2point6billion.com discusses investment news and events from the emerging markets of Asia - including India, China and the ASEAN countries. It is produced by the Asian foreign direct business advisors at Dezan Shira & Associates from their offices across emerging Asia.
India the new retail darling as China loses some luster
By Chris Devonshire-Ellis and Cindy Tse, Dezan Shira & Associates
Feb. 2 – As big-name retailers like Best Buy and Home Depot exited China last year, India has just liberalized its single brand retail to permit 100 percent foreign investment. A comparison of India and China’s retail markets reveals some lessons for retailers in both markets. The key points? Second and third-tier cities. Continue reading
Jan. 19 – The financial crisis in the Eurozone may affect credit ratings in the Asia-Pacific region, Standard & Poor’s Ratings Services recently warned.
Last Friday, the firm downgraded Italy, Spain, Portugal and Cyprus by two notches and France, Austria, Malta, Slovakia and Slovenia by one notch. Germany, Finland and the Netherland’s AAA rating did not change. Experts predict that the Eurozone states may face further downgrading in the future. Continue reading
Jan. 18 – U.S. Treasury Secretary Timothy F. Geithner visited major Asian oil importers China and Japan last week, attempting to gain support for U.S. sanctions on Iran in response to its suspected nuclear weapons program.
On his two-day trip in Beijing, Geithner urged top Chinese authorities to sharply reduce imports of Iranian crude oil, and he informed China of a new U.S. sanction policy that would be imposed on countries which refuse to join U.S. efforts to curb Iran’s oil revenues. Continue reading
India moves ahead of China in stock market investment access
Jan. 17 – Starting from yesterday, India has allowed foreign individual investors to purchase stocks directly in Indian companies for the first time; previously, access to Indian stocks was only permitted through institutional investors. The move widens the ability of foreign investors to take advantage of India’s booming growth and is something the financial services lobby in India has been pushing for years. Back-end industries and analysts will also get a boost as interest from international individual investors and their brokerages in India will likely be huge. Continue reading
Global brands must look to Asia for growth as Hermes begins selling saris to India
Op-Ed Commentary: Chris Devonshire-Ellis
Jan. 16 – The British Chancellor, George Osborne, has arrived in Hong Kong for a three-day tour of Asia and will be suggesting that Britain’s businesses look beyond the battered Eurozone economy and seek trade partnerships in the Far East. He will also visit other parts of China and Japan as forecasters warn that the UK economy has already slipped into recession.
“The problem of high indebtedness in Western economies means these are challenging times for the world economy,” Osborne was quoted as saying in The Observer Sunday newspaper. “But as we look to this difficult year ahead, I want to focus on reasons to be optimistic for the future. A richer, stronger Asia is an opportunity for the world, not a threat.” Continue reading
New law opens way for Marks & Spencer, Ikea, Nike, LV, Gucci and others
Op-Ed Commentary: Chris Devonshire-Ellis
Jan. 11 – After last month’s debacle where the Indian government first approved, then scrapped laws for 100 percent foreign direct investment in the domestic retail industry, the Indian government has finally reviewed its position and, with some changes, passed legislation yesterday permitting 100 percent FDI in single brand retail.
While the 100 percent route for multi-brand retailers such as Tesco, Wal-Mart and Carrefour has yet to be realized, it does pave the way for single brand stores to be opened across India – good news for franchisers, landlords and consumers in general. India Inc. certainly thinks so; shares in Indian retailers skyrocketed across the board on the Bombay Stock Exchange today. Continue reading
Interview with Dezan Shira & Associates’ Principal and Founder Chris Devonshire-Ellis conducted by the emerging market news platform El Emergente
How would you characterize emerging market business in China, i.e. businesspeople and investors from Latin America, Africa, the Middle East or Eastern Europe?
“All emerging markets have their own specific issues that make them all unique, however they are commonly bound by several similarities as well,” comments Devonshire-Ellis. “Typically these are relatively high GDP growth rates, inexpensive labor, and a government in place that is relaxing foreign investment laws and is pro-business. However, these trends can also lead to bumps along the way, such as inflation and periods of transition that can make the business environment difficult at times to properly navigate as the rate of development of commerce in emerging markets often outstrips the legal and regulatory environment to effectively support it. From this perspective, emerging markets are similar. The main differences are cultural, and these can often be overcome through competent local hires.” Continue reading
For business news and analysis from across India and China, visit 2point6billion.com. 2point6billion’s writers work across south east Asia, and bring the most in depth analysis to India and China business news stories.
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at china@dezshira.com, download our corporate brochure or visit at us www.dezshira.com
