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CHINA / National |
China, US launch joint financial service company(Xinhua)
Updated: 2007-10-03 14:21 Chicago -- China and the United States have launched a joint venture in the financial service sector with the inauguration of Huamei Capital Company, Inc. Tuesday. The Chicago-based firm said it will help companies from both countries as well as third country organizations with cross-border mergers, acquisitions and private equity investments. Huamei will also offer risk management and investment services to a growing number of Chinese companies seeking to invest overseas. The Chinese and US parties each have a 50 percent stake in the venture, with China Merchants Securities Holdings (HK) Co. Ltd (CMS), a subsidiary of China Merchants Group, being its Chinese founder. Huamei's US principals include former US senator Adlai Stevenson, co-chairman of Huamei, and Leo Melamed, chairman emeritus of the Chicago Mercantile Exchange and vice chairman of Huamei. MVC Capital Inc. acts as a strategic investor in Huamei. Stevenson, also chairman of the Midwest US-China Association, said that to promote China's investment in the US will benefit both countries. He said it will help ease US economic pressures caused by an increasing deficit and a declining deposit. Stevenson expressed strong confidence in Chinese firms' capability to invest overseas, citing the fact that China's total overseas investment hit US$21 billion in 2006, with an annual growth rate of more than 40 percent. He believed that China's strong economic growth, huge foreign reserves and appreciating currency will further fuel investment overseas. Melamed said China's growth is in fact a huge opportunity for the US instead of a challenge, with the two countries enjoying broad cooperation. He said more and more Chinese companies in the fields of electricity, communication networks, pharmaceuticals and building materials are eagerly seeking overseas investment opportunities. Shaolin Gong, Huamei's co-chairman and chairman of CMS, said the formation of Huamei addresses a growing demand in China and the US for investment, mergers and acquisitions. He hoped Huamei will serve as a bridge between China and the US to promote mutual investment in both countries. Huamei has its China headquarters in Beijing, with offices in Shanghai and Shenzhen. It will provide services mainly to medium and small sized companies. |
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