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.
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.
Discovering for Life: The Campaign for Cedars-Sinai
“Discovering for Life: The Campaign for Cedars-Sinai” is a fundraising venture of Cedars-Sinai, an organization where Adam Roseman is a member of the board. This organization works to deliver high- quality patient care, train new doctors and healthcare providers, and discover new treatments through intense research. The five-year campaign came to an end recently, with a total of $357 million which will be put towards various research projects.
The operation passed its $350 million goal and has resulted in the founding of two institutes, four centers, eleven endowed funds and 20 chairs. By supporting the work of globally-recognized scientists, these funds will aid with the discovery of new therapies, cures and technologies, as well as enhance the well-respected training programs.
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.
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.
China’s New Economic Structure
In a bid to escalate efficiency in the face of outdated capacity, the State Council of China called on commoditized industries to establish more mergers and consolidate. This was along the lines of the recent announcement from the Ministry of Industry & Information Technology (MIIT) to eliminate more than 2, 000 energy-intensive and polluting factories. A deadline for this by the MIIT has been set – the end of September for factories from 18 varying industries including construction materials, textiles, dyeing, steel production and more. Companies not complying with such instructions will not be able to get loans, government approval for new investments or access to more land. As well, they may even lose their production license and pollution permits. Such news is important for all those connected with China’s economy and investment (such as those at ARC China, including MD and founder Adam Roseman) since this kind of economic restructuring is set to “bring the country greater independence within the global economy as it will allow the country to increase its bargaining power for imported commodities and allow for further decoupling from the weakened traditional export markets in North America and Europe.”
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.
Orange County Chapter of the Association for Corporate Growth
Adam Roseman, who serves on the Board of Directors and is the Co-chairman of the Marketing Committee at the Orange County Chapter of the Association for Corporate Growth. The committee is currently organizing a fun event – the ACG OC Beer academy – where attendants will get to learn all everything they wanted to know about beer and more. Alex Puchner of BJ’s Restaurant and Brewhouse, SVP of Brewing Operations will be leading behind-the-scenes brewery tours. There will also be beer tasting, pizza and appetizers to make this an overall fun and enjoyable evening with a difference.