Founders Group International not impacted by China stock market woes

The China-based company that has purchased 22 golf courses, related businesses and other property on the Grand Strand over the past year is not tied to a Chinese stock market that has recently suffered significant losses, according to one of its owners.

Nick Dou, a partner in the Chinese financial management and investment company Yiqian Funding and president of the subsidiary Founders Group International that has purchased the Strand courses, said Yiqian is a private company with private funding.

“It has nothing to do with the parent company,” Dou said. “It has not affected us. … Everything is okay for Myrtle Beach investments.”

Despite the biggest two-day gain since 2008 Thursday and Friday, China’s stock market is down more than 25 percent since peaking June 12. The government has attempted to quell the plunge with several measures including suspending trading in hundreds of stocks and barring major shareholders and executives from selling their stakes.

Shares in the Shanghai Composite index had soared nearly 150 percent over the past year, according to the Associated Press, despite the Chinese economy growing 7.4 percent last year for its slowest pace since 1990 and another drop to 6.8 percent growth predicted this year.

“We knew this would happen a month ago,” Dou said. “A couple months ago it [was consistently rising] and I knew it wasn’t for real.”

The Chinese stock market is small, however, compared to the country’s overall economy, which is the world’s second largest.

Dou said time will tell if the stock market crash proves to help or hurt Yiqian Funding and Founders Group. It may do a little bit of both.

The companies might be helped if Chinese citizens seek alternative investments to the Chinese stock market and go through the company to make investments in Myrtle Beach.

“This might be good for us,” Dou said, “because the stock market is dangerous. Chinese people like to invest, and they invest in the stock market. Now the stock market situation is a crisis. Myrtle Beach real estate is good. It’s solid.

“… The stock market is much more of a risk than real estate, and now they do not trust the stock market and also they do not trust the real estate in China.”

The companies may be negatively impacted if many of Yiqian’s business partners lose significant amounts of money in the stock market. “Maybe our clients bought the stock and lost money,” Dou said. “There may be a side effect. But for the company, it’s no problem. We are just moving forward.”

Founders Group International’s purchases in Myrtle Beach, which exceed $100 million by Dou’s account, were all cash transactions.

Dou expects Founders Group to continue making investments and purchases in the area, though he said there are no pending golf course purchases. “Our plan and goals for Myrtle Beach investments will continue. We plan more investments,” Dou said. “But now we don’t think we need more golf.”

The company’s 22 courses include 17 formerly owned and/or operated by National Golf Management and three former Classic Golf Group courses.

The course purchases began last September and include the oldest course in Myrtle Beach – Pine Lakes Country Club – and upscale layouts Grande Dunes Resort Course, TPC Myrtle Beach, International World Tour Golf Links, Pawleys Plantation and the Myrtle Beach National King’s North Course.

Dou said the company’s investment interests are somewhat limitless and include hotels, housing developments, land, etc.

“We’ll see the project,” Dou said. “Whatever is good – any possible properties, chances, opportunities.”

Approximately 40 wealthy Chinese entrepreneurs are expected to visit the Strand in late October for five days to tour the area and consider possible investments and business ventures. They are former business school classmates of Founders Group investor Lily Xue.

Dou said Founders Group has contracted with the largest golf club in the world, the 12-course Mission Hills Golf Club outside the city of Shenzhen, to bring its members to Myrtle Beach on golf vacations, and Yiqian’s newly-created golf, travel and real estate divisions are actively working on bringing more Chinese to Myrtle Beach. “Step by step,” Dou said.

Dou intends to bring a 30-person Chinese film crew to shoot promotional commercials and/or a full movie that could be used to market Myrtle Beach in China, as a video of the Myrtle Beach wedding in April of Yiqian and FGI partner Dan Liu has been used. A director and screenplay writer are expected to take a familiarization trip in September.

“Because nobody knows Myrtle Beach right now,” Dou said. “That’s why we’re spending money to do that.”

While about 200 lots and 241 acres at Wild Wing Plantation and approximately 20 acres at TPC Myrtle Beach that FGI has purchased remain idle, Dou said construction has begun on 40 residences in two- and four-unit buildings at Stonewall Villas on S.C. 9 in Longs, which is projected to have up to 80 units.

Dou and Liu are moving to the area with their families and have already begun the process of enrolling their children in school.

This story was originally published July 11, 2015 at 2:00 AM with the headline "Founders Group International not impacted by China stock market woes."