Property Controls in China
According to a newsletter written by Adam Roseman of ARC Investment Partners, China’s banking regulator claims the country’s lenders are capable of dealing with a 50% fall in property prices. Liu Mingkang of the China Banking Regulatory Commission confirmed that the regulator had performed the necessary tests on domestic banks.
“The stress tests do not reflect the CBRC’s view about the property market’s direction, but the results should strengthen the confidence of all banks in implementing the property controls,” Mr. Liu stated in an interview.
Though few predict such a dramatic plunge in pricing, costs have begun to decrease slowly in the major cities. As a result, many have criticized Beijing’s tightening policies.
Adam Roseman and China Investments
Adam Roseman, founder and CEO of ARC Investment Partners, knows a thing or two about China, its economy and making money on investments in the country. There are definitely some tremendous investing opportunities in China according to Adam Roseman. ARC Investment Partners has been doing just that since 2005. But there are also – it appears – great possibilities for Chinese investors elsewhere. Indeed, just yesterday, there was a news report of 27 Chinese setting out to explore new investment options outside of the country. The delegation went on a “fact finding mission” together with the Fiji/China Business Council and Sir James Ah Koy (the ex-Fiji Ambassador to China, Patron of the Council).
Apparently these investors are quite well-to-do and are looking at a broad spectrum of Fiji investment opportunities, such as imports, exports, retail and manufacturing sector and more.
Joshua Kurtzig Joins ARC China
ARC China, the investment firm, was recently pleased to announce the appointment of Joshua Kurtzig as a Managing Director for the company. He joins over 30 professionals working throughout China as the new head of the company’s Beijing Office.
“I’m very pleased and excited to join ARC China and look forward to continuing the firm’s tradition of successful investing in China, ” Kurtzig explained. “I was particularly drawn to ARC China’s expertise and proven track record in finding, investing in, and exiting from investments in fast=growing sectors of China’s economy.”
Arc China’s Founder and Managing Director Adam Roseman stated that the company is “delighted to have Josh join ARC China. He brings a wealth of China investment experience, as well as global financial expertise, and will make a valuable addition to our team.”
Adam Roseman with NASCAR
This is a photo of Adam Roseman, CEO of ARC China, at the California Speedway in Fontana. He took part in a race as part of a day organized to help create a deal for a client.
Adam Roseman Fell in Love with China
ARC Investment Partners, Adam Roseman managing director and founder, was recently featured in the on-line German Business News Magazine Wirtschaftswoche. The July 2010 article focused primarily on the expectations Adam Roseman has for the growth and development of the Chinese economy, and the various investment opportunities that are presenting now in China.
The article mentions a bit of the history of Mr. Roseman’s involvement in Chinese investments, explaining that Adam Roseman first came to China in 2007, when a short trip turned into a serious interest. His original intention was to merely close a deal in the solar power sector, but something clicked, as Mr. Roseman explained, “I fell in love with China, its people and culture straight away.”
Adam Roseman noticed how hard people work in China, without complaining. “In the US, people make 75,000 dollars a year, working 35 hours a week. In China, they earn one tenth but work twice as long,” Mr. Roseman pointed out. What began four years ago as his Asian fund ARC China quickly became one of Adam Roseman’s main focuses, driven by his strong enthusiasm for China. Today there are several offices of ARC China in the country, including in Shanghai, Chengdu, Xiamen and Danyang.
Adam Roseman Excited by China’s Booming Economy
Signs of China’s expanding economy abound throughout the country. In Dalian, one city in the north eastern part of China, Adam Roseman sees all the signs of an impending economic boom. Dalian is a ‘second-tier’ city bursting with potential. In a tour of the city Adam Roseman noted the recently renovated historic city-center, which overlooks the Yellow Sea coast. Adam Roseman sees stately rocks above and pristine white sands below and imagines the city as a modern coastal resort. Adam Roseman isn’t the only one to imagine such things. City planners share this vision and have planned new residences and luxury hotels, which are already under construction to create the resort of their dreams.
Despite the fact that old housing is being demolished in Dalian to make way for the new in the Dalian city center, prices for real estate are still quite low, compared to similar properties in mega cities like Shanghai and Beijing. Mr. Roseman does not expect these low prices to last forever, as he explains, “The world has not yet grasped the fact that the key developments in China are happening in the smaller towns.” Adam Roseman and ARC China are getting ready for the boom in China which is coming soon. Eventually the rest of the world will catch up.
Adam Roseman Optimistic About Chinese Economy
Adam Roseman of ARC Investment Partners sees good news in the continuing strong showing in the mergers and acquisitions sector of the Chinese marketplace. Overseas investors are seeing a great potential in the natural resources industry, which is the main industry which overseas investors are supporting as the M&A market continues to show robust activity. During the first half of 2010 not less than fourteen deals were signed in the natural resources sector, including the largest deal, Sinopec’s acquisition of 9% in Synacrude, worth about 4.7 billion dollars. Another example of a larger M&A deal which is driving the success of this industry was the investment China Investment Corporation made in PennWest Energy, valued at a total of 1.2 billion dollars.
Alternative Energy Vehicle Development in China: New Ideas Reported by Adam Roseman
In a recent newsletter, Adam Roseman of ARC China reports that China is looking into becoming one of the largest markets for renewable energy vehicles within the next 10 years.
The goal is to offer tax reductions and exemptions to encourage the development of pure electric vehicles. Chinese officials from the NDRC, the Ministry of Industry and Information Technology (MIIT) and the Ministry of Commerce (MoFCOM) hope to have a plan to submit to the State Council after receiving feedback from relevant ministries and departments. MIIT, according to industry experts, has already completed a 2011-2020 draft plan for the alternative fuel vehicle industry.
ARC China & Others Offer Tips for Investing in China
The Chinese market is one that many companies, such as ARC China with Adam Roseman, are focusing on at the moment. China has seen great growth in recent years and great potential for mutual funds and private investors.
Here are a few tips to think about before investing in Chinese funds and in the market there. Make sure to look at the fund’s average market capitalization. This is the average size of company held by a fund. If you don’t want to take too many risks, avoid funds that have average market caps below $6 billion.
Make sure to consider that your investing strategy requires long term thinking. Commit two year money to China. That will allow you to get through inevitable down times, while committing to enough time to, hopefully, see some returns.
ARC China & Its Team: Adam Roseman & More
ARC China is comprised of over 30 highly capable financial professionals. Together with CEO and Founder Adam Roseman, these investors make public and pre-IPO private equity investments in high growth businesses in the Peoples’ Republic of China.
One of the Managing Directors at ARC China is Barry Freeman. Mr. Freeman was a Vice President at HPC Capital Management in New York, with a focus on direct investments in public companies. After this, he was a Vice President at Knight Capital Group (NASDAQ: NITE) in New York. As part of the Capital Markets Group, he raised growth capital for private and public companies. While working at Knight, he focused on cross border transactions with Chinese companies and completed over $100 million in equity and equity linked transactions over a three-year period.