We learnt from the latest data from Pudong Ministry of Commerce that, the total investment for the Chinese companies to invest overseas has been up to USD 5.621 billion in Year 2014 and exceed the calculative number till the year end 2013. It is a very hot trend for local companies to invest overseas as well as it is also encouraged by the local government recently after the setting up the free trade zone.
There are several kinds of purposes for the local companies to investment overseas. One is PE funds to merge the overseas equity or help the Chinese concept stocks return China. For example, Hony Capital was using the cross border investment platform in Shanghai FTZ to invest USD30 million overseas and cooperate with Suning.cn for the purpose of merging PPTV. It is also the very first transaction for PE funds’ overseas investment in the Shanghai FTZ. The second kind is to buy the overseas factory or for the international trade purpose. Such investment will let the local company to use the overseas labor and resource at the low cost for manufacturing and further bring more export possibilities for local equipment and machinery, for example, Shanghai Sinowind Technologies Limited. The third kind is to merge the overseas hi-tech companies and to get the advanced technology and intellectual property right.
The Chinese government also simplified the registration formalities for investment overseas as well as the foreign exchange bureau allowed the financial creation as FE account (Free trade account).
Shanghai Dongjin has successfully helped several local clients to invest overseas and make the registration formalities. We built up the good relationship with the local government. If you have any questions, please send the email to me.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021