Briefly…Top Ten Tweets (From Private Equity & Private Consumption to Fast Cities, Slow(er) Lending & Dumb Things

Related entries: Business Issues, Consumer Market, Economy, General, Investment, News, Risk & Law, Strategy

Our round-up of last week’s news, from our ChinaBlogTweets highlights, is below:

1. Auto FDI: RT @ftchina: China looks to amass distressed auto assets 9:15 PM Dec 4th

Comment: China is upping its overseas direct investment (ODI), with policy incentives and political pressure on companies. It is also playing catch-up in the auto sector, where it is taking the lead in market terms, but where foreign firms have dominated. China’s ODI is generally getting smarter too, as we noted here. Watch this space.

2. Economy: RT @ChinaPrime: China pledges stable economic policy for 2010 — Stimulus efforts to focus on spending, investment 7:33 PM Dec 4th

Comment: Stability for the stimulus? Expect a package of policy measures to ensure continued growth (of 8% plus), while taking care to manage bank lending and inflationary risk.

3. FDI: RT @westlawchina: RT @DanHarris: China Legal. It’s Just Legal…Foreign Direct Investment In China: China Law Blog 10:12 PM Dec 3rd

Comment: Dan Harris says: “China’s view on foreign investment has changed in the last year and this change has not been for the better” . We noted the changing trend back in 2007 in this post: China, and the Story of the Malicious Foreign Takeovers. So if you do it, better do it legal (that goes for visas too).

4. Private Equity: FT reports that CIC is offering to invest €800m in Apax Partners private equity fund (& stake in management co)… 8:08 AM Dec 3rd

Comment: Despite the paper losses for CIC in Blackstone, rumour is that it is being used for strategic investment. Same for Europe? As noted above, Chinese ODI is getting smart, and is using many channels.

5. Dumb things: Learn from Apple (& other failures) RT @GCBRANDS: Three Dumb Things Foreign Companies Do In China 8:23 AM Dec 2nd

Comment: Shaun Rein writes about some of the mistakes that foreign firms (such as Apple with their low-selling iPhone) make in China. Big brands, transferred to China, do not always mean big success. Adapt to local preferences, make marketing culturally relevant, and be big!

6. Bank Lending: Lower lending RT @live_china: China new loans may fall to 6 trln yuan in 2010-paper – Reuters [G] 6:52 AM Dec 2nd

Comment: Bank lending, at some RMB10 trillion this year, went through the roof. It helped fund the stimulus, but is also stoking asset bubbles, non-performing loans and inflationary pressure. It will come down in 2010, but will also continue to be a well-used policy lever.

7. Economic outlook: PMI high RT @BullishChina: UPDATE 2-Chinese business surveys at peaks, signal rosy outlook – Reuters 8:16 AM Dec 1st

Comment: Business outlook has been getting better, but concerns remain. Not least on bank lending and the sustainability of the stimulus.

8. Stable RMB RT @live_china: China’s Wen says yuan stability vital, criticises pressure – Channel News Asia [G] 8:31 AM Nov 30th

Comment: The gradualist approach to currency remains in place. As does pressure for appreciation. Of course there is a complex back story to this, and the arguments are not all black and white.

9. First & second tier cities: RT @danwei: An illustration of China’s rate of development: A rundown of the top ten fastest growing Chinese cities… 7:55 AM Nov 30th

Comment: …am surprised that list of fast-growing cities does not include more relative unknowns. Different cities have different attractions, as we noted in this post.

10. Consumption RT @BullishChina: China strives for faster retail growth – 中国日报…中国日报Consumption was the key… 9:24 AM Nov 29th

Comment: China is trying to make the “3 horses” of the economy (investment, trade & consumption) run as more of a group. Consumption, especially private consumption, has a long way to go. Policies are in place to push long-term restructuring, but it will take time.

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