A recent post pointed to US$200 billion being invested abroad by the state investment fund, but there is plenty of other money seeking an overseas home. The Hong Kong Trade Development Council updates the “going global ” story:
“According to a latest government statistical gazette, in 2006 China’s net outbound investment reached US$21.16 billion and the average annual growth rate is as high as 60% during the past five years…Experts with National Bureau of Statistics said that China’s enterprises have been putting more efforts to engage in building factories, acquisition and merger, equity exchange, offshore listing and the establishment of strategic cooperative alliances, instead of simply setting up offices in the old days, indicating that China’s outbound investment has already entered into a new era.“
One noteworthy deal, highlighted by the Wall Street Journal involves a Chinese bank…in the US:
“China Minsheng Banking Corp. said it will buy a 9.9% stake in UCBH Holdings Inc. for as much as $317 million, marking the first strategic investment in a U.S. bank by a Chinese lender”.
Could it be the sign of things to come, or will political sensitivities throw up barriers, as in the Unocal case ? Perhaps news of Huawei’s deal with 3Com will be instructive:
“Huawei, the Chinese telecommunications equipment maker, could acquire up to 21.5 per cent of 3Com and hold three of the 11 board seats as part of a deal to take over the US technology group with Bain Capital, but it will have “no ability to make decisions” for the company, a regulatory filing disclosed.”
It is far from clear how that might work, or what those three board members will actually do – or what protectionist politicians in the US will make of it. We will, no doubt, see and hear more in due course.
See news source:
China’s overseas investment rises 60% annually 
HHTDC (China Knowledge)
China Minsheng to Buy UCBH Stake in Landmark Deal 
Wall Street Journal – USA
By ROSE YU SHANGHAI — China Minsheng Banking Corp. said it will buy a 9.9% stake in UCBH Holdings Inc. for as much as $317 million, marking the first …
Huawei to buy large stake in 3Com 
By Stephanie Kirchgaessner in Washington