Companies.asia » Finance

Thailand’s Grand Plan To Become A Major Tourist Attraction In Southeast Asia

admin — Thu, 19 Dec 2024 08:19:23 +0000

Tourism is a key driver of Thailand’s economy, but growth remains stagnant. Tourism has not fully rebounded from the Covid-19 pandemic, and that will unlikely happen until travelers, especially those from China, return to pre-Covid levels. Southeast Asia’s second-largest economy welcomed around 28 million foreign visitors in 2023, far from the almost 40 million tourists in 2019.

In June, former Thai Prime Minister Srettha Thavisin ordered the drafting of a bill to legalize entertainment complexes in the country, a move that could boost tourism spending, increase employment, and revive the economy again. Apart from state lottery or licensed horse betting, gambling is currently illegal in Thailand.

Paetongtarn Shinawatra is now Thailand’s new prime minister, but analysts all agree that the bill will still likely be passed. If that likely outcome becomes a reality, Thailand’s casinos could generate 187 billion Thai baht ($5.5 billion) in revenues, or 1% of the country’s GDP, according to Maybank research. The country could be Macao and Singapore’s largest competitor by the end of the decade. “The Thai government has seen the positive impact on the economy by opening up gambling/casinos as in the case for Singapore, and the power of the gaming dollar in Macau. This move could boost Thailand’s attraction as a tourist destination,” said Tim Tsang, CEO of Companies.Asia, a business consultancy for Corporate Asia.

KTP GLOBAL CONSULTING
KTP Global, a consultancy with emerging dominance in Asia, sees the legalization of gambling in Thailand, and the associated development of the hotel and entertainment industry will offer almost unlimited opportunities for profits and growth that would last at least until the end of this and next decade.

For more information on how we can help, please contact us: consulting@ktpglobal.ca

Global Big Four Among Top 4 Accounting Firms In Hong Kong

admin — Sat, 15 Feb 2014 08:08:32 +0000

Deloitte Touche Tohmatsu Limited, usually referred to as Deloitte, is the largest professional services firm in the world by revenue and by the number of professionals. Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services with more than 200,000 professionals in over 150 countries. In the fiscal year 2012 to 2013, it earned a record US$32.4 billion in revenues. Its global headquarters is located in New York City. It is one of the Big Four accounting firms, along with PricewaterhouseCoopers (PwC), Ernst & Young (EY) and KPMG.

PricewaterhouseCoopers, trading as PwC, is headquartered in London. It is the world’s second largest professional services firm measured by 2013 revenues. PwC has offices in 776 cities across 159 countries and employs over 180,000 people. It had total revenues of US$31.5 billion in its 2012 fiscal year, of which $14.9 billion was generated by its Assurance practice, $7.9 billion by its Tax practice and $8.7 billion by its Advisory practice. The firm was formed in 1998 by a merger between Coopers & Lybrand and Price Waterhouse. The trading name was shortened to PwC in September 2010 as part of its major rebranding strategy.

Ernst & Young (known as EY), also headquartered in London, operates as a network of member firms which are separate legal entities in individual countries. It has 175,000 employees and more than 700 offices in over 150 countries. EY is ranked third of the Big Four, based on its 2013 revenues of US$25.8 billion. It provides assurance, financial audit, tax, consulting and advisory services to companies.

KPMG, the result of merger of Peat Marwick International and Klynveld Main Goerdeler in 1987, has its global headquarters in Amstelveen, the Netherlands. KPMG employs 152,000 people and has three lines of services: audit, tax, and advisory. Its advisory services are further divided into three service groups – Management Consulting, Risk Consulting, and Transactions & Restructuring. Its 2013 global revenues are US$23.4 billion.

THE HONG KONG SCENARIO
The Big Four in the world are still ranked top 4 locally in Hong Kong, at least in terms of staff strength. For the year 2013, PwC reduced its number of staff by 100 while Deloitte increased its staff by 200 to tie for the top spot at 2400 each. The momentum seems to be with PwC though, as it finished the year with a proposed merger with management consulting firm Booz & Co. to complement PwC’s advisory business. According to respective spokespersons, this merger will bring 275 Booz partners and more than 3000 professionals to the PwC network in 33 countries.

