Founded in 2013 and formally known as Future VIPKid, the company has built a rapidly growing business by allowing Chinese children to learn English at home through videoconferencing with North America-based instructors.
The service is tapping into the demand among Chinese middle-class parents to have their children learn English in the most authentic way and the desire of underpaid North American teachers to make more money during their spare time – a model envisioned by Mi as using “on-demand economy to connect teachers and children across the world”.
The online one-on-one sessions target children aged between five and 12. Each session lasts 25 minutes and costs 130 yuan (US$18.90). More than half of the money goes to the pockets of overseas teachers, who can typically make US$3,000 to US$4,000 a month, equal to their monthly salary in North America.
The model has led to explosive growth in VIPKid’s business. The company started last year with fewer than 1,000 registered teachers and nearly 10,000 paid users. Now the numbers have jumped to more than 6,000 teachers with over 60,000 paid users. About 1 per cent of the users are outside China but Mi said the company was in no hurry to expand its user base overseas.
She is aiming high though, with plans to attract more than 20,000 North American teachers to serve an estimated 200,000 students by the end of this year.
“Chinese parents are becoming more and more picky. They no longer want their children to be taught by those who merely have foreign looks,” said Mi, 33, who sees “the quality of education” as the top priority along every step of VIPKid’s development.
VIPKid gets between 20,000 and 30,000 teaching applications every month, rejecting 90 per cent of them. All successful applicants must be North American citizens with at least college degrees and a minimum of one-year experience in teaching children or English.
All the chosen teachers have to stick to the teaching curriculum developed by VIPKid’s 100-strong research and development team, a measure Mi uses to provide standardised and high-quality education.
Competition is inevitable in China’s online English education market, which is estimated to grow at more than 50 per cent year on year to 160 billion yuan by 2020.
For example, offline English training giant New Oriental Education & Technology Group has taken action to offer online courses. Online firms such as 51Talk, which went public in the United States last year and offers similar service to adult English learners, have started to target children.
With its 2016 revenue target at one billion yuan, Mi claims VIPKid has far exceeded its competitors in English training for children.
This has also been given a boost by the Chinese government’s encouragement for a second child and the rising trend to send younger children abroad for education.
VIPKid raised US$100 million in investments in August from Sinovation Ventures, Sequoia Capital China and Jack Ma Yun’s Yunfeng Capital. Ma’s Alibaba Group Holding owns the South China Morning Post.
Even NBA star Kobe Bryant said it took him a mere five minutes to agree to invest in a stake, without revealing the specific amount. “It’s a no-brainer for me. We have to look for companies adding value to society, helping [children] learn and grow,” Bryan said in an interview with the Los Angeles Times in August.
Mi said there was a line of investors waiting to chip in but the company had no need for more funding.
You can never find enough qualified foreign teachers in China to teach in one-on-one sessions. Online session is the only way. CINDY MI, FUTURE VIPKID“The US$100 million cash we raised last year still sits in our bank account untouched,” she said without disclosing whether the firm had broken even.
There is ongoing discussion across the world about whether online education can replace face-to-face education. For Mi, who had taught English in brick-and-mortar schools for about 10 years, the line of online and offline education will become blurred.
“They complement each other rather than compete against each other just like the relationship between e-commerce and brick-and-mortar retail. Shopping online never means one has to quit shopping in malls,” she said.
Born and raised in Hebei province, Mi had a strong interest in English when she was young. By the time she turned 17, she was good enough to teach fellow students. She then joined her uncle’s English training school business right after high school and stayed as a teacher and chairman of the family business for 10 years.
“When I taught offline, there were usually 40 children in a class but only one teacher. You can never find enough qualified foreign teachers in China to teach in one-on-one sessions. Online session is the only way. Plus internet-enabled artificial intelligence can help provide more tailor-made curricula after online assessment,” she said.
Exploring China’s huge market
China’s car market in 2016 closed with record-breaking sales of almost 23 million passenger vehicles. Our research reveals what’s ahead for the world’s largest, and still one of the fastest growing, car markets.
After registering its lowest growth since 2011, China’s automotive market rebounded strongly in 2016. Car sales jumped 20 percent, nearly twice the rate of increase in 2015. Much of this vigorous expansion resulted from the country’s temporary suspension of sales taxes for cars with small engines. Volatility continued in 2017: A large drop early in the year reflected the impact of strong “pull ahead” sales in December 2016, as many consumers sought to take advantage of a lower sales tax rate before an increase took effect on January 1, 2017. However, sales growth eventually picked up again over the course of the year.
Chinese brands are the biggest winners in the entry-level SUV segment (priced between RMB 50,000 and 100,000), where they faced limited competition from international players. They captured an 89 percent share of this lower-price-tier market. Dominating this segment helped Chinese brands grow their combined total share (not including joint-venture brands) in the SUV market from 27 percent in 2012 to 48 percent in 2016.
We expect SUVs to retain their strong appeal. This growth will occur across all SUV segments and price bands, with the entry-level SUV segment contributing “only” 44 percent of the total. This means that in 2022 one out of every two cars sold will be an SUV.
Premium on the rise: Like many other consumer categories in China, the move upscale to premium products is an ongoing trend in the car market. Our survey shows that 55 percent of respondents who replaced or complemented their existing cars in 2016 chose more expensive new ones. Also, although we found that around half of our respondents no longer think of cars as status symbols, more young people and those who bought expensive cars (vehicles costing over RMB 400,000) still consider cars status symbols compared to the average.
Premium brands* (see the full list of included brands in the end note in the PDF) continue to outpace the rest of the market. Moving forward, as the market slows from double- to single-digit growth, we expect that premium brands will continue to outpace the rest
Electric vehicle demand centered in restricted license cities
China is now the largest market for new energy vehicles (NEVs) in the world. However, demand is still highly concentrated and regulatory driven. The cities in China with license plate restrictions for ICE (internal combustion engine)-powered cars account for about 60 percent of the national NEV sales (while only for about 10 to 15 percent of ICE sales). Although we expected to see an increase in interest in purchasing a NEV, our results show that interest remained flat at about one out of five car buyers expressing interest.
Buyers exhibit limited preference regarding the type of EV they would purchase, with about half considering both battery-electric vehicles (BEVs) and plug-in hybrid-electric vehicles (PHEVs).
Our survey also shows a positive correlation between a consumer’s household income and his or her willingness to consider and purchase an EV. Affluent consumers with incomes that exceed RMB 25,000 a month are three times more likely to purchase an EV than consumers in the mass middle class with incomes in the RMB 4,000 to 12,000 per month range.
Among current EV owners, 78 percent express satisfaction with their vehicles, slightly more than the 69 percent in 2016, and 63 percent would recommend them to others. The top drivers of EV satisfaction identified by consumers include exemptions from “no drive days” and license restrictions, cost savings for fuel, and free use of city-wide charging service platforms.
Top reasons for not buying EVs have switched from complicated issues such as a scarcity of charging locations and high pricing in 2016, to concerns in 2017 about the EV’s quality and safety, and a lengthy charging process. This indicates that the investments in charging infrastructure and its higher visibility are starting to work. Now it is up to the car brands to deliver attractive, high-quality models. One reason mentioned to further support sales is that more than half of the car owners would consider purchasing an EV if the driving range increased to 400 kilometers or if the prices dropped to match those of ICE models.
Although infrastructure is less of a concern for new buyers than in the past, 23 percent of current EV owners would still like to see more charging stations. About one-third of EV owners lack their own charging infrastructure, with 38 percent of them stating that their residences do not allow the installation of charging stations. Building a public charging network could be a solution for this, since 67 percent of people would be interested in a subscription-based charging service and 59 percent of people would be interested in a pay-as-you-go charging service.
