China activities

Appointed as special advisor to Jiuhua Investment Company

2009-03-25T06:01:00.000-07:00

Appointment as special advisor
Fujian Jiuhua Investment Company

Fujian Jiuhua Investment Company, based in Putian city, Fujian province, China is a private equity firm with an investment fund at RMB457 million yuan.

According to Mr. Zhao Jianqi, general manager, Jiuhua will invest in Chinese companies with high growth potential and synergies. Jiuhua will seek to transform traditional Chinese manufacturing companies into well-capitalized, leading companies in China and possibly the world.

Jiuhua is also engaged in large-scale real estate developments. It currently plans to develop a Creative Park in Putian for the creative industry.

It also plans to develop Meizhou Island of approximately fourteen square meters into a public-private resort island.

Mustang Ma (email:maheausan@hotmail.com) in Xiamen Fujian China on March 25, 2009.

Technology Incubator Center in China

2008-08-07T20:29:00.000-07:00

If an investor wants to invest in the future of China instead of the traditional business enterprises such as shoe and clothing, he should look to the business enterprises in various technology incubator center in China.

According to an unpublished report, the first incubator center opened its door in Wuhan China in 1987. The incubator center has been established in China for twenty years.

As of 2006, there are 548 incubator centers in China, with 41,434 enterprises being incubated, employing 13,000 returned scholars and 460,000 technical personnel.

From the inception of the incubator center twenty years ago, 19,896 business enterprises have been incubated with sales revenue increased by 500%. It includes 569 business enterprises with sales exceeding RMB100 million yuans, and 53 business enterprises publicly listed on the stock markets. Some breakthroughs in technology have been announced by these groups.

The incubator center is the primary platform to promote technology innovation in China, and as time goes on, more business enterprises will mature and contribute to economic wellbeings of the people in China and the world.

An investor should look to the incubator center if he wants to invest in new technology and the future of China. He will reap many times of his investment if he invests in the infancy of a business enterprise.

Appointment as advisor

2008-08-03T02:43:00.000-07:00

Mr. Mustang Xiaoshan Ma was appointed as advisor to Anji Municipal Government and he is working closely with the investment bureau.

Anji is a xian of Huzhou city of Zhejiang province of China. In the Chinese government system, a province governs several provincial level cities. In Zhejiang province, the provincial cities are Hangzhou, Ningbo, Jiaxing, Huzhou and so on. A provincial city such as Huzhou governs several xian such as Anji xian. A xian, in turn, governs several zhen (township) which in turn governs cun (village).

The most outstanding characteristics of Anji xian is its fresh air, clear water, and clean land. About 70% of the land area is covered by forest, mostly bamboo forest. The bamboo forest scene in the movie, Couch Tiger and Hidden Dragon, was filmed here.

Anji xian, therefore, is best suited for the knowledge industry, and travel and tourism industry.

About Anji
http://www.anjiinvest.com

Successful strategy for an investment banker in China

2008-06-27T05:05:00.000-07:00

I have worked as an economic consultant in China for about five years on a part-time basis. I am retired so I choose not to work full-time. From my experience, an investment consultant in China can adopt the following strategy if he wants to quickly succeed in China.

Step One
Contact several investment bankers in the United States who are interested in going big in China. Then sign a consulting agreement with them to represent them in China.

Step Two
The next step involves several options.
Option one. Establish a representative office (RO) of the investment banker in China.
Option two. Establish an independent investment company in China.
Option three. Establish an independent investment consulting company in China.

Step Three
Promote the company in China just like one does in the United States. It involves tremendous expenses and success is not guaranteed, but there are ways to increase the odds.

Build up good relations with government officials. They provide sales leads.
Attend seminars and conferencces.
Cultivate middleman.

Special Chinese characteristics

What we consider public knowledge in the United States are considered sensitive and confidential trade secrets by a Chinese company. They will not release them to an unknown person who says he knows some investment bankers whose names he cannot release.
A Chinese businessman does not trust a middleman. He does not even want to talk to him.
A middleman does not work with another middleman.

Summary
The reward of an investment consultant is very lucrative in China. One successful case has netted a Chinese investment consultant in Yangzhou in excess of 10 million yuans and so he retires on one case.

It is a new field in China and the Chinese are still learning the ropes so the competitive advantage is on the side of the United States. However, it is easy to waste time in China if one does not employ proper strategy.

A successful strategy is very important.

Prepared by Mustang Ma (ma.xiaoshan@gmail.com) in Guangdong on June 27, 2008

New development - hotel, resort, vacation villa, marina

2008-06-07T16:25:00.000-07:00

Last week I was invited by a property developer in Zhoushan to visit his development on site. His planned development is on some islands in the city of Zhoushan, province of Zhejiang, China.

Zhejiang province (http://www.zj.gov.cn) ranks number one in terms of privately held enterprises and privately held money. Zhoushan city (http://zs.zj.gov.cn) is a coastal city off the largest seaport of Ningbo.
Zhoushan is not a wealthy city. Instead, it is a famous travel destination and where the wealthy people in Ningbo go for leisure, sports and entertainment.

Zhoushan consists of hundreds of islands, large and small. The largest and the closest island to Ningbo is known as Dinghai. We took a ferry from Ningbo (Beilun) to Dinghai. Right now a bridge is being built to join Ningbo and Zhoushan. It is reported that the bridge is scheduled to be in use in May 2009.

Once we were on Dinghai, we drove a few minutes to a private harbor. The developer privately owns this harbor. It has a waiting room, a parking lot with 80 parking spaces, and a harbor for his private fleet of ships and boats.

We left our car on his parking lot, and we went to his island by one of his boats. It takes only three minutes.

According to the developer, within the next five years, he will build a five-starred hotel, a marina and vacation villa on two islands. Then he will expand his development onto other islands.

He has already started to construct a five-starred hotel and resort on the island named Phoenix Island. On the day I visited the hotel, we stay in the hotel, so the main hotel is already completed, but the leisure, sport and entertainment portions are yet to be completed.

He presented his plan for developing the marina and vacation villa on another island, which will be connected to Phoenix Island by a causeway.

According to his plan, he will build 120-vacation villa and 500 marinas on that island. He is raising fund for the development. If anyone is interested in helping with the development and funding, please contact Mustang Ma (maheausan2000@yahoo.com) for further detail. Go to http://picasaweb.google.com/ma.xiaoshan for a photo show of my trip.

Mustang Ma
Profile on the Internet Http://www.linkedin.com/in/mustang001