Survey on Current Conditions and Intention of Outbound Investment by Chinese Enterprises

In order to collect more precise information about the overseas investments made by Chinese enterprises in 2009 and their future investment plans, China CounciL for the Promotion of International Trade （CCPIT） has carried out the fourth ＂Survey on Current Conditions of and Intention for Outbound investment by Chinese Enterprises＂ between December 2009 and March 2010. The objective of the survey is to collect in-depth information about the intentions and problems concerning the overseas investments of Chi- nese enterprises,     

Survey on Current Conditions and Intention of Outbound Investment by Chinese Enterprises

Comparison of Regions and Industries
1. Comparison of Regions
1） Comparison of overseas investments-involved fields
In all the above regions, of the enterprises having overseas investments, the proportion of the enterprises making overseas investments in manufacturing industry exceeds 40%, illustrating manufacturing industry is most favored in by Chinese enterprises in overseas investments.     

Future Intentions for Overseas Investments

1. Future overseas investment trend
In reply to the question about the intended investments in the coming 12 months, 26% of the respondent enterprises expressed their intention to increase overseas investments. 30% of them will keep the current investment level and 43% will not make any overseas investments. Faced with the risks of the current financial crisis, Chinese enterprises are cautious about overseas investments.     

Survey on Current Conditions and intention of Outbound Investment by Chinese Enterprises

Evatuation of Investment Environments and Policies
1. Evaluation of the openness of host countries The evaluation is made on the investment environments and opening degrees of the countries/territories receiving more Chinese overseas investments according to the flow directions of Chinese overseas investments.     

Venture Capital in China

According to the report from the Zero2IPO ,a wellkonwn venture capital research and consultancy instititure in Chian,China‘s investment from venture capital fell greatly in the second season in 2003.For only 21 venture capital institutes invested in 28 enterprises,totalling US$93 million ,about 61% falling as compared whit US$240 million in the first season this year.For the first half of this year,venture capital from Chinese and overseas instititutes invested 66 domestic and domestic-related enterprises with the amount at US$332 million,witnessing 30% up as compared with the same period of last year,accounting for 79% of the total amount for last year.Such momentum is still encouraging for recovery of venture capital.     

Ventvre Capital in China

According to the report from the Zero21PO, a well-known venture capital research and consultancy instititutein China, China's investment from venture capital fellgreatly in the second season in 2003. For only 21 venturecapital institutes invested in 28 enterprises, totalling US$93million, about 61% falling as compared with US$240 mil-lion in the first season this year. For the first half of thisyear, venture capital from Chinese and overseas instititutesinvested 66 domestic and domestic-related enterprises withthe amount at US$332 million, witnessing 30% up as com-     

Canada: An Ideal Place for Outbound Investment

In recent years, bilateral investment between China and Canada has become more and more active. According to the report on overseas investment of Chinese enterprises released by China Council for the Promotion of International Trade (CCPIT)at the 4th Chinese Enterprise Outbound Investment Conference, Chinese overseas investment is displayingan increasing trend, with the strength of Chinese enterprises and overseas investment rapidly growing.     

金城集团(英文)

Jincheng Corporation is among top 500 large scale enterprises in China.It primarily involves in production and sales of airborme equipment,motorcycles and engines,hydraulic products for construction machines.It is also engaged in import and export business,investment at home and abroad and tertiary industry.Jincheng Corporation owns 8 sino-foreign joint ventures and 19 share holding companies.The total fixed assets in Jincheng reaches USD 450 million and its net assets total USD 200 million.Jincheng Corporation is the key motorcycle enterprise in China."JINCHENG"brand was assessed as the CHINA WELL-KNOWN TRADEMARK in 1999.     

Chinese M＆A,Opportunities ＆ Risks

Recently, the cases of Chinese enterprises＇ merger and acquisition are emerging in multitude. It is believed that M＆A will provide opportunities for China enterprises to go global and act in the global economic environment. China enterprises also want high margin profits that are accessible in Western Europe and North America. Judging from the current situation, many companies are not short of money, the banks can also provide a large-scale lending for Chinese companies＇ overseas M＆A. So, the overseas M＆A is feasible in the current circum-stance.     

Private Enterprise to Be Dynamic Force of Future Overseas M&A

It means a lot of risks for Chinese enterprises to get involved in overseas merger and acquisitions.A new regulation enacted recently by the Chinese government requires state-owned companies not to purchase overseas business assets unrelated to their major business.Some companies thus felt worried that they would not be allowed to engage into any type of overseas merger and acquisitions.Ms.Shu Ya,IMAP director who is in charge of overseas M&A affairs of the Chinese enterprises,commented that such kind of regulations intend not to limit Chinese companies' overseas M&A strategy,but to encourage them to make headway into the global M&A market.     

Why Chinese Enterprises' Overseas Investment Fails Sometimes?

According to McKinsey's report,67％ of the domestic enterprises' overseas investments have failed.Compared with other countries' overseas investment failure proportion,is China's 67％ high? Why does China have such a high failure ratio? What kind of barriers do the Chinese enterprises often encounter in transnational M&A and how do they overcome these barriers?And how do Chinese enterprises deal with those barriers? Mr.Tay Woon Teck,Director from Stone Forest Corporate Advisory gave a detailed analysis on Chinese enterprises' efforts to go global.     