Looking further ahead: autonomous driving shift perceptions
Although not being available in the market yet, we also tested consumer thinking around autonomous driving. Overall, consumers are excited about and have faith in autonomous cars. Over 60 percent of survey respondents believe autonomous cars will transport families in the future, compared to 43 percent in the US and 31 percent in Germany. Our survey shows that 61 percent think that car OEMs are expected to have the best autonomous driving technology, with two-thirds of these respondents having a preference for foreign OEMs. Surprisingly only 12 percent expect technology players such as Baidu to develop the leading technology. This lead nearly matches the 38 percent of ICE car buyers that believe foreign OEMs are more reliable than local ones, and likely reflects the same thinking. However, when it comes to operating an autonomous fleet, many respondents prefer parties outside of the traditional automotive industry. One-third of respondents say car OEMs enjoy the best positioning, while 26 percent and 15 percent, respectively, prefer the government or new mobility players. China will remain a must-win market for car brands in the foreseeable future. As Chinese consumers continue to become more sophisticated, automakers must reinvent their success formulas to surprise and delight them. That means delivering leading-edge connectivity options, pursuing digital innovations, participating in the electric vehicle space, and taking steps in the burgeoning used-car market. With increasing competition from Chinese brands, digital players, and shared mobility companies, no traditional automotive player can afford to put off the substantial actions they should take today. Yesterday’s “easy” growth in China is a memory; tomorrow’s success will require a different set of skills and ideas.
New Xplay 5 Elite Smartphone Features Twin ES9028 SABRE HiFi DAC Design to Power Vivo HiFi 3.0
MILPITAS, CA --(Marketwired - March 13, 2016) - ESS Technology, the industry leader in HiFi audio and analog design, today announced the Company's ES9028 SABRE HiFi Digital to Analog Converter (DAC), implemented in a revolutionary twin DAC format, has been selected for Vivo's new flagship smartphone -- the Xplay 5 Elite. Vivo selected twin ES9028 SABRE DACs to power its HiFi 3.0 capabilities because of the ES9028's superior dynamic range and award winning performance. Raising the bar for HiFi audio design in smartphones, the Xplay 5 Elite uses two separate ES9028 DACs -- one DAC driving the left audio output and one driving the right audio output. This first in smartphone architecture follows the multi-DAC, multi-channel capabilities previously only available in high-end audiophile, component systems.
"The Vivo Xplay 5 Elite was designed to provide a true high-end audiophile experience on a smartphone, therefore we looked to the industry leader in audio. ESS SABRE DACs are renowned for consistently delivering a dramatically better listening experience and the SABRE name is synonymous with HiFi audio," said Mr. Feng Lei, CMO and Vice President Worldwide for Vivo. "It was natural for us to extend our successful relationship with ESS by selecting twin ES9028 SABRE HiFi DACs for the Xplay 5 Elite."
"It's an honor to partner with Vivo -- working together to grow awareness and adoption of HiFi audio on smartphones. Vivo has been extremely successful in evangelizing high-quality audio and bringing to market innovative smartphones that deliver an uncompromised audiophile experience," said Dan Christman, ESS's Chief Marketing Officer. "The twin DAC implementation in the Xplay 5 Elite is an brilliant example of Vivo's ability to advance the mobile HiFi Audio experience and we look forward to extending our collaboration even further."
About the ES9028 SABRE DAC
The ES9028 SABRE DAC is a high-performance 32-bit digital to analog converter and uses ESS's patented 32-bit HyperStream architecture and Time Domain Jitter Eliminator. It is the first SABRE DAC to use ESS's new internal dual-DAC architecture to further enhance performance. It also delivers an unprecedented dynamic range (DNR) of up to 129dB and total harmonic distortion plus noise of -120dB (THD+N) -- a technical performance level that will satisfy the most demanding audio enthusiasts while still delivering the superb sound experience SABRE products are known for.
About the Vivo Xplay 5 Elite
The Vivo Xplay 5 Elite is the first smartphone to implement a twin DAC architecture. It incorporates an unprecedented 6GB of RAM and the Qualcomm Snapdragon 820. The front of the phone is a dual-curved 5.43-inch Super AMOLED display with Quad HD resolution and it also features 128GB of internal storage. For image capture, it has a back facing 16MP Sony camera sensor with phase detection autofocus and a dual-tone LED flash. The Xplay 5 Elite also features a fingerprint sensor, 8MP front facing camera and a 3600mAH battery. The Vivo Xplay 5 Elite will be available on March 8th in China through Vivo's ecommerce channels Tmall.com and JD.com.
About ESS Technology
For more than three decades ESS Technology has been on the cutting edge of audio technology. A privately held fabless semiconductor company, ESS Technology designs and markets high-performance analog and HiFi audio devices for mobile, consumer, automotive, and professional audiophile systems. The company was founded in 1984 and today ESS Technology is best known for its SABRE series of high-performance audio products. For more information visit http://www.esstech.com.
China Communication and Construction Co. (CCCC) is the lead bidder for IDE Technologies Ltd., a leading Israel-based global desalination technology firm, with a $650-million non-binding offer, according to Israeli financial industry sources.
At least two other bidders have reportedly submitted preliminary offers but were not identified.
IDE holds a 50% stake in Israel’s three largest desalination plants along the country’s Mediterranean coast at Ashkelon, Hadera and Soreq— the latter, at 150 million cu meters per year of water produced, is the largest reverse-osmosis plant in the world.
The company has focused its efforts in recent years abroad, heavily involved in development of desalination plants in China, India, Chile and Australia.
In 2013, IDE, part of the team led by Poseidon Resources, won the tender to design the largest North American desalination plant, located in Carlsbad, Calif.; it will produce 54 million gallons per day of treated seawater. IDE also is the plant’s operator.
“A canny combination of state-of-the art energy-recovery technology with an external energy-offsetting program makes Carlsbad the first major infrastructure project in the state of California to completely neutralize its carbon footprint,” says industry publication Global Water Intelligence. “The carbon-offsetting program helped fund the regeneration of forest areas decimated by wildfires in 2007.” But the largest potential market for desalination plants remains the Arab world, which currently is off-limits for the Israel-based company.
“The acquisition of IDE by a foreign company is likely to lift the limitations [it] has faced in entering Arab and Islamic countries, which have traditionally accounted for about 60% of the desalination business,” said Chen Herzog, chief economist at BDO Consulting and an expert on infrastructure.
He added that, in the case of CCCC, IDE would benefit from an even greater position in the rapidly expanding China market, in which the Israeli company already has made some inroads, as well as other markets in which desalination is being considered due to growing water shortages.
The Chinese company has been active in recent years in the Israeli market in project construction, including tunnels and a rail line in the Haifa area in northern Israel.
IDE also has branched out into the water treatment field. In March, the Israeli company and its Indian partner, VA Tech Wabag Ltd., won a $100-million contract in Chennai for construction, maintenance and operation of a 45-million-liter-per-day tertiary water treatment plant.
The project will use ultrafiltration and reverse-osmosis technology to treat wastewater, then piping it to industrial plants dozens of kilometers away.
Last year, IDE’s two owners, Israel Chemicals and Delek Group, hired Swiss investment bank UBS to speed up the sale of the jointly owned company.
Both owners have been selling off non-core assets over the past few years to focus on their main activities. Delek Group now is focusing almost exclusively on the energy sector after major recent discoveries of gas fields offshore of Israel's Mediterranean coast.
The financial industry sources said final bids are due in the fall, with a final sale expected by the end of the year. IDE reported a net profit of $3 million on revenues of $173 million in 2015.
China’s central bank said it plans to push the yuan’s global use by seeking more cooperation with other countries and improving the infrastructure needed to support wider use of the currency.
