Head of China Investment Corp. Gao Sitsin waited for this moment since the founding of the company. When in 2007 the PRC government has gone to the creation of CIC - the sovereign wealth fund of the Chinese nation - it is placed before him a very ambitious goal: to invest in foreign markets of China's huge foreign reserves, forcing the money to work and bring Celestial income. Two years in the way of realization of these ambitions was the policy. Of the $ 200 billion, which Beijing gave "farmed out" CIC two years ago, he was able to spend less than $ 13 billion Now in late August, the reality for the corporation changed. Gao Sitsin said that by the end of this year's investment China Investment Corp. overseas reach, finally, "tens of billions, increased in comparison with investments on the order of last year - with $ 4.8 billion to $ 48 billion
The financial crisis was released on the investment potential of China. Inspired by the "crisis sellout" Chinese companies rush to buy foreign assets that were previously inaccessible due to high cost or political differences. We decided to see where China will spend its money and whether to wait for them in our country?
Improvements
Before the crisis, the main problem Sitsina Gao and his Chinese colleagues was perhaps the world's fear that with the money of corporations of China in other countries come and political influence of Beijing. The main objective of CIC since the foundation was to ensure the growth of China's foreign reserves by investing in high-yielding stocks and financial instruments. Problem of thousands of smaller public and private companies of China - to reduce the trade surplus country. But other governments suspected that China is seeking to gain control of their largest companies for another reason - namely, to reduce risks in the global market competition for Chinese exporting companies from their foreign competitors. For this reason, last year the U.S. blocked a Chinese purchase of U.S. telecommunications giant Huawei 3Com. For the same reason, because of financial protectionism by the EU last year, China Investment Corp. unable to invest in the euro zone.
With the advent of the crisis negostepriimstva foreign companies in relation to the Chinese money has disappeared. Problems with access to loan capital and the inability to find funds to refinance quickly forced the Western corporations that were previously squeamish about money Asian state-owned corporations and sovereign wealth funds, to seek their support. As in the case of the Canadian Teck Resources. For her, selling 17.2% stake in China's CIC has made it possible to pay corporate debts. "Many countries are loosening restrictions on the purchase of assets by foreign investors and increase efforts to attract foreign capital to stimulate its own economy - said Deputy Minister of Trade of China Wang Chao. - It opens in front of the Chinese companies are very good prospects."
In the spring of this year, companies from China have started an investment rampage. By this time the foreign markets sellers offering the biggest discounts on assets in a variety of industries. At the same time on the domestic market in China began a rapid restoration of old growth. The results of the second quarter, China's GDP annualized dynamics grew by 15%. And all three of these objective factors, and added one more - a subjective one. "A huge gold and currency reserves of China ($ 2.1 trillion) to 60% consists of dollar-denominated assets. And now, when on the world stage all the louder claims (including those from China) to introduce a new world currency, the Celestial Empire with all their might want to get rid of surplus stock of the dollar by investing them as soon as possible in the economy ", - says Sergey Kapuzo Officer Trade and Economic Mission of Ukraine in China.
Therefore, after slowing down investment levels in 2008 caused the financial crisis in the global economy in 2009, Chinese corporations have decided not to restrain themselves. " In just one month of this year CIC invested in foreign companies more money than all of last year ($ 4.8 billion invested by the results of 2008).
Shop tour in Chinese
"Greedily" to foreign companies, Beijing seeks to take advantage of opportunities. But when this comes not from short-term opportunities, but because of their strategic needs.
Chief among them - need for resources. It is projected that in the near future if current growth rates China will not suffice for the development of the country's own reserves of minerals, hydrocarbons, and radioactive rare earth metals, grains. And so the lion's share of allocated funds meant for the acquisition of mining and processing assets, such as Canada's Teck Resources.
This CIC, bought a stake in this company - not only China's state-owned corporation that seeks to expand its presence in foreign markets. State Wuhan Iron and Steel Corp. agreed to invest in another Canadian mining company Consolidated Thompson Iron Mines, and one of the largest oil producing state corporations PetroChina gave $ 1.9-billion bid to buy controlling stakes in its Canadian colleagues Athabasca Oil sands Corp.
However, a number of companies from those that were caught on the tooth aggressive investors from China, repudiate their investments even during the crisis. For example, a defeat for Beijing ended an exhausting struggle of the Chinese steel group Chinalco for a stake in Australia's Rio Tinto. Australian company, despite the threat of non-payment of huge corporate debt, resist "the temptation to" get from Chinalco deal for $ 19.5 billion, preferring to seek funds to pay off their debts on the open market. But in general, shopping in the issue of acquisition of assets for the extraction of natural resources and energy to Beijing so far been possible.
The second priority area for investment in China has become the financial sector. The Chinese are already reeling from the losses they incurred as a result of investing in the U.S. Morgan Stanley and BlackStone, and again began to consider the financial sector as an attractive way to quick money. And if China's investment in a foreign non-financial sector since the beginning of this year increased by 75% (up to $ 41.86 billion), the amount of funds invested in the financial sector, increased by 8 times (up to $ 14.05 billion).
While China shows interest only to the U.S. financial market. In early September, all the same CIC announced that will invest funds (by various estimates, up to $ 10 billion) in U.S. mortgage securities collateralized by commercial real estate. But China is already talking about that are ready to look to European securities, and also think about buying real estate in the UK and Japan. According to Beijing by the end of the year, these markets reached their bottom, and do not take advantage of this would be unwise.
Finally, these two spheres investinteresa China - Resources of and financial - dilutes another. A third area of priority investment for it is not a specific sector, and a certain brand. It is the strength of the brand can make the representatives of the Chinese company to make an exception in investstrategii and try to buy the company, say, in retail or automotive. Because there is nothing human is alien to the Chinese business, Chinese fans of the European automotive industry in the leadership of CIC in the spring had been negotiating the purchase of the shares of German car maker Daimler, and now they are the same talks with Hummer - one of the units of the bankrupt GM.
The biggest Chinese investment in foreign energy, mining and refining assets in 2009:
$ 185.7 million - a sum for the Chinese government China Nonferrous Metal Mining Group has agreed to acquire a controlling stake in Australian mining company, Lynas Corp Ltd, engaged in the extraction of rare earth metals;
$ 240 million - has agreed to pay China's largest steel maker Baosteel, to get a 15% stake in Australian iron ore company Aquila Resources;
$ 240 million - China's Wuhan Iron and Steel Corp will offer Canadian mining company Consolidated Thompson, that in June it agreed to settle the final terms of the agreement on investments;
$ 770 million - agreed in February to lay out a 16,5% stake in Fortescue Metals Group Chinese steel mill Hunan Valin Iron and Steel;
$ 1.02 billion - the largest cost for the Asian oil and gas company PetroChina buy 45.5% stake in Singapore Petroleum Company, acquired by Keppel Corp's in May;
$ 1.4 billion - China Minmetals paid in June to get a majority of the assets of an Australian mining company, specializing in the production of zinc, - Oz Minerals Ltd;
$ 2.9 billion - paid in August, China's Yanzhou Coal Mining Co for the purchase of Australian coal mining company Felix Resources Ltd;
$ 7.24 billion - the largest purchase of China's Sinopec oil company Swiss Addax Petroleum Corp, stipulated in June, will give the Chinese access to large reserves of oil in West Africa and Iraq.
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