SOURCE: ARC China

August 18, 2010 11:06 ET

Adam Roseman's Commentary on China's Consideration of New Instruments to Bolster Foreign Exchange Reform Featured in August 17th, 2010 Edition of ARC China Weekly Newsletter

SHANGHAI, CHINA--(Marketwire - August 18, 2010) -  ARC China released the latest edition of its newsletter ARC China Weekly on August 17th. The publication includes a commentary from ARC China Founder Adam Roseman as well as articles covering topics of general interest with a focus on consumer and retail, alternative energy, recent investment transactions in China's current news, and transactions in the Middle East, Europe, and the United States. 

Roseman's foreword focuses on the announcement by China's State Administration of Foreign Exchange (SAFE) that the country is considering introducing new foreign exchange instruments to meet domestic demand and complement currency reforms launched in June. 

Although SAFE did not say what reforms it has in mind, it laid out its work program for the second half of 2010 including keeping a tight grip on "hot money" inflows, enhancing guidance given to market makers, and improving the currency composition and asset mix of China's $2.45 trillion in foreign exchange reserves.

A flexible exchange rate in China will help stimulate trade and structural adjustments and also ease appreciation expectations. The appreciation of the yuan will be of great benefit to international private equity investors in China as it (i) will increase the reported currency earnings power and valuation of existing internationally listed Chinese portfolio companies and (ii) will increase the purchasing power of Chinese consumers and further boost domestic consumption.

The newsletter can be found online at http://www.arcchina.cn/this-week-in-china/volume-74/.

About ARC China

ARC China is an investment firm focused on investments in entrepreneur-owned small and medium sized enterprises located in Tier II and Tier III Chinese cities. We seek to create value for our investors and companies we invest in by applying our professional experience and relationships to help companies upgrade their management teams, technology, systems, and business processes. Our team of experienced investment professionals and in-house due diligence analysts deploy a proven and unique on-the-ground activist investment strategy of making value-oriented highly involved, exit-driven equity investments in a diversified portfolio of domestic consumption-focused high-growth Chinese businesses. We also provide various financial advisory services, for both inbound and outbound China transactions. For more information, please visit http://www.arcchina.cn.

Contact Information

  • Contact:

    Adam Roseman
    ARC China
    182 Chang Shu Road
    Xu Hui District
    Shanghai 200031, P.R. China
    Email: Email Contact