|
40. Taiwan's Fubon Financial Acquires Stake in
China's Xiamen City Commercial Bank
ChinaVest
April
08
|
|
ChinaVest
has reported on developing trends between Taiwan and China. Huge growth
opportunities in China are being driven by Taiwanese companies and
entrepreneurs operating there despite restrictions on Taiwanese direct
investment. But winds of political change are gathering momentum. In less
than two weeks following the China-friendly
|
|
Kuomintang
Party's Ma Ying-jeou becoming President of Taiwan, Fubon Bank's plan to
invest US434 million in Xiamen City Commercial Bank received the the
blessing of the Taiwan's top financial regulator. The removal of the ban
on Taiwanese banks directly investing in mainland China banks will no
doubt create further opportunities.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
39. The Changing Private Equity Landscape in China
ChinaVest
14 March
08
|
|
Dynamic
changes have taken place within the Chinese investment landscape since
ChinaVest launched its first institutional investment fund in 1983. The
seeds of change were planted in the 1980s by Deng Xiaoping via the
creation of Special Economic Zones located in proximity to Hong Kong. But
events quickly gathered momentum when China joined the World Trade
Organization in 2001 and the central government began to sell off assets
and create a regulatory system. A flood of foreign private equity found
Chinese firm’s desperate for capital; private equity/venture capital money
poured into China at a compound annual growth rate of 134% from 2002
through 2006.
But Chinese
regulators have evidenced wariness at the trends. Due to nationalistic
pride, concerns of social unrest due to potential layoffs and bulging
Chinese coffers, obstacles to foreign investment are emerging. Certain
industries, including banking and airlines, have strict limits on foreign
ownership while others require approvals from complex combinations of the
central government and industry regulators. There have been notable
examples of failed deals, including Goldman Sach’s planned investment in
Fuyao Glass.
Despite
rising hurdles, look for growing levels of private equity investment in
China. The country is
|
|
somewhat insulated from
the developed world’s economic malaise and private investment relative to
GDP is at very low levels. New creative investment strategies will help
spur private investment, “including bridge loans, PIPE deals (when private
equity firms acquire stock in public companies) and mezzanine financing
(convertible bonds and other quasi-equity financing).”
Further
creativity will be required, as a rise in domestic/local private equity
funds from zero just a few years ago to 12 today provides a newly
developing competitive threat to foreign investors. And regulations
requiring deals be done in the renminbi will make it more difficult for
foreigners. Industrial Development and International Domestic funds, both
deemed to be Chinese investment vehicles, are also being encouraged by the
Chinese government.
“China’s
private equity market will remain vibrant in 2008.” But the landscape is
changing such that foreign investors will increasingly find themselves
disadvantaged relative to local investment pools. There are, however,
dangers to the Chinese economic system of putting “too much emphasis on
the local private equity”, and countless millions of entrepreneurs have
created an “economic juggernaut, an inertial force unparalleled in modern
history.”
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
38. ChinaVest Publishes Weekly Investment Trends
Newsletter
ChinaVest
Oct 07
|
|
ChinaVest
has leveraged its research capabilities to publish a weekly newsletter
that provides a comprehensive look at all of the latest events in China,
including reviews of general economic
|
|
news, IPOs and M&A activity. For past issues, please visit ChinaVest’s
Research Library.
To sign up to receive the weekly letter via email, visit its
signup page.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
37. Merchant Bank Activities
Oct 07
|
|
Entries
after 2002 refer to the Merchant Bank based in Shanghai, and not to the
private equity ventures which are part of an entirely separate
|
|
organization. For a short history of merchant banks, consult
Merchant Banks.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
36. Forbes interviews Robert Theleen on changing investment trends in China
Capital Markets & Investing; China's new model
Forbes.com; by Andrew Tanzer
23 Dec 02
The full
article is only available in Forbes print edition.
|
|
Mr. Robert Theleen has witnessed major changes in China's business
environment over the last several decades, both as a consultant to
multinationals and as founder in 1983 of the first private equity investment
company to target China, ChinaVest. Originally, ChinaVest ignored
conventional western perceptions of China as a consumer market by following
overseas Chinese entrepreneurs into China who viewed China as a producer.
Zindart, a Nasdaq-listed (ZNDT)
manufacturer of die-cast collectibles and pop-up books, remains a ChinaVest
portfolio company.
Since its founding, ChinaVest has grown to manage $300
million. Investment in early-stage companies normally runs between $2
million to $5 million. With more mature investments, ChinaVest is willing
to pony up between $5 million and $15 million. Despite setbacks,
ChinaVest's "funds internal rates of return have averaged close to 25%,
which would place them in the top quartile of Silicon Valley VC funds."
Last year, ChinaVest sold its stake in Alphatop, a maker of Macintosh
laptops, after tripling its $3.5 million investment in just two and a half
years.
The next wave of investment consisted of native Chinese returning with
foreign education and work experience. Ironically, the Tiananmen Square
incident in 1989 propelled this trend, as many Chinese found themselves
stranded overseas. ChinaVest supported several such returning
entrepreneurs, including AsiaInfo
(Nasdaq: ASIA) -- proprietary telecom software
|
|
for building out China's Internet, NewTone --
telecom-switching software, and
Medio Stream -- video-compression software.
Now, Theleen is looking to "homegrown entrepreneurs" from Chinese Universities, "a hotbed
of entrepreneurism and a center for intellectual creativity." ChinaVest
acquired a 20% interest for $3 million in
ServGate Technologies, an
Internet security company that drew on technology developed by Beijing's
Tsinghua University.
ChinaVest is investing beyond technology and telecom into logistics,
distribution, and branded consumer goods and services. Linking producers
and consumers is a key to developing China as a national marketplace, a
view Theleen calls "China horizontal." ChinaVest portfolio companies
targeting logistics and distribution include
Tait Asia, CV Global
Logistics, and Chic
Logistics.
ChinaVest also holds franchises for Domino's Pizza and TGI Friday's, and
it will be rolling out China's first foreign radio station in conjunction
with Richard Branson's Virgin Radio. Theleen expects the 2008 Olympics to
help introduce China's branded products to the world community. Branding is
also expected to get a boost from younger entrepreneurs who aren't as tied
to family control.
