Attract Chinese Investment

Transcription

1 Attract Chinese Investment Eddie Chen Vice President, Chief representative for Greater China Invest Sweden October 3,

2 What are the drivers for Chinese outbound investments? What do we have to offer to attract Chinese investment 2

3 China s Outbound Investment drivers In 2001, Chinese government announced a national policy of Go Abroad, i.e., encourage companies to expand business and operation in the oversea market China became the WTO member in 2001 A more open market brought high competition for Chinese companies in domestic market Strategy to balance between the trade (export) and investment Large amount of foreign currency reserve 3

4 China s Outbound Investment evolution China s outbound investment increased rapidly (non-financial) 2001: $1 B 2004: $5.5 B 2005: $12.3 B 2006: $17.6 B 2007: $24.8 B 2008: $40.7 B (12 th largest in the world) 2009: $48 B (6 th largest) 2010: $59 B (5 th largest) 2011: $74 B (6 th largest) 2015: around $100B 4

5 China s Outbound Investment - inbound FDI Inbound investment to China steadily increasing 2004 $50 B 2006 $60 B 2010 $97 B 5

6 The gap between outbound & Inbound shortened outward investment 2004 $5.5 B 2006 $17.6 B 2010 $59 B 2015 $100 B inward investment 2004 $50 B 2006 $60 B 2010 $97 B 2015 $100 B Global economy takes a new shape: Emerging economies become important global investors 6

7 China s Outbound Investment trend behind the figures In 2011 $22.2 billion in M&A and equity buyout (37% of total outbound investment) Chinese investment in EU reached $4.3 billion, almost doubled with 94.1% increase from 2010 More and more serious Chinese investment deals happened in the developed markets A trend of PE buyout funds being established since 2011 focusing on overseas investment opportunities October 14,

8 Chinese economy slowdown vs. Outbound investment trend 2011: GDP growth 11.8% 2012 projection: GDP growth 9% Largest automotive market sales (projection of 20 million vehicles in 2012) Largest consumer market for IT and mobile 2 nd Largest health care and life science market One of top five largest markets for Clean-tech (20% national GDP involves environmental protection and renewable energy) Growth in cultural and entertainment business is three times the national average A paradigm shift is occurring in China s economic development As one of the results, outbound investment is in rapid increasing October 14,

9 China s Outbound Investment the trend The slowdown in China's overseas investment growth and some reported losses will not affect the pace and confidence of domestic companies going global China's strategic focus was to attract foreign investment in the 1990s, and inbound investment and outbound direct investment has struck a balance in the first decade of the 21st century This decade we will see massive overseas mergers and acquisitions by Chinese enterprises - China Daily interview with Eddie Chen, page 6 of Sept. 10, 2012 issue, topic: 'Massive overseas mergers' on horizon 9

10 China s Outbound Investment three phase evolution attract inbound investment inbound and outbound balance a decade of overseas M&A 90 s

11 Chinese investments in Sweden since 2003 In , Invest Sweden (China team) promoted and completed over 200 Chinese investments in Sweden As an early comer from OECD countries, Invest Sweden has established a strong brand name in Chinese business community, government agencies and media 11

12 Focused sectors by Invest Sweden Information Technology and Communications (ICT) Clean-tech and renewable energy Material Science Transportation Life Science Services Industry Tourism Financial Industry Retailing 12

13 Chinese investments in Sweden since 2003 Four Types investors High Tech and R&D China State Grid Industrial investment Goldenwin, China Development Bank M&A and equity partnership Geely-Volvo Marketing and Sales SMEs 13

14 Challenges/Opportunities for both sides For Chinese investors: short of overseas experiences lack of senior managers with international experience inadequate skills of business planning for the developed markets difficulty of getting tailored services and finding appropriate investment opportunities For recipients:: short of new mind-set lack of experience working with investors from emerging economies sysmatic approach vs. high flexibility inefficient matchmaking services Bring us the opportunity to develop and offer needed services and facilitation necessary business ideas and models To make a difference in investors decision 14

15 Thank You! Eddie Chen Mobile: (+86)