In the past 12 months, our growth in China and in other major centres around the world has allowed us to witness a substantial increase in the ease of doing business with Chinese investors. We have seen regulatory controls and red tape have reduced significantly, there has been more competition between Chinese bidders for assets, and Chinese buyers have enjoyed much greater success rates in competitive bidding processes for foreign assets. As a result, the number, complexity and international significance of Chinese Outbound deals has continued to increase.
In our second China Outbound Investment report, we analyse these trends and delve into several significant policy developments that have – and will continue to – impact on offshore investment.
More importantly, this report looks to the future of Chinese outbound investment.
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We are confident that we will see further deregulation, especially by provincial regulators. It is also likely that a growing number of Chinese SOEs will facilitate an element of private investment by various means - including IPOs, REITs, strategic equity co-investment, and bond issuance. Participation in consortium bids is likely to become more common, especially for institutional Chinese investors such as insurance companies and investment funds.
The further liberalisation of restrictions on outbound investment by investment funds and individual investors is likely to release new sources of funds into global equity and debt markets, subject to measures being taken to ensure that RMB outflows remain controlled.