Theleen comments that a key issue for venture capitalists in China is
developing exit strategies. But from a macro economic perspective,
"building a modern banking system is the leading challenge facing economic
planners."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
35. Michael Brownrigg highlights opportunity in China
in work with Stanford University professors and students
Stanford University Fall 2001 Seminar/Public Lecture Series
Topics in International Technology Management
29 Nov 01
For full release, see
http://asia.stanford.edu/events/fall01/slides/brownriggSlides/index.htm
|
|
In a slide presentation prepared for working with Stanford University
professors and students, Mr. Michael Brownrigg, ChinaVest partner,
chronicles China's historically repressive economic policies that were
accompanied by periodic famines. But Deng's liberalizing reforms dating to
1979 unleashed "startling" success. China's entry in the World Trade
Organization and its hosting the Olympics will likely spur further
progress. Challenges do remain, primarily banking, governance, legal
structures, and manpower. From a "macro" perspective, China has
experienced strong economic growth and a surge in foreign direct
investment, while at the
|
|
same time keeping foreign debt to a minimum. From a "micro" perspective,
Mr. Brownrigg speaks of the trust and family oriented business structures
found in China as compared with the law- and corporate-based relationships
found in other developed cultures. In addition to untapped consumer
markets, China is experiencing "dynamic growth" in its information
industry, "surging demand" for sophisticated distribution, and a "shift of
hi-tech manufacturing from Taiwan to China." He summarizes his
presentation by quoting The Economist (March 10, 2001) saying the
"most stunning economic event of the past century" is the economic growth
of China "since it opened up" in 1979.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
34. AsiaInfo reports on Q2; sees delays in China's telecom reorganization
AsiaInfo Holdings press release
23 Jul 02
For full release, see
http://biz.yahoo.com/bw/020723/230525_1.html
|
|
AsiaInfo Holdings (NASDAQ: ASIA)
reported second-quarter results for the period ended June 30 that showed
year-over-year and sequential gains. The company, the leading provider of
telecom network integration and software solutions in China, is expected
to benefit from the country's low penetration rates for fixed-line and
cell phones as well as renewed competition between China's two largest
telecom companies. China Telecom and China Netcom were split into separate
companies May 16, 2002, in a move
|
|
that is expected to lead to an upswing in spending as they respond to the
newly competitive environment (see citation #28). But the industry reorganization appears to
be taking longer than expected, so AsiaInfo management scaled back
near-term expectations while at the same time began instituting cost-cutting
measures. The firm's balance sheet is outstanding, but the earnings
release broke as world markets were in rapid decline, thus taking ASIA
shares to new lows and near book value. AsiaInfo Holdings is a portfolio
company of ChinaVest.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
33. Halcyon Software merges with Stryon; creates leader in
legacy application migration software and services
Stryon press release
18 Jun 02
For full release, see
www.stryon.com/company.asp?s=4
|
|
Stryon (www.stryon.com)
has merged with Halcyon Software. The new company will focus on developing
software that will help businesses move their older software, called
legacy software, to newer operating environments. The merged company,
retaining the name Stryon, is closely affiliated with The
CyberNET Group,
a global systems integration firm with operations
|
|
throughout North America, Europe, South
Africa, Asia, and Australia. CyberNET CEO Barton Watson comments, "The
merger with Halcyon brings tremendous capabilities to Stryon" as it "can
now provide a scope of application services never before available to
middle market companies and enterprise accounts." Halcyon is a portfolio
company of ChinaVest.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
32. Michael Brownrigg of ChinaVest co-authors report
on International Property Rights
Pacific Council on International Policy
Jan 1998
For full report, see
http://www.pacificcouncil.org/pdfs/Intellec.pdf
|
|
The Pacific Council on International Policy sponsored a study
group in 1998 that examined how the U.S. might best foster the development of
international property rights. Mr. Michael Brownrigg, then vice president
of ChinaVest, co-authored the final report. The 58-member group concluded
that a "cooperative public-private effort(s)" was needed not so much to
develop "dramatic new policy initiatives," but to ensure that existing
"international intellectual property
|
|
protections are promptly and fully implemented." The report includes 10
specific recommendations that generally revolve around the theme of a
cooperative public-private sector effort to champion the fundamental
benefits to all nations of protecting international property rights while
at the same time not shying away from aggressively, though judiciously,
using available legal remedies. Mr. Brownrigg is a partner at
ChinaVest.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
31. ChinaVest's Michael Brownrigg cites impact of
China's fast-changing economy on different age groups
Stanford University's Asia Technology Initiative 2001
2001
ATI Shanghai 2001 home site
http://stanford.edu/group/ssae/ati/shanghai
|
|
Mr. Michael Brownrigg, a ChinaVest partner, started his talk at ATI 2001 in
conjunction with ATI Shanghai 2001 with a short review of Chinese economic
history. He went on to address the different impact that the country's
history has had on three age groups, 70+, 40-50s, and 40 and under. The
latter group is generally the least affected by the country's storied past
and the |
|
most likely to embrace Western business
practices. Family ties, as contrasted with western corporate cultures,
continue to be important in China. As such, there remains a need to build strong
personal relationships with Chinese entrepreneurs. Mr. Brownrigg expanded
on ChinaVest's, the oldest venture capitalist firm in China, evolving
pattern of relationships in China.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
30. Robert Theleen speaks of China's "dynamic internal market."
Global Province
Jun 02
|
|
A "lack of ideas" from corporate America coexists with a
"vacuum in political thought, both in the United States and abroad."
