Thursday, August 15, 2013

CHINA AGGRESSIVE INVESTOR

China economy is always on the front seat of investments. China invested a total of $4.05 billion in the US, a 123.5 percent increase from the previous year. China's outbound direct investments totaled $87.8 billion in 2012, which is a record high for the country. According to a July report from Rhodium Group, which analyzes business and economic trends, Chinese investors showed a strong first half in 2013 for foreign investments. After a strong first quarter, Chinese investors spent another $2.5 billion on transactions in the US in [the second quarter].

Completed transactions in the first six months of 2013 total $4.7 billion Moreover around $10 billion worth of deals are currently pending. Further in my research I find that over the next decade china would be aggressive enough for investments. Malaysia wants to capture US$25 billion worth of investments from China over the next five years as it taps on the stronger bilateral economic partnership between the two countries. China is having clear plans of It is expected to spend US$500 billion for outward investments in the next five years at US$100 billion per annum. China is aggressively driving investment agreements and bilateral trade deals so that it can generate a long term capital appreciation from these businesses. Surging investment from China helped create or preserve about 100,000 jobs in Europe during 2011-12, when the continent's economy was hit by a downturn. As of January 2013, there were 7,148 companies in Europe with Chinese investment that employed 123,780 people. A year earlier, there were only 4,525 such companies with 27,381 staff. Hence it is well clear that china is saving the world economy in many ways.

More than half of the Chinese-owned companies in Europe are making a profit which reveals about the management mind set of Chinese people to make dead things to work again. Chinese companies have intensified their cross-border merger and acquisition activity in Europe, targeting knowledge-intensive and high-tech manufacturing and services companies in West and North Europe. On the other side the sovereign funds like office of China Investment Corp, the country's sovereign wealth und that has $575 billion in assets and invests predominantly in overseas markets. While most of the sovereign wealth funds such as Temasek of Singapore and the Government Pension Fund of Norway still prefer asset-backed investments. China's sovereign wealth fund is poised to put some of its nearly $600 billion in assets to work at European hedge funds. The growth of cross border business is stupendous. China is just looking aggressively for investment climates and this would provide the Asian giant a significant boost up in its long term returns from these projects.

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