In 2010 KPMG published a study of China's outbounds investments, the report found that although
chinese companies had made progress towards their goal to become Global players,they still needed
more to fullfill world class aspirations.
"Since the turn of this century, China’s rapid economic growth and a deepening reform and opening-up program have propelled a large number of stronger Chinese companies to pursue a “going out” strategy to expand into new markets, secure resources, and enhance their core competitiveness".
In 2012 KPMG made a second survey and interviews, and has issued a new report .
China’s outbound investment has gone through three stages:
• Stage I: Initial stage from the late 1970s to the mid-late 1980s
• Stage II:Transition period from 1991 to 2003, marked by the establishment of
offshore procurement and sales channels
• Stage III: Rapid development from 2004 to present, China’s outbound
investment has developed quickly, stimulated by a series of positive factors,
including the fundamental business need for Chinese companies to expand
overseas, favorable policies and regulations, massive foreign exchange
reserves, and the appreciation of the renminbi against international currencies.
In 2012, the total value of outbound investments made by China’s non-financial
enterprises reached USD 77.2 billion, representing a remarkable 44.3%
compound annual growth over the period since 2003. China’s outward direct
investment has already reached the same level as the average outward direct
investment of six of the G7 countries (i.e. Great Britain, France, Germany, Japan,
Italy and Canada).
There is a tendency to invest in projects at the lower scale of the value chain.
Recently, outbound investment in
manufacturing has experienced an increase but resource acquisitions remain the
dominant sector. Average deal size has come down as a result of an increasing
number of Small and Medium Enterprises (“SMEs”) and Privately Owned
Enterprises (“POEs”) beginning to participate in outbound investments, as well
as a growing number of transactions outside of the natural resources sector
where the deal sizes are typically large.
.
chinese companies had made progress towards their goal to become Global players,they still needed
more to fullfill world class aspirations.
"Since the turn of this century, China’s rapid economic growth and a deepening reform and opening-up program have propelled a large number of stronger Chinese companies to pursue a “going out” strategy to expand into new markets, secure resources, and enhance their core competitiveness".
In 2012 KPMG made a second survey and interviews, and has issued a new report .
China’s outbound investment has gone through three stages:
• Stage I: Initial stage from the late 1970s to the mid-late 1980s
• Stage II:Transition period from 1991 to 2003, marked by the establishment of
offshore procurement and sales channels
• Stage III: Rapid development from 2004 to present, China’s outbound
investment has developed quickly, stimulated by a series of positive factors,
including the fundamental business need for Chinese companies to expand
overseas, favorable policies and regulations, massive foreign exchange
reserves, and the appreciation of the renminbi against international currencies.
In 2012, the total value of outbound investments made by China’s non-financial
enterprises reached USD 77.2 billion, representing a remarkable 44.3%
compound annual growth over the period since 2003. China’s outward direct
investment has already reached the same level as the average outward direct
investment of six of the G7 countries (i.e. Great Britain, France, Germany, Japan,
Italy and Canada).
There is a tendency to invest in projects at the lower scale of the value chain.
Recently, outbound investment in
manufacturing has experienced an increase but resource acquisitions remain the
dominant sector. Average deal size has come down as a result of an increasing
number of Small and Medium Enterprises (“SMEs”) and Privately Owned
Enterprises (“POEs”) beginning to participate in outbound investments, as well
as a growing number of transactions outside of the natural resources sector
where the deal sizes are typically large.
Source: KPMG
.