Ernst & Young is third in Hong Kong with 2100 professionals, up from 2000 in the previous year.

KPMG increased its recruitment effort to arrive at 2000 staff, up from 1700 the previous year, to place 4th in terms of staff size in Hong Kong.

BDO is still ranked fifth with 1000 employees, unchanged from the previous year.

Currently, the managing partners for PwC, Deloitte, EY and KPMG in Hong Kong are respectively Cassie Wong, Joseph Lo, Agnes Chan and Andrew Weir.

Lenovo Close To Surpassing HP as World’s No.1 PC Maker

admin — Fri, 24 Aug 2012 18:40:49 +0000

Lenovo (SEHK: 0992) is close to surpassing Hewlett-Packard as the world’s leading manufacturer of personal computers following a strong quarterly rise in sales.

The Chinese company, with headquarters in Beijing, Singapore, and Morrisville (U.S.), and more than 27,000 employees globally, now has a 14.9% share of the global market, compared with 15.5% for HP, according to figures from IDC, the research company.

Lenovo beat industry estimates with sales increase of 35% to $8 billion in the quarter ending June 30, 2012, and quarterly net profit rose 30% from $108.8 million to $141.4 million. Of the US$29.6 billion revenue so far for 2012, 58% has been earned outside of China.

Lenovo’s unit sales in the U.S. grew 6.1% in the 2^nd quarter compared to a 10.6% decline for the overall U.S. PC market. According to IDC, Lenovo now has a 8% market share in the U.S., its largest ever. The increase came at a time when the PC market overall has stopped growing, with consumers more interested in spending money on smartphones and tablets. In July, figures from Gartner Research showed a 0.1% decline in overall global sales.

Lenovo was founded by Liu Chuanzhi with a group of 10 engineers in Beijing in 1984 with 200,000 yuan in startup capital. It was incorporated in Hong Kong in 1988 under its previous name, Legend. In 1994, Legend became a publicly traded company after listing on the Hong Kong Stock Exchange and raising nearly $30 million. The company name was then changed to its current name in 2003 and millions of dollars were spent in the rebranding campaign. Lenovo’s acquisition of IBM’s PC business in 2005 accelerated its access to foreign markets as well as improved its branding and technologies. Lenovo inherited from IBM the ThinkPad line of notebook computers, but it eventually launched its own IdeaPad line of laptops and IdeaCentre desktops in 2008.

“The company’s growth can be attributed to a number of factors, primarily aggressive pricing strategies, overseas acquisitions as well as strong sales in China. Unlike its competitors HP, Dell and Acer, Lenovo’s decision to focus on sales rather than on profit margins explains why its operating margin is only 1.4%, compared to Dell’s 6.2% and HP’s 7.4%,” said Andrew Tsang, a research analyst at Companies.asia Consulting. “Lenovo also benefits from their strong sales position in the China market. Their market penetration in China’s countryside and smaller cities is higher than other computer companies. The PC growth rate in these cities is still double-digit, which is why Lenovo is able to beat the industry average.”

In 2011, Lenovo acquired control of Medion AG (FWB: MDN), an Essen, Germany-based electronics and computer manufacturer, to bolster its European market position; it also took control of the PC division of Tokyo-based NEC Corp. (TYO/OSE: 6701) by structuring a joint-venture deal. “We plan to become the world’s biggest PC maker,” Chief Executive Officer Yang Yuanqing said in October 2011. In all likelihood, he may well accomplish this by the end of this year. Yang is also stepping up development of smartphones, tablets and Internet-ready televisions to widen Lenovo’s product line for consumers, and plans to offer a new cloud computing service which would allow users to manage information and exchange content between multiple devices.

