OCT 2010
China
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Vasaloppet China Location: Changchun Date: SUN 2 January 2011 Nordic Ways will host the biggest XC ski event “Vasaloppet China”. Held eight times already and is now a new tradition. Vasaloppet China is a 50 km cross country ski race, open for everyone. The Blueberry Vasa for those who want to take it a bit easier is 16.7 km. For the beginner, there is Vasa Fun Ski of 2 or 4 km. Try cross country skiing in a relaxed and fun way. There is no problem if you don’t have your own skis; equipment rental is included when you sign up for the Fun Ski! For more information please visit www.nordicways.com.
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Please sign up for your own FREE copy: www.scandasia.com Publisher: Scandinavian Publishing Co., Ltd. 4/41-2 Ramintra Soi 14, Bangkok 10230, Thailand Tel. +66 2 943 7166-8, Fax: +66 2 943 7169 E-mail: news@scandasia.com Editor-in-Chief: Gregers A.W. Møller gregers@scandmedia.com Advertising: Finn Balslev finn@scandmedia.com Piyanan Kalikanon piyanan@scandmedia.com Nattapat Maesang nattapat@scandmedia.com Graphic Designer: Supphathada Numamnuay supphathada@scandmedia.com Distribution: Pimjai Chaimongkol pimjai@scandmedia.com Printing: Advanced Printing Services Co., Ltd.
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SWEA Christmas Party
The 2010 DCC Christmas Ball
Date: THU 25 November 2010
Location: Happy Valley Stand in Happy Valley Racecourse Date: SAT 4 December 2010
Swedish Women’s Educational Association in Hong Kong (SWEA) invites you to Christmas celebration party where you meet, eat and have fun with friends. More details, program and venue will be announced soon. Further information contact sweahongkong@yahoo. com.
Danish Chamber of Commerce in Hong Kong (DCC) will hold the Annual Christmas Ball at Happy Valley Stand in Happy Valley Racecourse. You have waited all year to have snaps and beer. The band has been booked and the chef is hooked. The Christmas Ball date is ready and clear and its time to celebrate with friends we have dear. So mark your calendars for this date and follow up more updated information at www.dcc.hk.
Crayfish Party in Beijing
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he Annual Crayfish Party at Radisson Blu Hotel is about to become one of the most appreciated events at the Swedish Chamber in Beijing, with more guests every year. Almost 260 guests showed up this warm Saturday evening at the Royal Garden. The weather was the absolutely best possible, with a temperature at about +30 C and a clear blue sky, in the evening you could actually see the stars in the black sky, considering the Royal Garden is located in the middle of Beijing this is an extraordinary experience. The evening started off with a warm welcome from our MC Alexander Luiga, also thanking our sponsors for their generous contribution, without you this Crayfish Party would not be happening. Our special guests for the evening were Mark Levengood and Henrik Johansson, well known faces from Swedish television but also best friends. During the daytime they work separately, Mark as a writer and a busy lecturer and Henrik with commercial and documentary filming. Their unanimous interest is music so whenever possible some special nights they work together playing music on special occasions. In the early evening only Swedish music was spinning and I can assure you this was very much appreciated. The dance floor was not empty for a minute; we kept on dancing until early morning, later on to international music as well. Not to forget Kenneth Hagås great performance with a potpourri of some of the most famous songs by Swedish singer Per Gessle. We would like to extend a Big Thank you to our sponsors, Ericsson, ICA, Radisson Blu, SAS, SEB and Swedbank. Thank you for your strong support.
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1) Crayfish festival. 2) Kenneth Hagås, Volvo, alias Per Gessle. 3) Mikael Larsson, table captain. 4) Magnus Carning, Dell, Joachim Rosenberg, Volvo, Solveig Nordqvist 5) Crayfish hat winner; Kristin Jönsson, Jens Purup, Access People, Bo Karlsson. 6) Mac Karlsson, Radisson Blu, Jörgen Person, Peter Borggren. 7) Presenting the sponsors , Fredrik Ektander, SEB, Lars Olofsson, SAS, Tom Nygren, Ericsson, Mac Karlsson, Radisson Blu. Unfortunately ICA could not be there and Swedbank joined the Crayfish Party in Shanghai. 8) Guest DJs Mark Levengood and Henrik Johansson 9) “Look alike” Mark Levengood and Bo Jönsson, Ericsson 10) Sara Ghebremedhin. 6 ScandAsia.China • October 2010
Little Mermaid’s First Birthday Party Away From Home 1
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uring 21 to 23 August, the Denmark Pavilion held the celebration of the birthday of the Little Mermaid. She was placed by Copenhagen harbour on 23 August 1913, donated by patron of the arts, brewer Carl Jacobsen of Carlsberg. This year is the first time of her birthday away from home. Christopher Bo Bramsen, Commissioner General of the Denmark Pavilion said: “She deserves a break after she has been working hard at EXPO 2010” 1) Visitors enjoyed a range of other fun activities. A paper cutting workshop taught by Lu Xue from China and Søren Thaae. The Danish Theatre Madam Bach who specializes in interactive plays for children and a workshop by the toy brand LEGO. 2) Danish synchronized swimmers do a performance about Mermaids in the harbor pool at the centre of the pavilion. 3) A 4-year-old girl, Zhang Ke Ying who was shared the same birthday as the Little Mermaid. 4) A great experience for the visitors to get close to The Little Mermaid and she will contribute to making the Danish pavilion even more popular among visitors.
