A: China Market Entry Projects for US Tech Firms, in the Oil/Gas and HiTech Sectors

B: Technology & Assets Acquisition Projects by Associated Chinese Conglomerates, focused in 'North American, South American and African Region'.

C: China Private Equity Investment Projects with Partner US Firms


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Key China General & Financial News:


Latest:

Siemens President & CEO Peter Loescher said that it expects to get orders of RMB 20 Billion (USD $2.9 Billions), from the 2009..2011 China Economic Stimulus Package; including Energy-Efficient and Environmentally-Friendly Technologies.

ABB reported 2008 Orders of USD $4.5 Billions and USD $4.1 Billion is from China - 91.1%. It will invest $150 MM in China to expand operations.

Orders Auto sales in China eclipsed the U.S. -- traditionally the world's biggest market -- this year, selling 2.7 million passenger cars compared to U.S. sales of 2.2 million during the first quarter of the year. Last month alone, Chinese consumers bought more than a million new cars, April 2009.

CNOOC expects rise in output. Cnooc said it expected its crude oil and natural gas production to rise by 16-18% this year due to output from new projects in Nigeria and Indonesia. The company, which is the largest listed offshore oil and gas producer in China by capacity, said it plans to boost its capital expenditure by 19% to US$6.76 billion despite lower oil prices.

This is counter to what Cnooc's foreign competitors are doing -- most are trimming production capacity and costs. Cnooc is targeting production of 225 million to 231 million barrels of oil equivalent in 2009, up from 194 million to 196 million in 2008, the company said in a statement. The company will also bring 10 new projects online in 2009.

Despite the current Global Economic Downturns, China's Big Three Oil/Gas Conglomerates (CNPC, Sinopec and CNOOC), continues to Expand and Upgrade their Exploration, Well Drilling, Production/Logging, Communications and IT Infrastructures:

**CNPC BGP Unit, HQ in Zhuozhou and China's #1 Oil Exploration Firm, Continues to Rapidly Upgrades it's 3D Seismic Imaging Exploration Technologies, as well as Seeking New Upstream Technologies;
**China's Big Three Oil are now Hyper-Active in Africa, Central Asia and South America;
**CNPC HQ has just Commences Phase 1 of a Major Satellite Upgrades with 1 Major Hub and 100 Remotes (iDirect), linking CNPC Operating Units within China and Central Asia.

>>>>VCNOffice have worked with 3 Houston-based Oil/Gas UpStream/Downstream Technologies Firms in Successful Market-Entry Assignments into the Chinese Market - Please contact us for Case-Study Information and Testimonials.

Major Initiative as Directed by the National Development Reform Commission (NDRC), includes:
**Production of Fuel via Liquefied Coal Technologies
**Production of Fuel via Bio-Agricultural Plants

Active PE Investment in China in 2007 totalled USD $35.59 B, Growth of 150.7%, including 22 PIPE Investments (One of the major 2008 PE IPO was Honghua's IPO in Hong Kong, raising USD $409 MM - Honghua is the World’s Second Largest and China’s Largest Onshore Oil Drilling Rig Maker)

Latest China PE Investments:
**$40 MM in Chengdu Cement Plant, Sep. 08
**$250 MM in Shanghai Real Estate, Sep. 08
**87 MM in Shanghai Chemicals, Jul. 08

>>>>VCNO is seeking for China Firms to Receive PE Investments in these Specific Segments:
>>Oil/Gas Technologies and Machineries Firms
>>General Machineries Firms
>>General Manufacturing Firms
>>Renewable Energy Firms (BioFuels, Wind, Fuel Cells, Liquefied Coal)

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China's Internet User Base is at 228 MM, YE07;
#1 in the World.

China's Foreign Reserves stands at USD 1.68 Trillion (Apr. 2008)

China Mobile with a Market Cap. of USD $328 Billions is bigger than Microsoft.

Yoqoo, China's answer to Yourtube, has picked up USD $12.5 MM VC Funding.