Hormel’s Plan To Position SPAM as a Premium Brand In China

admin — Sat, 17 Sep 2011 08:39:14 +0000

Musubi, Hawaii's Favorite SPAM Treat

Hormel (NYSE: HRL), the maker of SPAM, America’s favorite luncheon meat, has plans to position it as a premium product in China. A blend of chopped pork shoulder, ham, salt, sugar, binders and preservatives like potassium chloride and sodium nitrite, SPAM made its market debut in 1937 and immediately became the number one selling luncheon meat in America. It still remains as one of the top brands in Hormel’s family of grocery products, and accounted for close to 15% of Hormel’s $7.2 billion in sales last year. More than 122 million cans of SPAM products are sold worldwide each year, 90 million in the U.S. alone. Hawaii has the highest consumption per capita for SPAM and the most popular way to enjoy it there is the musubi, a sushi like roll with grilled SPAM, seaweed and rice. SPAM’s overseas revenue has doubled in the past five years as it entered Asian markets such as Japan and South Korea. Burger King restaurants in Tokyo actually have SPAM burgers on the menu.

Hormel currently has 2 factories in China, but only fresh meat products such as pork sausages and pepperoni are made there for retailers and restaurants including Pizza Hut.

Hormel’s plans to introduce SPAM as a premium product into the Chinese market may face cultural obstacles and strong local competitions. While pork has long been a big part of the Chinese diet, consumers can choose from a variety of fresh meats such as horse and beef as well as other locally produced luncheon meats. The pressure is on SPAM to differentiate itself; hence the premium strategy, which taps into the growing Chinese fondness for foreign and more expensive brands. Without a large budget for advertising in China, Hormel’s marketers are focusing on product tasting, in-store posters and online Chinese food recipes using SPAM. The biggest hurdle for Hormel; however, may be its premium pricing strategy. At about US$3.20 a can, SPAM is almost 40% more than the price of other local brands such as Great Wall and Ma Ling.

SPAM and Shark Fin Soup anyone?

Coca-Cola Share Price On The Rise; Considers Shanghai Listing

admin — Fri, 08 Jul 2011 02:11:52 +0000

Global soft drinks juggernaut The Coca-Cola Company (NYSE: KO) is considering a possible future listing on the Shanghai Stock Exchange to coincide with part of its plan to expand into China. “We continue to have positive discussions with Chinese government officials as we look at this opportunity,” Geoff Walsh, Coca-Cola’s public affairs and communications director for Asia Pacific region recently told a major newspaper in Hong Kong.

As of now, no foreign companies are allowed to list in China’s domestic stock exchanges. China had indicated earlier in 2009 that it would eventually allowed qualified foreign companies to list in Shanghai, with rules and regulations that have yet to be announced.

Currently, Coca-Cola share price ($68.75 as of July 7) is enjoying a gradual upward climb towards its record high of US$88 a share reached in 1998. Chief Executive Officer Muhtar Kent is continuing the corporate strategy started by his predecessor E. Neville Isdell to refocus the company more on its core products, which include Coke, Diet Coke, and Coke Zero, rather than on its other noncarbonated drinks. Kent also reconfigured serving sizes globally and introduced minicans and smaller bottles with new pricing to meet consumer demands and boost profit margins. In 2010, Coca-Cola purchased its largest franchised bottler in Atlanta, essentially bringing it in-house to cut supply-chain costs, and giving the company control of 90% of its North American distribution.

As close to 80% of Coca-Cola’s sales are done outside the United States, Kent plans to spend at least US$27 billion through 2020 for new bottling and distribution facilities in emerging markets such as China and Mexico. Last year, the company opened three bottling plants in the Inner Mongolia region at a cost of about US$246 million, part of the company’s three-year, US$2 billion expansion plan in China. A Shanghai listing seems like a logical extension of Coca-Cola’s plan as it would provide access to China’s huge local currency deposits as well as increase the already strong brand value of the best selling soft drink in the world.

Macau: Gambling Capital Of The World

admin — Sun, 30 Jan 2011 06:14:01 +0000

Macau Tower With Fireworks At Night

With increasing foreign investments and liberalization of its gaming industry, Macau is currently experiencing unprecedented economic growth. $7 billion revenue in Macau’s gaming industry surpassed Las Vegas’ $6.1 billion near the end of 2006 to make it the world’s biggest gambling hub. Analysts estimate that revenue is expected to climb 30% to $30 billion this year and at least another 25% to $38 billion for the year 2012.

