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.

FTA Agreement and ARC Investment Partners

China’s first ever bilateral FTA with a Central American country.  Such agreements are always advantageous for foreign investors, such as Adam Roseman of ARC Investment Partners who has been investing in the region for many years.

According to an article in China Briefing it is hoped that this agreement will assist in “strengthen[ing] mutual trading ties and bring about significant increases in business opportunities.”  Parts of this agreement will provide the opportunity for more than 60 percent of the countries’ products “enter each other’s market duty-free immediately, and will allow tariffs to be removed from another 30 percent of products gradually in the next 5 to 15 years.”

The primary exports from China that will most benefit from this agreement will be: automobiles, chemical products, electrical appliances, fruits, leather, machines, and raw fur.

Big Chinese Investment Plans

According to a recent article in Bloomberg, Chinese venture Nissan Motor Company has plans to make a $7.8bn investment in the next four years “to gain market share as economic growth boosts demand in the world’s largest auto market.”

The goal of the Chinese motor company Dongfeng Motor Co. is to raise its yearly sales of vehicles to over 2.3m within the next five years.  Currently its sales figures are up to 1.3m but with the rise it is expected to enjoy from the number of dealerships in China of 1, 000, things are really looking up.

Indeed, such news like this is great for long-time foreign investors in China such as Adam Roseman of ARC Investment Partners.  Roseman has been making big investments in the country – a wise business decision given China’s attractive environment.

In addition, Carlos Ghosn, Nissan’s CEO, is “counting on growth in China to help make Nissan Japan’s most profitable carmaker for the first time since at least 1992, is aiming to boost its China market share to about 10 percent by 2015, from its current 6.2 percent.”   As well, Hong Kong-based analyst at Mitsubishi UFJ Asset Management, Ricon Xia pointed out how “the Chinese market will play a much more important role for Nissan in the future, as it has potential like no other.”

ARC China, Inc opens Shanghai Office

Press releases regarding ARC China and Adam Roseman appear on ARC China’s website. These Press releases can also be viewed on Adam M. Roseman Online.

The Press release from July 2008
ARC China, Inc. Announces China Expansion with Opening of Shanghai Office
SHANGHAI, China, July 2008 — ARC China, Inc. (“ARC”), a merchant banking entity affiliated with Beverly Hills, California-based ARC China Investment Partners, LLC, is pleased to announce its further expansion into China with a newly-opened China headquarters office in Shanghai and the hiring of additional staff focused on deal sourcing, on-the-ground due diligence and providing support for its existing portfolio companies. ARC China’s Shanghai offices are located at 23 Bund in The Bank of China Building and its China team now consists of approximately one dozen staff in Shanghai, Beijing and Chengdu.
“We strongly believe in the continued robust growth and investment opportunity in China and
therefore felt it was necessary to allocate additional resources to increase our local presence to
aid in the diligence process of our transactions and provide increased support to our existing
portfolio companies. We have completed a handful of transactions in our first year of focus on
the China market and see our transaction pipeline consistently increasing over the coming
years.” said Adam Roseman, CEO of ARC Investment Partners, LLC.

Adam Roseman: Trust a Key Component of Investment Adviser’s Portfolio

from the Los Angeles Business Journal on the Web…
Trust a Key Component of Investment Adviser’s Portfolio
Special Report: Entrepreneurs in Their 20s
By HOWARD FINE Los Angeles Business Journal Staff

When local investment firm founder Adam Roseman walks into a room of potential investors or clients, he exudes such an air of maturity and mastery in the world of investing that people are “genuinely shocked” to realize that he’s under 30 years old.

At 29, Roseman has an impressive resumé: He joined local investment powerhouse Barrington Associates at just 23 years old and in less than three years built up a clientele sufficient enough that he was able to realize a lifelong dream of starting his own business.

Ten months later, in August 2005, Roseman opened the doors of ArcInvestment Partners, a private investment firm in the heart of Beverly Hills specializing in providing bridge financing to companies looking to go public. With funding from three wealthy families placed by their investment advisers, his firm now holds stakes totaling more than $10 million in various companies, and he has brought millions more in total financing to these companies.

But that’s not all. Roseman is an unusually active power player in the non-profit and political worlds. He’s the youngest board member at Cedars-Sinai Medical Center and the youngest board member of Big Brothers/Big Sisters Los Angeles. And he’s on the national finance committee for U.S. Senator and Democratic presidential candidate Hillary Clinton.

“I want to know that I make a difference,” Roseman said of his service on these boards and his political activism.

But his first loves are entrepreneurship and investing. He dreamed of being his own boss ever since he was a child growing up with a single mother, who is a substitute teacher.

Roseman started in the investment business at Lehman Bros. in San Francisco before deciding to move to Los Angeles to join Barrington. Even at that stage, he said he “wanted to learn finance enough, build a skill set and develop enough of a network to strike out on my own.”

When he finally decided to make his move, it was a bit scary. “The most challenging part was leaning on important relationships, convincing them to support me at such a young age in starting my own business.

“In my line of work, sometimes people initially don’t take me as seriously as they would someone older. That’s why I have to prove myself and establish credibility. And the only way you can do this is through performance.”

One of those he convinced was Ken Rickel, a principal in Liongate Capital, a private investment group. They met on a deal when Roseman was at Barrington and Rickel was immediately impressed. “He was young, but aggressive. He really knew what he was doing, way above what I was used to for a person that age.”
When Roseman went out on his own about a year later, “we decided to invest in him,” Rickel said.

Another company that ArcInvestment Partners has helped fund is Cyber Defender Corp., which supplies Internet security software for consumers. Chairman and Chief Executive Gary Guseinov said of Roseman: “He comes across as much older than what he actually is because he’s so accomplished. Most people are kind of shocked when they hear how old he is.” Guseinov said Cyber Defender is in the midst of attempting to go public and called the $4.5 million from ArcInvestment Partners a crucial step in that effort.