Limited spaces available. Join us on 30 March 2009 @ Langham Hotel, Auckland City
International Sustainable Cities Forum
Building Sustainable Cities
Bringing together government and corporate leaders from New Zealand and China to explore the challenges and opportunities of building sustainable cities. Held in conjunction with the 1st Anniversary of the signing of the China-NZ FTA.
Understanding the Chinese
If you haven’t already signed up for a subscription of Bright, the NZTE magazine that goes out to people interested in international business, you should do so.
Key stories in the Summer 09 issue include coping with the international credit crisis; insights on trading in the Middle East; tips on perfecting your sales pitch; the world’s growing bioeconomy; interviews with two members of NZTE’s China Advisory Board; carbon-labeling of exports; staying sharp in the adventure tourism market.
We want to highlight some salient points from the interviews with the 2 members of NZTE’s China Advisory Board, who have in-depth China market knowledge and have lived and worked in China for a long period.
If you have some time, do read the article. The people interviewed were:
David Mahon, Chair of NZTE’s China Advisory Board.
- Worked in Beijing for 25 years, heading a private equity firm Mahon ChinaInvestment Management Limited.
- He says change in China has been so great though that he says it’s largely his last two years’ of experience that are relevant to clients.
Andrew Browne, partner in a corporate communications advisory company, Beijing Brunswick Consultancy Ltd.
- Advises clients on business development acquisition and listing strategies.
- Previously worked for Reuters for 20 years and in 2007 won a Pulitzer Prize.
- Grew up in Hong Kong.
Some quotes from Mahon:
- “If you’re looking around the world and trying to see sources of global growth, China is one of the bright spots”
- “Brand New Zealand is strong but we lack unity. There are all these meat producers and wine producers selling fragments. We need to approach in a unified way – then Brand New Zealand can be protected.”
- “Language is important”. “I learned five words a day – no one can afford not to learn five words a day.”
- “Too often you see companies with a product in China and it doesn’t do well. China demands products unique to China. For example, media is very culturally sensitive.”
Quotes from Browne:
- “What is it that China needs? They need brand, technology, marketing and sales channels. You’ll see a very serious shopping expedition going out in search of all those things.”
- “It’s a truism that China is a complicated country”
- “We each have a vision which is only a tiny slice of the whole. For all New Zealand companies, it’s critical that they meet as many people as they can and get as broad a view as possible. The secret of doing well is asking the right questions.
- The economy has been far too focused on exports and heavy industry. The low-end sweat-shops
along the coast have resulted in excessive use of raw material and energy. In that sense, the old
model has run its course and was looking unsustainable before the credit crisis hit. - “Would you advise a top Chinese company manager coming down to New Zealand to learn a little English? The notion you can send a senior manager to China without language is ridiculous. China is changing so quickly. Language gives you a feeling of engagement and learning about the market.”
- “If you’re an architect, there is nowhere in the world doing building like China,”
- “Take parks. China needs parks; in the West, all the parks are there. Companies in the West that have long become dormant have sprung back into life in China. China is not something
to fear at all. China is creating vast opportunities across the manufacturing and service sectors. - “If you’re a banker, China is your big opportunity. I’ve watched the private equity funds
of the world trooping through the lobby of CICC China Investment Corporation with their hats off.”
There is a brilliant opportunity for Kiwi businesspeople to connect with Chinese investors and businesspeople at the International Sustainable Cities Forum on 30 March 2009 – REGISTER NOW.
It’s the perfect opportunity for those wanting to do business with the Chinese to attend.
Tags: architect, china, international sustainable cities forum, investment, language, new zealand, nzte
Confidence in China Growth Lifts Investment Sentiment
Published in Businessweek.com
Asian Investor February 20, 2009, 9:00AM EST
Confidence in China’s growth prospects has led to a sharp improvement in economic sentiment globally, according to the Merrill Lynch survey of fund managers for February.
Investors are at their most hopeful about the year ahead since the credit crunch took hold in July 2007, with only a net 6% of respondents expecting a worsening global economy in the 12 months compares with a net 24% in January. The majority recognizes, however, that the world economy is in recession.
Fears of a prolonged slowdown in China appear to be fading. The number of investors who predict lower growth in China over the coming 12 months has fallen sharply, to a net 21% in February from a net 70% in January.
Meanwhile, severe pessimism about the outlook for corporate earnings has started to ease. A net 43% of respondents expect to see deteriorating profits over the coming year, significantly lower than the 63% who held that view in December. A net 49% of the panel predicts inflation will fall over the coming 12 months, compared with 64% in January and 82% in December.
Tags: businessweek, china, confidence, investment
Chinese Property Godfather coming to New Zealand
Front page story on the New Zealand Chinese Herald - 24 Feb 09
王石、馮侖等地產「大腕」下月雲集奧克蘭
共同論道「可持續發展城市論壇」
本報記者 青松
不久前，在奧克蘭舉辦的「牛年元宵燈會」上，總理John Key談到備受矚目的全球經濟衰退問題，意味深長地說：如果中國人的餐桌上都擺上紐西蘭的牛奶和羊肉，我敢保證：本國的經濟就絕不會陷入衰退。顯然，中國的巨大商機已經吸引了總理的「眼球」。
在紐中自由貿易協定簽訂一週年之際，由本報和中國城市房地產開發商策略聯盟聯合主辦的「可持續發展城市論壇」，將於3月29日至4月1日在奧克蘭舉辦。此次高峰論壇將聚焦「城市可持續發展」這一主題，為紐中兩國政府、企業間的進一步深入合作提供平台、創造機遇。
Tags: auckland, china, chinese herald, international sustainable cities forum, investment, new zealand, vanke, wang shi
AmCham-China warns U.S. firms against losing opportunities
This warning to US firms to not miss out on opportunities in the current crisis also applies to New Zealand firms doing business or intending to do business in China.
TIANJIN, Feb. 24 (Xinhua) — The head of the American Chamber of Commerce in China Tuesday warned that companies that held back from the Chinese market because of the global economic crisis will lose valuable development opportunities.
And chairman John Watkins called on the Chinese government to provide more “transparent” information about its 4-trillion-yuan (585 billion U.S. dollars) national stimulus package so that U.S. companies could compete fairly with their Chinese counterparts.
“We are quite clear that whoever retreats now will lose development opportunities in China,” said Watkins, also chairman and CEO of Cummins (China) Investment Co. Ltd., in fluent Chinese.
“Most of our members are confident about the Chinese market in 2009,” Watkins told Xinhua.
U.S. companies in China were less affected by the global economic crisis than those back in the United States. Many multinationals, including Cummins, expected to expand in China this year, he said.
“I hope our exports to China could reach 1 trillion U.S. dollars in 30 years and the investment of Chinese companies in the U.S. then could also reach that amount,” he said.
Tags: amcham, china, investment, new zealand, recession, stock market, sustainable development, united states, venture capital
Why are the Chinese interested in New Zealand?
New Zealand is renowned in China, and the rest of the world, for being clean and green. The Chinese recognise that there are opportunities to learn from New Zealand’s approach to sustainable development. There is increasing awareness in China of New Zealand’s expertise in sustainable development, eco-friendly building design, earthquake proofing and cutting-edge urban planning. The need for such expertise is increasingly urgent. Until a quarter century ago, private residential property did not exist in China. In 2007, China added 5.5 million new housing units, four times what the United States built and more than one-quarter of all new housing stock in the world. Rapid urbanisation and development at breakneck speed has necessitated the exploration of more sustainable development strategies.
There is also a degree of fondness with New Zealand. The signing of the China-NZ FTA in April 2008 represents “the fourth first” in a series of milestone agreements between New Zealand and China in the trade and economic area. Many Chinese businesspeople acknowledge the depth of the relationship between the 2 countries. The other “firsts” in the relationship:
• New Zealand was the first Western country to conclude a bilateral agreement with China on its accession to the World Trade Organisation, in August 1997.
• New Zealand was the first developed economy to recognise China’s status as a market economy in April 2004.
• New Zealand was the first developed country to enter into FTA negotiations with China, announced in November 2004.
After years of accumulating substantial trade surpluses with her trading partners, China has foreign reserves of around US$2 trillion today. In spite of recent turmoil in financial markets and subsequent economic recession, many Chinese investors continue to pursue investment and development opportunities. Warren Buffett’s simple philosophy, be fearful when others are greedy, be greedy when others are fearful; is well understood by more sophisticated Chinese investors.
Tags: auckland, china, foreign reserves, free trade agreement, international sustainable cities forum, investment, new zealand, sustainable development
VC firms optimistic about China investment prospects
Over half of venture capital (VC) companies from home and abroad remain optimistic about investment prospects in China, though most of them are more cautious due to the current financial turmoil, a report said.
China Venture Capital Research Institute Ltd surveyed 402 VC companies over the past three months, including 261 local companies and 141 overseas ones.
According to the survey, 57 percent of VC companies believed there would be investment opportunities for China in the current financial crisis, while only about 1.64 percent of respondents said they were pessimistic about future investment in the country.
Source: China Daily
02-20-2009 08:22
Tags: china, investment, vc, venture capital
China oil firms could get FX to invest abroad
Article from Reuters
BEIJING, Feb 21 (Reuters) – China could use its $2 trillion in foreign exchange reserves to support foreign mergers and acquisitions by Chinese oil and gas companies, the China Daily said on Saturday.
Low-interest loans and capital injections could go to firms like oil giants PetroChina (0857.HK)(601857.SS), Sinopec (0386.HK)(600028.SS) and CNOOC that aim to expand overseas as the global recession lowers share prices of foreign firms, the English-language newspaper said.
Tags: acquisition, china, foreign reserves, investment, recession
Templeton says China stock market has bottomed
SHANGHAI, Feb 20 (Reuters) – China’s stock market has seen a bottom but if the rebound is to develop into a bull run, investors need to see signs of a sustainable economic recovery, the research head at Franklin Templeton Investment’s China fund venture said.
Pan Jiang, who will soon manage a newly launched equity fund that invests in high-growth A share companies, said he favours stocks such as chemicals producer Yantai Wanhua Polyurethane Co (600309.SS) and property developer Vanke 000002.SZ.
Tags: china, investment, recession, stock market, templeton, vanke, wang shi
China Buys Australia On the Cheap
Article from Time Magazine published Tuesday, Feb. 17, 2009
Today, almost alone in the world, China’s state-owned companies are still cash flush. Crucially, though, they have learned a basic — and expensive — lesson about investing abroad. As a result, the ‘Go Out’ strategy has been tweaked. It might now be better called the ‘Buy Low’ campaign, and in one of the markets that Beijing has long had in its strategic sights — Australia’s vast metals and minerals industry — it is now unfolding.
News emerging that Chinese firms are likely to pick up underpriced assets offshore.
Tags: australia, china, investment, state-owned
International Sustainable Cities Forum 2009 is brought to you by New Zealand Chinese Herald and Euroasia. We also appreciate the support of McConnell Group, Framecad, China Urban Realty Association and The Embassy of the People's Republic of China in New Zealand.