The comments were included in a three-paragraph statement, posted on the People’s Bank of China website Wednesday, on its forthcoming 2016 annual report on yuan globalization. The monetary authority didn’t provide other details about the findings or say when the report would be published.
The statement comes almost a year after China’s August 2015 devaluation of its currency, which roiled global markets and sent stock and commodity markets tumbling. The yuan’s share of global payments fell to 1.72 percent in June, the lowest amount since 2014, while the currency’s deposits in Hong Kong declined to a three-year low.
The PBOC’s statement Wednesday also said infrastructure for yuan internationalization will be improved, cross-border use under the current account will be increased and channels for yuan financing will be widened. It didn’t elaborate on how it would achieve these goals.
Use of the yuan as a reserve currency also will be increased, the central bank said. The International Monetary Fund will add the yuan to its Special Drawing Rights in October.
Fininvest, the family holding company lead by former prime minister Silvio Berlusconi, confirmed on Friday it had signed a preliminary agreement to sell 99.93 percent of Italian soccer club AC Milan to a group of Chinese investors.
The consortium includes Chinese development and investment fund Haixa Capital and Yonghong Li, chairman of the management company Sino-Europe Sports Investment Management Changxing, Fininvest said in a statement.
The holding company added that other Chinese investors - some of which state-controlled - would be part of the deal but did not give further details.
Fininvest said the deal valued the prized club at 740 million euros ($826 million), including 220 million euros of debt.
It said the buyers had committed to investing 350 million euros over the next three years, of which 100 million euros would be paid at the signing of the preliminary agreement.
Silvio Berlusconi’s era at the helm of AC Milan is over after 30 years. The Berlusconi family’s investment vehicle Fininvest SpA signed a preliminary contract to sell 99.9 percent of the soccer club to a group of Chinese investors operating through a management company led by the state-owned Development & Investment Corp. for 740 million euros ($826 million), including about 220 million euros of debt, the company said in a statement. The binding contract is expected to be completed by the end of 2016.
Milan has struggled in recent years, with the team a shadow of the roster that regularly competed for soccer’s top prizes. Since Berlusconi took control of the team in 1986, Milan has won eight league titles and five European cups, marking the most-successful period in the club’s history.
The sale agreement requires the purchasers to carry out capital increases and liquidity injections for a total of 350 million euros over a three-year period.
Chinese investors will now control both Milan soccer teams following the recent investment by Suning Holdings in crosstown rival Inter Milan. The AC Milan deal underscores China’s push to buy soccer assets across the globe. Some of the country’s biggest companies have been on a buying spree for the past two years, picking up teams, media companies and other businesses related to the world’s most popular sport. Clubs in China, meanwhile, have been the biggest spenders in the global transfer market this year.
Berlusconi turned AC Milan into one of soccer’s most iconic teams and a perennial power. The billionaire’s lavish spending in the early years helped lure some of the sport’s top talent, players such as Marco Van Basten who drew an army of followers around the world.
Milan is popular in China, where Italy’s Serie A became the first top league to be broadcast by state television. Globally the club claims to have more than 380 million followers, a number bettered by only five or six other teams. AC Milan is ranked the 14th wealthiest in Europe, according to accountants Deloitte LLP.
The Chinese investment group includes Haixia Capital and Yonghong Li, which were members of the consortium led by Sonny Wu’s GSR Capital that was nearing an agreement to acquire control of the club in July, according to people familiar with the matter. Haixia Capital and Li chose to negotiate with Fininvest directly, said the people, who asked not to be identified because the discussions were confidential.
The China investors were assisted by Rothschild & Co. as financial adviser and Gianni, Origoni, Grippo, Cappelli & Partners as legal advisers. Fininvest was advised by Lazard and BNP Paribas and the Italian law firm Chiomenti.
The concept of "Made in America" is slowly giving way to "Made by China … in America," as Chinese investors are increasingly snatching up U.S.-based companies and assets and raising the eyebrows of some regulators and market spectators.
Since the turn of the new year, Chinese suitors have either announced interest in or closed on several multibillion dollar acquisitions of American institutions, such as General Electric's appliance wing, construction manufacturer Terex, Starwood Hotels, California-based tech company Ingram Micro and finance and production outfit Legendary Entertainment.
And although the full value of the deal has yet to be publicly unveiled, the Chicago Stock Exchange announced in February that it planned to be acquired by the China-based Chongqing Casin Enterprise Group at some point later in 2016.
"This proposed acquisition would be the first time a Chinese-owned, possibly state-influenced firm maintained direct access into the $22 trillion U.S. equity marketplace," a group of congressional representatives said in a letter to a top Treasury Department official back in February, requesting a "full and rigorous investigation into this proposed acquisition to address our concerns and provide clear information to the American people."
Chinese foreign direct investment into the U.S. hit a record $15.7 billion in 2015, up 30 percent from the year prior, according to economic analysts at the Rhodium Group. A separate Rhodium report published last month estimated 83 percent of America's congressional districts were home to some form of Chinese investment.
In few industries is China's investment growth more apparent than real estate. A report published Sunday by the nonprofit Asia Society and the Rosen Consulting Group estimates Chinese buyers between 2010 and 2015 spent at least $93 billion on American residential property, with total expenses rising at an average annual rate of about 20 percent each year.
Over that period, Chinese companies and individuals also bought up at least $17.1 billion in existing office buildings, hotels and other commercial buildings on U.S. soil. By the end of 2015, the report found, China was the source of at least $350 billion in U.S. real estate holdings and investments, and costs for Chinese-backed construction projects in the U.S. had climbed to at least $15 billion.
"Chinese direct investment in U.S. real estate was negligible until 2010 but has since grown dramatically and visibly," the report said. "While it is not as politically sensitive and does not directly impact national security as does Chinese investment in U.S. technology or telecommunications, real estate affects more people and communities and involves policymakers at multiple levels."
To be sure, foreign investment is neither specific to China nor inherently problematic. In fact, American companies' own outbound investments in 2014 to countries around the world clocked in at more than $4.9 trillion, according to the Bureau of Economic Analysis.
It's also important to keep in mind that in the vast majority of cases, a foreign company's investment in a particular country doesn't necessarily mean one country's government is getting the upper hand over another's. If Coca-Cola invests in operations in China, for example, the U.S. government doesn't automatically carry more clout in the Chinese marketplace as a result.
But the reverse isn't necessarily true, which is what makes China's investments alarming to some American analysts. Beijing officials are heavily involved in China's private sector and have at times frozen the domestic stock market and changed other finance rules on the fly in the interest of economic self-preservation.
So when a Chinese investment group buys up, say, a major stock exchange in Chicago – or a group of investors throws billions of dollars into America's real estate sector – Beijing suddenly has an inroad to some of the gears that make the U.S. economy tick.
"The Chinese economy revolves around the artificial boosting of domestic firms," the U.S. members of Congress' February letter said. "Furthermore, government manipulation of currency in the Chinese marketplace continues to be an unresolved problem for the United States government."
So is the rapid Chinese buying spree a political ploy? Is the Chinese government trying to infiltrate America's economic bedrock through the purchase of domestic companies and real estate assets?
Not exactly, says David Dollar, a senior fellow with the Foreign Policy and Global Economy and Development programs at the Brookings Institution.
And it's not as if Chinese acquisitions have been conducted unchecked; in fact, American regulators have successfully scuttled negotiations that don't even directly involve U.S. assets. The Committee on Foreign Investment in the U.S. – the specific body appealed to by the U.S. lawmakers over the Chicago Stock Exchange acquisition – earlier this year discouraged a deal that would have moved Netherlands-based Philips electronics company's LED lighting business to a Chinese investment group.
Although there has been evidence in recent years of American job losses – particularly when it comes to low-skill production and manufacturing opportunities – related to the rise of China's industrial sector, Chinese foreign direct investment offers an interesting avenue to bring jobs back to the U.S. The Rhodium Group estimates more than 90,000 American employees currently work for a China-backed domestic company.