According to William Dunk's
2002 Annual Report on Annual Reports. Against
this backdrop, "the very fact that the Chinese leadership is searching for
a new ideology is testimony to the refreshing and rather singular realism
with which it is confronting all its problems and opportunities." ChinaVest's chairman, Mr. Robert A. Theleen is quoted as |
|
saying, "The top echelon of this (Chinese) society knows where it has to
go and that surefootedness is radiating far and wide about the
countryside." Mr. Theleen states that China's newer "bottoms-up entrepreneurial style" will
be leveraged by the country's entry into the World Trade Organization and
its hosting of the Olympics to create "a more dynamic internal market
driven by consumer branding and a next-generation distribution system."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
29. eOn Communications earnings report reflects soft market but strong financials
eOn Communications press release
29 May 02
earnings release:
http://biz.yahoo.com/prnews/020529/atw018_1.html
|
|
Commenting,
"The signs of recovery in the US economy have not yet trickled down to the
market for communications products and services," eOn Communications
(Nasdaq: EONC) reported lower revenues and a loss for its third quarter of
fiscal 2002 ended April 30. During the quarter, the company signed up new
customers, including iVox LLC and Ansafone Communications, and won
follow-on business with NAV Canada, PETsMART, Circuit City Stores, and
Lillian Vernon. eOn also "signed an integration and reseller agreement
with N'ser Community" that will allow it "to address the
|
|
newly emerging multi-channel contact center solutions market in Korea,
China, Taiwan, Singapore and Indonesia." Troy Lynch, eOn's president and
chief executive officer, is reluctant to provide specific guidance for the
fiscal fourth quarter, but he has seen "some positive signs recently, and
we are encouraged by our increased pipeline activity." He expects a "modest
sequential improvement in revenues and earnings." The release reports the
company to have $0.83 per share of cash and marketable securities, and
the balance sheet shows no long-term debt. eOn Communications is a
portfolio company of ChinaVest.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
28. China Telecom breakup to spur demand for AsiaInfo's system-integration products
The Wall Street Journal; International
Section
In China Telecom Breakup, Opportunity Galore
16 May 02;
page A12; by Matt Pottinger
|
|
The Wall
Street Journal reporter Matt Pottinger reports on the "long-awaited
breakup of China Telecommunications." Following the breakup, China Telecom
will control "21 provinces in China's South and West," while China Netcom
Group "will control 10 provinces in the North." The split is expected to
kickoff a new wave of investment in software and equipment. Chief strategy
officer at AsiaInfo Holdings, Fan Bao,
|
|
believes that the breakup "will spur demand for new equipment and software
to provide call-waiting, voice-mail, short-messaging and Internet service
for China's 190 million fixed line customers." Mr. Pottinger notes that AsiaInfo is a Nasdaq-listed (ASIA) systems-integration company whose
biggest client is China Telecom. AsiaInfo Holdings is a portfolio company
of ChinaVest.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
27. Consumer borrowing creates "seismic" shift in
China's growth engine
The Economist; Finance & Economics
Asia's
consumers are at last starting to spend and borrow. A boon for Asia's
banks?
20 Apr 02;
pages 69-70
|
|
The Economist describes it as "a seismic shift in the region's economics,
banks and consumer patterns." An American investment banker calls it "the
single most powerful theme in Asian Financial services." They are talking
about an increasing willingness of Chinese consumers to borrow and of
Chinese banker's enthusiasm to lend. "And the trend is not confined to
plastic. Home mortgages, car loans, unsecured credit; all forms of
consumer finance are soaring, albeit from a small base." This
|
|
shift toward consumerism stands in contrast with the "the export-led
development . . . based on high rates of saving and investment" model of
recent decades. While not without infrastructure challenges, China's savings
rate of 40% -- one of the highest in the world -- and falling cultural
barriers toward borrowing should continue to fuel the rapid growth in
outstanding consumer loans. ChinaVest has an investment interest in Prime
Credit, a Hong Kong-based financial services company.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
26. "Wondrous Impatience" triggered twenty years of
near double-digit growth; but the strategies for success in China are shifting
A Speech by
Robert A. Theleen, Chairman, ChinaVest, Inc.
"Wondrous
Impatience; A Twenty-Year Perspective on Investing in China"
13 Apr 02
for entire text
of speech, see:
http://www.globalprovince.com/chinavest/4.13.02.htm
|
|
In a
speech to "the most distinguished and knowledgeable gathering of
scholars, of business men and women, and of members of government of the
entire Asia-Pacific Region," ChinaVest's Chairman, Mr. Robert A. Theleen,
follows "investment flows" in order to help explain why "China has been
so successful in developing investment capital over the past twenty
years." The gathering took place at the BOAO Forum For Asia 2002 Annual
Conference held in Hainan, China. Mr. Theleen draws on his roughly 25
year experience, including the founding of ChinaVest in 1982 as the
"first American private equity investment fund dedicated to China," to
articulate the "micro economic and political events" that produced "one
of the most massive and continuous flows of capital into any country in
modern history."
Mr.
Theleen attributes the speed with which China has evolved -- twenty years
of near double digit growth -- to "wondrous impatience," the development
of an "ad hoc" decision making process "which ensured that infrastructure
needs and bureaucratic processes did not interfere in GDP growth."
Specifically, he cites an "unspoken covenant between government officials
. . . and the overseas Chinese entrepreneur;" China's willingness "to
import foreign legal systems;" a recognition "that a stable currency was
key to growth and economic confidence;" and "the freedom of the consumer
to choose." As a result,
|
|
foreign
direct investment (FDI) in China was tens times that of Japan over the
last ten years, and, "at the end of 2001, FDI in China totaled more than
$50 billion, approximately 25% of the world's total FDI."
Looking
forward, Mr. Theleen reports that he's seen evidence that China's entry
into the World Trade Organization "is already accelerating investment
and capital flows into China." And he feels that the Beijing Olympics of
2008 could well usher China into the international community as the
Olympics of 1964 and 1988 did for Japan and Korea, respectively.
Noting
that "those who have had less than spectacular returns in China find
themselves caught up with yesterday's assumptions rather than today's
realities," ChinaVest is "looking at alternative sources of finance to
supply to the changing scene of China's financial needs." In the 1980s
China was a producer; then in the 1990s it turned to consumerism; and in
the late 1990s China became a participant in technology, IT,
electronics, and telecom. Today, ChinaVest has built its "strategy on
the concept of the Chinese economy moving from the vertical to the
horizontal." But more importantly, the firm's "bet is, as it has been
for the past 25 years, on the Chinese entrepreneur, no longer the
overseas version. But the 2002 model -- highly educated, at home and
abroad, highly motivated to succeed, like his overseas cousin, and very
well poised to develop the network of relationships in and out of China
as this economy continues to shine."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
25. AsiaInfo Holdings' first quarter operating profit driven by high-margin software and services
AsiaInfo press release
24 Apr 02
earnings release:
http://biz.yahoo.com/bw/020424/240478_1.html
|
|
Commenting
that he continues "to see the positive impact of our long-term strategy
as a full service telecom provider," Mr. James Ding, AsiaInfo's (Nasdaq:
ASIA) President and CEO,
comments that, "We are very pleased with AsiaInfo's results this
quarter." For its first quarter of 2002 ended March 31, the company
posted a "higher than expected operating profit of US$1.1 million,
significantly higher than the company's loss of US$23,000 a year ago."