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2010 Vasa Orienteering 1
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ordic Ways organized The Vasa Orienteering in Jingyuetan Park, Changchun China on 18th and 19th September 2010. On September18th there was Junior Cross-country Orienteering, Short Distance Orienteering, and Walking Orienteering. And the Long-distance Orienteering was on September 19th as well. On the first day, September 18th, there were around 730 runners from different countries all over the world getting together. “Though the day seemed short, but it was quite impressive!” participants said. Runners of men & women short distance and men & women beginner group ran out the line one by one. Only around 20 minutes later, there were participants getting back one by one. They look very tired, but satisfied also. In the afternoon of September 19th, around 200 participants from all over the world participated in the run on a longer track and which more complicated map which made the race more attractive and competitive. Eight men and eight women soon stood out from the crowd and got their prizes in the end. Congratulations! 1) Results of first 3 places for Men Long Distance, 1stplace - Ostropika Maxim, 2nd place - Canli, and 3rd place - Rui Pan. 2) Congratulation to Women Long Distance, 1stplace - Yingwei Wang, 2nd place - Fei Li, and 3rd place - Xinhui Huang. 3) Ostropika Maxim, Russia
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October 2010 • ScandAsia.China 7
Hans-Aage’s Church The Danish Seamen’s Church in Hong Kong is a lot more than a church for seamen. The Church supports, socializes and helps exchange students, trainees, families and tourists in the city of skyscrapers. By Niels C. Jensen
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o the Danish chaplain Hans-Aage Koller Nielsen the most important thing for the church is to be a rallying point for Danes in Hong Kong. A place where Danes can meet and get to know each other. “It is meaningless just to stand and shout that people have to be nice to each other, it is much better just to make them meet each other,” he says.
Danish living room at the harbour In Hong Kong the Danish Seamen’s Church has two localities, on the church and office at Tsim Sha Tsui and the Danish Room in Mariner’s Club at the harbour. Danish room is a big living room with a library, television, kitchen, computers, comfy chairs and a small garden. A place where Danes in Hong Kong can come and relax and enjoy good company: “There are always cold beers and soft drinks in the fridge,” says Hans-Aage. Two trainees are at the Danish room to offer a talk about this and that. As well as selling Danish products such as rye bread and sweets and liquorice from Haribo. 8 ScandAsia.China • October 2010
According to Hans-Aage Koller Nielsen there are about 50 Danish exchange students in Hong Kong, as well as trainees in shipping companies. This group of young people frequently visits and hangs out at the Danish Room.
Seamen’s service A part of Hans-Aage’s job is also to support the seamen, when a Danish ship enter Hong Kong he pays the Danish sailors a visit, he often brings Danish newspapers and goods along with him. If some of the men aboard need to talk about the hard life away from wife and children her is always ready. The seamen are very important to Hans-Aage, as they are some of the biggest supporters of the church. The employees at the Danish Seamen’s church are paid by the Danish government, everything else is paid by the members.
With children in the Far East Before the global economic crisis there was also a big group of Danish families with small children living in Hong Kong: “We once held Christmas Eve with 130 children, but that’s all
changed now. Many families moved because of the economic crisis,” says Hans-Aage. The Danish chaplain would be happy to do more for the Scandinavian children in Hong Kong, and in September he and his Swedish colleague are organizing a pirate day with a treasure hunt. “When I meet Danish families here I understand how busy they are, and how much work the have to do, so it is nice for to them to come here at the church and meet other Danes in a relaxed atmosphere,” says Hans-Aage.
Supported by Danish companies All these activities for the Danish community benefit the church in several ways, not least economically: “If we only had to hold service there wouldn’t be money enough in the collection box,” explains the Danish chaplain and adds: “Our last Christmas bazaar made an income of 700.000 Danish crowns.” The goods for the bazaar are donated to the church by Danish companies, for example Top-Toys, better know as Toys”r”us and BRLegetøj in Scandinavia. “For the last bazaar they donated
in Hong Kong
a container full of toys, it was like the dream of any child to open that container,” says a laughing Hans-Aage.
Danes abroad The Danes who move abroad want the church, claims the Danish chaplain: “When people move abroad they become more conscious about their roots and the role of the church.” According to Hans-Aage Danes are quite a like each other and to him the Danish national church is rallying point for Danish nationals: “Danish Christianity is very
i Nu ävenika! er Nordam
much about traditions like Christmas and Easter. Something we all can relate to.” That’s exactly what Hans-Aage wants his church to be – a place where people with common values come and meet each other. “We are conscious about being a church, but we don’t preach. We talk to people and help them with their problems.“
Danish tourists in Hong Kong
should not hesitate to ask HansAage for advice. The Danish Seamen’s Church has even made its own and very useful guidebook, which came very much in use when ScandAsia visited the city of skyscrapers.
The Danish room is a big living room with a library, television, kitchen, computers, comfy chairs and a small garden. A place where Danes in Hong Kong can come and relax and enjoy good company
If you want to explore the exciting city of Hong Kong by yourself you should not hesitate to ask Hans-Aage for advice, who is happy to answer your questions.
If you want to explore the exciting city of Hong Kong by yourself you
SVT World – ditt fönster mot Norden! Sveriges Televisions utlandskanal SVT World sänder nyheter och fakta. Musik, sport och natur. Barn- och nöjesprogram. Drama, debatter och kultur – dygnet runt och året om!
