity: unranked
BPO, China Business, China Business News, China Outsourcing
China Business, Fortis, investment, Ping An
Citigroup and Central China Securities (CCS) will apply to Chinese regulators to establish an investment joint venture. Having already helped Chinese companies list in Hong Kong, Citigroup’s involvement in the country’s domestic investment banking turns out to be an important expansion.
According the new plan, Citigroup would own the maximum allowable 33% stake in the joint venture, while Central China Securities will own the majority.
Citigroup is taking an active part in China’s commercial and retail banking sectors, where it has began to provide Yuan retail banking services and has a minority stake in Shanghai Pudong Development Bank and an actual management control of Guangdong Development Bank.
Popularity: unranked
China Business, China Business News
CCS, China investment bank, Citigroup, commercial and retail banking, joint venture
Ericsson has signed GSM expansion framework agreements with Chinese mobile operators, China Mobile and China Unicom, aiming at expanding its Global System for Mobile Communications (GSM) networks. The deals are worth about USD 1.3 billion and USD 140 million respectively.
Ericsson will be one of the main providers of core and radio network equipment as well as related technical support and services for China Mobile so as to expand GSM/GPRS coverage and capacity in 19 regions across China. Moreover, both companies have already signed the “Green Action Program”, intending to reduce energy consumption in mobile networks and carbon-dioxide emissions.
For China Unicom, Ericsson will act as the main supplier, helping expand GSM networks in 10 regions across China. What’s more, Ericsson will also offer multimedia solutions for WAP services to provide attractive multimedia services and applications.
Carl-Henric Svanberg, president and CEO of Ericsson, said they would continuously support China’s rapidly expanding telecom industry with their “global expertise and proven competence”, while the new framework agreements would further strengthen Ericsson’s position as the leading mobile communications supplier in the Chinese market.
According media report, the projects are expected to be completed in 2008.
Popularity: unranked
BPO, China Business, China Business News
China Business, China mobile, china unicom, communication, Ericsson, GSM, WAP