SHANGHAI, CHINA--(Marketwire - July 12, 2010) - ARC China released the latest edition of its newsletter ARC China Weekly today. 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, and recent investment transactions in China's current news, and a newly added section covering transactions in the Middle East, Europe, and the United States.
Roseman's foreword focuses on China's continued path towards a sustainable rate of economic growth, supported by last week's revision of the Conference Board's leading economic index for China for April, in which a data-calculation error led the Conference Board to change the reading to 6.8% from the originally reported 9.9%. Following the new reading, the official latest Purchasing Manager Index (PMI), a gauge of nationwide manufacturing activity, was issued by the China National Bureau of Statistics. The June PMI came in at 52.1, down from 53.9 in May, indicating China's manufacturing activity expanded for the 16th straight month in June, though at a slower pace than in May.
A path towards sustainable growth is also supported by the findings of the Lakshman Achuthan of the Economic Cycle Research Institute (ECRI), who maintains four different leading indexes for China. ECRI's export index, with a six-month lead time, has been plunging since its September peak. The Chinese industrial production leading index, a broader measure, with an eight-month lead time, peaked in November, and has been declining, too, but less dramatically. The leading index (seven months lead time) topped in November, but is showing "a more gentle throttling back of growth."
Roseman believes that the recent decline in the valuations of internationally listed Chinese companies resulting from the current manufacturing data creates a great opportunity for ARC China to deploy capital according to our disciplined investment process and will result in increased returns in the future as valuations normalize.
The newsletter can be found online at http://www.arcchina.cn/this-week-in-china/volume-69/.
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
Phone: +86 21 6323 1717
Email: