China Direct

Fidelity deepens its China investment business

CBI member, Fidelity has announced that has submitted an application for a Wholly Foreign Owned Enterprise (WFOE) mutual fund license to China’s Securities Regulatory Commission. Fidelity hopes that acquiring the license will pave the way for it to begin selling mutual funds to retail investors across China in 2021.

Rajeev Mittal, managing director of Fidelity’s Asia-Pacific business said: “The application for a mutual fund license is an important milestone in [Fidelity’s] China strategy. We look forward to providing Chinese investors with Fidelity’s global expertise and proven Chinese investment capabilities.”

China is the third-largest asset management market in the world, behind the US and the UK, with assets of $5.3tn. The pool of assets is expected to grow to $9tn by 2023, and as a result competition among global rivals for a share of the mainland market is intensifying.

Foreign asset management firms have welcomed the fact that long-standing restrictions on foreign ownership of mainland asset management companies have effectively been abolished by regulators. Fidelity’s experience in China is testament to this. It was the first international asset manager to obtain a WFOE private fund management qualification in 2017, which allowed it to sell investment products to a limited number of wealthy Chinese individuals and institutional clients, and has since launched four privately managed funds in China.

British Business optimistic about 2020 China market opportunities

Dear CBI Members and Partners,

The British Chamber in China recently published its 2020 British Business Sentiment Survey in Beijing.

The Survey revealed that:

• More than 50% of respondents were optimistic about the China market and intended to continue to invest

However:

1. More UK businesses report that it is harder to do business in China
2. More than 30% feel that they are not treated fairly compared to domestic firms

According to the Survey the top three regulatory issues are:

1.     Cybersecurity & IT restrictions
2.     Accessing and moving company finances
3.     Competition with SOE (State Owned Enterprises) or state-sponsored companies  

For a detailed overview of the Business Sentiment Survey (English & Chinese versions) please access and download the survey here.

Our thanks to partner The British Chamber in China for sharing these insights.

DHL expands China presence with Shunfeng supply-chain deal

 

CBI member, DHL has announced that it has concluded a landmark deal to transfer its supply-chain operations in China to SF Holdings – China’s largest courier company.

The transaction involves DHL’s supply-chain business, and has no bearing on DHL’s activities in international express, freight transport and e-commerce logistics in China. SF Holdings will take over day-to-day operations of DHL’s domestic supply chain and pay DHL a revenue-based partnership fee for 10 years and a one-off payment of £620 million. DHL will support SF by co-branding the business with trademark licenses, customer referrals, providing employee training and sharing best practise.

Frank Appel, CEO of DHL Group said, “This supply-chain alliance with SF is a strategic milestone for DHL Group. With our joint capabilities we will create a unique platform to meet the need for a high-quality end-to-end supply chain provider in China.”

The partnership highlights how foreign and Chinese companies compliment each other well to address barriers inhibiting their growth in the China market. Through partnering with SF, DHL will gain access to a large localised workforce of KuaiDi drivers and be plugged into SF’s extensive delivery network. On the other hand, SF benefits by being able to expand its client-base by being able to appeal to a new type of client who wants to deal with a highly-reputable foreign service provider by being able to use the DHL trademark. Moreover, the deal demonstrates how there is opportunity for foreign companies in China who are capable of sharing their experience in delivering a high-quality service model and best practises with Chinese companies eager to develop and mature.

 

 

DHL increasing China Greater Bay area investment

 

German logistics giant and CBI member, DHL announced last week that it plans to increase its investment in China.

According to DHL Express China CEO, Wu Dongming the firm hopes to benefit from the recent opening of the Hong Kong – Zhuhai – Macao Bridge and associated government-sponsored initiatives related to the Belt & Road Initiative, which has a start point in the Greater Bay Area. More specifically, the added investment will focus on expanding service facilities in Hong Kong and Guangzhou, enabling DHL to increase the capacity of their freight flight services from South China to Germany.

In addition to announcing plans to increase investment in the Zhuhai / Greater Bay area, DHL launched a new freight flight service from Guangdong to Leipzig last Friday.

Demand from Chinese manufacturers has risen to such an extent that despite the company operating flights from Shenzhen to Leipzig six times a week, the company needed to introduce a new route to boost capacity. The new Guangdong to Leipzig route will help DHL cater to the demand from Chinese manufacturers for delivery services in Zhuhai, Zhongshan, Jiangmen and Foshan in Guangdong province. The added investment will extend DHL’s lead in the China market, where the company is already the air freight market leader.

The company announced in a press release that these steps were merely the first in a plan to further DHL’s ‘Guangzhou Gateway’ and benefit from the accelerated economic integration and development taking place in the Greater Bay area.

DHL China employs over 7,000 people and offers China-connectivity to over 401 cities worldwide and domestic transportation to 128 cities within China.

Please read more here.

CBI Companies on track with Singapore-Malaysia High Speed Rail Project Bid

 

CBI members Siemens and Alstom, Ferrovie dello Stato Italiane and George Kent together with PORR have mutually agreed to join forces in a consortium to bid for the Kuala Lumpur - Singapore High Speed Rail Assets Co tender for the Kuala Lumpur – Singapore High Speed Rail project, announced by the Malaysian and Singaporean governments

The companies will work to prepare a joint offer encompassing engineering, procurement and construction (EPC) and operations & maintenance (O&M) for the purpose of this tender.

