Moves
Against this backdrop, according to Shen, from January to May this year, China's non-financial investment in the EU reached $4.21 billion. The growth rate is as high as 367.8 percent year on year.
Feng Lin, founder and CEO of DealGlobe, a transnational business service provider for investors and sellers, told China Securities Journal that Europeans have become increasingly interested in China, "In the past, European entrepreneurs looked for business opportunities in China. Now, however, they wish for Chinese companies to invest in Europe," Feng said.
Feng worked for a private investment fund and an association of Chinese financers in London before. Given his experience, he is only too aware of the investment needs of Chinese investors and the business opportunities present in the EU market.
Recognizing the enormous potential, Feng last year resigned from his well-paying job and co-founded DealGlobe, which has set up offices in both Beijing and London. The company is intended to act as a bridge for Chinese and European entrepreneurs who are in the game of seeking investment business.
Feng's confidence in the company is validated by statistics. According to data from Rhodium Group, an international market research firm, China's foreign direct investment (FDI) in Europe hit $18 billion in 2014, double the number in 2013. Chinese enterprises participated in a total of 153 deals in Europe in 2014. In the last four years, China's annual FDI to Europe was $10 billion with Western Europe being their favorite destination.
Around the world, Chinese enterprises have been investing much more in Europe than any other developed economies. Last year, the number of acquisition deals conducted by Chinese enterprises in Europe drew near to the sum of those taking place in the United States, Australia and Canada.
"One of the major reasons is the EU economic downturn and depreciation of their assets," said Zhang Lizhou, General Manager of the Investment Banking Department of China Minsheng Bank, in an interview with China Securities Journal.
"Meanwhile, many Chinese enterprises need to upgrade their industries and expand their business abroad. They are very interested in famous brands with solid assets, advanced technologies and large market shares in developed economies," Zhang said.
What's more, "Chinese companies have encountered difficulties when seeking to acquire local companies in the United States in recent years, but the European market is relatively amenable to Chinese capital," Zhang said.
Investing in technologies is a strategic centerpiece for many Chinese companies going abroad. In 2014, Chinese companies set up a total of 16 sales centers, seven facilities for research and development, six distribution bases and five headquarters in the EU.