Fråga efter SVT World på ditt hotell – du får en naturbok! Notera hotellets namn och e-postadress samt om SVT World finns i alla rum, bara i lobbyn eller inte alls. Skicka uppgifterna till oss eller fyll i blanketten på vår hemsida: svt.se/svtworld svt.se/svtworld
För abonnemang kontakta SVT World:s kundtjänst: ConNova TVX +46 (0)141 - 20 39 10, svtworld@connova.se, www.connova.se October 2010 • ScandAsia.China 9
Sport Events the N
What started as an introduction to orienteering for Chinese students in Beijing at the end of the 90s has today developed to a leading successful business for Nordicways in China. The secret behind their success; their playfulness combined with passion for sports according to Gåvert Wååg, founder of Nordicways. By Alexandra Leyton Espinoza
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t’s a sunny September afternoon when I meet up with Gåvert outside hotel Radisson Blue in central Beijing. Nordicways is the host for the worlds first minithlon, where around 40 people in the ages between 20- 65 have signed up to attend. Five minutes left to start and the participants have nerves of tense. It’s a debut event, Nordicways are trying the concept to see if it can be established in the future. “One of our strongest values is to try to be pioneers in what we do. Be dedicated to sports and constantly develop new ideas,” said Wååg. Minithlon 2010 is one of around twelve spor ting events that Nordicways are holding through the year. The business had a turnover of 30 million Swedish Kroner last year and big names in the Swedish as well as Chinese market are sponsoring the event. At the first Nordicways event ever 1500 participants showed up. Today, 22 years later, they have become more than 30 000. “We star ted with having an orientation competition at Tsinghua university in Beijing and invited some
students to participate. Orienteering was a new sport in China and instead of having 30 tired members in Sweden we had about 1500 students in Beijing that were crazy about this,” he said.
Business success The reason for the try out of orienteering in Beijing was to promote Park World Tour (PWT), a spor t where orienteers compete in short courses in parks where they can be followed by spectators. The orienteering was made in one of Beijing’s many parks and the response was more than Nordicways had expected. Ericsson, one of their biggest sponsors said that if they were going to continue with this business of sporting events, it had to be in China, where the company had good potential to grow. Without Ericsson support Gåvert don’t think it would have been possible to continue. “So we started to organize more competitions, around universities in Beijing. Orienteering is something where you use your intelligence and physique at the same time. A new
Nordic Way
Gåvert Wååg and Niclas Hellqvist have manged in a unique way to succesfully import and adapt Nordic sporting events to China. sport that fitted the students here, something different than just running,” he said. The spor ting events became more varied as the company grew. Skiing, running and biking were added to the list. Today Nordicways hold events like Vasaloppet China, Lidingöloppet China and Genghis Khan Mountain Bike Adventure to mention a few of the total 23 different sport events held all year around. One of their strongest business ideas is to try to build bridges between Scandinavia and China. Nordicways also have in mind the potential of tourism and business, not only in China but also in Scandinavia. For example, the construction of Vasa museum in Changchun is currently on-going and the inauguration ceremony will he held in connection with Vasaloppet China on January 2, 2011. Many of their events focus mainly on sports with strong traditions in the Nordic countries. “Tradition is important. We try to make our participants understand that, especially our Chinese ones. It makes the event more interesting
and gives the event a reason, if participants are genuinely interested,” he said. By 2001 Nordicways had incorporated in around 16 provinces in China. The big breakthrough came during the Olympics in 2008, when Chinese people started to get more interested in sports. “The Olympics gave us a positive boost, people started to engage in spor t events and especially running. We had a lot of participants at Lidingöloppet that year,” said Niclas Hellqvist, Managing Director for the company. Hellqvist believes that the sporting event business will grow significantly in China. He compares today’s engagement in sports in China to the one in Scandinavia during the 60s but foresees that the Chinese developments will happen at a faster rate. “People in China are getting more aware of the positive effect of exercise. Chinese middle class is growing tremendously fast and people are working harder. Exercising helps them perform better,” said Hellqvist.
The company markets itself through other sport clubs, internet forums and other organizations in an effort to become the leading sporting event firm in China and develop the events to become more attractive. To start arranging competitions made for fund raising is also impor-
tant. According to Nordicways you don’t need to be an elite sports man or woman to compete. “Our par ticipants don’t need to be number one athletes. We have Olympic champions as well as amateurs. Everyone is welcome,” said Hellqvist.
October 2010 • ScandAsia.China 11
Norway, Sweden Help Violence in China In China 37 percent of all marriages include some form of violence, typically with the woman as the receiver. In the heart of Beijing, the Scandinavian-supported NGO, Anti-Domestic Violence Network, works to put focus on the problem. By Anya Palm
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he shame was devastating. It was a summer day in 2006 and Xue had just told a co-worker to wait for her, as she grabbed her jacket, so she could join her and another colleague for a walk. She hadn’t seen her husband walking into the office, and the first thing she saw was her colleagues’ scared faces. Before she knew it, her husband was shouting at her co-workers: “You cannot walk with her. If you do, I will shatter your house! Any girl that speaks to her means to break up our marriage! Any man that speaks to her will mean that he has a sexual relationship with her,” Xue’s husband shouted and dragged her away. At home, she received a severe beating for her disrespect. After the incident, she was ostracized at work and no one would talk to her. She felt ashamed, so much, she decided, she could not live with this.
Xue was the mother of several babies, that had been sold, killed or left to starve by her abusing husband. She had received countless beatings and brutal rapes. This was the incident that pushed her outside the realms of sanity: After the humiliating climax of a humiliating life, Xue killed her husband.
Stopping violence before it happens “Of course, killing is always wrong, no matter what the circumstances are,” says Wang Yi, the senior communications officer of Anti-Domestic Violence Network of China Law Society, also called Stop DV. Wang Yi has heard plenty of stories like Xue’s. Today, about 37 percent of married Chinese women are victims of domestic violence. “The women act desperate, because they see no other way out. For the last ten years, that is what the network has been working to give them,” she says.
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“For Xue, prison is a better life than the one she had.” The main objective of Anti-Domestic Violence Network (ADVN) is to propel the reform of the related regulations and change social consciousness about domestic violence and enhance support to the battered women. The NGO facilitates workshops, publishes books, arranges information trips to the rural areas and helps in drafting laws and regulations in the area. But for the Chinese, this problem is still taboo and the funding is hard to get. “We look to places like Scandinavia and the West, because most of these countries have already formulated anti-domestic violation laws,” she says. Wang Yi has studied the issue in both Norway and Denmark and two of the four main sponsors are Scandinavian: The Norwegian Center for Human Rights under the University of Oslo and the Swedish International Development Coop-
eration Agency (SIDA). The two others are Oxfam Netherlands and the Ford Foundation.
Ten year anniversary This year, AVDN has been working for the cause for ten years, and although one can still hear stories like Xue’s, Wang Yi sees progress. “During the years, we have seen that domestic violence is getting less and less socially acceptable,” she says. She explains that there is a tendency to talk about the violence, instead of keeping mum about it. “We now hear about more cases, than we used to ten years ago,” she says. One of the biggest achievements for the NGO is introducing the term “domestic violence” in China. “When we started working with the issue ten years ago, the term “domestic violence” did not exist. People knew about wife-beating only. They may have thought this
Victims of Domestic was bad, but it was family affairs,” she explains. But the NGO persisted to use the term: In speeches, in their material, in the talks with the authorities and the media. Over the years, people started adapting the term “domestic violence.” “The difference between wife beating and domestic violence is that the latter is not limited to physical abuse, but includes sexual violence, emotional abuse and controlling behaviour, including economic control. It has consequences that reach beyond the women to the children, friend, family and far out into the community also,” she explains. Today, an Anti-Domestic Violence Law is underway in China, expected to be passed within the next five years. ADVN drafted it in 2003 and already, several ministries abide by it, using guidelines that are to be followed, until the law officially passes. It has been redrafted this year and submitted to the justice department. “It definitely makes a difference, what we do here,” Wang Yi says and gives another example: “The judges in some of the provinces have started giving the women, who commits crimes against their husbands, lighter punishment. This is not optimal, but it shows us that people understand more of the issue today,” she says. But still there is work to do. Xue’s case is processed, she was convicted according to law, and Wang Yi does not know where she is today. She is one out of thousands
of women, living through what seems like a nightmare, but is chillingly common in China, even today. But just the fact that her story has been told is a little step forward. “Our goal is to eliminate genderbased violence completely. There is still a long way to go and we are full of hope. We see progress everyday,” Wang Yi says.
Facts about Anti-Domestic Violence Network of China Law Society: Officially founded in 2000 with the support of Oslo University, Swedish International Development Cooperation Agency, Ford Foundation and Oxfam Netherlands It has 70 member organizations and 123 individual members from all over the world A staff of six is working in the main office in Beijing.
Facts about domestic violence: • • • •
37 percent of all Chinese marriages are violent. The 2001 Marital Law prohibits domestic violence. However, it remains a challenge to carry out the enforcement of this law as it is easily seen as intervention in private affairs. The Anti-Domestic Violence Network of China Law Society is pushing for a separate bill for this problem: The Domestic Violence Law. The law was drafted in 2003 and is likely to be implemented this year. According to the Domestic Violence Law, all forms of violence, including sexual, economic and mental abuse, is prohibited and punishable.
October 2010 • ScandAsia.China 13
Right Man for the Job After two and a half years based in Geneva, Switzerland, Ole Hamre is back in Singapore meaning to take SEB’s private banking operation to a new level in Asia. By Thomas Lykke Pedersen
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t the 36th floor of the Singapore Land Tower the Head of SEB Private Banking in Asia, Mr. Ole Hamre, is sitting in the big conference room. Already in a comfortable leather chair he puts his one leg up and slowly slides back in his seat. Observing Ole Hamre and hearing about his life, one instantly get the feeling that the tall Norwegian has found the perfect balance between being a successful businessman and a laid back family father. And how does he do it? It is all about the commitment.
Asian focus Ole Hamre returning to Singapore is part of a bigger plan to put SEB into a new Asian era and the 41year-old Scandinavian is just the man to do it. “I was asked if I would take on this challenge making the private banking operation evolve into the next level. Of course it’s a big compliment being brought back like that,” he says. And the General Manager is not only proud to be back in Singapore, he is also very happy. Both professionally and personally. “We are so privileged being able to experience the Asian culture and way of life. Singapore is a great place for both business and pleasure. It’s so structured and streamlined and the country is almost run company-like. I tend to call it Disneyland with death
penalty. But it’s a positive place full of opportunities,” says Ole Hamre. The job description is basically the same this time around, but the SEB team is different from when Ole Hamre left two and a half years ago. The boss has great confidence in the new constellation, though. “I really believe in the guys here and the Bank’s regional potential. And at the same time we receive full support from the top management making everybody willing to go that extra mile,” says Ole Hamre with an almost eager voice. As more and more Scandinavian businesses and private investors has put an increasing focus on the fastgrowing Asian market, SEB has done the same. “Our Nordic home market clients have becoming increasingly international in mindset and behaviour. Therefore we need to adapt our offering, competence and approach on the global and domestic arena,” says the Oslo-born Ole Hamre.
