Although global economy remains flagging, Chinese enterprises are strengthening their Merge & acquirement in overseas markets, especially in the European zone and America.
According to KPMG Quarterly Review of China's Economic Globalization (2012, Q2), in the first half of this year, developed economies are the major investment destination for Chinese companies.
America, especially North America, accounts for the largest amount of transitions, where more than 50% of transitions sum came from this area. Europe's transition sum reached US$5.3 billion, 24% of all transition fees.
Energy and electric power are industries that enjoyed the most investment from Chinese enterprises, with transition volume about US$ 9.2 billion. Material, media, entertainment, daily necessities and industrial sector are ones that experienced trading volume over US$ 1.5 billion respectively.
Among industrial sectors, European Union member countries attract most investment, accounting 78 percent of whole industry, with a trading volume of 1.3 billion euro.
Investments in other European countries focus in the area of daily necessities and account up to 88 percent.
Feng Yuqin, Chairman of Global China Business Development Center KPMG, indicated that factors such as appreciated Chinese yuan, policy spur, as well as financial crisis in the Europe and America are the momentum for China to boost its oversea investments in above area.
“Along with maintaining investments in the traditional energy and resource sectors and in emerging markets, there are more investment opportunity in the infrastructure projects and traditional manufactures in the European and American markets for the next stage” Feng told our report.
21CBH: What’s your prediction for the global macro economy in the next stage?
Feng: Our basic view is that in coming months the European crisis will be difficult to find a solution, and on-going American election will advance uncertainties to the global economy. Therefore, neither the global recovery will come too soon nor sustaining global economic recession will collapse out of sudden.
21CBH: under this prediction, what trend will the global international M&A show?
Feng: Amid slowing global macro economy, investors will remain cautious attitudes, international investment will be reduce, accordingly, numbers of M&A cases will continually drop. According to our research, there is slight divergence between the direction of global investment and that of China. Until now, China mainly focuses on investment in the area of resource and energy, while global M&A cases mainly happen in food, beverage, and industrial sector and of course also in resource and energy.
21CBH: where is the investment opportunity for China in the next stage?
Feng: I think downward economy in Europe and America will provide investment opportunities for China to break oversea developed markets. Statistics disclosed that China enjoyed aggressive investment in the Europe and America during the past two years, with outstanding performance in resource, energy, mechanic manufacture, and so on. I believe there are two areas in which China will expand its development: one to invest in infrastructure projects, and another in traditional manufacture industry in developed countries.
Source: http://www.morningwhistle.com/html/2012/PoliticsSociety_0910/213921.html
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