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皇冠体育app's outbound investment grows in Jan-Sept

Updated: 2013-10-18 10:53
( cntv.cn)

From January to September, 皇冠体育app's outbound investment saw a big jump, with North America, Europe and the rest of Asia the top destinations for 皇冠体育app's capital outflows. Sector wise, energy, still dominates Chinese investments abroad. But, analysts say 皇冠体育app's ODI will become more diverse in both target markets and fields in the coming year.

皇冠体育app is the world's third largest investor after the US and Japan. 皇冠体育app's outbound direct investment, or ODI, increased more than 17% in the first 9 months versus a year ago. Energy and metals, at 64 percent of the total investment, form the main theme, but 皇冠体育app's ODI is becoming more diversified.

"We are seeing Chinese investors investing in countries and sectors that we haven't seen before, like the manufacturing sector." Michael Turnbull, manager of Mergers & Acquisitions AIG Asia, said.

Investment in consumer goods, agriculture and foods saw considerable increases this year, primarily driven by Shuanghui's $7 billion acquisition of the world's largest pork processing company Smithfield Foods. Interest in media and leisure has been driven up by Dalian Wanda's $2.6 billion acquisition of AMC Entertainment last year. As the two mega-deals show, snapping up international assets is no longer the sole domain of state firms.

Reporter: "While the Shuanghui deal went through, many other Chinese acquisitions still face stiff regulatory scrutiny and sometimes shareholder opposition. Then when the deal wraps up, it's the beginning of a new challenge -- integrating new assets. Still, analysts say going global is sometimes a must for Chinese companies to keep growing."

"Certain industries have the problem of overcapacity, Chinese companies have been trying to go overseas to look for target company to acquire technology and brand name to move up value chain, so they have better products better services tailoring to the 皇冠体育app market." Eleanor Wu, partner of Ernst & Young, said.

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