Tier II & Tier III Cities

ARC China believes that China’s Tier II and Tier III cities offer an unprecedented opportunity for value creation. Within China, there are 91 cities that have a population over 5 million, including 8 cities with populations over 10 million. The cities that lie beyond Shanghai, Beijing, and Guangzhou offer the most attractive prospects for investors and the highest future growth rates. These cities are the most levered towards growth in China’s domestic consumption and in many cases have carried on double-digit GDP growth throughout the recent global economic recession.

ARC China has either invested or is pending investment in portfolio companies located in Chengdu, Sichuan Province (Population: 11.3mm); Xiamen, Fujian Province (Population: 1.7mm), Shenyang, Liaoning Province (Population: 7.1mm); Harbin, Heilongjiang Province (Population: 9.9mm); and Xi’an, Shaanxi Province (Population: 7.7mm).