Chinese private companies go to the international market

   


 

Chinese companies are considering mergers and acquisitions of large foreign companies, relying on opportunities for industrial modernization and strategic cooperation.

Chinese private companies in search of profits seek to expand their presence in international markets. While state-owned enterprises invest their capital mainly in the development of the energy sector, private choose more diverse areas as consumer goods, services and high technology. Moreover, if the earlier Chinese companies considered the possibility of entering the international market solely because of the overcapacity of some industries, today stands at the forefront of technological and strategic cooperation, bearing in the future, broad business opportunities for Chinese business and development of the economy as a whole.

So, pharmaceutical company Shanghai Fosun Pharmaceutical Group Co., Ltd takes part in trading on the American stock exchange for the pharmaceutical company Chindex International Inc., owning today in China, a large hospital network, United Family Healthcare. "In terms of population growth and the increasing share of the aging population in China, the pharmaceutical industry will develop quickly, — says Eugene Kolesov, CEO of Optim Consult (Guangzhou, China). According to forecasts, within five years the market volume of health care here will reach 1 trillion dollars. The acquisition of the American company would help China to reach a new level of organization of health services. In fact, observed at the moment the situation in China, when you need decisive steps to further economic development, is the most opportune time for mergers and acquisitions in various fields".

 

The largest Chinese takeover of an American company to date is the acquisition of a company Shuanghui International, the world's largest pork producer Smithfield Foods in 2013. A year earlier a Chinese real estate developer Dalian Wanda Group announced the purchase of cinema chain AMC Entertainment. Holding company Greenland Holding Group after his 20-year development in China also goes on the search for promising real estate projects in American and European cities, and the President of the company Zhang Yilan have already announced their intention to increase investment this year by more than $10 billion.

 

 

According to experts of the research center of the Asia Society and the consulting company Rhodium Group, investment growth, China's foreign enterprises is stimulated by the strengthening of the yuan, relatively low cost of foreign assets and greater freedom of activity of the enterprises provided by the government that allows you to gradually increase the number of Chinese private companies outside the country.

According to official figures, China is the third largest foreign investor in the world. Since the beginning of reforms in the late 70-ies of the volume of accumulated investments of China abroad exceeded $600 billion, while just last year, totaling $104,5 billion.

Help:
Optim Consult is the first and largest officially registered consulting company with Russian capital in China. Provides a wide range of professional services for businessmen from Russia and the CIS interested in business cooperation with China. To date Optim Consult works with more than 450 Chinese manufacturers.

The company is the acting member of the Russian Association of development of small and medium-sized businesses, an active member of 14 professional Chinese associations, a member of the Association of market research professionals ESOMAR and the International Union of producers.
 

The company employs a team of 60 experts, professionals and legal, financial, economic and translation specialties with expertise in the field of doing business in China.

 

Source: /users/1077

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