Vol. 17 May 16 - June 15, 2004
Recent Business HighlightsCPDF shares its experience with DFID and other development agencies;
Zhejiang SME Map finalized and presented to the authorities;
Credit Analysis Workshop for rural credit cooperatives held;
EDIS completes due diligence for a local snack food company;
2nd Business Edge Leaders’ Dialogue attracts 200 SME leaders; and
Linkages team builds ties between a local food company and a hypermarket chain.
Visitors To IFC-CPDFJames Weaver, Madam Lan Zhang; Dr. Charlie Zhao; Richard Wu.
People Among Us6 CPDF BDOs attend a regional training hosted by SEDF, Dhaka.
News From The RegionSichuan government apologizes to victims in the TuojiangRiver pollution case;
Minimum price set for farm products purchases; and
AVIVA sizes up the Chengdu insurance market.
Coming Up SoonBusiness Edge China will hold a Seminar Circuit covering 2nd-tier Sichuan cities;
CPDF plans Beijing workshop on creditor rights protection; and
CPDF will publish a quarterly Chinese-language Newsletter starting in June.
Recent Business Highlights
CPDF in the Region
CPDF Shares its experience in DFID’s sponsored SME workshop in Beijing
On May 14th, Eric Siew, was invited to present CPDF’s SME experience to about 25-30 representatives from UK-DFID and other key development agencies from various Asian countries. The workshop aimed at sharing knowledge and experiences among speakers and participants, especially with regard to improving access to finance for SMEs. Feedback from the participants was quite positive. (news contributed by Xiao Weilan, Executive Assistance)
Business Environment Enabling (BEE)
Zhejiang SME Map finalized and distributed to the authorities…
Following the successful policy dialogue with Sichuan and Zhejiang officials on May 12, the Chinese version of the Zhejiang SME Map was finalized. About 200 copies have been distributed to government departments in both provinces, as well as several central government Ministries in Beijing. The extensive, 125-page analysis of Zhejiang’s SME sector is a handy reference tool for policy makers, and its discussion of Zhejiang’s experience will be particularly useful for Western Provinces looking for a successful model to follow. Initial feedback from recipients has been uniformly positive. Findings from the Sichuan and Zhejiang SME Mapping exercises will be further disseminated by CPDF’s BEE team in major conferences to be held in Urumchi, Xinjiang and Kunming, Yunnan in the next two months. (news contributed by the BEE team)
Financial Sector (FS)
Workshop on credit scoring held…
On May 17, CPDF invited Mrs. Lan Zhang, a credit modeling specialist from the ATB Bank of Canada, to present credit scoring concepts and methodologies to a group of senior officials and bankers from local financial institutions. The Sichuan Banking Regulation Bureau, Bankers Association, the Provincial SME Bureau, three city commercial banks, IFC-investees Minsheng Bank and Industrial Bank, Chengdu Rural Credit Co-operatives and guarantee companies all attended the workshop. Participants showed great interest in the concept of credit scoring, its applications and, most importantly, the practical steps required to successfully implement a credit scoring system in a bank. Participants in the workshop realized that the chief obstacle to credit scoring in China is the lack of empirical credit data. As a pilot, CPDF will be assisting a small local bank in developing a credit scoring framework. (news contributed by the FS team)
FS organized a Credit Analysis Workshop targeted for rural credit cooperatives…
From June 7 to 11, CPDF held a credit analysis workshop jointly with the Mianyang Credit Guarantee Company (MCGC)—an institution originally created by DFID. This workshop was intended to forge a stronger tie between Mianyang CGC and its new partner, Mianyang Rural Credit Cooperatives (MRCC). A World Bank expert working on the reform of rural credit cooperatives in China was specially invited by CPDF to the workshop. He presented the challenges that China's RCCs are facing as well as successful examples of restructuring RCCs into profitable commercial ventures in other countries. Other participants included IFC-investee Nanjing City Commercial Bank, as well as the Mianyang and Leshan City Commercial Banks, the Chengdu RCC, and four local credit guarantee companies. All 44 participants expressed a strong appreciation for the training sessions, which gave them very practical insights and tools for everyday use. (news contributed by the FS team)
Enterprise Development and Investment Services (EDIS)
EDIS completes due diligence for a local snack food company…
EDIS team have completed the due diligence on Hua Hui Foods, a local snacks company, with help from the Corporate Governance and EHS teams. Hua Hui specializes in the production, marketing and sales of local ethnic snacks. The due diligence highlighted the need to develop a comprehensive marketing strategy and to implement a more sophisticated financial management system. Implementation is currently underway. (news contributed by Will Beloe, Business Development Officer with the EDIS team)
EDIS signs mandate with minority region-based plant reprocessing firm…
EDIS signed a mandate with Xichang MingRiFeng Horticulture Co., Ltd. on May 31. Founded in 1995, MingRiFeng engages in seed and plant reprocessing. To further growth, the company is planning to introduce a new business line producing rose oil, with an estimated investment of RMB50 million. EDIS will provide financial advisory service for this project, and assist the company in negotiations with a potential French rose oil client. The company is based in Xichang, a Yi minority nationality region. Further, the project is expected to employ numerous local farmers in growing around 1000 hectares of roses, significantly raising their incomes. (news contributed by Liu Hui, Business Development Officer with the EDIS team)
CapacityBuilding (CB)
The 2nd Business Edge Leaders' Dialogue held…
On May 28, the 2nd Business Edge Leaders' Dialogue was hosted by CPDF in Chengdu. Top executives from GE China, Nestle Totole, and Unilever-Bestfoods China shared their experiences with some 200 SME leaders in a one-day session, which also featured a case study presentation from one of CPDF's best local certified trainers. The event was held on a cost-recovery basis, and was very well received, with 97% of attendees expressing an interest in attending future sessions. Numerous participants also expressed strong interest in Business Edge China's new module of training courses in Personal Productivity Skills. (news contributed by Godfrey Firth, Market Coordinator with the CB team)
Business Edge launches 3rd Module…
The Business Edge program launched the Train-the-Trainer programs for its latest module of courses, in Personal Productivity Skills, from June 14-17. The 4-day-session will train some 20 local trainers in two of the module’s 11 courses - Communicating in Groups and Making and Taking Decisions. The master trainers selected for this module are from Globalfit Consulting, a noted Beijing-based provider of management training programs. Along with the 19 trainers, 10 SME managers and government officials will act as an observation panel for the sessions, providing valuable feedback.
