ARC China

According to a newsletter by Adam Roseman of ARC Investment Partners, Beijing has reported a surprising 9.5% GDP growth for the second quarter. The figure dropped a little from the first quarter’s 9.7%, however, it exceeded economist’s expectations.

A National Bureau of Statistics spokesperson has expressed confidence in China’s economy, stating that it remains strong, and adding a number of gains in investment by both local governments and private businesses.

China Premier Wenjia Bao indicated a continuation of anti-inflation policies. The People’s Bank of China explained that financial institutions have issued $98 billion of new loans this past June, 15% up from May.

Mr. Wen’s efforts to lower prices include controlling money supplies, promoting agricultural good production and increasing the pork supply.

A few years ago, ARC Investment Partners, a private equity firm, correctly assessed the situation in China. The company recommended that investors shift their focus to domestic sales, instead of working primarily with overseas firms.

“The export economy model is completely broken,” explained Adam Roseman of ARC Investment. “They are working as fast as they can to develop their domestic economy.”

He added that ARC Investment suggests connecting with Chinese retailers and other “consumption-driven industries,” and that he personally supports energy efficient and environmentally conscious companies. In fact, ARC China purchased stakes in China Energy Recovery Inc., and NF Energy Saving Corp.

According to Kamal Nath (China’s Minister for Road Transport and Highways), the country wishes to invest in the road sector to “treble its outlay in India.”  It is believed that by signing an MoU, this would “pave the way for greater infusion of money and technology.”  It seems it’s not China which sees the benefit of the two countries merging since India has been looking for joint ventures with China in “project management, design and engineering.”  There are clearly immense opportunities that would be beneficial to both countries.  This would also make big waves for all those investing in China, and would have an impact on companies such as ARC China, headed and founded by Adam Roseman.

As reported in the China Daily, China and Japan have recently agreed to develop new platforms for economic growth. Certainly, this is a move that will help to increase stability for the global economy.

China and Japan signed a number of agreements related to energy savings, logistics, business environment improvements, food quality and other issues.  Both sides did have messages of concern for the other side, however. China asked Japan to lessen restrictions it has placed on high-tech exports to China; and Japan asked China to pay more attention to exports of mining materials and indigenous innovations.

These talks and avenues of communication are a step in the right direction and a sign of hope for both economies.  This bodes well for organizations like ARC China with Adam Roseman that focuses on investments in China.

Certainly, if your company plans to invest in the Chinese market, there are number of key steps to be taken.  A company like ARC China with Adam Roseman understands the commitment that such a venture takes and has established representative offices in China with a team that is working there.

In addition to getting to know the local culture and business models, investors need to establish close relationships with government officials.  Since the government in China influences the market movement a good deal, a strong government relationship can go a long way towards fostering your company’s success.

Similarly, your administrative tasks will work more smoothly if the right government officials have been consulted and sought out.  Paperwork applications and local authorization can all be done more efficiently if channels of communication have been opened correctly.

In June, ARC China, with Founder and Managing Director Adam Roseman, opened a new office in Dalian, China.  Dalian is considered to be a financial center of Northeast China and its population is over six million.

The main goal of the office is to help ARC China and Adam Roseman to offer on-site operational support for its Liaoning Huayuankou Investment Fund.  Called “the Fund,” this private equity fund is part of a joint investment with the Westly Group and it is the first private equity fund in Dalian that partners with the local government.

Green energy is not a new concept by any stretch of the imagination.  But today, the world is fast beginning to realize just how much can be done in this field.  It’s not just people making small changes either; its institutions and officials.  A small step can be seen by the American Postal Service which is working towards energy reduction in conjunction with guidelines released by the Department of Energy.  This strategy has included: green buildings, roofs and “an optimally efficient management system of energy consumption form part of the energy-reduction strategy.”  Such steps are being received with great delight by those around the world who have been pushing for green energy improvements.  One such company is ARC China, headed by Adam Roseman, which has been working with solar and biofuels and today focuses on domestic Chinese companies.

This recent forum, held in Shanghai, “discussed and highlighted the extensive trade and investment opportunities that exist between China and Abu Dhabi.” The idea of this forum is to “create networking opportunities for Chinese and Asian investors with Abu Dhabi’s key industry leaders, financial intermediaries and top-level policy makers.” Participating in the forum was H.E. Nasser Ahmed Alsowaidi, Chairman, Department of Economic Development who “praised the Chinese rapid development in science, technology and education, as well as the remarkable achievements in Infrastructure which include energy, transportation and telecommunication, and congratulated China on the major success of Shanghai World Expo.”

Speaker at China Fund of Funds Summit Adam Roseman Keynote
In the recent Second International Fund of Funds Summit of 2010 Adam Roseman was a keynote speaker. Mr. Roseman spoke about the public-private opportunities for investment in the Chinese cities of the Tier II and Tier III designations.
The purpose of the Fund of Funds Summit was to give participants an opportunity to learn about the policies and regulations with which China directs Fund of Funds investment strategies. This year the Summit assembled together a variety of investment professionals including global investors, entrepreneurs and government officials so that they could discuss together the governing policies overseeing fund creation, processes and strategies.
In the past ARC China has worked together with NDRC (National Development and Reform Commission) to create public-private joint funds in the Tier II and Tier III cities. The goal of this partnership is to help local government partners decide on capital allocation and the development of local economies.