China Daily Global Edition (USA)
CCB lists $1.2b bond on Nasdaq Dubai
Private equity firm H&Q Asia Pacific said PhiSkin — a cosmetic medical services provider which operates a skin and laser clinic in its investment portfolio — completed series B fundraising in early June, one more deal in the sector which is attracting increasing amounts of capital in China.
Legend Capital led the 120 million yuan ($17 million) series B round in PhiSkin, the Shanghai-based aesthetic medical and beauty services provider that focuses on skin treatment.
H&Q led PhiSkin’s series A round fundraising, and invested some 54 million yuan of the total 64 million yuan raised in 2015.
The private equity firm said that the internal rate of return target for its PhiSkin investment was at least 30 percent and 40 percent, and the exit plan included an initial pubic offeringintheA-sharemarket.
“A lot of capital from Chinese investors poured into private equity investment. Healthcare is one of the hottest sectors together with TMT,” said Mark Hsu, managing director of H&Q.
“Out of the many different niche sectors in the healthcare industry, medical aesthetic clinics are the easiest to understand and operate,” Hsu added.
He said that demand for aesthetic medical services would continue to expand as the middle class population grows steadily, and mid-tohigh income people required more anti-aging services.
“If we just consider highquality medical aesthetic services which are operated by real high quality doctors, the supply is not enough,” he said.
“That’s why we believe that to build up a well-known Mark Hsu, retail brand with real medical professional operation in this sector can have a long-term success.”
China’s aesthetic medical services sector has been appealing to a wide range of investors. That has included Nanjing-based Suning group, which set 5 billion yuan fund to invest into aesthetic medical services, and Beijingbased female fashion retailer Lancy, which acquired stakes in six beauty clinics and now seeks to raise more fund to invest in a cosmetic services hospital.
Shanghai-based conglomerate Fosun also invested in acquiring stakes in aesthetic medicalequipmentandmaterial suppliers, aesthetic medical information providers, and aesthetic medical clinics -- in a bid to profit from the fast-growing market throughout the entire value chain.
According to data from the country’s representative body for comestic medical services and plastic surgery, the Chinese Association of Platics and Aesthetics, the country now has more than 10,000 aesthetic medical services clinics, and some 3 million quasi-aesthetics stores without medical service qualifications providing services such as acne treatment and antiaging treatment.
Analysts estimate that in 2014, some 1 percent of the population used aesthetic medical services, and the number is seen reaching about 17 percent by 2019.
“The aesthetic medical services market is quite fragmented in China, but its size is expanding fast. By 2020 the market will reach a size of one-trillion yuan, so significant market consolidation is expected,” said a research note by China Merchant Securities.
has a facial care at a hospital in Zhengzhou, Henan A lot of capital from Chinese investors poured into private equity investment.” managing director of H&Q Asia Pacific
BEIJING — Nearly seven in 10 Chinese-listed companies on the country’s Nasdaq-style board are poised to register hefty profits for the first half of this year.
The data cast light on the gathering momentum in emerging sectors and the solid economic fundamentals of the country.
As of Monday, nearly 69 percent of 64 Chinese publicly traded companies listed on the ChiNext had forecast profit growth or projected that losses would be transferred to gains in the January-June period. The figures were released by Choice, a leading financial data provider.
Analysts stressed that profitability of listed companies offers insight into broader economic performance.
Breakdown figures revealed that only 12 companies, or 18.8 percent of the total, are set to witness a decline in profits or report a loss for the first six months. The remainders have not made profit projections.
Five listed companies, including Zhejiang Jingsheng Mechanical and Electrical, predicted
BEIJING — Guo You, chairman of the board of supervisors of China Construction Bank on Wednesday rang the market-opening bell to celebrate the listing of a $1.2 billion bond on Nasdaq Dubai, the stock exchange that lists regional and international shares in the Middle East.
Nasdaq Dubai said in a statement that the listing by the Hong Kong Branch of CCB “underlines the country’s growing financial activities in the United Arab Emirates and having the potential to at least nearly double their net profits in the first six months.
The solar energy giant expects its net profits to surge between 70 percent and 100 percent year-on-year in the first six months, due to rising outlays on research and development.
Smart manufacturing now features on the company’s production lines, reducing operational costs and improving work efficiency. Moreover, strengthened efforts on new product design and upgrading in tandem with stock option incentive plans sharpened technological competitiveness.
Zhejiang Jingsheng Mechanical and Electrical is testimony to the performance of Chinese companies that are driving up the global value chain as part of the country’s economic restructuring.
China is moving toward an economyboostedbyconsumer spending, innovation and services, reducing reliance on investment and exports of low value-added goods.
Last year, Chinese companies reported
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listed brisk the wider region.”
CCB’s market capitalization totaled $192.6 billion dollars at the end of 2016, the fifth biggest of any bank in the world, and it has branches and subsidiaries in 29 countries.
It is the second bond listing by the Hong Kong Branch of CCB on Nasdaq Dubai under the bank’s $6 billion Medium Term Note Program, following a $600 million bond that listed on the bourse in October.
“The capital raised through our bond supports our growing profit growth as they ramped up spending on research and development, with emerging sectors outperforming traditional industries.
Combined net profits from growth enterprises listed on the tech and emerging sectorheavy ChiNext board surged 36.7 percent in 2016 compared to the previous year.
That was faster than the 4.3 percent growth from publicly traded companies on the two main bourses in Shanghai and Shenzhen, according to data from Choice.
On a national scale, China’s research and development expenditure jumped 9.4 percent to 1.55 trillion yuan ($228 billion) last year compared to 2015.
That accounted for 2.08 percent of gross domestic product in 2016, data from the National Bureau of Statistics revealed.
Smart manufacturing and emerging sectors such as nextgeneration commercial banking and other activities in the UAE, the Middle East and beyond, under the Belt and Road Initiative,” said CCB’s Guo.
The Belt and Road Initiative is a strategic masterplan introduced in 2013, aimed at economically integrating Asia with the Middle East, Africa and Europe.
Essa Kazim, governor of the Dubai International Financial Centre which hosts Nasdaq Dubai as a licensed market, said Dubai was committed to expanding its economic links with China in order to support dynamic crossborder business initiatives and promote mutual prosperity and development.
“The capital markets are one of the many areas in which our relationship is strengthening and we will continue to enhance our exchange infrastructure to support the business needs of Chinese institutions,” he said.