Singapore Agreement After eight years in Singapore, Ole Hamre was in 2008 made head of SEB in Switzerland. Thus the family pulled up their Singapore stakes and moved to the European birthplace of international private banking, Geneva. A change in location that suited everybody. Ole’s wife, Severine, is French so once again Switzerland did what it does best and served as neutral grounds, this time giving easy access
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to the family’s two home countries. “It was a welcomed chance to return to Europe, and had I not accepted back then, there would have been big protests at home,” Ole Hamre laughs out. And he does not make a secret of his surprise when he only two years later was contacted by SEB senior management proposing him to return to the small Asian city state. “At first we were relatively happy about the new Singapore offer, let’s put it that way,” he says with a smile. Ole Hamre and his family were really thriving in Switzerland and that very concern was the biggest of issues. “You see a lot of “corporate gypsies” following their company around staying a few years here and a few years there. They never have a real chance to settle and that’s very tough on the families,” he states. But as an eventual return to Singapore was considered, it became clear that the opportunity was to great not to be accepted, besides their regional network was still strong making the second transition more smooth. “Having an integrated family is paramount and I’m blessed with a wife that has a fantastic ability to quickly adapt. As for my two sixyear-old twins, they just embraced the opportunity to swim all year round,” says Ole Hamre emphasizing that going back to Singapore was a completely joint decision.
The commitment Through a tight collaboration with their branches back in the Nordic home market as well as various new initiatives, setting up asset management operations being one, SEB in Singapore is right now working extremely hard to obviate the increasing client demand for Asian competencies and investments. “The key to our business will always be our origin. So only when working closely together with our colleagues in Scandinavia can we truly match our different concepts to the different client profiles,” says Ole Hamre. “We are not the biggest in the class but we are big enough as an organization to offer a global platform of competencies and investment opportunities. Yet we are small enough to be really close our costumers, which is one of our biggest strengths,” he adds. Right now the duration of Ole Hamre’s contract in Singapore is five years, after which the plan is to return to Switzerland. But nothing is certain in the world of banking as the intentional two-year stay in Singapore some ten years ago became eight instead. “There are no guarantees in life, what you make of it is up to you. The most important thing is to always feel and stay committed. And that’s exactly what I do both personally and professionally,” Ole Hamre says in a tone of voice that leaves no doubt.
Mr. Kevin McKenzie , M.D. arn Yingsakmongkol Assoc. Prof. Wich
Portrait of China’s Rich n There are 875,000 millionaires in China, a rise of 6.1% up from last year. n Beijing is home to more of China’s rich than anywhere else, with 151,000 millionaires. Guangdong occupies second position, and Shanghai is third. n Hainan is the domestic luxury destination of choice for China’s wealthy, where they can indulge in their preferred hobbies of swimming and golfing.
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Tea Service at Tea Tree, Crowne Plaza Sanya.
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he Hurun Research Institute has for the second consecutive year published its “Hurun Wealth Report”. The report analyzes the number of millionaires and the distribution of China’s wealthy across the nation’s major cities and provinces. The report shows that there are 875,000 people with more than RMB 10million (GBP 0.96/ EUR 1.1million/ USD 1.47million) in China today, an increase of 6.1% from last year. This growth has occurred against a background of strong economic performance in China's economy; GDP grew by 8.7% in 2009 to RMB 33.5trillion, and the Shanghai Composite Index rose over the same period from 2300 points to 3000, an increase of 30%. According to Chinese government statistics from February 2010, house prices rose 10.7% over the past year. Beijing, as home to 150,000 millionaires, was the place with more rich people than anywhere else. Guangdong was in second place with 145,000 and Shanghai came in third position, with 122,000. These people accounted for 48% of China’s total. “The findings of the Report show that there are 1900 people with the equivalent of EUR 110 billion in China, which is twice the number of people included on the 2009 Hurun Rich List,” said Hurun Report founder Rupert Hoogewerf. “This suggests that there is a hidden class of low-key rich, who keep their heads below the parapet.” The minimum threshold for in-
clusion was RMB10 million, based on all private wealth including privatelyheld businesses, principal private residence and art collections. The range of assets considered sets the Hurun Wealth Report apart from the methodology of Merrill Lynch and China Merchants Bank’s studies, which only measure investable assets. The average age of China’s wealthy is 39 years of age. On average, they are 15 years younger than their counterparts outside of China, and their wealth is growing more rapidly. The male to female ratio is 7:3. They made their money primarily from the service, property and manufacturing sectors, and they are super-confident about China’s economic outlook. They enjoy collecting watches and Chinese classical art, and on average they own three cars and 4.4 luxury watches. Travel, golf and swimming are their leisure activities of choice, and they take an average of 16 days holiday a year. Their average golf handicap is 26. One third don’t drink and almost one half don’t smoke. For their children’s education, Great Britain is their choice for secondary school, and the USA for university. Philanthropy has become established with China’s rich over recent years, and education, disaster relief and social welfare projects were the causes that received the bulk of their donations. “China’s millionaires are becoming increasingly sophisticated in the way they spend their money, and at a remarkable pace” said Hurun Report founder Rupert Hoogewerf.
