ODI to surpass FDI, HSBC says
By Zhang Fengming |
June 16, 2011, Thursday
|
Print Edition
Print Edition
HSBC expects China's outbound direct investment to exceed its foreign direct investment inflows.
China's move to allow yuan-backed outbound direct investment will boost the trend, senior HSBC bankers have said.
"We predict overseas direct investment by Chinese businesses to double in three to five years as China is rising as a main exporter of capital," said Noel Quinn, HSBC's Asia-Pacific regional head of commercial banking.
Chinese companies are seeking to secure natural resources on cross-border merger and acquisitions but there are also signs Chinese corporations are moving up the product chain in pursuit of technology, distribution networks and market expertise, Quinn said.
Yuan-backed outbound direct investment has been allowed since this year.
"The internationalization of the local currency well outpaced our expectation," Quinn said. "The yuan is the currency of the future."
Montgomery Ho, head of commercial banking at HSBC China, said yuan outbound direct investment makes it easier for Chinese companies to invest overseas.
HSBC China saw its cross-border yuan settlement increase significantly since China launched a trial in Shanghai and Guangdong Province in July 2009. China expanded the program to 20 provincial areas in June 2010.
HSBC China's cross-border trade yuan settlement grew by 250 times from 2009 to 2010. Quinn said the business grew 44 percent in April compared to March and there is no reason to expect a drop.
The yuan will overtake the British pound this year as the world's third most popular trade currency, an HSBC survey said in May.
China's move to allow yuan-backed outbound direct investment will boost the trend, senior HSBC bankers have said.
"We predict overseas direct investment by Chinese businesses to double in three to five years as China is rising as a main exporter of capital," said Noel Quinn, HSBC's Asia-Pacific regional head of commercial banking.
Chinese companies are seeking to secure natural resources on cross-border merger and acquisitions but there are also signs Chinese corporations are moving up the product chain in pursuit of technology, distribution networks and market expertise, Quinn said.
Yuan-backed outbound direct investment has been allowed since this year.
"The internationalization of the local currency well outpaced our expectation," Quinn said. "The yuan is the currency of the future."
Montgomery Ho, head of commercial banking at HSBC China, said yuan outbound direct investment makes it easier for Chinese companies to invest overseas.
HSBC China saw its cross-border yuan settlement increase significantly since China launched a trial in Shanghai and Guangdong Province in July 2009. China expanded the program to 20 provincial areas in June 2010.
HSBC China's cross-border trade yuan settlement grew by 250 times from 2009 to 2010. Quinn said the business grew 44 percent in April compared to March and there is no reason to expect a drop.
The yuan will overtake the British pound this year as the world's third most popular trade currency, an HSBC survey said in May.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