Macau now has 33 casinos and more are being developed and built. Until 2002, Macau gambling was a monopoly; casinos were controlled and operated by tycoon Dr. Stanley Ho’s flagship company Sociedade de Turismo e Diversões de Macau (STDM). Casino operators now include foreign casino giants such as Wynn Resorts, Sands and MGM Grand. Sands opened on the Macau waterfront in 2004 and earned back its $260 million investment in less than a year. Continuing its success, Sands opened in the summer of 2007 the 3000-room, 350 shop, $2.4 billion Venetian Macau, a hotel, casino and shopping complex, the largest of all the casinos in Macau and the first of many family and convention-friendly developments to come.

According to Macau Government statistics and CLSA research report:

Stanley Ho’s SJM Holdings (subsidiary of STDM) is Macau’s largest casino operator, with a 32% share of Macau’s gaming market.

Sands China, the Macau arm of Sheldon Adelson’s Las Vegas Sands Corp., is the owner of the Venetian Macao, the world’s largest casino by floor area. It has a 16.5% market share.

Wynn Macau, owned by Las Vegas based Nasdaq listed Wynn Resorts (Nasdaq:WYNN), has a 15% market share.

Galaxy Entertainment Group (HKSE:00027) has a market share of about 12.6%. Launched in 2004, Galaxy owns 4 casinos, the StarWorld Resort, and the Galaxy Macau Resort (to be opened early 2011).

Nasdaq listed Melco Crown Entertainment (Nasdaq: MPEL), run by Stanley Ho’s son Lawrence Ho, has about a 11.7% share. It owns the City Of Dreams, Altira Macau Resorts and several smaller Mocha Club casinos.

MGM china, a 50-50 joint venture between MGM Resorts International and Stanley Ho’s daughter Pansy Ho, has a 11.6% share.

During the year 2010, close to 25 million people visited Macau, an increase of about 15% from the year before; however, less than 12% of the visitors were from outside of China, Hong Kong or Taiwan. There were 13.3 million visitors from mainland China last year, accounting for 53% of all the visitors to Macau for 2010. The number of international visitors; however, has increased only slightly for 2010 over the previous year. “We hope we can gradually raise this, for over the long-term Macau ought to develop the international market,” Maria Helena de Senna Fernandes, deputy director of Macau’s Tourist Office, said during a news conference. “Strategy-wise it’s very important for us to go for diversity. Diversity in terms of product, and diversity in terms of the markets we are pursuing. So international markets will be very important in the future.”

Currently, the Macau gambling industry generates over 40% of the GDP of Macau. Taxes on gambling profits generated over 70% of Government revenues annually.

The recent controversy surrounding Stanley Ho’s decision to transfer shares in Lanceford Co., the company that controls SJM Holdings Ltd., to the families of his second and third wives, together with the absence of a clearly defined succession plan for his empire, had caused the shares of SJM to plunge and no doubt resulted in sleepless nights for investors and shareholders….

But then again, Macau, like Vegas, is a city that never sleeps.

Lawson To Buy HMV Japan From Daiwa Group

admin — Thu, 11 Nov 2010 06:55:17 +0000

HMV Japan Flagship Store at Shibuya Closes In 2010

Japanese convenience store chain Lawson Inc. (TYO: 2651) announced on October 28, 2010 that it will acquire music retailer HMV Japan K.K. from Daiwa Securities SMBC Principal Investments Co. Ltd. for 1.8 billion Yen (US$21.9 million).

The acquisition will allow Lawson to strengthen its stores’ weak music CD and DVD sales. According to Lawson’s own press release, this purchase will enable Lawson to create extensive entertainment merchandise and full range services in all formats, by enhancing the merchandise offerings through its Lawson & HMV stores, Loppi (Lawson’s multi media kiosks) and all its online storefronts, and by utilizing HMV Japan’s highly reliable brand for music and video software, as well as HMV’s leading market share in Japan for these products in both actual store and Internet sales. Industry analysts concur that this strategic move will likely attract more young consumers, the largest segment of customers of convenient stores, by tapping HMV Japan online sales expertise and its more than 4.7 million loyal members.