China is now the World's 2nd biggest Automotive market.

China's GDP Per Capita has surpassed USD $2,400.


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China is now the world's fourth largest trading economy - 'Proven Return on Investment (Average 14%, IMF), Stable Environment, Excellent Infrstructure and Pro-Business Government', all had played a key catalyst to this success. US Investment Groups such as the Carlyle Group, Warburg Pincus, Draper Fisher Jurvetson and Sequoia have been investing heavily in China. Even the Stanford Management Company have now opened an office in Shanghai, and Buyout Firm KKR, in Hong Kong.

Golden Sachs latest estimates projects that China's GDP will surpass that of Japan by 2012. Liang Hong, Goldman Sachs's economist, said that China is still in the initial stage of a new growth cycle. China's economy will maintain a speedy growth, "the three wagons" hauling the economic growth: 'consumption, investment and export' will continue fast running.

China is now the world's largest market for Cellphones (and considered by Nokia, Motorola and BenQ as their single most important market in this category) and color television sets, and the second largest for PCs after the United States. Some US technology stocks now trade as much on how the companies' sales are faring in China as in the United States.

Rick Wagoner, Chairman & CEO, General Motor said '...then there’s China, where annual economic growth has averaged 7 to 8 percent in recent years, with no letup in sight. Despite the relatively small size of its economy, China is now contributing more to global growth than Japan and Germany combined. The impact has been tremendous—Chinese auto sales have grown at an unbelievable 40- percent per-annum rate over the past couple of years. In fact, China is already the 2nd largest Auto manufacturer in the World.

In Telecommunications, the Telcos are fast establishing CountryWide WIMAX/WIFI 802.11 HotSpots in airports, railway stations, shopping malls and cafes in East Coast cities.

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With Carlyle Group's (Oct. 2005) acquisition of USD $375 million for 85% of Xugong Group Construction Machinery Co (XCMC), China's Largest Construction Machinery Manufacturer, the Private Equity market in China is now truly buoyant(Carlyle's Chairman, Lou Gertsner has just visited Beijing in late Oct. 2005, for further large investments in China)(VCNO is interested in Machinery Investments in China and welcome co-investors).


After 3 Round of Private Equity Investments of USD $80 MM, Wuxi Suntech Solar went IPO in the New York Stock Exchange(Nov. 2005), where the share price jumped 41% on the first day of trading; joining other Chinese firms such as search company Baidu, advertising company Focus Media Holding, and wireless company China Techfaith Wireless Communication Technology. The IPO raised $396 million, with about $300 million going to the company. The deal makes Suntech Power the top tech IPO so far this year. Market Cap. in Jan. 06, went as high as USD $6.3 Billions, raising the Chairman/CEO, Dr. Shi Zhengrong, who received his Doctorate at the University of New South Wales, Sydney, Australia and studied with Prof. Martin Green; the Richest Man in China on Forbes China 100 List.

The Suntech IPO debuted the same day the California Public Utilities Commission unveiled its California Solar Initiative, which will be the largest solar incentive program in the United States, if approved.
It includes $2.8 billion in customer incentives for solar projects on existing buildings and sets the price for solar energy at equivalent to retail electricity prices—which waver depending on the time of use—instead of at lower wholesale prices.

As fossil fuel prices remain high, solar energy has been especially hot this year. The brokerage CLSA Asia-Pacific Markets said solar power was an $8-billion industry in 2004 and projects the industry will generate $12 billion in revenue in 2005 and more than $36 billion in 2010.
(VCNO is interested in Solar Power Investments in China and welcome co-investors).


Citigroup's Syndicate invested USD $3 Billions and have acquired 85% of the GuangDong Development Bank in Jan. 2006. The Commonweath Bank of Australia has recently acquired stakes at the Hangzhou Commercial Bank and the Jinan City Commercial Bank(VCNO is interested in the Top 30 City Commerical Bank Investments in China and welcome co-investors).