China’s favorite brands Jewelry and watches: Cartier Fashion: Gucci Business Airline: Air France Hotels: Peninsula Beverages (spirits): Martell Cars: Mercedes-Benz Brands to buy for Christmas: Omega, Swarovski, Dewar’s The Mitsuoka Orochi will retail for around 800,000 RMB (US $117,177) in China when it arrives next yea
Millionaires in Tier 1 Cities vs. in Tiers 2 and 3 Cities China’s biggest and most sophisticated cities, such as Beijing, Shanghai and Guangzhou are classified as first-tier cities. The Chinese millionaires in these Tier 1 cities are is slightly younger than the millionaires in Tier 2 and 3 cities (40 years old vs. 43); there are also more women millionaires in Tier 1 cities than Tier 2 and 3. More wealth is created from salary and investments in Tier 1 cities compared to real estate in Tier 2 and 3. Travel: Both Tier 1 and Tier 2/3 Chinese millionaires identify the US and France as top international destinations while Tier 2/3 millionaires also like Canada. For domestic travel Hong Kong is preferred by Tier 1 millionaires and Yunnan by Tier 2/3. Overall all prefer Sanya. Lifestyle: With regard to lifestyle, swimming is the preferred hobby of Tier 1 millionaires and tea tasting for Tier 2/3. Collecting: In Tier 1 Chinese millionaires prefer collecting cars and watches while in Tier 2/3 the preference is for traditional Chinese paintings. Charity: The preferred charity for Tier 1 millionaires is the Red Cross and for Tier 2/3 Project Hope - China Youth Development Foundation (CYDF) who help build schools across the country. Brands: Favoured fashion brands of Chinese millionaires in Tier 1 cities are Giorgio Armani and Gucci and Boss in Tier 2/3. Jewelry: Chinese millionaires identify Cartier as the most preferred jewellery brand but among Tier 1
millionaires Bulgari is also well liked and Montblanc is liked by Tier 2/3 city millionaires. Smokes: Chunghwa cigarettes are preferred by Tier 1 cities and are, on average, ten times the price of a normal pack of cigarettes. Tier 2/3 cities prefer local high-end cigarette brands. “This year luxury brands are focusing intently on developing their market share in the Tier 2/3 cities,” Rupert Hoogewerf, founder of Hurun Report says.
China’s Pyramid of Wealth Amongst the 875,000 millionaires in China, there are 55,000 super-rich individuals, defined as those with RMB 100 million (GBP 9.6 million/ EUR 11 million/ USD 14.7 million). This marked a 7.8% rise on last year. Amongst them, 1900 have more than RMB 1 billion (GBP 96 million/ EUR 110 million/ USD 147 million), and 140 have RMB 10 billion (GBP
960 million/ EUR 1.1 billion/ USD 1.47 billion). “The findings of the Report show that there are 1900 people with the equivalent of EUR 110 billion in China, which is twice the number of people included on the 2009 Hurun Rich List.” said Hurun Report founder Rupert Hoogewerf, “This suggests that there is a hidden class of low-key rich, who keep their heads below the parapet”.
Methodology The 2010 Hurun Wealth Report is designed to identify the number of millionaires in Mainland China, broken down across the country by region. Unlike other wealth reports, the Hurun 2009 Wealth Report takes into account all private wealth, including privately-held businesses and the private residence. The report refers to statistics from December 2009. The Hurun Research Institute carried out the research using both
a ‘bottoms-up’ and ‘top-down’ approach. For the ‘bottoms-up’ approach, the Institute looked at the number of key investment and spending indicators of Mainland Chinese. These included the number of individual properties by region worth RMB 5 million and RMB 10 million, the number of luxury cars purchased in the last three years costing RMB 0.5 million or more, the number of high bracket income tax payers, company registered capital, and so on. For the ‘top-down’ approach, the Institute applied the Gini coefficient measuring income distribution to the 2008 China GDP and 2007 China GNP. Geographic Region
Rank
Individuals with more than EUR 1.1million
Rank
Individuals with more than EUR 11million
Beijing
1
151000
1
9400
Guangdong
2
145000
2
8200
Guangzhou
49200
Shenzhen
45600
3810 3160
Shanghai
3
122000
3
7300
Zhejiang
4
116500
4
6760
Hangzhou
47300
2590
Wenzhou
20400
2130
Ningbo
13500
Jiangsu
5
62600
Nanjing
22100
Suzhou
15600
Fujian
6
Xiamen
Qingdao Liaoning
2100
30500
7
1720
8
1710
640 540
11100 8
Dalian
26800
570
11000
Shenyang Sichuan
930 6
10200 7
690
7660 9
Chengdu
22100
4300 1680
11500
Fuzhou Shandong
33500
860 5
510 9
1520
13500
730
Henan
10
15200
12
1040
Hebei
11
14500
10
1110
Tianjin
11
14500
13
1030
Shanxi
13
13300
10
1110
Hubei
14
12500
14
900
Hunan
14
12500
19
670
Shaanxi
16
11000
17
680
Inner Mongolia
17
10200
16
700
Chongqing
18
9700
21
650
Heilongjiang
19
9600
19
October 2010 • ScandAsia.China 17
Consul to Create Danish Building Boom in China “Just throw a stone and you will hit a construction site.” This is how the Danish Building Consul in Shanghai Franz Gammelgaard-Schmidt describes the Chinese building market. But even though the possibilities are unlimited, it is actually not easy for Danish building companies to enter China. By Toke Christensen
H
e is actually too early, as he shows up in the cafe in the high-rise building, which houses the Danish General Consulate. Recently returned from a potential building project in Mid China, Franz G. Schmidt takes a seat and orders a glass of freshly squeezed orange juice. Maybe to recover and prepare for the next business trip in China, which is an important part of his job. “A meeting was cancelled, so I am ready now,” says Franz G. Schmidt. Consul of Building and Construction is his official designation of occupation. A relatively new position at the Danish General Consulate in Shanghai, and Franz G. Schmidt is the first to occupy the job, since he came to China one and a half year ago. The purpose of his position is to get more Danish companies with relation to the building industry involved in Chinese building projects. “The growth in built square meters is tremendous in China compared to the rest of the world. We want Danish companies to be a part of this building boom, and this is the reason I am here. The Danish building industry is not that visible in China, when you think about how much is being built. So the focus is to get more architects, engineers and building suppliers to China.”