After adjusting for the cost of hardware, net revenue rose 20% over the
year-earlier quarter to US$17.1 million. The net revenue backlog rose
16% over the prior year and was flat on a sequential basis despite a
traditionally slow first quarter. The recent
|
|
acquisition of Bonson Information Technology "confirmed our position as a clear leader in
telecom operation support systems (OSS) solutions." A number of new contracts with a
particular interest in OSS were announced in the first quarter, including contracts with China
Netcom, China Mobile subsidiary and Guangzi Mobile, China Railcom, Shanghai Mobile, and Shanzi Mobile.
Going forward, AsiaInfo is expecting second quarter results to reflect year-over-year net-revenue and
operating-income gains of 20% and 42-44%, respectively. Net income is projected to come
in between $0.07 - $0.08 per basic share. AsiaInfo Holdings is a portfolio company of ChinaVest. AsiaInfo
Holdings is a portfolio company of ChinaVest.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
24. ChinaVest moves offices to historic Bund
Company sources
01 Mar 02
|
|
ChinaVest has moved its
Shanghai Headquarters to one of the most venerable buildings on the
Bund, considered by some to be among the most spectacular streets in all
of Asia during the days of Old Shanghai. The building once housed the
Shanghai headquarters of the Hongkong and Shanghai Banking Corporation,
and at sundry times the building has housed parts of the Shanghai
Municipal Government. Today it is called the Pudong Development Bank
building. The building, its architecture a blend of art nouveau and art
deco, remains a pillar of
|
|
endurance
and a key financial link to the growing Chinese market. Since its
construction in 1925, the building has served as a center for vibrant
commercial activity for which Shanghai, China's New York City, is so
well known. The new address is:
Suite 336 Bund Building
No. 12 Zhong Shan Dong Yi Road
Shanghai 200002
For more on this historic building, click
http://www.talesofoldchina.com/shanghai/t-bank01.htm
For more on the historic Bund, click
http://www.sh.com/arch/archch2.htm
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
23. Some ChinaVest portfolio companies
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
22. From thousands of worldwide venture capitalists,
Forbes spotlights ChinaVest
as one of 50 active firms
Forbes.com
01 Apr 02
|
|
In an
April 1 piece titled "The money list," Forbes lists a group of 50
venture capitalists that it selected "from the thousands of venture
capitalists in the world." Forbes also lists some of each firm's "better
know deals." ChinaVest is further
|
|
recognized by its focus on the Asian market. Among its better know
deals, Forbes lists Asia Info Holdings (Nasdaq:
ASIA), Virgin Atlantic, and
Zindart (Nasdaq: ZNDT). For the
entire Forbes.com listing,
click here. |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
21. China's large, skilled labor pool draws continued manufacturing
investment, even in high technologies
The Wall Street Journal; page A1; by Peter Wonacott
14 Mar 02
|
|
Mr. Peter
Wonacott reports that, attracted by an abundance of cheap but
increasingly skilled labor, "Foreign direct investment in China last
year totaled $46.8 billion, . . . up 15% from 2000." The supply of
skilled workers is being fueled by China's vocational schools "offering
more engineering classes" and by universities "where 37% of graduates in
2000 were engineers." And though demand for skilled workers is on the
rise, some foreign investors believe that wages will remain favorable
for another 10 years. "The decisive factor is the pool of labor." Mr. Wonacott points out that, "For many, the opportunities in coastal areas
favored by foreign investors and bolstered by economic reforms are
|
|
a step up
no matter how low the wages."
The
advantages of a large and growing pool of low-cost, skilled labor
applies not only in toys and less complex manufacturing but also in a
broad range of high technology products. In some cases, the low labor
costs make China one of the most profitable "countries in which (to)
operate." This is attracting investment by multinational corporations:
Motorola along with its partners and suppliers plans to invest $6.6
billion over five years; Japan's Hitachi will increase its already
substantial investment by another $800 million over five years; and
Intel plans to double its Shanghai investment by spending $302 million.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
20. Goldman Sachs putting up to $1 billion of private equity in Asia,
even as other institutions pull out
The Wall Street Journal; Deals & Deal Makers Section; page
C16; by Henny Sender
12 Mar 02
|
|
Henny
Sender reports that while California's public-employee pension fund,
Calpers, is pulling out of Asia, Goldman Sachs is returning to the
region by "putting up as much as $1 billion in new private equity money
for Asia." The money is "part of a new $5.25 billion fund that Goldman
recently raised." Goldman Managing Director
|
|
Henry Cornell, who led the firm to a string of successful Asian investments in the mid-1990s, is returning to oversee
the firm's new investments. He will be targeting "stakes in traditional
businesses," particularly non-technology. ChinaVest focuses on Greater China,
roughly encompassing those parts of Asia with a substantial Chinese business community.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
19. SurfMonkey transforms to fee-based web-filtering
service for kids
Investor's Business Daily; Internet & Technology Section; page A7; by Pete Barlas
5 Mar 02
|
|
Pete
Barlas chronicles SurfMonkey's evolution from a free, ad-supported kid's
content site to a fee-based Web-filtering service for kids. The firm's
browser-based service prevents children from accessing adult-content web
sites as well as blocking unauthorized "visitors from contacting
children through electronic mail or chat rooms." To market its product,
SurfMonkey took "an unusual tack" by selling its product "through
partnerships with Internet service providers (ISP)." To date, the
company has landed contracts with EarthLink in the U.S., British
Telecommunications' BTopenworld, and Japan-
|
|
based NTT Communications. Customers, about 5,000 in each market, pay
$3.95 a month that SurfMonkey splits with the ISP. EarthLink chose
SurfMonkey in order to save money while it competes with its biggest
rival, AOL. Arley Baker, an EarthLink spokesman, states, "We looked for
the best-of-breed technology so we don't have to build our own
applications." SurfMonkey's CEO, Charles Hart, "expects SurfMonkey to
have up to 500,000 subscribers worldwide by the end of the year."
