China

Chinese Economy and Grain Production

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Although it seems like inflation is sky-rocketing in China due to its escalating consumer price index, according to chairman of the leading food enterprise COFCO Ning Gaoning, grain prices will be stabilized because of the country’s “substantial reserves.”  While corn will probably drop, rice and wheat – two of the country’s major grains – will remain in high supply this year.  Indeed last year the country’s grain output increased nearly 3 percent with its rice inventory-to-consumption ratio being around 18 percent higher than anywhere in the world.  

Ning claimed that the escalation in world food prices was due to “global demands and extreme weather in major grain producing areas” along with general inflation and speculation.  He dismissed the claim that the price of agricultural products were behind global inflation since the recent peaks in farm produces occurred way later than those of other industrial products.  Ning also  predicted a high inflation in the next second months with a weakening from July to the end of 2011 but claimed that expectations were weaker this month because of various governmental measures to ensure market supply.  

As well, Ning noted how China still potentially has the capacit to increase the amount of grain it produces due to better rural infrastructure, and more low-yield farmland productivity.  Farmers are being encouraged to increase production and the government has invested significant funds in rural water conservation and farm irrigation projects.

 

Future of NTU

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NANYANG Technological University (NTU) is to become a “Univer-City with a soul,” meaning that the University itself will basically be an entire city.  This is expected to happen within the next 14 years.

Basically the Yunnan Garden Campus Master Plan is set to be so large that it will ultimately comprise “numerous informal meeting points dotting its green landscape to encourage cross-faculty and industry interaction.”  Since there are so many overlaps between disciplines, the encouragement of inter-disciplinary cohesion is crucial for general advancement.

At the pinnacle of this cohesion will be the Campus Centre – NTU’s focal point.  It will comprise shops, eateries, a cinema – everything that together makes up a city, resembling Holland Village.

First Branch of Chinese Bank Established In France

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The first French branch of the Industrial and Commercial Bank of China (ICBC) was opened in Paris this Tuesday.

Industrial-and-Commercial-Bank-of-ChinaAt the inauguration, French Finance Minister Christine Lagarde and ICBC President Jiang Jianqing mutually pressed a button to symbolically launch the Chinese bank’s new subsidiary.

Lagarde said “France is very glad to welcome the biggest bank of the world, ICBC.”

Jiang said that the tremendous potential of mutual business transactions between France and China, which was over 40 billion U.S.D last year, stimulated companies to increase their mutual investments.

On Monday, the ICBC announced the establishments of five subsidiaries in Europe: in Madrid, Milan, Amsterdam, Brussels and Paris.
The ICBC global services are have operations in 28 regions and countries including 203 branches around the world.

Manulife Issues RMB Savings-Iinsurance Plan

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renminbiIn expectation of the increasing value of China’s currency, Manulife is launching several renminbi-based financial/insurance plans in Hong Kong. During the last five years, the RMB has increased twenty five percent against the dollar. Meanwhile, with China’s approval, Hong Kong has become the major offshore center for China’s currency. From January to November 2010, Renminbi deposits increased by 240% to Rmb2.2 trillion which is $32.9 billion.

Manulife’s first plan is a single-premium savings insurance plan which matures in five years and provides capital security and guaranteed returns. The yearly return is 1.8% in renminbi, which will probably increase in Hong Kong dollars if the renminbi’s upward trend continued.

Wang Yu-Ming, of Hong Kong Manulife Asset Management, says that developing foreign renminbi trade is a major priority: “China is anticipating that the renminbi will become one of the world’s future reserve currencies, and that in and of itself should make investors pay attention.”

Coty Announces Strategic Investment in TJoy Holdings

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Coty Adds Popular Chinese Brands to Its Growing Skin Care Portfolio

TJoy, a leading Chinese skin care company and Coty Inc., a major leader in global beauty, announced that the two companies have decided on a share purchase agreement that requires Coty to purchase a majority stake in TJoy Holdings, Ltd. Coty and TJoy expect to complete the share purchase this coming January. Coty’s strategic investment expands its skin care market by gaining a solid foothold in China through TJoy’s present distribution channels. The agreement also gives Coty an opportunity to enlarge its R&D capabilities.

The Chairman of TJoy, Mr. Chuang Wen Yang, said, “The combination of TJoy and Coty is an important milestone for TJoy and is a ‘win-win’ situation for everyone. I am very confident that our combined businesses will enjoy rapid growth through Coty’s global reach and marketing expertise. ”
According to Coty’s CEO, Bernd Beetz, “The TJoy investment makes Coty as a major business in China, solidifying our position as a global beauty leader. TJoy and Pure Plant Extract are sublime additions to the Coty skincare portfolio, and only make our portfolio stronger.” Mr. Beetz also said that “We are excited by this investment in TJoy and look forward to welcoming the TJoy employees into the worldwide Coty family.”

Coty, which employs more than 8,500 people worldwide, ended its 2010 fiscal year with net sales of $3.6 billion, up 3 percent from the 2009 fiscal year.

One World Ventures, Inc.

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One-World-VenturesTutamen (HK) Ltd., the Chinese product development, consulting services and strategic management resource company has created the holding company, One World Ventures.

OWVI invests in a range of technologies and leverages its long experience in Asia to develop a company which crosses international boundaries. It bridges the gap between the US and China:
• 1WorldAuction is an online platform for the exchange of products and services. It enables individuals and businesses to avoid marketing costs.
• 1WorldCard offers a flexible debit card for global ATM and point of sale use. It is a inexpensive alternative to a bank account and is great for under-served markets.
• Vonsi Technology Inc. is a systems integrator. It supplies complete PBX, VOIP, IP and IP-based call center solutions.
• Inter Solar Tech, Ltd. markets renewable power generation products within the PRC and EU. It plans to expand to global operations and has successful experience in heat pipe, wind power and photovoltaic technologies.

1WorldAuction and 1WorldCard offer a unique, combined solution for e-commerce methods.

Zhang Yun Inspires Investors in China

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Agricultural Bank of China Governor Zhang Yun:

The Agricultural Bank of China will participate in the strategic placement of investors in their respective areas of expertise to lead at their technological level and rich management expertise. I believe these investors that join the Bank will help promote sound corporate governance, improve internal control standards , improve existing products , technologies, and improve staff quality.  This will help our world-class banks to move , and ultimately enhance our value .