"One of the biggest challenges I had 19 years ago when I became mayor … was we had a lot of exports. But the exports were our children leaving our community because of the lack of manufacturing jobs, the lack of good jobs for our children," Sheldon Day, mayor of Thomasville, Alabama, said during a National Committee on U.S.-China Relations event in October.
Day's rural Alabama region recently became the site of Golden Dragon Precise Copper Tube Group's first U.S. plant in a move that was expected to bring hundreds of jobs while cutting down on steep transportation costs Golden Dragon would have faced if it tried to ship Chinese-made products into the U.S. marketplace.
Chinese foreign direct investment into the U.S. totaled about $22.3 billion in 2015, an increase from roughly $18.1 billion in the prior year, according to the report.
Within real estate, Chinese owners acquired at least $8.5 billion in commercial property and at least $28.6 billion in residential property in 2015. Looking to 2025, the report projected that commercial acquisitions could hit $20 billion that year and residential buying could reach $50 billion.
The driving forces behind those projections are myriad, according to the report. They include an increasingly wide pool of Chinese firms that could look to U.S. real estate as an investing opportunity (including insurers, developers and construction companies that have yet to really enter the market).
There's also the theory that investment breeds understanding breeds more investment, and that could come to play for the China-U.S. relationship. The expected proliferation of joint ventures and informal relationships (interpersonal and intercompany) should increase the flow of deals, the report suggested.
And while many are predicting a period of Chinese economic uncertainty, the report suggested that this could actually spur near-term foreign investment as capital tries to flee the country before the country's currency loses value.
Beyond that, tighter capital controls (officially mandated or informal) could slow Chinese investment abroad in the next six to 24 months, but that is unlikely to hinder the long-term expansion of investment into areas like U.S. real estate, the report predicted.
One of the most high-profile recent examples of Chinese buyers shopping in the U.S. was the proposed $14 billion acquisition of Starwood Hotels by a consortium led by Anbang Insurance Group. After the offer appeared likely to beat out a competing bid from Marriott, the group suddenly withdrew its tender — citing "market considerations."
But Anbang had already been a big buyer of U.S. hospitality assets, agreeing to purchase Strategic Hotels & Resorts from Blackstone for $6.5 billion earlier this year and concluding a deal last year to acquire New York's Waldorf-Astoria for $1.95 billion.
Chinese real estate investors have set their sights on Dubai as a destination for investment and opportunities in China will lose its luster after the recent turbulence in the stock markets.
In Dubai, rental yields of residential properties are 8 percent on average annually, driven by demand from expatriates strong, stable, according to the agent Lisa Luo property, which has been based in the city in the UAE States for eight years.
This compares with yields of only 2-3 percent in China, Luo, property consultant Knight Corte Real Estate said.
"Expatriates account for about 80 percent of the population of Dubai," he said. "There are also a growing number of Chinese companies setting up offices in Dubai, which is driving the demand for rental."
Luo said that an investor could buy a one bedroom apartment in Dubai for 1.5 billion yuan (HK $ 1.82 million) and receiving up to 150,000 yuan rental income a year, for example. Seeing an opportunity, he said, Chinese investors are increasingly willing to enter the real estate market of Dubai.
China's property market, by contrast, had lost its appeal due to their low rental yields, Luo said. It was also difficult to find investments with good returns amid turmoil in the stock markets of the country and under its environment of low interest rates, he added.
Luo said the tourism business in Dubai and next World Expo 2020 will further buoy the property prices in the city.
The Chinese buy real estate abroad, revealed that the number of Chinese citizens interested in purchasing property in Dubai has increased 1,200 percent last month in the same period last year.
Dubai Properties real estate developer Damac - showing a luxury project with villas and golf courses in an exhibition Guangzhou property - said investing in this project could provide an annual return of 8 percent in the first three years.
The return rate was achievable as leasing market of Dubai was stable and driven by demand from expatriates working in the business center of the Middle East, said sales manager Wang Huimin Damac.
"Chinese investors are trying to diversify their portfolios abroad ... Dubai, where the housing market is well regulated, has been a top pick for those looking to invest in the Middle East," he said.
Wang said that property prices in Dubai had seen little change since June last year due to an increased supply of new homes and a drop in oil prices, but the emerging market had good potential for appreciation over the long term.
Farid Jamal, sales and leasing of houses Cayan senior manager, said the lifestyle of the city and the safety and perpetuity of the property has also contributed to the rising interest of Chinese investors. Cayan arm Casas realtor developer Cayan Arabia Group, which developed the iconic twisted Cayan Tower in Dubai Marina del.
"The Chinese investors are interested in Dubai property. We received good questions to our [luxury residential] project," Jamal, who presented the project in Guangzhou show property last week he said.
Annual rental yields in Dubai could reach 8-9 percent in terms of projects and areas, Jamal, adding that properties priced between US $ 200,000 and US $ 400,000 would be more affordable for Chinese investors and said also it offers good performance.
"Dubai provides a better return on property investments that other countries do," he said.
An Increasing number of investors lower down the ladder wealth overseas are buying private islands in pursuit of a holiday retreat and a reliable investment.
"I see good potential for islands [as an investment] as prices Have yet to see a sharp rise," Said Zou Gang, the head of an immigration consulting company in Shenzhen.
"It's quite a bargain as you can spend just a few million yuan to buy an island, while an apartment in Shenzhen whos costs the same."
Zou was Among the visitors at the Luxury Properties Showcase in Guangzhou last week, Where I was on the lookout for islands in the South Pacific and his friends Where I Could holiday.
Haiyang Wang, general manager at Vladi Private Islands, an international broker an island Said Increasing number of Chinese entrepreneurs HAD Expressed an interest in investing in islands in recent years.
"They have noticed That this type of land resource is rare, and every island is unique With its own ecosystem and environment," Wang Said.
"Wealthy Chinese hope to own a piece of private territory in the world and They can even name Their own island - They can not do something on the mainland."
The pristine environment and fresh air Were Also attracting buyers, WHO Were seeking an escape from the near-permanent smog blankets That MOST mainland cities, Wang Said.
Investors preferred islands That Were not too remote and priced from tens of millions of yuan to 100 million yuan (HK $ 121.6 million), Said Wang, but added selection was limited.
As the supply is rare, the investment offers good appreciation valueWANG HAIYANG, VLADI PRIVATE ISLANDS
"There are just a few dozen of Those available on the market. As the supply is rare, the investment offers good value appreciation."
Fiji in the South Pacific and Canada Were Among popular choices, Wang Said.
Grammy Leung, an information technology expert in Guangzhou bought a small island in Canada last year for not more than one million yuan. I Said The outlay was manageable for him.
"I think it's a good place for my family to spend holidays. My two children can enjoy the seaside environment and culture on the island," He Said. Finding a flat at that price in mainland China would be difficult.
The island was small and I would need to build a house and basic facilities: such as a power generator, but I was optimistic Leung Said About ITS future worth.
Another investor attending the expo was Mike Garnham, a businessman from New Zealand Whose company owns one-third of Nananu-i-Ra, an island in Fiji. I was seeking to sell land parcels to Chinese investors.
"There are a lot more wealthy Chinese traveling to see what else the world has Offered," Garnham Said, adding some Were in the market for beachfront properties as a second home.
Chinese President Xi Jinping addresses a gathering of some of the biggest names in Chinese and US businesses Wednesday, they may be more interested what it says on progress towards a treaty among nations to provide a framework for the broader investment in the economy of each.
