TRENDSnIFF reported last week that online men's apparel retailer PPG (Perfect Products Group) "bagged US$100 million in fourth-round financing from an unnamed American department store operator."

PPG was started in October of 2005 as one of China's first business-2-customer online retailers. A recent Xinhua story said that about 40% of China's netizens had purchased something online and that the number was expected to climb to 60% by net year.

PPG announced in March that it had a Nasdaq IPO in the works; but the current financial crisis on Wall Street has delayed that for as much as four to five years.

TRENDSnIFF said that PPG's business increased in 2007 by 50 fold over the previous year. PPG is based in Shanghai.

The company's previous investors include: TDF Capital, JAFCO Asia, KPCB and San Shan Capital Partners.


Photo courtesy of iStockphoto, Sándor F. Szabó

Saturday the UN Conference on Trade and Development (UNCTAD) released The World Investment Report for 2008. There were a couple of interesting tidbits in the report...

For starters, India has replaced China, for the first time, as the most promising destination for foreign direct investment in the medium-to-long term. China still ranks as the best destination for short term investment. CIOL took a nice look at the overall picture for Asia.

Seeking Alpha took a closer look at the China numbers. Here's part of what they had to say:

The number of foreign-invested research and development centers in China has risen from about 700 in 2004 to more than 1,200 this year. This is a clear indicator that China is transforming from a low-cost manufacturer into a center of innovation.

But Seeking Alpha went on to point out that the "fine print" in UNCTAD's report cautions investors about how China is inflating its FDI numbers.


© zedwards

Well, I've tried to ignore this story, but I suppose the time has come to comment on it...

WaPo had a story in their Sunday paper. In China you can take your child to the hospital and have its kidneys tested for free. According to the Post article:

Despite official assurances that the problem is under control, the crisis appears to be spreading - to cake in Hong Kong, a popular brand of candy in Asia and Britain, ham and sausage products in Japan and even a zoo near Shanghai where baby animals were fed formula. More than a dozen countries have banned or recalled Chinese dairy products, and the European Union announced that it was banning all baby food from China containing even trace amounts of milk.

On Friday, the U.S. Food and Drug Administration recommended that consumers avoid Mr. Brown instant coffee and White Rabbit candy, both made in China.

I've lost track of the number of deaths - four or five, maybe. The Post story cited 54,000 babies sick and almost 13,000 in the hospital.


© myuibe

Matt over at bizCult had a great piece yesterday on the difficulty involved in getting you money (in Chinese currency) home to America (or wherever) when you leave.

The rules about transferring yuan out of China are complicated. Matt looks at a number of strategies - not all of them completely legal in the eyes of the PRC. You can carry it physically out of China with you - up to 20,000 RMB. There's always Western Union, or a more traditional bank transfer.

Matt also looks at the option of changing your yuan into dollars before you leave China. Interesting piece...


© ArchiM

What is the difference between a Chinese bank and an American bank? A Chinese bank has money...

Okay, I stole that joke from Richard Brubaker over at All Roads Lead to China. He goes on to point out that China's yuan RMB is the currency that supports both US and Chinese banks (I guess since China buys so many treasury notes).

And he points out the irony that five years ago American banks were bemoaning the fact that 20-30% the loans at Chinese banks were non-performing.

Life's funny...


© Aaron.huo

CNN Money ran a piece yesterday on the chaos that the collapse of Lehman Brothers brought to Hong Kong...

Lehman Brothers Holdings Inc. (LEH) suspended trading, investment banking and brokerage operations in Hong Kong - throwing its clients into disarray as markets fell sharply.

While Lehman plans to maintain business in its asset management arm, the Hong Kong's securities regulator, the Securities and Futures Commission, said the Lehman asset management arm couldn't pay out any of its own funds.

Lehman's bankruptcy rattled markets globally and Hong Kong's blue-chip Hang Seng Index was off 5.9% at 18,210,49 at the midday close.


© Darren On The Road