ChinaVest has an investment position in SurfMonkey. |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
18. eOn Communications, "encouraged by the level of renewed activity,"
reports fiscal second-quarter results
eOn
Communications press release
28 Feb 02
http://biz.yahoo.com/prnews/020228/atth021_1.html
|
|
eOn
Communications (Nasdaq; EONC) announced fiscal second-quarter results.
Revenues were crimped by seasonal weakness in the firm's contact center
business and general economic weakness that led to extended sales cycles.
Looking forward, management is "encouraged by the level of renewed
activity among our customers and prospects for deploying contact center
solutions," particularly, "The need for call centers to convert to
multi-media contact centers is greater today than it has ever been." The
bottom line improved, as evidenced by an $0.11 per-share loss versus a
loss of $0.44 in the year-ago period. The balance sheet shows more than
$11 million in cash and marketable securities and no long-term debt.
During the
quarter, eOn booked new business |
|
from
existing customers, expanded its partnerships and alliances, launched a
new Millennium Partner Program to deliver new products and services to
preferred partners, and "added three new channel partners to resell the
eQueue Multi-Media Contact Center Solutions and Millennium
Digital Communications Platform." Five awards were received during the
quarter, including "one of only 15 Product of the Year Awards from
Communications Convergence magazine for the eQueue." And appropriate
forms were submitted to the Securities & Exchange Commission for the
pending spin-off of the company's wholly owned Caribbean/Latin America
service and distribution subsidiary, Cortelco. eOn Communications is a
portfolio company of ChinaVest. |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
17.
Important links for business leaders along the Pacific Rim
The following is a list of
sites that will be useful to those engaged in commerce between Great
China and the United States. Many more links will be added in the
future.
|
|
Asia-Links
Asia-Links serves as a
bridge between Asia, the U.S., and Europe by providing information,
technology and eCommerce services for the electronics and high tech
industries.
asia
money.com
The home of Asiamoney
magazine, including editorials by the asiamoney.com team and special
community sections that draw together relevant content from across all
the international finance titles of Asiamoney's parent company,
Euromoney Institutional Investor PLC, as well as selected third-party
sources and sponsors.
Council On Foreign Relations
Founded in 1921, the Council
on Foreign Relations is a nonpartisan membership organization, research
center, and publisher dedicated to increasing America's understanding of
the world and contributing ideas to U.S. foreign policy. The Council
accomplishes this mainly by promoting constructive discussions both in
private and in public, and by publishing Foreign Affairs, the leading
journal on global issues.
The Asia Foundation
Utilizing its
47-year presence throughout Asia, The Asia Foundation collaborates with
partners from the public and private sectors to build leadership,
improve policy and regulation, and strengthen institutions to foster
greater openness and shared prosperity in the Asia Pacific region.
|
|
The Center For The Pacific Rim
Recognizing the San
Francisco Bay Area as the pre-eminent American gateway to the Pacific,
the Center promotes understanding, communication, and cooperation among
the nations, peoples, and economies of the Pacific Rim through academic
degree programs, public events, publications, research, and scholarly
exchange.
SINA.com
SINA is a leading Internet
media and services company for Chinese communities worldwide, offering
global Chinese-language content, commerce and community services to four
localized Web sites targeting China, Hong Kong, Taiwan, and overseas
Chinese in North America.
Singapore Venture Capital Association
The Singapore Venture Capital
Association was formed in 1992 under the patronage of the Economic
Development Board to promote and foster the growth in venture capital
and private equity within Singapore's financial services industry. |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
16. U.S. News and World Report examines
China's key role in world economy
U.S.News & World Report
11 Feb 02; page 42; by Joshua Kurlantzick
http://www.usnews.com/usnews/issue/020211/biztech/11china.htm
|
|
U.S.News & World Report spotlights Globalism in its Money & Business
Section. In The China Question, Joshua Kurlantzick takes a close
look at the risks and opportunities in China. While recognizing that a
"massive divide between high-tech Hangzhou and low-rent Yunnan"
evidences "cracks" in China's "gold-plated surface of the bustling
coastal cities," the author goes on to make the case that at least "for
now, the enormous wealth disparities within China actually |
|
benefit
the country's economy." Issues of privatization, financial regulations, and developing
capital markets will all have to be managed adroitly, but "most foreign
business people believe the Middle Kingdom will mature into a
responsible trading partner." Jun Zhao, vice president of ChinaVest,
comments, "Other than America, China is the only real continental
economy in the world, with huge varieties in salaries" which "puts it in
a league apart from countries like Taiwan or even Japan." |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
15. Speeches by Robert Theleen,
ChinaVest Chairman
|
|
The following is a partial list of some of the more recent speeches by
Robert Theleen before sundry organizations concerned with Asian business
and American-Asian affairs.
