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China Daily Website

Chinese firms 'not alone' in going global

Updated: 2012-12-05 17:42
By He Yini ( chinadaily.com.cn)

Chinese enterprises unfamiliar with the overseas market may now sigh in relief as the nation's banks offer a helping hand to guide them through unknown waters.

As Chinese enterprises extend their global outreach amid infectious EU debt woes and sluggish world economy, the country's banking services are also beefing up their overseas expansion.

"The internationalization of the Chinese banking service is codependent with the overseas expansion of the country's companies. It is never a zero-sum game," said Zhang Yun, president of Agricultural Bank of China Ltd, or ABC, when addressing the fourth China Overseas Investment Fair that ended Tuesday.

Chinese firms 'not alone' in going global
 
Zhang Yun, president of Agricultural Bank of China Ltd addresses the fourth China Overseas Investment Fair that ended Tuesday. [Photo/chinadaily.com.cn] 

Chinese enterprises expanding overseas have to pin much of their hopes on the financial support from banks. And the reverse is also true, he said.

ABC's overseas assets increased 50 percent to $34.6 billion by end-October, with its net profit doubling to $240 million year-on-year.

The bank issued syndication loans of $47.9 billion by the end of 2011 for Chinese companies' overseas projects in more than ten countries and regions.

Chinese firms 'not alone' in going global

Visitors?look at the?introduction of Agricultural Bank of China Ltd at the bank's booth at the fourth China Overseas Investment Fair in Beijing,?Dec 3, 2012. [Photo/chinadaily.com.cn]???

China's overseas direct investment hit $74.7 billion in 2011 despite global economic head winds, up 8.5 percent from a year earlier.

"It is in our own stakes to help Chinese companies 'go global', especially privately-owned ones, not only by financial support but also by providing market information and risk assessment in their overseas investment," China Forex Magazine quoted Li Yong, assistant president of the Financial Market SBU of China Minsheng Banking Corp Ltd, as saying.

"We have to work together to minimize their investment risks so as to ward off our credit defaults," Yong said.

CMBC plans to have a $10 billion fund ready to help Chinese private enterprises' overseas investment including mergers and acquisitions in the next three years, said the bank's vice-president Liang Yutang at the investment fair.

Chinese firms 'not alone' in going global

Visitor walks by the booth of China Minsheng Banking Corp Ltd at the fourth China Overseas Investment Fair in Beijing Dec 3, 2012. [Photo/chinadaily.com.cn]

Private enterprises, especially small and medium-sized ones, have been the core customers of the bank, according to Liang.

"They are less risk-proof, yet will be more dynamic in the overseas investment market than State-owned enterprises in years to come. And I have confidence in that," he said.

 

 
 
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