Difficult beginning Franz G. Schmidt knows the building business through 15 years as a real estate agent and later as property developer. He is therefore not a technician in the area, but he has a thorough insight in the business models within construction. When he accepted the position as building consul, he also accepted the biggest challenge of his career. Creating contacts - and contracts – for Danish companies in China has been a bigger challenge than he would have thought. “Understanding the Chinese culture and the business models in China has been more difficult than I expected. Maybe we are a little too idealistic and starry-eyed in Denmark, when we believe that we can just go to China and make some deals, and then they will probably realise why our qualifications are better than theirs. But you have to invest much more time and explain them everything very carefully. They do not automatically understand us, and you also have to motivate them to cooperate,” Franz G. Schmidt underlines. “Building and construction has a particular slowness, because it is complex. You must investigate a lot of elements, and the process is long, before you get involved in construction projects - this is also the case in Denmark. Only the difference is
18 ScandAsia.China • October 2010
that you are now 100.000 kilometres away from home. That does not make it easier.”
Light ahead Franz G. Schmidt’s time in China has not been wasted though. The possibilities of the market have been investigated, and talking about the future brings out optimism in the eyes of the consul. The Danish General Consulate has started a building consortium, where eight Danish companies within airport construction have signed a joint venture cooperation with one of the most acknowledged design institutes in China. 50 new airports will soon be built in China, and Franz G. Schmidt believes in a Danish footprint. Also the hospital area, where 2.000 new hospitals are about to be built, is interesting. ”And if we can just take part in one or two, we will be happy,” Franz G. Schmidt smiles. The quality of Danish building materials is higher than in China – but so is the price. Therefore it is important to find the right Chinese developers who sees the idea in a more expensive building with better energy efficiency and comfort, which means higher prices when renting out or selling. ”In general the building standard in China is low. When you for example overtake an apartment in
China, it is only concrete floors and walls, which means you must invest in warming and cooling systems yourself. We can make much better standards of energy efficiency, comfort and design,” says Franz G. Schmidt.
Strategic partnerships In another one and a half year Franz G. Schmidt has fulfilled his threeyear contract, which is the standard length for consuls. By that time he hopes to have invited Danish companies to the Chinese building boom. In a longer perspective he hopes to see a construction in China built only by Danish advisers, engineers and architects. And in even more years to come he wishes that strategic partnerships could be established between Danish and Chinese companies. ”Many Danish developers have great knowledge and expertise, and if they could enter Chinese partnerships it would open doors all over the world, for example in Africa or the Middle East. It could also be Danish architects in Chinese partnerships, where maybe a Danish architect wins a competition in Hamburg supported by a Chinese drawing office to be more competitive. I hope this kind of partnerships will flourish in the future,” says Franz G. Schmidt.
Sharp, unique, piquant ... this is the traditional Danish Blue Cheese! We recommend Danish Blue Cheese for Cheeseboards, Dips and Sauces, on Pizza and Pasta or crumbled in Salad. Taste the Extra Creamy version for a slightly milder and creamier taste.
Castello_192x132_Add_Sep_2010_OK.indd 1
9/15/10 9:24:32 AM
First Finnish Restaur
Jukka Lukkarinen is the only Finnish restaurant owner in Beijing. After ten years in the restaurant business in China he has experienced both good and bad times. It has not always been easy. By Alexandra Leyton Espinoza
B
efore moving to China, Lukkarinen worked as a restaurant & banquet manager in Brussels. But some of his friends lived in China where they worked for Finnish established companies such as Metso and Nokia, so he was aware of the enormous opportunities in the middle kingdom. Then one day, one of his closest friends asked him if he would be interested in moving to Beijing and help him run a restaurant there. Lukkarinen had never been to Asia before and he saw the offer as a unique opportunity to do something different. Soon he and his girlfriend were moving to the big city. “My first impression was that China was a very poor country. I arrived during the winter and it was snowing, everything seemed grey and there were not many taxis. I had an impression of a country with images of Mao Tsedong everywhere, which was a reality,” he recalls. “After a few days, my first impression changed and I noticed what
20 ScandAsia.China • October 2010
a nice and beautiful place China and Beijing actually is. Not poor at all.” Lukkarinen’s first mission was to sort out the anarchy which prevailed at the restaurant he was about to start running, one of the first western restaurants in the city.
Difficult start “It was a terrible mess, the waiters mostly just smoked, read newspapers and made sure that the Australian owner was happy,” he recalls. Clashes between the staff, the owner and Lukkarinen typically ended in heated verbal arguments, sometimes even escalating into physical fights, which made Lukkarinen very unpopular among his own staff. “It was a very lonely time. I only had the support of the owners wife who was the one that had sent me here and my Finnish and other Scandinavian friends that worked in the international companies. That was it,” he said. The restaurant on the other hand started to run better than
ever. The clients were mainly Scandinavians from all over Beijing and the staff came from different newly established hotels. Unfortunately the owner divorced from his wife and Lukkarinen was told to leave. On top of this he was evicted from the apartment he had shared with the owner. And a few months earlier his girlfriend had left him and moved back to Finland.
