New Reply

Post a Reply

Thread: RMB appreciation fosters more Chinese companies to go abroad

Title: (100 characters at most)

Content: ( 3,000 characters at most, please )

You can add emoticons below to your post by clicking them.

[quote=ICEBERG,270912]In recent years, more and more Chinese enterprises and companies and financial institutions have gone abroad to do investment. Meanwhile, they have started to merger with foreign companies and corporations. Such as Chinese national investment corporation, Chinese Merchant Bank, Bank of China etc have done investment abroad or have established their branches in other foreign countries. This reminds me of 1980s' Japan. In 1980s, Yen appreciated very fast so that many Japanese companies went out to do their merger and acquisition. Once they bought Rockefeller Center and this made many American nationals believe that Japan was trying to 'buy' America.

China's current situation is quite similar with that in 1980's Japan. RMB has appreciated 12 percent since 2005. On Feb. 18th, Yuan's exchange rate against dollar was 7.1667: 1. Really amazing! With the help of RMB, more Chinese companies can acquire or merge with foreign comporations at low cost. About forty percent of total direct foreign investment in 2006 were realized by merger and acquisition. Not only those state owned enterprises but also some private companies have gone abroad to acquire and merge with foreign corporations.

Merger and acquisition are the most effect way for those Chinese enterprises to enter foreign markets. More and more Chinese enterprises and corporations will go out to invest.

So what do you think of Chinese enterprises and corporations' merger and acquisition? Will China follow the steps of Japan?[/quote]

characters left

Name:

Get a new code