HMV Japan posted a net profit of 877,000 yen for the fiscal term that ended in April, 2009, but saw a net loss of 4.6 billion yen for the 2010 fiscal year. In an attempt to turn around its business, the company has initiated many cost-cutting measures including the reduction of the number of its stores from 57 to 37 in April of 2010. Its parent company, Daiwa Securities SMBC Principal Investments Co. Ltd. has been looking for a buyer for its struggling subsidiary since the recent slump in the music retail industry.

Culture Convenience Club (TYO: 4756), operator of Japan’s Tsutaya movie and music rental chain, had shown strong interest in buying HMV Japan earlier this year, but negotiations had broken down after both parties failed to agree on a purchase price.

Lawson stores form the 2nd largest convenience (Konbini) store chain (after 7-Eleven) in Japan and currently operate in all 47 prefectures of Japan and in Shanghai, China. It actually originated in the U.S. as Lawson’s Milk Company in 1939. It expanded into a chain of Lawson’s stores throughout the 40s and 50s and was bought by Consolidated Foods in 1959. In 1975, Consolidated signed a deal with Daiei Inc. to establish a series of Lawson stores in Japan. The first Lawson convenience store opened in Osaka in June 1975 and was operated by Daiei Lawson Co. Ltd. which later changed its name to Lawson Japan, Inc.

In 1985, Consolidated Foods changed its name to Sara Lee and sold all its Lawson stores in the U.S. to Dairy Mart which then renamed all the Lawson stores to Dairy Mart stores. From that time on, Lawson stores no longer existed on U.S. soil. In 2002, Dairy Mart was purchased by Quebec based Alimentation Couche-Tard (ACT) which then proceeded to rebrand all the Dairy Mart stores as Circle K stores.

Lawson posted a net profit of 12.56 billion yen for the fiscal year ended February 28, 2010 and has a fiscal forecast of 22 billion yen in profit for 2011.

The 3 Best Emerging Cities For Starting A Business In China

admin — Mon, 08 Nov 2010 06:40:14 +0000

A recent survey conducted by Companies.Asia Group has identified the top 20 new cities in China with the most potential for starting a business. These 20 selected cities were ranked based on information gathered from interviews of business managers, entrepreneurs, both foreign and Chinese, working in China, as well as data from independent sources regarding the costs of doing business, the local talent pool, and the overall general business environment of these cities. Here are the top three:

The Kempinski Hotel In Suzhou

No.1 SUZHOU (population of 6.3 million; located in the province of Jiangsu)
Suzhou became a foreign investment center in the 1980s and now has the 5th largest local GDP in China, at $113.4 billion (GDP per capita is $17,169). It is the 2nd largest factory town after Shanghai.

By the end of 2007, foreign-invested companies in Suzhou had a total registered capital worth of US$13 billion, and the city’s Hi Tech Industrial Zone now hosts more than 1,500 foreign companies. Nike, Samsung, and Epson all have factories and offices here. Suzhou is currently evolving into a center for biotechnology and alternative energy.

Ad For A High-Tech Metal Components Company In Suzhou

No.2 SHENZHEN (population of 8.9 million; in the province of Guangdong)

Shenzhen City

As a small town in close proximity to Hong Kong, Shenzhen began as China’s first Special Economic Zone in 1978. Now it has the highest local GDP at US$120.1 billion (GDP per capita at $13,580) in the nation.

Being southern China’s major financial centre, Shenzhen is home to the Shenzhen Stock Exchange (SZSE) as well as the headquarters of numerous high-tech companies. Shenzhen is also the third busiest container port in China, ranking only after Shanghai and Hong Kong.

A thriving real estate market and a sophisticated financial services sector are putting Shenzhen on course to be the next mega city.

No.3 QINGDAO (population of 8.5 million; Province of Shandong)
Its close proximity to Japan and Korea, and its roots as a former German colony made this city a destination for foreign investments since the late 1970s. By 2009, due to extensive investments from Korea, more than 100,000 Koreans were working or studying in Qingdao, making it the 2nd largest Korean population (after Beijing) in China. Today Qingdao, also known as Tsingtao, is a premier tourist attraction and home of the famous Tsingtao Brewery.

