By Li Yanping
March 16 (Bloomberg) -- China said it will make it easier for its companies to invest overseas as cheaper commodity and share prices encourage bargain-hunting in industries from autos to energy.
The approval process will be simplified and mainly handled by local rather than central government, Ministry of Commerce spokesman Yao Jian said at a briefing in Beijing today. The procedures take effect May 1, a separate statement said.
China announced $22 billion of planned overseas spending last month, including a $19.5 billion investment in Rio Tinto Group, the world’s third-largest mining company. China’s outbound foreign direct investment may top inflows this year for the first time, Standard Chartered Plc says.
“The ‘Going Out’ policy to encourage more of China’s firms to invest overseas has been in place for a number of years,” said Stephen Green, head of China research at Standard Chartered in Shanghai. “We believe that 2009 will be the year when it really gains some scale.”
In 2008, China’s overseas investment doubled to $52.2 billion, including financial-sector investment, according to the commerce ministry. This year, in February alone, the total was $65 billion, according to a tally by Standard Chartered.
Eighty-five percent of applications for outbound investment that previously needed central government approval will be handled by local authorities in future, Yao said.
Energy, Minerals
The commerce ministry will scrutinize investment plans of more than $100 million and those which involve multiple countries, the ministry said in a separate statement. Provincial commerce authorities will vet smaller deals and those involving energy and minerals, it said.
China’s Minmetals Group is awaiting shareholder and government approvals for a A$2.6 billion ($1.7 billion) takeover of Melbourne-based OZ Minerals Ltd., the world’s second-largest zinc mining company.
Hunan Valin Iron & Steel Group agreed in February to buy a A$1.2 billion ($776 million) stake in Australia’s third-largest iron ore exporter Fortescue Metals Group Ltd. to secure supplies of the raw material.
China Shipping (Group) Co., the nation’s second-biggest sea-cargo company, said last week that it was looking for opportunities to buy assets overseas as shipping lines and port operators struggle with slumping world trade.
A strong currency, cheaper commodity prices and the need for many foreign companies to pay off debt are creating “the perfect opportunity” for China’s firms to ramp up investment abroad, Standard Chartered’s Green said.
‘Flurry of Deals’
“The beginning of 2009 has seen a flurry of deals in which Chinese investors have secured ownership or long-term supply contracts to such things,” he added.
Cnooc Ltd., China’s biggest offshore oil explorer, is seeking opportunities to acquire overseas assets made cheaper by the global financial crisis, Chairman Fu Chengyu said March 5. China, the world’s second-largest energy consumer, entered into oil-for-loans accords with Venezuela, Brazil and Russia last month.
Automakers are being to encouraged to make overseas acquisitions, according to Miao Wei, vice minister of the Ministry of Industry and Information Technology.
Today’s announcement came after China’s government said last week that it will simplify approvals for overseas capital entering the nation by giving local governments more authority to approve such spending.
More outbound investment “will help to improve China’s balance of payments while China is still running a relatively large trade surplus,” Yao said.
Foreign direct investment in China fell 15.8 percent in February, the fifth straight monthly decline, as companies cut spending to weather the global financial crisis, the commerce ministry said today.
To contact the reporters on this story: Li Yanping in Beijing at yli16@bloomberg.net
Monday, March 16, 2009
China Eases Overseas Investment Rules for Companies
Posted by
SEAGAMES 2009
at
7:28 AM
Subscribe to:
Post Comments (Atom)
Search
Categories
- Beijing Massacre (1)
- Man Beijing China (1)
- massacre in Beijing (1)
- Media confuse issue (1)
- Mumbai Massacre (1)
- Protests escalate.Beijing (1)
- struggle Beijing (1)
Friends Blog Link
- portable-sawmill
- miter-saws
- milling-machine
- carbide-burrs
- packaging-machineries
- grinding-machine
- cnc machinetools
- girls-phuket
- sex-changers
- khonkaen property
- seagames-2009
- fukuoka-tourism
- dogbar
- gogo-girls
- beijing-bars
- payments-adsense
- seagames2009
- design tattoo
- pattaya-blog
- sex-change-surgery
- china yuwie
- bangkok-nightlife
- pattaya-today
- pattaya-agogo
- phuket-bars
- thaicarbide
- cnc-tools
- cnc-tooling
- carbide-cutting-tooling
- cnc machinetools
- thailand-herritage
- silicon-carbide
- bangkok-airways
- beijing-massacre
0 comments:
Post a Comment