China DealBook — A Newsletter on Deal Making in China

Newsletter — Aug 29, 2016

Deal News

Chinese Banks Dominate Asian Capital Markets As Bulge Bracket Firms See Shares Shrink
The good old days are gone for bulge bracket banks in Asia. For the past ten years, its investment banking revenue in Asia Pacific ex Japan remained at roughly the same level, while its market share halved from 40% in 2006 to 21% year-to-date 2016, according to data released by Dealogic.

Chinese firm snaps up Sydney’s Park Regis Hotel for 34.70 million U.S. dollars
 A Chinese private capital group had just snapped up Sydney’s Park Regis Hotel for 46 million Australian dollars (34.70 million U.S. dollars.

The new owner of the hotel had bought the property through its operating company,Melbourne-based financial planning company Cornerstone Capital, from Sydney-based private hotel Staywell Hospitality Group.

China Zhongwang to buy U.S. aluminum products maker Aleris
Zhongwang USA LLC, a division of China’s Zhongwang International Group Ltd., said on Monday it would buy U.S.-based aluminum rolled products maker Aleris Corp from a fund group in a $2.33 billion deal.

Zhongwang International is also the parent of China Zhongwang Holdings Ltd, the world’s second-largest producer of aluminum extrusions. Cleveland-based Aleris supplies fabricated products to the aerospace, construction, automotive and defense industries.

Chinese plan $400m lithium plant at Kwinana
A Chinese company wants to build a $400 million plant in Kwinana capable of processing lithium — the key ingredient in new-generation batteries such as those used in cars like Tesla.

Sinopec to build crude production hub with 1.5 million tonne capacity in Tarim basin
Sinopec, China’s second largest oil and gas group, will build a crude production hub with a 1.5 million tonnes annual capacity in Tarim basin between 2016 and 2020, the company said on its official Weibo microblog on Monday.

Sinopec’s Shuibei oil field, a new discovery in the middle west of the Tarim basin, has oil reserves of 1.2 billion tonnes and 500 billon cubic meters of natural gas deposit.

China Travel-Focused PE Firm Ocean Link Announces Partnership With Ctrip And General Atlantic
Ocean Link, a private equity firm founded by former Carlyle Group executive Tony Jiang and hotel veteran Alex Zheng, says it has established a strategic partnershp with Ctrip and global growth equity firm General Atlantic, says a company announcement.

KTB Investment inks US$86m deal to buy A330 from Chinese lessor
KTB Investment & Securities has signed a deal worth US$85.6 million with a Chinese aircraft leasing company to buy an Airbus wide body plane which is being leased by Singapore Airlines in a bid to expand its alternative investment portfolio, the South Korean brokerage said.

Cloud Radiotherapy Start-Up Allcure Raises $27M Series A From Two RMB Funds
Chinese precision cloud radiotherapy start-up Beijing Allcure Medical Technology has raised a RMB180 million (US$27 million) series A funding round from two RMB investment funds, Zhengheci Capital and Lian Fund, Chinese media reported.

Nanjing Xinjiekou Department Store scraps plan to acquire stakes in China Cord Blood Corp
Nanjing Xinjiekou Department Store Co Ltd said that it has withdrawn asset restructuring application from securities regulator, and has scrapped plan to acquire stakes in China Cord Blood Corporation.

DJI to open its largest store for drones in Causeway Bay, boosting Hong Kong’s property market
Da-Jiang Innovations Science & Technology Co, the world’s biggest maker of drones, will open its largest retail store in the heart of Hong Kong’s busiest shopping district, providing a much-needed boost to the city’s ailing market for commercial and retail space.

95% of China’s Electric Vehicle Startups Face Wipeout
China’s electric-vehicle industry, with 200-plus companies backed by a raft of billionaires, verges on a massive shakeout as the government imposes stricter technology standards on fledgling manufacturers and considers limiting their number to only 10.

A sneak-peek into an upcoming billion dollar fund to bridge SEA and China
We now have an idea of what CC Zhuang is up to after leaving Qunar, the largest online travel booking company in China that he founded, in January this year. Zhuang, who recently founded a VC firm called Banma Capital, is in the middle of raising US$1 billion for investments in Southeast Asia and China, with US$350 million closed in June.

International Cruise Companies Rush To Build ‘China-Centric’ Ships
Deploying an existing ship to homeport in China, or working with Chinese tour agencies to charter entire boats, is no longer enough for many international cruise companies.

Other Updates
China launches own aircraft engine-maker to rival the West
China has launched its first aircraft-engine manufacturer in an attempt to wean itself off Western suppliers. The state-owned Aero-Engine Group of China was created by combining a group of existing aircraft-engine companies, according to local media reports.

Guangzhou launches China-Europe cargo train service to Russia
China has launched a new freight train route to boost trade along the ancient Silk Road.

Multinationals scout for opportunities in Guangzhou FTZ
Despite the slowing demand and rising labor costs that hit global automobile manufacturers in 2015, GAC Toyota Motor Co Ltd. is spending heavily on a new production line in south China’s Guangzhou.

Chinese Startup Hires Giorgetto Giugiaro For Its First Supercar
The car was previewed at March’s Geneva Motor Show in concept guise and apparently, will be released as a finished, production-spec model at Geneva next year.

China DealBook Newsletter — A Newsletter on Deal Making in China