2002 April
BOAO FORUM FOR ASIA 2002 ANNUAL CONFERENCE
http://www.globalprovince.com/chinavest/4.13.02.htm
2001 November
2001 Asian Venture Forum
www.asianfn.com/conferences/conference_login.asp?strConference=20011114
www.asianfn.com/conferences/conference_past.asp
2001 August
Singapore Venture Capital Association
www.svca.org.sg/events/r-archives.htm
2001 May
IFC Global Private Equity Conference
www.ifc.org/funds/pdfs/robert_theleen.pdf
2001 April
Pacific Council on International Policy
www.pacificcouncil.org/public/Events/2001.html
2000 October
Pacific Council on International Policy
www.pacificcouncil.org/public/Events/2000.html
1999 December
Council on Foreign
Relations -- cosponsored with Pacific Council on International Policy
chaired study group
www.cfr.org/Public/resource.cgi?meet!1883
1998 November
UC Berkeley's Center For Chinese Studies
www.haas.berkeley.edu/~haasweek/98fall/981123/headlines/newswire.html
1998 April
World Affairs Council
www.wacsf.org/calendar/9804cal.htm
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
14. AsiaInfo
Holdings reports financial results and
moves, via acquisition, to number one position in key
Chinese wireless market
Company press releases
22 Jan 02
financial results:
biz.yahoo.com/bw/020122/220544_1.html
acquisition:
biz.yahoo.com/bw/020122/220540_1.html
|
|
AsiaInfo Holdings (Nasdaq;
ASIA) announced fourth-quarter and year-end results for the periods
ending 31 Dec 01. The company "continued to demonstrate strong growth in
the fourth quarter" by reporting record operating profits and net
income. The US$4.3 million in net income exceeded analysts' average
expectation of US$3.83 million. Management expects the momentum to continue, as they are
projecting a 70% jump in operating profit for 2002. The release
spotlights the announcement of six new contracts and the release of two
new software products during the quarter. Mr. Ding, President and CEO of AsiaInfo, comments, "With a full suite of telecom software solutions and
an extensive customer installation base, AsiaInfo is best positioned to
help China's telecom carriers succeed" in an "increasingly |
|
competitive" telecom market. AsiaMoney,
a leading financial magazine, named AsiaInfo as "one of China's Best
Managed Companies."
In a separate release, AsiaInfo announced its
plans to acquire Guangzhou-based Bonson Information Technology for $47.3
million in cash and stock. Bonson provides "telecoms operations support
systems used to run communications networks in China." Its "main
customer is China Mobile," the mainland's biggest cellular carrier. The
acquisition of Bonson will vault "AsiaInfo to undisputed number one
position in the wireless BOSS (telecom operation support systems) market
in China." It is expected that the acquisition will be immediately
accretive, adding 8-10 cents to 2002 earnings per share. AsiaInfo
Holdings is a portfolio company of ChinaVest. |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
13. The Asia Foundation
spotlights America's role in the rapidly developing Asian marketplace
The Asia Foundation
copyright 2001
www.asiafoundation.org/publications/rpt_amer.html
|
|
Fastest
growing, vital, profound, positive trends, market economy, liberalization, and democratization all come from a task-force
report that was commissioned by The Asia Foundation in early 2000 and
published in 2001. The task force was commissioned to examine "the
challenges facing the United States in Asia and to recommend policy
initiatives for the new administration and Congress." Mr. Robert Theleen,
Chairman of ChinaVest and Trustee of The Asia Foundation, participated
in the study. In
addition to spotlighting the enormous growth in U.S. private equity in
Asia -- going from $300 million to $400 Billion in 20 years -- the |
|
report presciently speaks of the need to be
"involved in preventing the India-Pakistan dispute from escalating into
armed, even nuclear, conflict." It also speaks of the need to "Take a
more active role in helping to resolve the Kashmir and Afghan disputes."
An executive summary reviews six "Trends that could threaten U.S.
interests;" three "Trends that could support U.S. Interests;" and 13
summary "Recommendations."
For a list of members of the "America's Role in Asia," click here:
task force members
To order "America's Role in Asia" from the Brookings Institution for
US$10.95, please click here:
order |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
12. Stream Machine, a
ChinaVest portfolio company, is acquired by Cirrus Logic
Cirrus
Logic press release
10 Dec 01
www.cirrus.com/press/news/index.cfm?CategoryID=2&CategoryName=Corporate&SubcategoryID=11&NewsID=248
|
|
Cirrus Logic, "the premier
supplier of high-performance analog and DSP chip solutions for consumer
entertainment electronics," completed the acquisition of Stream Machine.
Stream Machine is "a leading supplier of MPEG-2 video recording
technology." The firm's "proprietary video-compression technology
provides high quality video for multiple home entertainment
applications, such as DVD recorders, personal video recorders, digital
camcorders and PC video peripherals." Cirrus |
|
Logic's
web site describes ChinaVest as being a "Major Investor" in the company.
ChinaVest is a venture-capital firm providing "long term investment
capital and management experience to growing companies doing business in
or with China, Hong Kong and Taiwan" Other investors included the
Mayfield Fund, Tallwood Venture Capital, Vertex Management (II) Pte.
Ltd., Bessemer Venture Partners, and the WI Harper Group. |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
11. ServGate, a ChinaVest portfolio company,
secures $8.6 million in development funding
ServGate Technologies press release
30 Nov 01
www.servgate.com/press/releases/20011130.htm
|
|
ServGate Technologies announced that it has received $8.6 million in
development funding from a group "led by ChinaVest, a San Francisco
and Beijing-based venture capital firm overseeing more than $300
million in investments." Other investors include Kingston
Technologies and Pac-Link. ServGate's flagship product, the SG2000
is a high-performance security gateway considered to be the "world's
fastest firewall."
See
www.servgate.com/products/sg2000/benchmarks.htm
for additional product details.
"ChinaVest
invests in high-growth companies who do business in Greater China or who
wish to introduce their products to the Chinese market."
ServGate
will use the money for product
|
|
development and for building "a worldwide sales and support
organization." Michael Brownrigg, Vice President and Partner of
ChinaVest, comments that ServGate has "a huge opportunity in China
and throughout Asia (because) most enterprises are under-secured."
He further believes the firm's "superfast service provider-level
security gateways are perfect for very high bandwidth users and
network operators in North America and Europe." Dr. Rick Schaffzin,
President and CEO of ServGate, states, "This level of funding
enables us to maintain our high rate of growth, deliver our products
to market, continue development of our next-generation platforms,
and build the sales and customer service arms needed to support the
demanding base of leading enterprises and service providers."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
10. AsiaInfo Holdings, a
ChinaVest portfolio company, mentioned in article on China's evolving
equity markets
Wall Street Journal;
page C1; by Craig Karmin and Karby Leggett
09 Nov 01
|
|
While
risks remain, WSJ staff reporters highlight the progress being made
toward liberalizing China's equity markets. Private companies
continue to face obstacles accessing the equity markets, including
"the communist party's lingering ambivalence toward the private
sector," but they are finding it increasingly easier to tap the
market for funds. They still fall short of their economic
contribution -- "private companies now account for nearly half of
China's economic output" -- but "in the past two years, the Chinese
government has begun allowing private companies to go public." Some
fund managers consider this small |
|
cadre of
companies, such as Nasdaq-listed AsiaInfo Holdings (ASIA), to "offer a unique opportunity for U.S.
investors who are hungry to gain exposure to China's giant economy
but have been reluctant to sink their money into poorly managed
state-run companies." While China's entry into the World Trade
Organization might well provide further impetus to privatization,
pressures remain on regulators to give priority to state-run firms.