Apple CEO Tim Cook, Satya Nadella of Microsoft, Amazon, Jeff Bezos, the investor Warren Buffett and Jack Ma of Chinese e-commerce giant Alibaba are among the top 30 executives attending a closed-door discussion remain moderate by former US Treasury Secretary, Henry Paulson, who has called for a treaty of this kind. American CEOs all participants signed a letter to Xi and US President Barack Obama, urging them to support an agreement.
Bilateral Investment Treaties provide the rules of the road for companies doing business in other countries, and can help ensure that the rights of foreign investors are protected and that foreign companies operate on an equal footing with nationals. An agreement with China would open the huge US market to American companies, establish clearer rules for Chinese investment in the US, and create jobs on both sides, supporters say.
Such treaties "can be a powerful catalyst for further economic growth," Evan Feigenbaum, vice president of the Institute of Paulson, which is co-hosting the meeting on Wednesday, said on Tuesday.
Xi arrived in Seattle on Tuesday for a three-day visit before he travels to the White House later this week. He expected to make brief remarks to attendees before the session is closed to the press.
Notable absentees in business discussion Wednesday were representatives of Twitter, Facebook and Google. These websites are blocked in China companies.
In a speech Tuesday night Xi spoke on a variety of topics, including the need for a bilateral investment agreement.
Earlier this summer, US Treasury Jacob Lew said the two sides had a long way to go in negotiating a bilateral investment treaty, but had agreed to reduce their respective lists of industries that would be exempt from foreign investment this month.
In his policy speech Tuesday night - attended by dignitaries including former US Secretary of State Henry Kissinger, former US Treasury Secretary Hank Paulson and Penny Pritzker, Commerce Secretary Obama - Xi said China and the United States could work together to tackle cyber crime, a problem that has caused tension with each other.
Xi also said China will continue its policy of aggressive development to help more Chinese people "live a better life."
Reaching agreements to ensure continued robust international trade was a priority, he said. "China will never close its door open to the outside world," Xi said, according to a translation of his words.
He said China was a strong supporter of cybersecurity, but was also a victim of piracy.
Recognizing that China and the United States do not always see eye to eye, Xi said China is willing to establish a joint effort with the United States to fight against cybercrime.
The issue is sensitive cyber attacks between the two nations. US officials say hacking attacks from China are approaching epidemic levels.
As Xi spoke Tuesday night, protesters gathered near the downtown hotel he was staying in opposing things like the country's policies in Tibet.
Earlier, the meetings with the governors of the five states of the US and Chinese local officials produced the agreement to work on clean energy.
"We can be the core of our national leaders to learn from," Michigan Gov. Rick Snyder, who has made five trips to China in five years, told his counterparts.
With an estimated 170 million people growing at over two percent annually, Nigeria is the seventh largest country in the world. According to the United Nations (UN) statistics, Nigeria's population will reach 230 million in the next 20 years. Representing more than 65 percent effective market West Africa, the country remains the most competitive for the establishment of medium and large manufacturing destination.
As the morning up early, China has already positioned to take advantage of this growing market by unleashing your horde of investors and businessmen in the manufacturing sector. Textile for clothing; appliances, automobiles; consumables and iron and steel, as well as ICT products, China has taken over, producing tons of products for different market segments.
More Chinese companies are expanding their investments in the manufacturing sector ostensibly hoping to technology transfer and staff training to increase local employment opportunities. For example, metal products proprietary Chinese Western Company Limited (WEMPCO) a multi-million naira integrated steel factory, located in Magboro in Lagos-Ibadan Expressway, Ogun State, is the first of its kind in Africa . The steel plant manufacturing expansion boasts a production capacity of 700,000 metric tons and production machinery five support Tandem Mill.
The factory, according to the Group Managing Director, Mr. Lewis Tung, plate produce cold rolled steel up to 0.15 mm thick coils of the same size and above. Other facilities at the plant are: 52 MW generator for food; water treatment and recycling plant; acid a generating plant; an air purifier and annealing line.
The economic benefits of investment are enormous. In addition to boosting the economic activities of the communities immediate, local, state and federal government acceptance, increased post stimulate economic activities and create jobs for artisans, such as technicians, drivers, technicians and automobile manufacturers. Mr Tung added that also improve training and technology transfer. More importantly, the investment will fill the void left by the dying Ajaokuta Steel Company in Kogi State.
Another area witnessed massive investment in China's agriculture. A Chinese leader, New Hope Liuhe Company Ltd., said the investment interest in agribusiness. In a meeting with the Executive Secretary of the Commission of Nigeria Investment Promotion (NIPC), Mrs. Uju Hassan-Baba, at the headquarters of the committee in Abuja, he said it plans to invest in other sectors such as manufacturing, processing and feed sale of raw materials additives, dairy and agricultural bye products, among others.
Chinese companies are also investing in seed cultivation and have become suppliers of seeds of the Federal Government, a development that has high local grain production.
The Chinese have been visible in the transport sector, especially in rail transport. The contract trains Lagos-Ibadan $ 1,490,000,000 has been awarded to China Civil Engineering Construction Corporation (CCECC) and the Olokola Deep Water Port project awarded to the China Ocean Shipping Group. The CCECC is also managing the project 27.5 kilometers Marina-Ido-Okokomaiko Lagos Light Rail. The governor of Lagos State has said that Akinwunmi Ambode naira billion project will be completed in 12 months.
According to a report by Ernst & Young on Nigeria issued for the World Economic Forum on Africa 2014, CCECC is the prime contractor for engineering, procurement and construction for the mass transit rail project Lagos. The first phase of the project -'Blue Line '- is scheduled for completion later this year.
The state-owned Export-Import Bank of China (EXIM Bank) is also providing a fully developed $ 500 million concessional loan for the modernization of 186 kilometers of railway line Abuja-Kaduna, which includes the construction of 36 bridges and nine stations . The Federal Government source the balance of $ 374 million. Continue along that line single standard width was formally launched in July 2013.
Before his inauguration on May 29, Buhari received a delegation of the CCECC, who paid a visit to present a prototype of its proposed high-speed train. Observers described the visit as an indication that the Buhari administration may be seeking to develop a high-speed rail network across Nigeria.
Before his departure from office, former President Goodluck Jonathan raised the rail network in a coma with N24 billion ($ 151.7 million) lifeline involving upgrading of tracks and signaling equipment. With the purchase of 25 GE locomotives, 500 wagons and renovation of passenger cars, services have resumed at 1126 kilometers from Lagos-Kano train route. The route had been closed for a decade.
The rebirth occurred immediately after the inauguration of some, automotive diesel air conditioning coaches 68 seats six long distance air conditioning in June last year. The new rolling stock was acquired by the Nigerian Railway Corporation (NRC).
It was part of the Federal Government Strategic Plan '25 -year train ', designed to encourage private investment in the renewal of existing lines narrow gauge railroad in the country and the construction of new standard gauge lines.
This was supplemented by China in 2012 with the formal opening of a training center for CCECC Railway Technology in Abuja to help in the development of Nigerians needed to support plans for rail and mass transit systems skills. The China Railway Construction Corporation Limited described its $ 8.3 billion project to modernize the rail network in the country as its "largest overseas project."
In addition to plants and power train, the Asian nation is also essential to support Nigeria with financial arrangements and investments in strategic infrastructure projects, including roads, airport terminals and free trade zones, among others. For example, China and Chinese companies are primarily interested in the Lekki Free Trade (LFTZ), Lagos. Upon completion, the project will attract international investors in manufacturing, trade and tourism, among other sectors.
It is expected that the project to provide 300, 000 direct and 600 000 indirect jobs in the coming years. Informed that the description of the LFTZ as one of the biggest Chinese projects in the country by former Industry, Trade and Investment Minister Olusegun Aganga.
