Tag Archives: warren buffett

BYD’s Wang Chuanfu Tops China’s Rich List On Heels Of Buffett Investment

Wang Jumps 102 Spots To Head The Hurun Report’s “Rich List”; Now Worth $5.1 Billion

BYD's Wang Chuanfu is now worth over US $5 billion, putting him at the top of China's "Rich List"

BYD's Wang Chuanfu is now worth over US $5 billion, putting him at the top of China's "Rich List"

Last week, we saw what the endorsement of a financial heavyweight like Warren Buffett can do for a little-known Chinese company, with the stock of Dayang Trands skyrocketing 71% following Buffett’s praises of the company’s bespoke suits. In the automotive sector, today China Herald (via Bloomberg) points out that Buffett’s investment in previously low-key Chinese battery and hybrid/electric car maker BYD has not only given the brand global visibility, it has made the company’s head, Wang Chuanfu, a very rich man and putting him at the top of the Hurun Report’s China Rich List beating China’s longtime #1, Zhang Yin.

[Wang’s] wealth jumped to $5.1 billion, exceeding Nine Dragons Paper Holdings Ltd. founder Zhang Yin’s $4.9 billion, according to an e-mailed statement from the Hurun Report today.

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Warren Buffett Gives Little-Known Chinese Clothier A Global Boost

Buffett’s Endorsement Of Trands, Suitmaker For China’s Government Elite, Gives Small Clothing Brand International Notoriety

Warren Buffett's endorsement of Chinese high-end menswear designer Trands sent its stocks soaring

Warren Buffett's endorsement of Chinese high-end menswear designer Trands sent its stocks soaring

Warren Buffett’s interest in China as an investment destination is well known, and his words of praise for (or investments in) the occasional Chinese company seems to have the effect of boosting that company’s visibility abroad virtually overnight. H is company’s $230 million investment in Chinese electric and hybrid automaker BYD has elevated what was only a few years ago a fledgling battery maker into a brand which is set to enter the US market as early as next year. So for little-known (even in China) Chinese menswear designer Trands, Buffett’s endorsement of his newest Chinese-brand-of-the-moment is definitely exciting news — especially because their stocks have risen 70% since the release of a video in which Buffett extols the brand’s qualities. As the Wall Street Journal writes today,

Move over Brioni, the truly rich and powerful are wearing Trands.

The obscure menswear label is produced by Dayang Group, a clothing company founded by Li Guilian, 63 years old, a diminutive farmer-turned-fashion mogul, in northeast China.

Ms. Li’s company got a major boost after Mr. Buffett, chairman and chief executive of Berkshire Hathaway Inc., recently appeared in a Dayang promotional video, posted on the company’s Web site. He heaped praise on Ms. Li, her company, and the nine Trands suits he proudly owns. Shares of Dayang’s Shanghai-listed subsidiary, Dalian Dayang Trands Co., have soared by more than 70% since the video was posted on Sept. 10.
 

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Can Chinese Luxury Cars Catch On In America?

Recent Interest By Chinese Automakers In Established Brands Like Volvo, Saab Show Their Global Ambitions; But Will Western Consumers Choose To “Drive Chinese”?

Can BYD crack the American luxury car market? Only time will tell.

Can BYD crack the American luxury car market? Only time will tell.

With well-known auto brands like Sweden’s Volvo and Saab up for sale, Chinese brands Geely, Beijing Automotive and FAW — relative unknowns in the global car market — have been in the news as possible suitors. It is no secret that Chinese automakers have their sights set on the export market, and want to see their vehicles gain popularity on lucrative markets like North America. Here, though, is the largest opportunity as well as the most significant challenge faced by Chinese car brands, a bit of a catch-22: while China is the world’s largest auto market — owing, naturally, to its vast population — Chinese car companies need to develop their luxury fleets and export more in order to turn a substantial profit, but for higher-priced vehicles, Chinese consumers virtually always choose foreign-made automobiles, and Chinese brands are almost completely unknown by luxury car buyers abroad.

At the same time, Chinese carmakers must come up against biases about the perceived quality of their products — fostered, perhaps in a large proportion, by the fact that Chinese brands have absolutely no brand equity abroad, since:

1.) most of these companies are only a few years old, and

2.) reports about Chinese-made vehicles tend to be on the sensationalist side and focus on a quality gap or on perceived “counterfeiting” of car models. While many of the problems faced by Chinese carmakers abroad boil down to sloppy or simply “bad” PR, it is, in some ways, understandable that non-Chinese car buyers know little about Chinese car companies — because many Chinese car buyers don’t know much about them either. Quite simply, they need to work harder to differentiate themselves, pin down strong brand messaging, and really push hard to ensure they conform to all safety and emissions standards — or exceed them.

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Australia and China: The Art & Business Connection

Rising Trade And Cultural Exchanges Between Two Countries Leading China-West Partnerships

Ambassador Raby has been a contemporary Chinese art buff since the 1980s. Could Raby and Rudd lead the way to better Sino-Australian ties?

Ambassador Raby has been a contemporary Chinese art buff since the 1980s. Could Raby and Rudd lead the way to better Sino-Australian ties?

There have been several stories in the last few days about the relationship between Australia and China, two countries which have economically benefitted in alternating cycles through increased trade and commerce over the last 20 or so years. While Australia has a Mandarin-speaking PM who has shown a muted interest in deepening Sino-Australian ties, recent articles have indicated that the China stigma continues to play a role in business deals and politics.

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