Survey on Chinese Enterprises' Outbound Investment and Operation (I)

The year of 2011 marked the beginning of China s 12th Five-Year Plan period,and also the 20th year of the country's implementation of its “going global” strategy.In the past decade,Chinese enterprises' outbound investment has witnessed the gradual transition from rapid growth to steady growth and from quantity based growth to qualitative based improvement.In 2011,against the backdrop of increasing turmoil in the global political and economic environment,the ongoing deepening of the European debt crisis,and an increasing complex international investment climate,Chinese enterprises' outbound investment maintained a stable growth momentum.Domestic investors made non-financial outbound direct investment in 3391 overseas enterprises in 132 countries and regions around the world,and the cumulative direct investment amounted to US$60.07 billion,up 1.8％ Y/Y.Going into 2012,domestic enterprises are actively more involved in overseas investment.In January and February,domestic investors made US$7.435 billion of non-financial outbound direct investment in 706 overseas in 97 countries and regions around the world,up 59.9％ y/y.     

Uneasy Road To Abroad

Auto M&A is a hot topic on people's lips,especially in the early September,when the permit of Chinese Geely to buy Swedish auto giant Ford's Volvo,was issued by China's National Development and Reform Commission,exceeding US$100 million.It is also said that Geely is the only Chinese automaker that has won official confirmation on such deals.On the road to expansion,Chinese auto enterprises are attempting various channels to win a toe standing in the international market.Overseas M&A offers them opportunities,and at meantime,challenges.The road for Chinese enterprises to driving abroad goes never too smooth,and auto industry is only one example.     

Stand Still in Global Financial Storm?

The number of small and medium- sized enterprises(SMEs)in China has exceeded 40 million, accounting for 99 percent of the country's total enterprises.Chinese and foreign experts estimate that SMEs are now responsible for about 60 percent of China's industrial output and employ about 75 percent of the workforce in Chi-     

Singapore——A Strategic Start for the Chinese Enterprises to Enter the ASEAN Market

“Becoming more confident and mature,more and more domestic enterprises begin to make overseas investments and are devoting themselves to bringing their brands and products to the international markets and even tually bringing them to the whole world,” said Luo Jialiang,Ambassador from the Republic of Singapore to China,when commenting on the Chinese enterprises' efforts to invest abroad in an interview with China's Foreign Trade.     

We Are Still Far from the Top 500

The report stated that compared to the worldtop 500, China's enterprises, especially itsindustrial enterprises, had a long way to go in theirscale, creative ability and internationalcompetitiveness.Small scale and low efficiency for China'senterprisesThe most superficial gap between the China'sindustrial 500 giants and the world top 500 is theirscale. In 1998, the total assets of China's 500giants averaged US$7 1 1 .56 million and their saleincomes averaged US$398. 12 million, equivalentto …     

Foreign-funded Banks Approved to Handle Renminbi Business

Four Foreign-funded Banks took the lead to receive approval in China to handle Renminbi business lor Chinese enterprises. China's banking industry has made a significant step in opening up to the outside world.The four banks were Hongkong Shanghai Banking Corporation (HSBC), Japan's Mi/uho Bank Shanghai Branch, U.S. Citibank Shanghai Branch and Hong Kong-hased Bank of East Asia Shanghai Branch.On February 13, a Chief from the China Banking Regulatory Commission (CBRC) said, the CBRC announced on December 1, 2003 that in the light of a commitment to the World Trade Organization (WTO), overseas banks could lend Chinese Yuan to Chinese companies after receiving approval. This provided new opportunities for overseas banks to de-     

Canada： An Ideal Place for Outbound Investment

In recent years, bilateral investment between China and Canada has become more and more active. According to the report on overseas investment ot Chinese enterprises released by China Council for the Promotion of International Trade （CCPIT） at the 4th Chinese Enterprise Outbound Investment Conference,     

Survey on Current Conditions of and Intention for Outbound Investment by Chinese Enterprises （Part I）

After two preliminary trials in 2005 and 2006, China Council for the Promotion of International Trade （CCPIT） conducted the ＂Survey on Current Conditions of and Intention for Outbound Investment by Chinese Enterprises＂ from December of 2008 to February of 2009. We standardized the samples and enlarged the scale to present an in-depth landscape of the current conditions of and intention for outbound investment by Chinese enterprises as China adopts the ＂＇Going Global＂ strategy to encourage outbound investment, and the development of outbound investment by comparing the results of this survey and the previous two surveys. This survey was also intended to find out Chinese enterprises＇ opinions on and demand for the ＂Going Global＂ policies and service system adopted by the Chinese government.     

6 mln Graduates, Tough Job Hunting？

It is never easy for graduates to hunt their first jobs, and it becomes even harder for them due to the ongoing financial crisis, which spread over the whole world and made enterprises and various institutes cut their employment numbers. According to the incomplete statistics, over 6 million Chinese students graduate from school, are seeking a suitable position for living in 2009.