After buying a 12% stake in Rio Tinto Plc in February, Aluminum Corp of China Ltd (Chalco), the largest producer of metal, said it will step up its overseas expansion to ensure sustainable growth through more access to mineral resources.
The company will jointly invest in more overseas mining projects with international mining companies. It also plans to spend 1 billion yuan on a 5% stake in a proposed project with AVIC Ⅰ’s Commercial Aircraft Co.
Chalco decides to acquire more local alumina processors, most of which are struggling as slim processing fees fail to offset increase in costs. “It’s a good time to merge with small alumina processors to expand Chalco’s processing capacity in 2008,” said Xiao Yaqing, chairman and CEO of Chalco. Chalco’s processing capacity is expected to reach 1.09 million tons in 2008, largely through mergers and acquisitions.
Chalco now is also seeking opportunities to expand into other metals such as titanium and copper since aluminum producers are supposed to diversify their businesses in the face of international competition.
Popularity: 2% [?]
Chalco, China, expansion, investment, mining
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: 4% [?]
Baird Private Equity, China, investment, small companies
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: 2% [?]
China Business, Fortis, investment, Ping An
UBS, the Swiss bank will launch a new fund to invest USD 1 billion into the Chinese property market with Gemdale Corp, a Shanghai-listed developer.
According to Chen Lijian—the Head of China Real Estate for UBS Global Asset Management, UBS will focus on residential and also hopes to launch a vehicle. The bank will raise USD 300 million in equity, which will give it USD 1 billion of buying power.
Following Morgan Stanley, Deutsche Bank and ING Real Estate that raised several hundreds of millions of dollars for investment in Chinese housing last year, UBS wants to write off more than USD 18 billion on American real estate market due to the ongoing sub-prime crisis.
Popularity: 2% [?]
China Real Estate, investment, Morgan Stanley, residential, UBS
The state-owned investment fund—China Investment Corporation, will invest in Japan’s financial markets heavily.
As the dollar is losing its worth against all major currencies, China’s assets shrink on a daily basis, and the government has determined to use its investment fund—China Investment Corporation (CIC), to invest a large but undisclosed amount in foreign stocks. Japanese market was planned as the target.
With the recent financial turbulences in the globe, China has realized it may be a proper time to further invest billions of US dollars. The fund will “soon start investing in Japanese shares”, a CIC official reported. Some experts believe that the Chinese may have already bought stakes in some of Japan’s most renowned companies, like Toyota and Sony.
Moreover, the investment in foreign funds just begins from Japan. The CIC starts recruiting foreign financial specialists who will manage the cash market, fixed income, equity and hedge funds for its expansion in North American and Europe on its website.
The CIC international investment department will be located in Beijing.
Popularity: 1% [?]
Chinese assets, CIC, currency reserve, investment, Japanese stock
Encouraged by last year’s robust sales and expecting a vigorous and sustainable development of the Chinese market, Bosch Group, a global supplier of automotive technology and services, after investing 1 billion euros in China in 2007, plans to pump another 850 million euros from 2008 to 2010.
In 2007, China’s auto industry maintained its 3rd position with a production of 8.88 million units and a growth of 22% on a yearly basis. And its sales stood at 8.79 million units. On the German part, the group saw a consolidated sale of 18.3 billion yuan in China, up by 41% compared with the previous year.
“In the future, we will further expand our manufacturing and R&D activities in China to support our local customers and play an important role as a supplier and partner to the development of China’s automotive industry,” said Peter Pang, president of Bosch (China) Investment Ltd at Auto China 2008.
Popularity: 2% [?]
automotive, Bosch, China Business, investment
It seems as though everyone is investing in China. During the past few years, every type of investment in the country — including private equity and venture capital — has exploded. At first, investment tended to focus on the technology sector; today’s investments are in everything from real estate to infrastructure. In a keynote speech at this year’s China Economic Forum, Lari, managing director of the Sino-US Ventures, noted that online services, business process outsourcing and mobile value-added services will be the top three investment areas in 2008. While the bulk of the investments are still in the IT and IT-enabled services sector, health care is beginning to pick up and opportunities are often regional:Beijing and Nanjing for IT, Shanghai for media, Xi’an for manufacturing, and Dalian and Nanjing for business process and knowledge process outsourcing.
Popularity: 2% [?]
Beijing, BPO, China Business, investment
The Bahamas government in the Caribbean is changing its policy and strategy toward China to make it more appealing to Chinese investors.
The former government primarily concentrated on the American and European markets. But now the new Bahamas leadership intends to facilitate the visa process, install a fully fledged ambassador in Beijing and set up commercial services in Shanghai and Shenzhen in the near future, hoping to lure more Chinese investors.
“China is becoming more open to the world, and the Caribbean is very important market for Chinese companies…. Chinese companies now look to the Bahamas for trade partners. I’m sure more Chinese companies will settle here in the future…” said Li Yuanming, Chinese ambassador to the Bahamas.
According to the Ministry of Commerce, Bahamas investment to China totaled $666 million at the end of June 2007, while direct investment from China to the Bahamas was $14.69 million. And under the new policy targeting at Chinese investors, the archipelago known for its turquoise waters and tax-free status will allow Chinese developers to get 3,500 acres on the island to build homes, hotels and tourism infrastructure.
Popularity: 2% [?]
Bahamas, China Business, investment
Georgia announced on April 2nd that it will set up a business advisory center in Beijing, the first in the Chinese capital by a US state and the 11th international office of the US state, aiming to attract more trade and investment from China.
With its container port, good transportation network and highly efficient labor, Georgia, one of the fastest growing economies in the US, expects to attract more trade and investment from China. Meanwhile, several Chinese companies have foreseen the benefits the state offers and have set up offices there. Since 2005, China has risen to rank the second from sixth as Georgia’s trade partner.
The center will, on one hand, help Chinese companies to find foreign direct investment opportunities in Georgia and on the other hand assist Georgian companies to find new business partners in China and introduce Georgia’s scenic spots to Chinese tourists.
Leading a delegation of around 40 people on board Delta AirLine’s inaugural non-stop daily flight from Atlanta to Shanghai, Sonny Perdue, governor of Georgia, said, “The center will introduce Georgia’s opportunities in commerce and tourism to the world’s fastest growing economy” and by setting up the center “we can come to China and introduce our business opportunities to Chinese people face-to-face.”
Popularity: 1% [?]
China Business, Georgia, investment, trade
