Member News

APPOINTMENTS

Daniel Plane, an expert on intellectual property law in Asia, has joined the Hong Kong office of the law firm Gide Loyrette Nouel. Plane's experience in intellectual property law includes counterfeit and piracy issues, intellectual property protection strategies, and the international and trans-national aspects of these issues. He previously served as the anti-counterfeiting manager for several large, international, brand-name companies, as well as a senior China Intellectual Property associate with a major American law firm in China. In other news, Gide's Beijing office recently advised Veolia Water through its successful €2.65 billion bid for a contract with the city of Tianjin. The firm's 49 percent equity stake in Tianjin Shibei Water Company means that it will be supplying drinking water to three million inhabitants in Tianjin and surrounding areas. Gide Loyrette Nouel is a major international law firm, consisting of 21 offices around the world and three in China.

DEALS

Bayer HealthCare signed an agreement with the Chinese Ministry of Health allowing the company to train 10,000 Chinese doctors over the next five years. The project, which is estimated to cost US$2.66 million (€1.87 million), will cover a diverse range of medical fields and specialities as the company trains physicians, surgeons, gynaecologists, obstetricians, and paediatricians. Bayer will concentrate on 332 counties experiencing widespread poverty in China's central and western provinces. Gansu province was chosen as the pilot program for the project and will receive technical support from Lanzhou University. The experience from the Gansu project will be used to assist operations in all 332 counties.

Real estate consultancy Savills announced its involvement in the sale of two office towers within Suzhou's Times Square for US$90 million (€62.9 million). Savills initially offered consulting services for the deal, but was later appointed the transaction agent. A Korean fund organized by SK Securities bought the buildings, which are located within a large, high-end development project in the Suzhou Industrial Park. The "Times Square" subsection is comprised of four office buildings, retail areas, and a large car park. Following the transaction, Savills was appointed to act as an "exclusive agent" for SK securities. "I am confident that this partnership marks the beginning of better things to come," said Albert Lau, Managing Director of Savills Shanghai.

Wacker Chemie signed a new supply agreement with Yingli Green Energy in Baoding, Hebei province. Under the terms of the agreement, which was the fourth in four years, the German chemical company will supply Yingli with polysilicon for three years, from 2009 to 2011. The new supplies will allow Yingli, a vertically integrated photovoltaic (PV) products manufacturer, to produce over 80 megawatts of PV modules. The company currently has an annual production capacity of 200MW of PV products, but is seeking to double its output by the end of 2008 and to triple it by 2010. "We believe this agreement will benefit both partners," said Reimund Huber, Wacker's director of marketing and sales, "and it coincides with our previously announced strategy of reaching a total capacity of 21,500 metric tons by the end of 2010."

EXPANSIONS

Accor Europe's largest hotel operator, announced plans to expand its number of hotels in China by nearly 300 percent by 2010. The company, which currently operates 50 hotels in the mainland, is seeking to open or begin developing 130 additional branches in the next three years. The development plans, which represent a 13 percent increase from a previously announced expansion project, mean that Asia will soon account for 10 percent of the French company's profits. Accor's revenues rose by 6.6 percent to €7.61 billion in 2006. Most of the expansion will be centred on Ibis Hotels, an economy brand, as well as some new branches of the upscale Sofitel and Novotel hotels. Accor will also expand its recently launched Pullman Hotels brand, designed for upmarket business travellers, to about 22 percent of its total number of branches in China.

LAUNCHES

ING Investment Management has unveiled a new product that invests only in Chinese companies listed on foreign exchanges. Named "ING China Access Fund", the portfolio consists of shares about 30 to 40 companies. The fund is intended to give investors benefits from the expanding Chinese economy without buying A-shares, which have high price-to-earnings ratios that discourages some investors. China Access will be supported by ING's regional investment team as well as China Merchants Fund Management, a landmark joint venture between ING and Chinese investment companies. The fund, which ING expects to be valued at US$250 million (€176.1 million) within 6 to 12 months, is currently being marketed only to private banking clients in China, but is available for general retail sale in Hong Kong.

Novo Nordisk IT (NNIT) opened its first Chinese office in Tianjin on September 26, after operating in the country for a year under the licence of its sister company, NNE Pharmaplan. This expansion permits the company to target customers in the Chinese market and provides access to low-cost, highly skilled labour. "We've opened an office in China as it's completely in keeping with our strategy to become more international and move with the market," said Per Kogut, NNIT's chief executive. The main function of the branch will be to support the main offices in Denmark so that the company can exploit the time difference, enabling them work on projects continuously. NNIT, a subsidiary of Novo Nordisk, is a major European IT consulting provider.

Standard Chartered Bank began offering unsecured personal loans in Shenzhen on October 11, following a successful debut of the product in Shanghai over the summer. The product, entitled "Xiandaipai", is the first unsecured loan of its kind to be offered on the mainland. The approval process for a loan requires neither collateral nor a guarantor, and the loan has a fixed interest rate between 7.9 and 9.9 percent. Standard Chartered was allowed to begin offering its services to local customers in April, when it completed local incorporation in China. The bank plans to expand its number of outlets in China to 40 by the end of 2007, double its current number. Standard Chartered, based in the UK, currently earns a majority of its profits from Asia.