Outbound investment targeting know-how, robotics
Chinese companies have shifted the focus of their overseas acquisitions away from natural resources toward innovative technology and robotics, according to a report from a Londonbased law firm.
The annual M&A Trends report by the Clifford Chance firm found German industrials were a major target for acquisition in 2016.
The report noted Chinese private and State-owned enterprises were increasingly interested in technology companies to gain commercial and technical know-how.
Neeraj Budhwani, a Clifford Chance partner in Hong Kong, said: “China’s appetite for offshore assets remains voracious, but we’re seeing a shift of focus. … Technology companies are actively seeking out opportunities in the fintech sector, with a view to bringing more innovative technology back to the country.”
But the report warned of growing concerns in Germany that the acquisitions will affect Germany’s industrial sector, and about the security of industrial and corporate data.
Meanwhile, the report found Chinese outbound mergers and acquisitions rose 114 percent globally in 2016 in comparison with the previous year.
Chinese bidders spent $208.6 billion last year. The report noted Chinese investment into Europe was up 201 percent, and in North America, it rose by 412 percent.
Terence Foo, an M&A partner based in Beijing, added: “Despite the introduction of restrictions on capital outflows in China, we are helping Chinese buyers explore more innovative funding structures.”
The approach of Spring Festival, the traditional time for family reunions in China, saw many people making travel plans or preparing to go on year-end shopping sprees.
Liu Cuilan used to do those things, but this year, she preferred to remain at home after giving birth to twin daughters a month ago.
Liu, a 30-year-old English teacher from Meizhou, a prefecture-level city in the east of Guangdong province, and her husband Luo Yi, a bank teller, also have a 4-year-old son. They decided to have a second child after the government implemented the second-child policy early last year — but they didn’t expect twins.
“You have no idea what you will be experiencing with twin babies until you have them. It is a struggle to feed them, change their diapers and lull them to sleep. I am crazily busy every day,” Liu said.
Even working as hard as possible, Liu still could not cover every need, so she asked her mother-in-law to live with them and lend a helping hand.
In October, the family — then numbering three people — spent the Golden Week holiday in Shantou, a city in Guangdong, and also visited relatives and friends in the countryside to spend some quality time with them.
“I am afraid that won’t happen again for about three years. There is a huge amount of preparation to do before we go out, and we have to take my mother-in-law with us every time because the babies need special care. Everyone would be exhausted, so the best choice is to stay home,” Liu said.
The arrival of the twins will also mean higher daily expenses during the holiday.
“Milk powder costs money, and with the whole family living in the city, spending the Spring Festival at home will require more money to cover everyday expenses than if we had headed back to the village in the countryside. We can imagine our lives in three
Ahmed D. Hussen (left), Canada’s minister of immigration, refugees and citizenship, and Canada’s Ambassador to China John McCallum ring the peace bell on the Chinese New Year’s Eve at Cham Shan Temple in Toronto. See story page 2
Liu Cuilan and her children.