March 22nd, 2008
1. A lots of Chinese made money from property. More specifically, made money from the property boom (around 2002).
2. A early success of foreign investments, more money continue to flow into China. While 10M fund is huge in 2000, 100M is considered very small by 2006.
3. (1) & (2) lead to lots of money chasing deals. And when there are good deals, they don’t even need to go out of China to find the money, and they get very good deal from investors.
If you are an investor outside China, chances you don’t get to see much good deals coming out of China since 2007.
4. Rumors say that the Chinese government will further restrict foreign investments via the usual SPV structure by the end of the year. Setup a RMB fund as soon as possible.
5. Preferred market to IPO for Chinese companies are Shanghai A-list, NASDAQ and Hong Kong. After that, they will consider AIMS before Singapore, if ever.
Singapore has a bad reputation of giving low valuation (compared to other markets), low liquidity, take too long and cost too much.
6. Just US$100k will get you priority banking in China, which also applicable worldwide.
7. RMB 30 (US$4) for a Starbuck coffee is normal. But taken into the context where Chinese pays RMB 2000-3000 on average, a RMB 30 Starbuck coffee is like drinking a SG$30 coffee for me.
Surprisingly, every Starbuck I being in the last few days are always pack, mostly Chinese.
8. Starbuck’s Wifi is excellent. It is free and it works!