Qingdao, Home Of The Famous Tsingtao Beer

Qingdao’s port will open the world’s largest iron ore terminal by late 2010 and the city plans to invest close to US$4.3 billion on downtown subway construction to be completed before 2016. Global Fortune 500 companies have invested in over 50 large-scale projects in the Economic and Technical Development Zone, and more than 2000 projects have been approved for the Free Trade Zone. Qingdao’s GDP has surpassed US$66.7 billion with a GDP per capita at US$7,948.

Singapore Stock Exchange’s $8.4 Billion Bid For Australia’s Bourse

admin — Sat, 06 Nov 2010 11:03:39 +0000

SGX CEO Magnus Bocker (L) and ASX CEO Robert Elstone shake hands on the merger

Australia’s Stock Exchange (ASX) has entered into an agreement to be acquired by and to merge with the Singapore Stock Exchange (SGX), creating the fifth largest exchange in the world with a bourse market capitalization of US$12.3 billion, and whose listed companies have a combined market value of US$1.9 trillion.

The acquisition-merger deal values ASX at A$8.4 billion, or $48 per ASX share. Under this deal, SGX will buy all the shares in ASX by paying $22 cash and 3.473 new SGX shares for each ASX share. The combined holding company, ASX-SGX Ltd., will be listed on both the Singapore and Australian exchanges.

Australian PM Julia Gillard

Australian Prime Minister Julia Gillard said recently that she had discussed the planned merger with Singapore Prime Minister Lee Hsien Loong during talks at the ASEAN summit in Hanoi. She said that both sides understood the community interest in the merger which would require approval from Australia and Singapore authorities. “The combination leverages the strengths of ASX through its listings, stock options and fixed income franchises, with SGX, the Asian gateway for international listings, equity futures and OTC clearing, to create the region’s preeminent exchange group,” ASX said in a statement. SGX Chief Executive Magnus Bocker thinks that the merger will be good for Australia by allowing global investors access to over 2700 listed companies from over 20 countries, and to the world’s second largest grouping of resource stocks.

Industry analysts are in general consensus that the combined exchange will be better positioned to compete against electronic venues as well as other Asian exchange powerhouses, such as Tokyo and Hong Kong. Incidentally, the Hong Kong Exchanges (HKEX) is Asia’s second largest stock exchange with a market capitalization of US$24.9 billion. The companies trading on the exchanges, including HSBC Holdings Plc, China Mobile Ltd., and Li Ka Shing’s flagship company Cheung Kong Holdings Ltd., have a total market value of $2.6 trillion.

The merger of ASX and SGX, both already powered by Nasdaq OMX’s Genium INET trading technology, is anticipated to result in lower trading costs, increased technical efficiencies, and improved access to the market. The M & A, if approved, could also trigger a series of consolidation and alliances in the sector. Over $68 billion in acquisitions among global exchanges had already occurred since January 2007, including NYSE Group Inc.’s purchase of Euronext NV to form NYSE Euronext, and Nasdaq Stock Market Inc.’s takeover of the Swedish-Finnish OMX AB to form the Nasdaq OMX Group.

The proposed merger, scheduled to be completed by mid 2011, would have to overcome significant regulatory hurdles in Australia and in Singapore, including approvals from the Australian Securities and Investments Commission (ASIC), the Monetary Authority of Singapore, and Australian Treasurer Wayne Swan, who will be advised by the Foreign Investment Review Board. A serious hurdle could be the 15% ownership limit of Australian companies by foreign governments. Given that the Singapore government owns a 23.5% stake in the SGX, the Australian Parliament would have to pass an amendment on the ASX ownership rules before the actual merger could go ahead.

Good Luck.

The China IPO Connection

admin — Sat, 16 Oct 2010 09:52:29 +0000

Hong Kong and China continue to dominate global IPO activities in 2010. In 2009, Hong Kong was the world’s largest IPO market, with companies raising a combined $32 billion in capital, according to Dealogic, a data tracking firm with offices in London, Tokyo and Hong Kong. This year, China is on track to assume the lead, with a combined $40.1 billion raised from IPOs in just the third-quarter of 2010. This strength comes partly from Agricultural Bank of China’s (601288.SS) (1288.HK) record $22.1 billion offering in Shanghai and Hong Kong. The bank not only set a new IPO fundraising record, breaking the world record of $21.9 billion set in 2006 by Industrial & Commercial Bank of China, but also made up 42 percent of the total capital raised in IPOs globally.

