The Functions And Operation Of The Wine Investment Company

The essay briefly describes the following main points:1/The background of establishment of the Wine Investment company:A. The fast development of China's wine market and rapid increase ofChinese wine consumers; B. The increasing demand of high-quality andworld-famous brands wine; C. Investors' requests of finding newinvestment instruments; D. A company's assets portfolio.2/The company scale and durationA. Total investment of20million RMB (USD3.17million). B. Localinvestors contribute in RMB while foreign investors in USD. The convertrate is based on the medium rate of USD and RMB announced by Bank ofChina; C. Foreign investors get their returns in USD and the fundmanagement company in charge of the convert; D. The duration is10years.3/The main functions of the Wine Investment Co.A. Serving as a Fund of Fund (FOF) that means under this fund wherewill a few funds that will invest in different areas of the wine field, such asfamous wine, future wines, bonded warehouses, wine auction platform, etc.B. Providing management and professional services to the related funds; C.Developing channels between foreign wineries and Chinese investors orconsumers; D. Becoming the first authority of wine in China.4/The investment portfolioA. Capital allocation:10million to invest in the first wine fund and10million to invest in a bonded warehouse, sales network and servicefacilities; B. In the first wine fund that will be100million RMB:77%inwines20%in future wine and3%in cash.