Though a fee-based program, numerous participants have expressed an interest in joining the sessions, as the Business Edge brand, and CPDF’s reputation, has grown more recognized in the local training market. (news contributed by Qiu Min, Business Development Officer with the CB team)
Linkages project with Tian Xiang Foods underway…
The Linkages Team signed a mandate with Tian Xiang Food Co., Ltd in May. The project is to help the local food company enhance the efficiency of its supply chain; and, at the same time, to help the company to build a sustainable relationship with a potential hypermarket client, Auchan. The team has so far identified the key issues facing the company and submitted recommendations based on an initial diagnostic. Linkages team will continue to assist the company in implementing and following up on the suggested improvements. (news contributed by Lei Wei, Business Development Officer with the CB team)
Corporate Governance completes another pilot company…
On June 14, CPDF successfully completed its CG assistance with one of the pilot companies, Chengdu Guanglin Electrical Appliance Joint Stock Limited Company (Guanglin). CG assistance provided to Guanglin included facilitation of company restructuring, strengthening Board independence and practices, development of sample documents, and assistance in preparing and conducting of Shareholder and Board meetings.
Guanglin was very responsive to CPDF’s advice. Although issues still remain with Guanglin’s corporate governance practices, it is expected that Guanglin will continue to make sustainable and systematic progress in its CG practices, making it a more attractive company for external investment. (news contributed by Lu Qing, Business Development Officer with the CB team)
Visitors To IFC-CPDF
- James Weaver, an American banker with 16 years experience in commercial banking, and 8 years of independent consulting work with Chinese commercial banks, came to Sichuan from June 7 to 11 to work with Mianyang CGC. This is his 10th delivery of a credit analysis workshop organized by CPDF.
- Madam Lan Zhang, a credit scoring and modeling specialist from Canadian ATB Bank, visited CPDF and presented credit scoring concepts and methodologies to a group of senior officials and local bankers on May 7.
- Dr. Charlie Zhao and Richard Wu, from Globalfit Consulting and Training visited CPDF from June 14 to 17, to act as master trainers for the Train the Trainer program in the first segment of BE China’s 3rd module, Personal Productivity Skills.
People Among Us
On the first week of June, 6 CPDF BDOs attended a Project Management Training organized by the SME Dept. and hosted by SEDF in Dhaka.
The training was well received by the participants, as it was specifically designed for PDF staff, and highly applicable to the PDF environment. Equally valuable was the opportunities for attendees to share insights and knowledge drawn from their own project management experience with other project managers from the region, with CPDF, MPDF, SEDF, and PENSA all represented. Areas covered included specific challenges facing projects in diverse areas, such as consulting, linkage, and SME-targeted services.
Upon returning to Chengdu, the 6 project managers shared the training materials and knowledge gained with all members of CPDF’s staff. (news contributed by Yi Qiyun, BDO with the CB team)
News From The Region
Government – Apology offered to victims of TuojiangRiver pollution…
TuojiangRiver, a main tributary of the Yangtze River, suffered serious damage following two chemical spills in April and May. The leakage contaminated both the Tuojiang river and the nearby water table.
The local government has made a public apology on June 1, and promised tougher and more effective action in preventing and controlling water pollution.
Business – 5th West China Expo held in Chengdu…
The 5th West China International Economy and Trade Exposition opened on May 25 in Chengdu. The event is one of the major activities in Chengdu to strengthen economic ties between Sichuan and the outside world.
Business – Minimum price set for farm products purchases…
The Sichuan government has imposed a minimum purchase price for certain farm products on May 11. The policy is intended to protect farmers’ income, reduce their risks and induce them to concentrate on farming.
Business – AVIVA sizes up Chengdu insurance market…
The UK-based AVIVA insurance company will set up a branch in Chengdu in cooperation with local insurance company COFCO. The joint insurance company, AVIVA-COFCO Life Insurance, is the first of its kind in West China.
Coming Up Soon
- In June, Business Edge China will hold a Seminar Circuit, in conjunction with the Sichuan Labor Bureau. The Circuit will bring pilot BE courses in Marketing, taught by top trainers, to several secondary and remote cities in Sichuan, including Luzhou, Nanjiang, Kaixian and Yibin.
- CPDF will jointly host a workshop on Creditor Rights Protection with FIAS and People’s Bank of China at the end of June in Beijing. Attendees are expected to include Chinese central government officials, bachelors, legal professionals, scholars, WBG staff, international and local consultants.
- CPDF will publish a quarterly Chinese-language Newsletter targeting primarily its audiences, i.e. local SMEs, service providers, and other partners.