This partnership shall result in a powerful team combining European technology and project experience with the best local expertise. The consortium brings together the two manufacturers, Siemens and Alstom, with decades of technology leadership and excellence in delivering complex cross-border high speed railway projects.

In the past, both companies have worked on similar complex Private Public Partnership (PPP) projects across the globe.

Ferrovie dello Stato Italiane brings valuable expertise in railway operation and a vast global footprint. These European companies are joined by George Kent, a Malaysian company offering significant construction experience in rail transportation projects and a strong local knowledge of the Malaysian market.

George Kent is partnering with PORR, a highly experienced track work provider offering a state-of-the-art slab track technology proven in operation on high speed railways.

Please read more here.

CBI members Accenture & Huawei work to support Shanghai International Port Group (SIPG)

CBI members Accenture and Huawei announced today a latest achievement in the port information field: Accenture will help Shanghai International Port (Group) Co., Ltd (SIPG) to establish a consolidated information management platform that will run on Huawei's FusionCloud solution, with some of the work to be undertaken as part of the existing Huawei-Accenture Strategic Agreement.

SIPG is a large business conglomerate engaging in port operation and related businesses including port handling, stevedoring services, warehousing, logistics, and real estate development services.

In its effort to become one of the global top-tier providers in this industry, SIPG is addressing several challenges, including capital scarcity, the streamlining of its management structure, ensuring service quality and controlling operating costs.

Under the agreement, Accenture is responsible for the overall design of SIPG’s information management platform and the system integration, leveraging its in-depth industry insights and expertise in large-scale systems implementation.

Through the existing Huawei-Accenture Strategic Agreement, Huawei will provide its hardware and software expertise and services, including hyper-converged infrastructure (HCI) FusionCube; OpenStack-based cloud operating system FusionSphere; integration server, software-defined storage, and network hardware.

Accenture and Huawei will also work together to fulfil the implementation of their engineering system, human resources system, master data management system and the private cloud platform, as well as to carry out their business intelligence system implementation and optimization. Together both will provide an agile and responsive information management platform.

Please read more here.

Shell Marine appointed by OOCL Hong Kong

 

Orient Overseas Container Line (OOCL), one of the world's largest integrated international container transportation, logistics and terminal companies, has appointed CBI member Shell Marine to provide its integrated marine solutions, which include lubricants and services for OOCL Hong Kong.

OOCL Hong Kong is the latest vessel to claim the ‘world’s largest container ship’ with a capacity of 21,413 twenty-foot equivalent units (TEUs), measuring 400m in length and 59m in width.

The ship is equipped with MAN Diesel & Turbo’s (MDT) G-type engines that represent the latest in two-stroke engine technology.  The ship is currently plying routes between Asia and Europe. Protecting, maintaining and optimising marine engine performance at a time when engine technology is fast developing can be challenging and complex, particularly during a period when fuel selection and vessel speed requirements are also up for discussion.

The G-type engine design used in the OOCL Hong Kong requires close oil performance monitoring and technical support and since the containership also needs to optimise its performance by tackling very challenging operating conditions, this means that selecting high quality cylinder oil is of utmost importance.

Please read more here.

Cathay Pacific selects DHL Supply Chain to manage supply chain in Hong Kong

CBI Member DHL Supply Chain has commenced management of all aircraft maintenance, repair and overhaul logistics activities for Cathay Pacific and Cathay Dragon in the airlines’ home base at Hong Kong International Airport (HKIA), part of a 10-year contract signed earlier this year.

The contract will see DHL Supply Chain take overall responsibility for the storage, warehousing and domestic transportation of 80,000 specific aviation part types, components and equipment used to maintain Cathay Pacific and Cathay Dragon’s combined fleet of 180 aircraft to the highest safety and operational standards.

DHL Supply Chain will also work with incumbent aircraft maintenance provider HAECO to provide additional services including parts inspection and airside operations.

Please read more here.

CBI Member DHL launches Vietnam domestic delivery operations

DHL eCommerce, a division of the world's leading logistics company, Deutsche Post DHL Group, has launched its nationwide domestic delivery operations in Vietnam.

The domestic delivery network will offer a high quality delivery service across Vietnam and a range of services tailored for the booming e-commerce industry, helping small, medium and large e-tailers and marketplaces increase their share amidst the rapidly growing Vietnam e-commerce segment.

"The Vietnamese e-commerce market represents a huge and relatively untapped potential for local retailers, e-tailers and marketplaces: in 2016, total e-commerce spending hit US$1 billion  despite barely over 50% of the population being online, " said Charles Brewer, CEO, DHL eCommerce. "With e-commerce spending expected to grow at around 23% per year between now and 2020,  local e-tailers need scalable, high-quality logistics solutions with nationwide coverage more than ever before."

Please read more here.

DHL opens China Rail Competence Centre in Stuttgart

 

CBI Member DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, has opened a central China Rail Competence Center in Stuttgart, Germany to ensure the more efficient and customer-friendly coordination of ever-growing freight volumes transported between Germany and Asia by the rail freight service.

“Rail freight volumes between Germany and Asia have increased 10-fold in just one year. In order to meet ever-increasing demand, the onus is on us to grow, optimize processes and create synergies. It is for this very reason that we decided to establish a central China Rail Competence Center,” states Volker Oesau, CEO DHL Global Forwarding Germany and Central Europe, explaining the strategic rationale behind the decision.

Please read more here.