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Chinese mavericks set to amaze global racing world

2014-09-13 10:14 China Daily Web Editor: Qian Ruisha
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Horses and riders at an equestrian club in Beijing. CHINA DAILY

Horses and riders at an equestrian club in Beijing. CHINA DAILY

It's hugely popular in many countries, but in China the industry is still in its infancy.

A group of well-heeled mavericks from China is poised to take the global racing world by storm. Led by Teo Ah Khing, the Malaysian-Chinese architect who designed the $1.6 billion Meydan Racecourse in Dubai, the China Horse Club shot from obscurity to worldwide fame in June when it won the coveted Epsom Derby with the prize thoroughbred, named Australia.

A combination of audacity, industry and acumen has won the support of key figures in the British racing establishment, including John Warren, bloodstock adviser to Queen Elizabeth II, and Coolmore Stud, Ireland's most successful stud farm.

China has no shortage of equestrian clubs. In 2010, there were an estimated 500 professional clubs, up from only 100 in 2008, according to figures collated by the China (Shanghai) International Horse Fair.

And with the world's highest concentration of billionaires, China doesn't want for financing, either. "What it lacks is know-how," Teo says.

"You can't just buy horses like Australia. You have to develop them, and that is why the breeding cycle is so fascinating-it's an intellectual tease. You can throw as much money and expertise at it as you like, but at the end of the day, it's the horse that has the last word. You can only improve your chances by tweaking the circumstances," Warren says.

Horse racing is an industry whose total economic impact in the UK alone was valued at 3.45 billion pounds ($5.59 billion) in 2013 by the British Horse Racing Authority. Worldwide, the rearing and racing of thoroughbreds has spawned a complex-and lucrative-economy of knowledge and expertise.

But China's underdeveloped infrastructure and regulatory framework have thus far excluded it from meaningful participation and representation on the international racing circuit.

For example, standard-sized horse trailers are forbidden on expressways, and the country has just one Equine Disease Free Zone (Conghua City of Guangdong province), meaning that horses imported for international meetings are unlikely to be reaccepted by their home countries.

Teo says it is the ambition of the China Horse Club to change this: "We are in the business of starting an industry, not just a club."

Pedigree is paramount among thoroughbreds, with the offspring of successful racehorses commanding astronomical prices. According to Fu Peipei, the CHC's Customer Relationship Manager, "Most people in China think the income comes from betting, but for horse owners, the real money comes from breeding."

An indigenous thoroughbred nursery industry is vital to a self-sustaining horseracing industry. For China to compete at an international level, an initial investment in high-quality bloodstock is needed, and the right training.

Fu says that in China some horse buyers don't care about how much they spend. "They may fly overseas several times to visit stables and spend a huge amount on buying good horses, only to keep them for show and not train them. For this reason some overseas stables are hesitant about selling to Chinese buyers," said Fu.

Teo adds that in recent years his team has seen more Chinese at the yearling auctions, but they rarely go for high-value horses, they just wait for the rejects. Chinese buyers tend to buy horses in number, but low quality will be perpetuated down the generations, he said.

Thus, a key part of the CHC's mission is to educate its members. Prospective owners can become minor shareholders before graduating to a full purchase.

Eden Harrington, general manager, says that the club's horses are carefully selected so that "members just dipping their toes into the racing world have a good experience" with healthy, proven thoroughbreds.

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