New beginning It was Christmas time but things didn’t look bright and shiny. Lukkarienn talked to the landlord about renting a new place and started looking for a new job. A few doors away was another restaurant run by two Chinese girls he had befriended. He went in to say his goodbyes. “They informed me they had gone bankrupt, and had no savings left. They were just trying to sell the last things they had. I thought, ‘I have some money, it’s all or nothing!’ That attitude has always followed me,” he says.
rant in Beijing My first employment in Beijing was a very lonely time. I only had the support of the owners wife who was the one that had sent me here. That was it.
“I miss Finland and my friends but Beijing is my home and I am very happy here!”
So they started from scratch, Lukkarinen was now an investor in the business minus a salary. The restaurant, later called Take 5, started to grow and once again people started to appreciate the food but also the service. Here, Lukkarinen had free rein to teach the staff about service and quality. They started to expand and opened the first coffee shop on the street. Which was located in Silk market, a must place for foreigners to visit. “The opening was big for that time. The Finnish ambassador came and cut the opening ribbon and we drank champagne. People looked at us and wondered what was going on,” Lukkarinen tells with a laugh. And the story was en route for a fairytale ending, if not for the SARS epidemic making an unwelcome entrance. People stopped traveling and no one dared to go out. “It was like a science fiction movie,” Lukkarinen says. “People were walking down the streets in big plastic suits and stopped other people on the street to measure their fever. They looked like ghost busters,” he shudders. Many restaurants closed, either because of the lack of guests or because of government policies of the time. Lukkarinen was the first
to start a journal with the names of each of his staff, measuring their fever every day and giving them “ Salmiakki” a Finnish drink made of liquor with a taste of liquorish every morning. When officials came to visit his restaurant and requested he took the staffs temperature or close the place down, Lukkarinen showed them the journal in which he had been recording the staffs health for several weeks. They were impressed. “Health and safety was not a new concept for me. In Europe we make sure that the staff is healthy, but for Chinese people it was something new,” he said.
Getting where he is today has cost a lot of hard work and long hours. But lately Lukkarinen has slowly started allowing himself a bit of fun too. He has a passion for big motorbikes. He is the proud owner of a Harley Davidson and the president of the Harley Davidson, Beijing Dragon Riders association. He has also a girlfriend who he has been seeing for more than half a year. “I put my heart into my work but I have started letting myself have fun and not just work all the time,” Lukkarinen says.
Time to get a life Today Lukkarinen’s Take 5 is brimming with not only Scandinavians but also Chinese and other nationalities from all over the world. The restaurant has a cozy feeling with many regulars and serves various types of food. And Jukka Lukkarinen is happy. “I take everything day by day, Beijing is my home for the moment,” he says. Take 5 is also the venue for many events of the Finish Business Council Beijing, where Lukkarinen is also a member of the Board.
October 2010 • ScandAsia.China 21
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FINDS, Hong Kong’s iconic Nordic restaurant and bar, vacates its home in Lan Kwai Fong in September 2010 to keep its reputation as a premiere destination for lifestyle dining.
T
he changing profile of Lan Kwai Fong have contributed to the decision to relocate to The Luxe Manor in Kowloon where FINDS will immediately re-open in a larger place. The new outlet will reinvent the FINDS experience with celebrity chef Jaakko Sorsa’s interpretation of relaxed social dining. Traditionally, from July to September FINDS throws a series of parties, including a Scandinavian
hen you have completed the above puzzles, please send your©solution by2010 fax- to +66 2 943 7169 or scan and email Web Sudoku www.websudoku.com to puzzles@scandasia.com. We will make a lucky draw among the correct answers. Five lucky winners will receive a high quality ScandAsia polo shirt. Deadline for submit your solution is 15 December 2010 ttp://view.websudoku.com/ 10/6/2010 Name:
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22 ScandAsia.China • October 2010
Summer Splash which took place on 31 July and a celebrity-packed Scandi Graffiti Party which took place on Saturday 11 September its final day in Lan Kwai Fong. The FINDS Group will also open a bar in Central in the fourth quarter of 2010. The trademark affirmation ‘Live a FINDS Life!’ provides a road map towards brand expansion. It encapsulates a vision of distinct style, adventure, generosity and a genuine appreciation for the finer things in life.
About FINDS FINDS, an acronym for Finland, Iceland, Norway, Denmark and Sweden, is Hong Kong’s iconic Nordic restaurant and bar. Boasting of award winning cuisine by celebrity chef Jaakko Sorsa, FINDS is the pinnacle of destination dining and lifestyle. FINDS is featured in Conde Nast Traveler, Frommer’s Guide, Cool Restaurants Hong Kong, Luxe City Guide, Lonely Planet and HK Tatler’s ‘Best Restaurants’ Guide (2007-2010), among others. FINDS is iconic, trendsetting and award winning. Read more at http://www.finds.com.hk/
“Private Banking makes life easier.” The only Nordic Private Bank in Asia Pacific. www.sebgroup.com/privatebanking Tel: +65 63570895 E-mail: singapore@sebprivatebanking.com.sg 50 Raffles Place #36-01, Singapore Land Tower, Singapore 048623 210x148.5_2010-04-01.indd 1
08/04/2010 09:28:19