Month: September 2013

Car Sales on the Rise in China

In an interesting article recently about the global car industry, Yahoo Finance pointed out that China is showing itself to be a major growth spot for the global auto industry. As Carlos da Silva, an analyst at IHS Automotive explained, “For many years it’s been the Bric nations (Brazil, Russia, India and China) which have accounted for the growth of global sales, taking over from the more mature markets.”

Sales for cars in these BRIC countries are not all growing at the same rate. Russia may see car sales fall by 7% this year, according to IHS Automotive. In India, car sales are also expected to decline. Brazil expects their sales to remain stable at about 3.6 million cars, as IHS reports. But China appears to be the hot spot in this equation with sales continuing to rise if analysts are correct.

PwC is predicting that the sale of new cars in China may double from 2013-19. As Julien Marcilly, head of country risk with credit insurer Coface explained, Chinese houses have very little debt and the minimum wage has increased by about 20% in the country.

 

 

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New Fund: China Life AMP Asset Management Company

China’s biggest insurer, China Life, and AMP Capital will be establishing a new funds management company in China soon. The new company will be called China Life AMP Asset Management Company and AMP will have a 15% stake in the new company. The balance will be held by the China Life Asset Management Company.

As AMP said in a recent statement, “Total assets under management in China’s mutual fund industry is expected to reach $0.8 trillion in 2013 growing at 15 per cent per annum to reach almost $1.5 trillion in 2017.”

The deal is going to be China Life’s first joint venture in mainland China. Before being finalized, the joint venture will go through regulatory approval by the China Securities Regulatory Commission.

As Mr. Dunn said, “The funds management joint venture represents the commercialisation of our memorandum of understanding with China Life and is the ideal balance of our mutual strengths and capabilities.”