"So more of China's fastest-growing private firms are turning to
overseas markets for investment, giving foreign investors at last a
chance to cash in on China's economic re-emergence." |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
9. Investing in growing Chinese market; follow the lead of Global
Companies
time.com; by Daniel Kadlec
25 Oct 01
www.time.com/time/global/october2/investing.html
|
|
While acknowledging the
volatility of Chinese stocks (B shares open to foreign investment
fell 34% since May but have tripled in four months and are up 73%
year to date), David Kadlec focuses on the "huge long-term promise"
of investing in China. China's economy is "growing 7% annually"
without inflation, and its about to get more attention by virtue of
entering the World Trade Organization and hosting the 2008 Olympics.
William Dunk, a
Dallas-based management consultant, is quoted as saying, "If you're
serious about growing, you've got be there." He argues that it would
behoove investors to follow the lead of major U.S. corporations that
are committed to China, including Coca-Cola, GM, IBM,
Motorola, and Proctor & Gamble. Robert Theleen, who's been
investing in China for |
|
20 years through his venture capital firm ChinaVest, goes further to pint out that" China
is Kodak's second-largest market for film and will probably be No. 1
within a year or two." He believes "The big story now is the
emerging domestic service economy that will set China apart from
other Asian economies. Manufacturing, mainly for export, is well
developed throughout Asia."
Mr. Kadlec suggests that
individual investors go slowly despite "Chinese regulators cracking
down" on manipulative trading practices, as China's capital markets
"are underdeveloped; disclosure requirements and investor
protections are shoddy; and the rules are baffling." He recommends
investors look to global consumer products companies, mutual funds
targeting China, ADRs of Chinese companies trading in the U.S., and
for the more aggressive, direct investment in Chinese B shares. |
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
8. ChinaVest Considering New Asian Venture-Capital Fund
Venturewire.com
03 Oct 01
|
|
Venturewire.com reported today that ChinaVest is considering creating
its sixth venture-capital fund. According to the firm's Vice President,
Michael G. Brownrigg, ChinaVest is considering targeting Asian-market
investments "in logistics, IT, and media, and could possibly extend into
healthcare services."
The company has deployed about two thirds of
|
|
the $100 million that it raised in its fifth fund during 1998. While remaining "cautious," ChinaVest recently invested $5 million
in Virgin Radio Asia, a provider of FM radio throughout Asia. Overall, ChinaVest manages over
$300 million. Other recent investments include NewTone Communications, a telecommunications
provider, Serve Gate, a provider of firewall applications, and Sheik Logistics.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
7. Alpha-Top merges with Tiawan-based Elitegroup
Reuters English News Service
14 Aug 01
|
|
At a time that companies are finding it strategically advantageous
to maintain their competitive edge via mergers and acquisitions, it
was reported today that Elitegroup, a Taiwanese-based maker of
motherboards, announced its intention to acquire the nearly 80% of
unlisted Alpha-Top
|
|
that it doesn't currently own. The
acquisition calls for Elitegroup to exchange one Elitegroup share
for each 3.5 Alpha-Top shares in a deal worth US$179 million. The
merger is to take effect December 15. ChinaVest has an investment position in Alpha-Top.
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
6. ChinaVest teams with Sir Richard Branson to create Virgin Radio (Asia) Limited
Virgin Group release
26 Jun 01
www.virginradio.co.uk/onair/vrnews/jun03_asia.htm
|
|
It was announced today that ChinaVest has
agreed to take a stake of up to 25% in Virgin Radio (Asia) Limited,
a network of Virgin FM radio stations throughout Asia. Robert
Theleen, Chairman and Founder of ChinaVest will join the new firm's
board of directors. Discussions are "already underway for the
company to acquire equity interests and management control in
existing radio stations in several Asian markets, including Hong
Kong SAR, Singapore, Taiwan, The People's Republic of China,
Thailand and India." The new concern will initially focus on
|
|
"Greater China, Thailand and India, ultimately establishing a
presence throughout Asia, excluding Japan." Sir Richard Branson,
Founder and Chairman of the Virgin Group of companies, including the
"UK('s) arguably . . . most relevant radio brand and one of the
largest national commercial radio stations in the UK," is "thrilled
to be joined by Bob Theleen and his team from ChinaVest. Their 16
years of investing in Greater China and relationships will certainly
help us in our understanding of the needs of these exciting
markets."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
5. ChinaVest emphasizes Chinese logistics at Global Private Equity Conference
International Finance Corporation's Global Private Equity Conference
09-11 May 01
http://www.ifc.org/funds/pdfs/robert_theleen.pdf
|
|
In a presentation to the IFC Global Private
Equity Conference last May, Mr. Robert Theleen, Chairman of ChinaVest,
laid out ChinaVest's positioning in a segment titled "Emerging
Industries: Coming soon to a market near you?" After reviewing China's
economic trends, including a 9.3% real annual growth rate and a
quadrupling of per-capita income since 1978, Mr. Theleen spotlighted
seven industries driving China's growth: automotive, pharmaceuticals,
cosmetics, textiles, telecom, technology, and
|
|
consumer goods. The historical logistical challenges of investing in
China were addressed, as were signs of China's improvements. ChinaVest's
strategy for capitalizing on China's opportunities is to build a brand
name "as the leading fully integrated logistics investor." They plan to
"build a professional logistics team combining local talents with
western supply chain management methods." And "build a nationwide
service network with fully integrated information system."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
4. ChinaVest profiled by CyberLabs Research
CyberLabs Research
http://www.cyberlabsresearch.com/profile/ChinaVest.html
|
|
In a profile piece, CyberLabs Research overviews ChinaVest's
strategy of investing in "growing companies doing business in or
with China, Hong Kong, and Taiwan." ChinaVest has
|
|
invested in a range of companies, believing that its
"collective business and financial experience in Asia and the United
States gives (the firm's) portfolio companies an operational
advantage in the market."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
3. ChinaVest Pioneers Greater China
Thedailydeal.com; by Shu-Ching Jean Chen
12 Apr 01
www.thedeal.com
|
|
Quoting ChinaVest Fund managers, Shu-Ching Jean Chen writes that
ChinaVest is "the first independent venture capital fund operating
in China that is not affiliated with a bank, the first buyout firm
in the greater China region and the first private equity investor in
China. It is also one of the very few venture capitalists that focus
on investing in China-related ventures." The firm's first Chinese
venture in 1986 was also "the first foreign transport joint venture
ever struck in China." ChinaVest sold its investment in Santa Fe
International two years later to reap "an internal rate of return of
142%." The company has since invested in a number of
"transportation-related investments in China, including warehousing
company CV Transportation Services, household goods and freight
forwarding company Global Transport and consumer goods distributor
Tait Asia."
