Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 1 hour, 58 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
China’s economy more than double in five years
November 26, 2012
 Print    Send to Friend

LONDON: China’s economy has more than doubled in size in five years. It has some of the biggest banks in the world. And its appetite for snapping up natural resources is undiminished: witness this July’s $15.1 billion agreement by state oil company CNOOC Ltd to buy Canada’s Nexen Inc, the biggest foreign acquisition to date by a Chinese company.

One reason why China is treading carefully is that it its sovereign wealth fund made big paper losses when it bought stakes in fund manager Blackstone and investment bank Morgan Stanley before the financial crisis broke.

London’s ambitions to become a hub for trading the yuan, together with Chinese corporations’ growing presence in Europe, should ensure plenty of opportunities for further organic expansion whether takeovers eventually flourish or not.

“We increasingly see Chinese service providers following their domestic clients abroad to provide support with overseas operations. Chinese banks, now present in all major European markets, are an example,” Rhodium said in a recent report.

As European banks retrench to recover from the global financial meltdown, they are finding ready buyers in Asia for everything from loans to entire insurance and broking operations.

There are other tell-tale signs of a shift in power: this year’s two biggest initial public offerings after Facebook were launched not in the United States or Europe, but in Malaysia. 

Yet perhaps what is more striking is that, with one or two exceptions, Asian financial firms are not doing more in Europe itself to capitalise on the euro zone’s festering debt and banking crisis.

When it comes to the financial sector, however, the glass is half-empty, not half-full, said Andre Loesekrug-Pietri, chairman of A Capital, a China-Europe investment fund.

“There’s a front-cover story every other month about China buying up the world, but China is still a very small player in international M&A,” he said.

David Marsh, co-founder of a forum in London that connects central banks and sovereign wealth funds with banks and asset managers, said the West no longer had a monopoly on innovation and dynamism in financial services.

Reuters

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
UK may fail to find enough buyers for bond
LONDON: Britain is at increased risk of failing to find enough buyers at a government bond auction due to big day-to-day swings in market prices, the man responsible for ..
Calling time on zero rates and QE
LONDON: The world of zero interest rates has outlived its usefulness, according to a chorus of influential bankers, watchdogs and economists anxious about asset bubbles a..
Biggest splurge in decade
LONDON: British consumers finally look ready to spend like they used to, as lower prices for basics give them more money to eat out and travel, bolstering the economy aga..
Downward pressure on prices and interest rates
LONDON: For anyone expecting interest rates to be stuck near zero for years to come, the past month has been uncomfortable. The so-called “new normal” or “secular stag..
Investors struggle as new bond sales by ex-Soviet firms hit lows
LONDON: Bond sales by companies from Russia and other ex-Soviet countries have fallen to 10-year lows this year, inflating prices for new issues from other regions and le..
 
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright