Friday, January 15, 2016

Wang Jianling's Wanda Group Makes First Major Investment in Hollywood

Please, look at this very interesting information about Wanda Group's new acquisition in the US, the first major one Chinese transaction in Hollywood: it has acquired a majority stake in Legendary Pictures Films LLC for $3.5 billion in cash.

The deal not only gives Wanda access to Legendary’s catalogue of movies, but also access to expertise in creating more and better content for China’s expanding market, that reached $6.37 billion in 2015.

Monday, December 28, 2015

China Petroleum and Chemical Corp Buys 10% Stake In Sibur

This is another very good example of a Chinese outbound investment in the energy sector. State owned China Petroleum and Chemical Corp, popularly known as SINOPEC, agreed to acquire a 10% minority stake in Sibur, Russia's leading oil and gas company.

Sunday, December 20, 2015

China’s State Power Investment Corporation to Buy Renewable Energy Company

Please, see this interesting article about China’s State Power Investment Corporation that agreed on December 16th to buy Pacific Hydro, a renewable energy company, from the Australian pension fund IFM Investors for an undisclosed price. Another very good example of how China is performing big outbound investments.

Sunday, February 22, 2015

From Wealth to Health: Rich Chinese Seek Spiritual Fulfillment

Please, read carefully this article about trends I have been following since over six years, when these changes began to be very visible in Chinese entrepreneurs' circles.

Monday, March 3, 2014

Outbound investment in the Scheduled Freight Air Transportation sector

Recently, Henan Civil Aviation Development & Investment Co. Ltd. took a minority stake purchase in a firm from Luxemburg -Cargolux Airlines International S.A.- for a value of USD 231 million.

Sunday, February 23, 2014

New Chinese Outbound investments in the US and Singapore

According to EMIS, two new outbound Chinese investments have been performed in the US and in Singapore in two very different sectors.

In the US, Goldleaf Jewelry Co. Ltd. has acquired ERG Resources LLC -a company operating in the are oil and gas extraction sector- for a value of USD 665 million.

In Singapore, Bank of China Group Investment Ltd. Hopu Investment Management Co. Ltd., some institutional investors and other undisclosed investors (all from Hong Kong) have acquired a minority stake, for a value of USD 162.5 million, in Global Logistic Properties Ltd., a company operating in the warehousing and storage sector.

Tuesday, February 11, 2014

Chinese Outbound Investments' Risks

Chinese companies are eager to enhance their international presence by buying foreign firms. In the latest examples, the state-owned CSR Corporation, the world's largest manufacturer of electric locomotives, acquired the rubber and plastics business of BOGE under Germany's ZF Group on Jan. 7 and Chinese conglomerate Fosun International purchased a 80% stake in Portugal's largest insurance company Caixa Seguros e Saude on Jan. 9.

The current business climate is certainly favorable for Chinese firms looking to break into foreign markets through acquisitions of their foreign counterparts. The US economy has yet to fully recover from the 2008 global financial crisis, and the European debt crisis has forced businesses there to turn to foreign investors for additional capital. Chinese firms, on the other hand, have been the least affected by the global financial crisis and the European debt crisis, and have been eager to expand their business abroad. This has been encouraged by the Chinese government.

However, Chinese companies investing abroad shall not overlook the risks involved in these transactions and their lack of familiarity with the culture and legal system of the countries in which they perform acquisitions. Chinese businesses should first investigate the target company's business thoroughly, then assess its value correctly and manage it properly after buying it.