Friday, July 21, 2017

Investment News and Commentary from Emerging Markets in Asia - China, India and ASEAN




About 2point6billion.com

2point6billion.com discusses business and investment news rising from the geopolitical relations of China and India, and the interactions these two countries have with the rest of emerging Asia.



Manufacturing

Thailand Releases Tax Measures for Flood-Affected Investment

Mar. 13 – In order to assist and rehabilitate investments affected by last year’s flooding, Thailand’s Board of Investment – by virtue of Section 16 and Section 18 of the Investment Promotion Act of B.E. 2520 – announced on February 23, 2012 a series of tax measures which are discussed below.

The new measures are effective from December 29, 2011 and applicants must submit applications for this measure before December 31, 2012. Continue reading

Posted in Business, Foreign Trade, Manufacturing, Markets | Tagged , , , | Comments Off on Thailand Releases Tax Measures for Flood-Affected Investment

PepsiCo, Tingyi Form Strategic Alliance in China

Nov. 7 – Taiwanese noodle and drink manufacturer Tingyi (Cayman Islands) Holdings announced Friday that it had signed an agreement with U.S. beverage giant PepsiCo Inc. to form a strategic alliance within the beverage business in China.

According to the announcement, Tingyi-Asahi Beverages (TAB) – which is Tingyi’s beverage joint venture with Japan’s Asahi Group Holdings – will take over PepsiCo’s entire non-alcoholic beverage bottling business throughout China. In return, PepsiCo will acquire a 5 percent indirect interest in TAB worth about US$55 million. In addition, PepsiCo will have an option to increase its stake up to 20 percent by 2015. Continue reading

Posted in Business, Featured, Foreign Trade, Manufacturing, Markets | Tagged , , , , , , | Comments Off on PepsiCo, Tingyi Form Strategic Alliance in China

The Three-Pronged Trident Strategy for Investing in Asia’s Massive Growth

Op-ed Commentary: Chris Devonshire-Ellis

Oct. 31 – As Western businesses face sluggish economies, Eurozone debt, and an American election next year, beleaguered corporates need to find fast access to markets that can provide good returns for investors. Clearly, as the domestic United States recovers, and Europe continues to argue about its currency and democratic structure, the demand to develop sustainable growth in alternative arenas becomes more pressing. Wall Street remains a slavish animal, and those increasing yields need now to be gained from non-traditional markets. It’s been the case for some time now that many U.S. corporations, without their China subsidiaries contributing to bottom lines, would have otherwise been in serious trouble. However, China isn’t the only answer, although for many it may seem the most obvious. Continue reading

Posted in Business, Featured, Foreign Trade, Manufacturing, Markets | Tagged , , , , , , , , , , , , | 3 Comments

India, Vietnam Becoming Cheaper China Alternatives

Sept. 13 – The days of getting the cheapest stuff made in China are coming to an end. The increase in wages resulting from China’s effort to promote social security among all of its 1.3 billion people, coupled with the surge in property prices, is making the market a less ideal option for low-cost manufacturing.

Instead of China, other countries such as India and Vietnam are beginning to become more attractive alternatives where costs of manufacturing operations appear to be much lower. Chris Devonshire-Ellis, principal of Dezan Shira & Associates, recently calculated and compared the manufacturing costs in the three countries during an interview with South Africa’s largest weekly newspaper The Sunday Times. Continue reading

Posted in Business, Featured, Manufacturing | Comments Off on India, Vietnam Becoming Cheaper China Alternatives

Action Construction Makes Acquisitions in China, India

Aug. 3 – Action Construction Equipment (ACE), a cranes, material handling and construction equipment manufacturer based in Haryana, is close to acquiring both a company in India and a company in China for roughly US$27 million, according to a report from the Economic Times.

According to ACE Executive Director Sorab Agarwal, the company is preparing a qualified institutional placement of up to US$6.75 million and will also receive US$4.5 million from promoters’ conversion of warrants into equity shares to help finance the two acquisitions. Continue reading

Posted in Business, Featured, Foreign Trade, Manufacturing, Markets | Comments Off on Action Construction Makes Acquisitions in China, India

African Minerals Inks US$1.5 Bln Deal with China’s Shandong Steel

By Julia Gu

Aug. 2 – A US$1.5 billion agreement was signed between African Minerals and China’s Shandong Steel and Iron Group (SSIG), the world’s ninth largest steel producer, bringing the a long-awaited deal to a close. According to the agreement, SSIG will fund US$1.5 billion in three phases to acquire a 25 percent stake in African Minerals’ Tonkolili iron ore project in Sierra Leone.

The investment will grant SSIG the right to purchase 25 percent of Tonkolili’s future production at market value. In addition, SSIG will buy up to 10 million tons of iron ore in three phases, with discounts in each phase ranging from zero to 15 percent. Continue reading

Posted in Featured, Foreign Trade, Manufacturing, Markets, Mining | Comments Off on African Minerals Inks US$1.5 Bln Deal with China’s Shandong Steel

Wenzhou Rail Crash May Undermine China’s Train Export Aspirations

By Vivian Ni

Jul. 27 – The fatal train collision on July 23, which so far has killed at least 39 people, may also hurt China’s rail suppliers, who have helped build the country’s massive bullet train network and aspire to sell more rail equipment overseas, according to a Bloomberg report.

While China’s train makers have already established a presence in the African market and are making attempts to sell trains to other parts of the world, the recent crash may weaken their export push and lower their sales pitches. Edwin Merner, president of Atlantis Investment Research Corp. in Tokyo, made the bold prediction that China’s chances of selling high-speed trains are now “zero,” saying “I don’t think they can ever get confidence back.” Continue reading

Posted in Featured, Foreign Trade, Manufacturing, Technology | Comments Off on Wenzhou Rail Crash May Undermine China’s Train Export Aspirations





Dezan Shira & Associates, Twenty years of Excellence

The Asia Briefing Bookstore

Our best selling legal, financial, tax and regional guides to Asia business, industry reports and more…
Click here to view all titles now

China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store China Briefing Book Store

NOW AVAILABLE IN PDF