Chinese companies have reaped a substantial part of the burgeoning telecommunications / ICT market in Nigeria. Chinese companies, in collaboration with telecom operators, are essential to the unprecedented growth of the telecommunications industry in Nigeria. Through the active participation of Chinese companies and investors, mobile phone subscription in Nigeria has increased from below 400, 000 in 2001 to over 140 million. Teledensity has also grown more than 100 percent.
The popular Global System for Mobile Telecommunications (GSM) villages in Lagos and Abuja, and various other commercial cities across the country bear tracks dominance of China sector. Most mobile phone shops in the two city centers are full of Chinese products, ranging from mobile phones to laptops, Bluetooth headsets and devices for hands-free devices, among others.
To Seye Olatunji, a GSM operator in GSM / Computer Village, Ikeja, the business of selling products in China it has been exciting and rewarding.
His words: ". Usually, it is more expensive to buy products from other Western countries, but that is not the same for China Most of us here can now go to China ourselves and buy products at very flexible terms and conditions" .
Even buyers share the same sentiment. "If China's smartphones are compared with those of other countries, there is little or no difference at all. And the Chinese are even cheaper. So, why should I spend more money on something equivalent to it?" Hassan Audu , a client computer in the Village he asked.
Dozens of Chinese companies dominate the retail market segment in various parts of the country. Viju milk brands such as Huawei, ZTE, Alcatel and others are household names Chinese restaurants, such as the Golden Gate, Lagos; Oasis Bakery everything in Lagos and several other business outlets dotting the landscape and are enjoying huge sponsorship.
Since 2005, when it was established, China Town in Lagos, has been serving as a one-stop shop for goods and services, ranging from textiles, shoes, jewelry, electronics, kitchenware and other items. Visit the city of China, with its competitive prices and accessibility has become a necessity for most buyers of Nigeria.
Nigeria has become the beautiful bride for Chinese investors is an open secret. Abundant but largely untapped natural resources; large domestic market of more than 170 million; a growing middle class with purchasing power and an increasingly stable political, among others, have become irresistible to China and Asian investors.
Vast energy reserves of Nigeria, especially in oil and gas, may be all that is needed to feed the growing industry of China. Most populous and biggest economy in Africa with the size of GDP of about $ 500 billion is also the largest market for industrial products of China in Africa. Nigeria imports from China alone account for over one third of its total trade with West Africa.
The volume of imports is expected to increase in coming years as Nigeria favors various agencies and international ratings analysts to overtake South Africa in 2025 if the current growth rate of GDP is maintained. Nigeria relatively stable democracy also is believed to be one of the main factors for investors around the world especially in China see the country as an investment destination.
In addition, ease of start-ups in Nigeria has improved through ongoing reforms in the area of trade and investment. The returns on investment in Nigeria are relatively high, especially considering the exchange rate of the dollar to naira with major Western currencies and the Chinese yuan.
The pattern and dynamics of the Nigerian economy may have also opened the gate for Chinese enterprises to invest heavily. For example, experts say Nigeria's transition from a manufacturing and producing agricultural nation to an economy dependent on imports may have expanded the retail sector, which now accepts virtually anything from anywhere in the world. This is the leeway through which investors and Chinese products have taken root in Nigeria. The emergence of a vibrant retail sector in Nigeria is also said that as a result of various porous borders of the nation.
Akabogu As noted, Nigeria has benefited over Nigeria. According to him, the trade balance between both countries has tripled since the return of democracy in 1999.
"It has been a mutually beneficial business relationship. China takes oil from Nigeria as the barter trade for construction activities, the Chinese government subsidizes. What Nigerian exports to China are oil and some agric products," he said . Akabogu added that Nigeria has been sending engineers to substitute Chinese engineering system at a subsidized rate.
But as rewarding as the relationship may be to Nigeria, there is concern about alleged unfair practices by Chinese companies, anti-union practices and the perceived dominance of the market for fake and shoddy products from China. The idea is that the West may be delayed in the Nigerian market because of the quality of their products compared to the cheapest and lowest standard Chinese products. This is true especially in Nigeria, where consumers cheaper products more sponsor while remaining indifferent about the quality.
But as regards the Director General of Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) Sir Emeka Okereke, China is not to blame for the prevalence of substandard products in the market. He blamed the situation of weak institutions in Nigeria. "It is because of our inherent weak institutions that are unable to check the influx of substandard products," he told La Nacion, asking, "Where is our customs?"
She said Customs and other regulatory agency must wake up to its responsibilities. "Our borders and ports should it be effectively monitored especially given that we are an economy dependent on imports," he said.
Akabogu agrees with him. He said that blaming China for standard and fake products in Nigeria amounts to throwing punches in the wrong direction.
His words: "It (inferior products) is a default by the regulatory bodies is why we have been Canvassing strengthening institutions rather than individuals.".
The lawyer said there was the need to revitalize the institutions such as the Police, the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and other Related Offences Commission (ICPC) and the Code of Conduct Bureau (CCB), among others. "It comes down to the question of leadership, it is a lack of credibility, a problem of powers by the institutions of Nigeria", he insisted.
He also said that every capitalist is in business to make profits and China is no exception. According to him, it is left for the host country to put in place measures to check possible excesses of foreign countries and companies operating in their territory. Also, quoting the Halliburton scandal, which involved a US company, he said sharp business practices are not limited to China alone.
According to The Street, Chinese investors are seeking refuge in the United States real estate especially insurance companies that stand to premiums up to $ 3.32 trillion in 2020. Apparently, these companies are they looking for solid returns after China's stock markets suffered a recent setback and its currency being hit. In August, China devalued its own money to try to soften the blow of falling 8 percent on the Shanghai Stock Exchange.
Wealthy Chinese with various entities of money from his country are the target of stable and reliable investments especially in commercial and residential income generating projects compared to luxury properties that are considered for personal use. This is according to Edward Mermelstein who is a veteran of 20 years of age, consulting for clients in the real estate business. This game plan is similar to the game "Monopoly", where players pay to acquire money-making real estate such as hotels and houses. "There is an argument that is a flight to safety," said Mermelstein. "This is largely a flight to safety," he said.
This movement is consistent with the pouring investment in Europe and the USA by Chinese investors with a significant purchase in the last couple of years it is becoming a beacon of hope for many of them - the acquisition of the Waldorf Astoria in New York by an insurance company Anbang of $ 1.95 billion.
Meanwhile, in The Guardian, President Barack Obama is reportedly not staying at the Waldorf Astoria the UN General Assembly in October. The White House, however, refused to confirm if the reason for skipping the traditional hotel of many presidents of the United States is the fear of espionage by Chinese-owned hotel now.
The real estate market in the United States is at the center of a new brewing crisis, but unlike his usual playing bully in the world economy, this time is seen as a source of hope for Chinese investors looking for a stable place to dump your wealth.
The Government has approved the offer Chinese firm Shanghai Maling Aquarius' to buy a 50 percent Dunedin cooperative Silver Fern Farms.
"Potentially very good," said Prime Minister John Key.
"It's a very significant injection of capital, this is a company that has long had a large amount of debt and has been under pressure."
The Chinese company, partly owned by Bright Foods, submitted a bid on Tuesday to inject $ 261 million into capital than half of the largest exporter of meat in the country.
The total deal will be worth approximately $ 331 million.
Mr. Key says it's a vote of confidence in the industry in New Zealand Silver Fern Farms and give an opportunity to improve their access to the huge Chinese market.
It was announced as a game changer Silver Fern Farms by President Rob Hewett with the board unanimously recommend shareholders take the deal.
"I do not think there is any doubt of our strategy is the right strategy," he said.
"We will be released and the capital they are providing to be able to do that."
As part of the agreement, the Chinese firm Silver Fern Farms help eliminate all your debt while providing more investments to strengthen its balance sheet.
"At year end we will have no debt, no money in the bank," he said.
