About Us >>
China Century Capital Limited ,
(”CCC”), is a private equity invest-
ment company , focussing on the
rapidly growing economy of China.
China is now challenging the devel-
oped countries of the world as an
emerging economic powerhouse.
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Company Share Price >>
The Company's current ASX share price and
trading history may be viewed here.
Latest Announcements >>
The Company directs its continuous disclosure
announcements through the ASX. The most recent
announcements may be viewed or downloaded in
Adobe Acrobat (PDF) format here.
Why Invest In China >>
China – the case for investing in China
1、An economy worth over US$ 6 trillion, (60% of USA and growing);
2 Annual average GDP growth rate of over 9% for the past 25 years;
3 The world’s largest destination for foreign direct investment;
4 Japan and Korea’s biggest trading partner, - ahead of the US;
5 China is now Australia’s second largest trading partner, and
6 Over 450 of the Top 500 multinational companies have businesses in China.
This gravitation is being driven by several factors. The workforce is plentiful, relatively cheap and increasingly skilled. In pure cost terms few other markets in the world can compete head-on. Hence too the tag “the workshop of the world”.
China is also a huge domestic market, and so goods that are being produced chiefly for export are also increasingly being directed at domestic consumers who are rapidly expanding their purchasing power and, in the cities at least, are developing western-style consumer appetites.
World Trade Organisation (WTO) membership is gradually reducing inward tariffs creating marketing openings for western businesses. Significantly around half of China’s exports are generated by foreign controlled companies.
The current government is paying more attention to the welfare of its people, especially the underprivileged, and its major focus is on sustainable growth which is evidenced with the co-development of purely domestic business growth. Some of the relevant considerations in making a case for China are as follows:
Upside from liberalisation – the government is committed, post WTO, to opening up the economy. This is increasing competition, improving efficiency and improving the allocation of resources. As to be expected, the Chinese economy is inefficient in economic terms and the capacity for improvement is large.
Demographics – the lower and middle classes are becoming more affluent, which is resulting in increased purchasing powers and, increased spending. This is providing additional positive stimulus to the economy as well as making China more attractive to overseas investors. Large luxury goods shopping centres, once only a feature of Hong Kong, are now widely found in most Chinese cities.
Improving corporate governance – there have been significant improvements in corporate governance, regulation, transparency and liquidity – particularly in the Hong Kong “H” shares. In the domestic “A” and “B” shares the government continues to stamp down on practices such as stock price manipulation and the use of illegal loans to finance projects. The directors see this as a favourable trend and expect further gradual improvements in the future. However, Fund Managers continue to generally take a cautious approach in investment management
Robust foreign direct investment – global companies are looking to take advantage of China’s growth. This investment is providing technical know how, improved manufacturing efficiency and general stimulation to the Chinese economy.