Since
1985, ChinaVest has closed five funds "worth more than $300 million
and invested in more than 40 companies." Shu-Ching Jean Chen
chronicles the firm's evolution from the early 1980s when Robert A.
Theleen and Patrick L. Keen, colleagues at First National Bank of
Dallas, formed Dallas Pacific Group. In 1984, they recruited Dennis
Smith and changed the name to ChinaVest. The partnership expanded in
the 1990s to include Alexander M.K. Ngan, founder of Zindart Ltd.
which ChinaVest took public on the Nasdaq in 1997; Michael Bownrigg,
the former U.S. trade representative to Hong Kong; Monique Lau, "a
corporate credit
|
|
banker with Citibank and Bankers Trust; Jenny Hsui, a seasoned China trader; and Edward B.
Collins, formerly a partner and greater China legal adviser with law
firm McCutchen, Doyle, Brown & Enersen llp."
According to Lau, ChinaVest's success has been keyed to singling
"out up-and-coming Chinese entrepreneurs." For example, Asia Info
Holdings was founded by young Chinese students in the U.S. and
debuted on the Nasdaq in March 2000. It has "captured 70% of the
Chinese Internet infrastructure market." Lau goes on to describe
"two patterns of investment that ChinaVest has long orchestrated."
One "involves assuming a controlling stake, and jump-starting a
restructuring process." And the other "is to invest in growth
companies in an early stage." In the latter, ChinaVest avoids a
controlling stake so as to preserve "the incentives of the founding
entrepreneurs."
ChinaVest has staked out positions "from light manufacturing to
information technology to consumer goods." A notable investment
includes "Shenzhen-listed Luks Industrial, a television
manufacturer" from which ChinaVest was able to achieve "an internal
rate of return of 34% five years later after Luks went public in
Hong Kong." ChinaVest seeks two exit strategies, a conventional
public offering or a trade sale by which they sell out to an
interested buyer. While not without setbacks, notably a total loss
of its investment in Hong Kong's largest video store chain, Lau
states, "If you look around VC industry, and look at us, it's an
incredible record."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
2. High Technology Development Fourth Wave of Foreign Investment in China
IDG News Service; Hong Kong Bureau
08 Dec 99
www.idg.net/idgns/1999/12/08/MotorolaChinaTeamUpOn3G.shtml
|
|
In furthering a trend that Robert
Theleen, co-founder and chairman of ChinaVest, a U.S. venture
capital firm, describes as "the latest of four major waves of
foreign business in China since 1979," Motorola has announced
that it will work in conjunction with China's Research Institute
of Telecommunications Transmission
|
|
in an effort to "better understand what the Chinese market demands from 3G
wireless networks and devices." Commenting to attendees at a seminar organized by the
California-Southeast Asia Business Council, Mr. Theleen points
out that, "A growing pool of world-class technical talent now
exists in China's universities and research institutes."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
|
1. ChinaVest Taps Entrepreneurs To Capitalize On Greater China
Forbes; by Andrew Tanzer
03 Aug 92
|
|
In an
article titled "Greater China, greater profits," Andrew Tanzer turns
the spotlight on Robert Theleen, Chairman and cofounder of
ChinaVest. ChinaVest has achieved "compound annual returns of 30%,
28%, and 26% on (its) three investment pools" by "investing with
entrepreneurs in Greater China . . . 120 million Chinese
encompassing Taiwan, Hong Kong and China's two southern provinces of
Guangdong and Fujian." The economy of the southern area of Guangdong
province, known as the Pearl River Delta, "is expanding by 20% a
year; personal incomes in that region of 20 million people have
swelled an astonishing tenfold since the late 1970s."
Drawing on his experience in military intelligence during the
Vietnam War and later as a banker in Singapore and Hong Kong, Robert
Theleen avoided the mistake of focusing on Beijing that large
American firms made when they rushed into the Chinese market in the
early 1980s. He, instead, invested with "Hong Kong Chinese
businessmen who were being pinched by rising
|
|
costs in Hong Kong and who looked for cheaper labor just across the border, in Guangdong."
His
first fund established in 1985 focused mainly on "Hong Kong
companies moving production of goods such as TV sets, videocassettes
and electronic components to China." A second fund was launched in
late 1987. Robert Theleen and ChinaVest sought to capitalize on an
expected increase in Taiwanese spending due to Taiwan's increasing
wealth and declining import barriers. The firm's third fund was
launched in mid 1989. Here, ChinaVest focused on Taiwanese
entrepreneurs investing in mainland China and U.S.-based Chinese
entrepreneurs. Mr. Theleen has begun to steer ChinaVest's third fund
"to southern China's consumer goods sector."
Mr.
Tanzer describes ChinaVest's strategy as investing in "middle-stage
venture capitalists, typically selecting already profitable
companies with sales of $10 million to $50 million as targets. The
investment often takes the form of debt carrying a below-prime
coupon and convertible into 10% to 40% of a company's common
shares."
|
|
return to top of Briefs
--
return to top of this page
--
return to globalprovince.com
|