"It will turbocharge our China strategy, no doubt about that.
"We've had comments made about us in the market, this should shut them up."
As a sweetener, a special dividend of 30 cents per share be paid to shareholders.
The company also outlined plans to return half of its annual net profit to shareholders through dividends and bonuses.
Shanghai Maling Aquarius manufactures and sells canned foods, bottled water, flavor, frozen food, and other related to more than 800 supermarkets across China products.
Chinese companies are increasingly looking at opportunities in Malaysia, with mergers and acquisitions (M & A) by Chinese private investors to become the main drivers of outward direct investment in China, said HSBC Bank Malaysia Bhd.
Mergers and acquisitions have become the fastest way for Chinese companies to tap foreign markets and move further up the value chain, the bank said.
Depreciation of foreign currencies against the yuan, he said, provided a favorable environment for M & A activities in China.
He added that the increase in disposable income among the 1.4 billion Chinese consumers was also fueling interest in acquisitions in the leisure and consumer goods sectors.
"This has been reflected in the Chinese investment in Malaysia. So far this year, mergers and acquisitions of Chinese in Malaysia have been the most active in history, both in terms of volume and number of large deals.
"Real estate, consumer products and retail were the most active sectors," he said in a statement Thursday.
In the first seven months of this year, the total value of Chinese M & A in Malaysia stood at US $ 830mil (RM3.35bil), nearly four times the figure for all of 2014.
The deals include the purchase signal Southern Crest Development Sdn Bhd, Greenland Holding Group at US $ 658mil (RM2.66bil), the purchase of Pearl Longcheer Holdings Sdn Bhd Discovery Development in US $ 89mil (RM359.7mil) and Parkson Retail purchase YeeHaw Best Practices Group Sdn Bhd on dining and lodging industry.
The bank said several factors were driving the growth of China's outbound direct investment (ODI).
"First, in our opinion, ODI China to keep growing by 20% a year, with China overtaking the US as the world's largest outbound direct investor in the coming years.
"This year, the pace of investment will accelerate, driven by large infrastructure investments in Asia and Europe are expected in the 'One Belt, One Way" initiative, "he said.
He added that Chinese companies were turning to agriculture, manufacturing technologies high-end consumer goods, real estate, services and brands.
Another important trend is that private investors are becoming the main driving force of the ODI.
"The privately owned companies are investing in more industrial sectors such as value-added agro-technology, high quality manufacturing and real estate in most countries and regions.
"They are looking for the intellectual property and brands to deploy in the Chinese market," he said.
Increased Chinese ODI is driven by a strong central government stimulus to national to invest abroad in a bid to boost their international competitiveness companies.
ODI from China grew by 19% year on average between 2009 and 2014.
In comparison, foreign direct investment (FDI) in China grew on average by 5% in annual terms during the same period.
Last year, China's ODI reached US $ 116bil (RM469bil), almost the same as the total foreign direct investment of US $ 120bil (RM485bil).
"As Chinese companies accelerate the pace of overseas expansion, the number of renminbi (yuan) denominated in deals is likely to increase.
"Overall, the overseas investment of Chinese enterprises is supported by the central government and is helping to encourage the participation of China in the world economy.
"This is a new era of global cooperation, and history is a clear win-win," he said.
Individual and corporate investors in China have been buying properties in major cities in Europe, especially in London for a number of years. Following the recent turmoil in the stock market of China, many European markets are welcoming a further influx of Chinese investors.
Prolifically Chinese investors already invest in real estate assets in Europe and worldwide, and recent years have seen China's activity in foreign investment markets are increasing rapidly. In 2009, the total value of property abroad owned by Chinese investors - both private and corporate - stood at $ 600 million according to the best estimates of Knight Frank. Last year, this figure had risen to about US $ 15 billion.
London is a particularly popular market among foreign investors, including Chinese buyers of properties. According to Savills, 70% of real estate in London, which was sold in 2014 went to a foreign buyer, and these transactions were for a total of £ 14.6 billion. Chinese investors make up a significant portion of this, second only to the US in total investments, especially at the high end of the market. Chinese investors put a total of £ 2.2 billion in property in London last year, and accounted for 11% of all transactions worth more than a million pounds. As recently as 2012, the latter figure was only 4%.
Chinese investors are taking an interest in all property types, including commercial, residential and mixed developments, as well as the location assets such as hotels and student accommodation. China's interest in all sectors a trend continues to rise, even without the prospect of an increase in investment driven by internal problems of the stock market of China. A series of recent high-profile and high value deals have been announced. Chinese state-owned developer Greenland Group Holding is investing £ 1.2 billion over two residential development projects in London and, last summer, China Construction Bank paid £ 110 million to acquire property in the heart of the city. While London is a particularly well favored market, the Chinese investment boom is far from being a UK-only phenomenon. Real estate agencies in countries such as Spain and Germany have also reported that investment by individuals and Chinese companies is increasing.
Leaving aside the strong investment growth is now expected, increasing Chinese investment in foreign ownership has been reduced to a series of factors (and it is these same factors are expected to maintain the upward trend beyond any short-term increase coming from recent market activity. China's property market itself is slow moving, leading many investors to seek more easily in property abroad than at home. The economic crisis also played a paper. When he arrived, Chinese investors moved to diversify their portfolios in terms of currency exposure, and this remains one of the main attractions of investing in the UK and Europe. Others have been taken to invest in foreign properties not only as an investment but as a future way to move abroad themselves, driven by health care and air pollution problems in the home.
Two Chinese investors go head to head in a battle to buy Dublin-based aircraft leasing group Avolon in a deal that could be valued at $ 2.5 billion. Bohai Leasing, a unit of aviation and shipping Chinese company HNA, has offered to buy Avolon of $ 31 per share, two weeks after reaching an agreement to take a 20 percent to $ 26.
The offer, announced by Avolon traded on NYSE on Friday, it came after an unsolicited takeover approach $ 30 per share. This is understood to AVIC Capital, a subsidiary of Aviation Industry Corp of China. AVIC made a tentative move to buy Avolon a year ago.
Avolon floated on the Nasdaq last December at $ 20 Avolon said Friday that its board "has not accepted or rejected, whether the offer and continues to carefully evaluate these offers with its financial and legal advisors". It said it had authorized its financial advisers, led by JPMorgan, to continue talks with the two bidders.
Avolon shares rose 15.5 percent to $ 28.73 at the close of trading in New York on Friday. The company did not identify the second suitor and refused to comment beyond a statement it issued.
An agreement on the price of the offer, either represent a good return for investors Avolon. Its main shareholders are private equity groups Cinven, CVC and Oak Hill, who collectively own more than half of its assets. Founder and CEO Dómhnall Slattery holds a 1.36 percent.
Mr. Slattery is a former GPA executive who became head of the finance business aviation RBS after the sale of that business to another bank in the UK. Established Avolon in 2010, one of the fastest growing companies leasing aircraft in the world and part of a group of similar companies based in Dublin led by alumni of GPA, which pioneered the industry in the 1980s of It based at Shannon Airport in the west of Ireland. Avolon has 153 aircraft leased to 56 airlines around the world from its base in Dublin, and has another 107 on order. In a note to clients, Andrew Light, an analyst at Citi, said an acquisition of Avolon to $ 31 per share could re-rate the sector. Avolon said it would assess a price-earnings ratio of 14.2 times estimated 2015 earnings before taxes, compared with an average for the sector of 8.8 times.
Increased state investment fund China bought 10 shopping centers in France and Belgium by around € 1.3 billion ($ 1,440,000,000), one of its biggest acquisitions in Europe. China Investment Corp., together with affiliates AEW Europe, bought the shopping center portfolio of CBRE Global Investors, according to company statements.