China has long surpassed the United States in the amount of money raised from initial public offerings, underscoring the region’s stronger economy and resurgence in investments. According to Ernst & Young in a recent report, Shanghai, Hong Kong and Shenzhen were the world’s top three IPO markets in the third quarter of 2010 in terms of IPO fundraising.

The strong performances exhibited in these markets were not surprising as investors are looking to put their funds in high-growth companies with strong profit margins and a solid business model. The International Monetary Fund forecast 4.8% global expansion this year with the U.S. economy growing 2.6% and the euro-zone countries expanding 1.7%. At a time when the U.S. and European economies are still suffering the effects of the financial crisis, emerging economies are expected to grow 7.1%, led by China’s 10.5%. Investor appetite for IPOs in this region clearly reflects confidence about its long-term prospects. Another indicator of Asia’s economic rise has been China’s auto market, which eclipsed the U.S. as the largest in the world last year.

Companies from China now account for 6 of the 10 best performing U.S. IPOs so far this year. Shares of Chinese companies listed in the U.S. this year have posted quarterly returns of around 30%, vastly outperforming those from other U.S. and European companies, according to data from Renaissance Capital, a Greenwich, Connecticut-based IPO research center.

Among the top performing Chinese IPOs in the U.S. this year is JinkoSolar Holding Co Ltd (NYSE: JKS), which makes solar products such as silicon wafers, solar cells and solar modules, whose stock is up nearly 190% above its IPO price.

Chinese IT outsourcing company HiSoft Technology International Ltd (NASDAQ: HSFT) is up nearly 162% above its IPO price, and discount hotel chain China Lodging Group Ltd (NASDAQ: HTHT) has nearly doubled its IPO price.

Country Style Cooking Restaurant Chain Co. (NYSE: CCSC), a fast-food restaurant chain with an aggressive expansion policy, was a popular IPO priced at $16.50 in September, significantly above the estimated $12 to $14 range, is now trading up 76% its debut ADS price.

ChinaCache International Holdings Ltd (NASDAQ: CCIH) priced its IPO at $13.90 per American Depositary Share, above its estimated range of $10-$12. ChinaCache debuted in September 2010, offered 6.06 million ADRs, raising $84 million. Its shares soared to $30.70 soon after going public but dropped back down to $23.53 by the end of the 1st week of October. Last year, ChinaCache had revenues of $40 million and is on track to do between $60-$65M in revenue for 2010. Many analysts consider this to be one of the most successful deals of the year. ChinaCache is the largest content delivery network in mainland China where it holds a near monopoly with a 70% market share. Like Akamai or Limelight, ChinaCache offers to cache content such as Web data, video and applications in servers hosted in data centers distributed around China.

The offering came after the number of Internet users in China, the world’s fastest growing major economy, surpassed the entire U.S. population. China had an estimated 420 million internet users at the end of June, an increase of 36 million from 6 months earlier, according to data from the government-sponsored China Internet Network Information Center. The U.S. population is just 310 million and about 230 million Americans have access to the Internet. China has the largest Internet market, and it is growing in affluence everyday. Although the Internet is extremely congested in China, ChinaCache is well positioned to provide services required to relieve the many bottlenecks, paving the way for even more Internet usage.

SouFun Holdings Ltd. (NYSE: SFUN), the operator of China’s biggest property website, controls almost half of China’s online real-estate advertising market. jumped 72.9% ($31) to $73.50 in its debut during mid September at the New York Stock Exchange, posting the second-largest first-day gain for a U.S. initial public offering this year after raising $125 million selling shares at the top of its price range.

In summary, an anemic economic recovery in the U.S. and further financial problems in Europe are expected to further highlight China’s role as the world’s growth engine, in turn drawing more attention to Chinese companies with strong balance sheets. Encouraged by a series of successful deals as well as U.S. investors starving for high returns, more Chinese companies are expected to tap into the U.S. markets for funds in the coming months. At least 16 Chinese companies have registered with the U.S. Securities and Exchange Commission to raise around $590 million over the next 180 days, signaling a very positive beginning for a new IPO cycle.