Chinese investors have been collecting international property in an attempt to diversify their holdings. In Europe, they bought $ 4,700,000,000 of property in the last 12 months, including this latest agreement CIC, according to Real Capital Analytics.
The level of investment is on par with the previous 12 months. But as Chinese investors become more familiar with the European market, considering increasingly active beyond the cornerstone cities like London and Paris.
The main Asian investors "are looking for a wider range of investments," said Sophie van Oosterom, chief investment officer at CBRE Global Investors, which manages over $ 87 billion of real estate assets. CIC latest agreement includes two prominent malls near Antwerp, Belgium. The other eight shopping centers were in France, including La Vache Noire in Paris.
Chinese conglomerate Fosun Group earlier this month promoted expansion plans in European ownership, forming a joint venture with Resolution Property Investment Management UK LLP. It Fosun based in Shanghai in April bought an office building in Milan for $ 372 million, according to Real Capital.
Chinese investors bought 50 billion rubles ($ 875 million) and 60 billion rubles worth of Russian national treasury bonds this year, Russian Finance Minister Anton Siluanov said Thursday.
Moscow has increasingly sought east for investors, even for internal debt, after the West imposed economic sanctions against Russia last year for his role in the crisis Ukraine.
"I think after purchasing volume and realize that this is a good investment, cost-effective, reliable, our Chinese partners the volume of investments in the Russian economy will grow," Siluanov said in an interview with television Russia-24 on the sidelines of the BRICS summit in the Russian city of Ufa.
President Vladimir Putin, whose country needs investment to exit a recession driven by sanctions and falling oil prices, has been changing its economic and political approach towards Asian markets and to China in particular.
Putin called for closer bilateral ties during talks Wednesday in Ufa with the president of China, Xi Jinping. The leaders of India, Brazil and South Africa are also attending the summit of BRICS.
The Russian Finance Ministry plans to borrow around 800 billion rubles in the domestic market in 2015. Bond purchases by China suggests high-performance Russian assets remain attractive to certain foreign investors, despite the sanctions and volatility in the Russian ruble, which are denominated called OFZ bonds.
A detailed analysis of the Australia-China free trade agreement proposed believes that Chinese investors benefit more than the Australians.
It carried out by the Network of Fair Trade and Investment Australia and limited to capital investment and facilitation agreement on investment, is that while companies with Chinese participation can bring Chinese citizens to work in Australia there is no provision equivalent for Australian companies to bring Australians.
Australian companies are limited to the importation of specifically senior managers and skilled workers.
China's willingness applies to companies with at least projecting 50 percent of Chinese capital or when no single company is 50 percent of capital, a project in which a Chinese company has a "substantial interest". A substantial interest is defined as occurring when a single foreign person owns 15 percent of a project or several foreign and associated persons own 40 percent.
The project must be related to infrastructure development in food and agribusiness, resources and energy, transport, telecommunications, energy supply and generation, the environment and tourism.
The minimum wage to be paid to imported Chinese workers will be negotiated between the project company and the immigration department rather than the minimum of Australia.
Whereas Australia is subject to a general provision preventing discrimination against Chinese investment, China does not have this general provision and is only required not to discriminate against investments in the transport, tourism, hospital, nursing care, education and financial services.
The terms of investor-State disputes in the agreement are less open than the provisions of other agreements such as the free trade agreement between Australia and Korea, not being subject to the requirement that hearings disputes and associated documents will be public. They are unfinished, the subject of a review within three years.
"The unbalanced access to markets and lack of complete negotiations seem as if the Australian government was desperate to seal the deal at any price, and that China has succeeded in defending many of his limitations," said coordinator Network, Patricia Ranald.
A spokesman for the Trade and Investment Minister Andrew Robb said the settlement procedure including investor-state disputes in the agreement was not new. Australia and Chinese investors were already subject to that procedure under existing investment treaty.
Chinese investors are in talks to demolish Chamber of Commerce of the House and rebuild the landmark site Edgbaston another potential coup ownership superpower Far East.
No name developers, backed by investment funds in China, are in detailed negotiations with the business organization of the city on the future of the house chamber 50.
If it is agreed, the preferred option is the demolition of the office building, which was designed by renowned architect John Madin city and was completed in 1960.
Camera outgoing CEO Jerry Blackett said the decision on the future of the project was likely within six months. The project has been under discussion for several months to help take down a pension deficit of £ 3,000,000 to £ 4,000,000, but Mr. Blackett said that talks were now in "more sustained.
"We are still willing to redevelop the site and are in discussions with a potential developer and some Far Eastern investors - it is Chinese money.
"The discussions we're having right now are the most sustained since the start of the recession. We would have to decamp at the point where the operation is performed.
"It's a matter of if we return, and we are minded to stay. We do not believe that a location in the city center is quite right for us.
"We can sit out, we are not a distressed seller, have very low costs being here, we're not in a rush to sell."
The plans come amid a growing wave of Chinese investment capital in Birmingham.
Tower Pier Broad Street became the first building in the city to be bought by investors from the Far East in November 2013.
Since then, there have been a series of deals with Chinese investors in development 130 Colmore Row, soon to be a restaurant Nosh and Quaff, and Franklin House, a former Cadbury factory will be converted into apartments.
The Post has reported in recent weeks how Chinese billionaires are interested in financing major regeneration schemes as Curzon Street and Icknield Port Loop.
Mr. Blackett said the Chamber of Commerce of the House, which was valued at £ 2.93 million on a turn-key basis March 2012, was the most valuable camera 'assets. "
"It's probably demolish and start a new stage. We have seen the cost of reforms, but there is more value in the demolition of renewal."
The camera has seen its workforce more than half since 2007, largely due to the loss of Business Link, which has substantially affected their sources of income of about 36 million pounds to the current figure of 6.5 million pounds.
Its workforce of around 70, compared to 200 before, now considered too small for the size of the Chamber of Commerce of the House.
If the project goes ahead of China, the camera will effectively resurrect an 11-year-old scheme dating from March 2004.
The plans were revealed to demolish the building and build a new headquarters for £ 90 million. But the scheme to provide three new main buildings at the corner of Harborne Road and Highfield Road, is inactive after the recession hit.
The camera, which has been in talks with the landlord Calthorpe Estates on the future of construction, already has a license of demolition and reconstruction scheme.
If Chamber of Commerce of the House was demolished, it would become the latest in a growing list of buildings to be razed Madin in Birmingham.
Most famously, the demolition has begun in the Central Library Chamberlain Square and is expected to be completed by the end of this year.
Madin other buildings have been demolished include the former home of the Birmingham Post & Mail, Pebble Mill Studios in Edgbaston and the building of the AEU in Holloway Circus, replaced by the Radisson Blu hotel.
Meanwhile, 103 Colmore Row, known as NatWest Tower, also expected for 2016 is gone and replaced with a new brand, office tower of 26 floors.
Chinese investors have become the second largest foreign players in French vineyards after Britain, according to a study recently published by Vinea Transaction, a French agency network transactions wine.
Twenty percent of the vineyards in the hands of foreign investors in France belong to Chinese investors, with 22% owned by British investors, according to the study, noting that foreign investors have totally 12,000 hectares, only 1.98% of 600,000 acres of French vineyards covered by the study.
The study was carried out with care over the vineyards of major labels, excluding Champagne and Cognac.
While UK investors widely cover six of the seven regions of vine investigated by the study, Chinese investors are almost entirely concentrated in the Bordeaux region.
According Vinea Transaction, 47% of the 193 areas of Bordeaux held by foreigners are held by Chinese investors, as areas of prestige as Bellefont-Belcier, Laulan Ducos, Chenu-Lafitte or were bought by them.
In addition, 90% of foreign investments are concentrated in the Bordeaux and Mediterranean areas, said Vinea Transaction.