China Global M&A Push, 2005 ~ Nowadays

[cirr]

Nice acquisition for ZMJ

Bosch sells subsidiary to China's ZMJ

ZMJ is a major Chinese automotive supplier, making starters and generators as well as engine components for commercial vehicles and passenger cars.

AFP May 03, 2017, 11:26 IST

Berlin: Germany auto-component manufacturer Bosch, said that the company had sold its subsidiary making starter motors and generators to a Chinese buyer.

It did not disclose the price, but industry sources estimated it at more than 500 million euros ($550 million).

The buyers are Zhengzhou Coal Mining Machinery Group Co. (ZMJ) and Hong Kong-based China Renaissance Capital Investment, the German company said in a statement.

Their purchase of Robert Bosch Starter Motors Generators Holding GmbH (SG) is still subject to approval by antitrust and other authorities.

The buyers said they would keep the company's almost 7,000 staff at 16 locations in 14 countries.

"ZMJ will support SG in further expanding its competitive product portfolio," said the Chinese company's CEO Chengyao Jiao in a statement.

"Improved regional presence, especially in Asia, will allow SG's business to be expanded sustainably and profitably."

ZMJ is a major Chinese automotive supplier, making starters and generators as well as engine components for commercial vehicles and passenger cars.

Stuttgart-based Bosch, an unlisted family company, also makes industrial products, household appliances and power tools.

With 390,000 employees worldwide, it booked 73.1 billion euros in turnover last year, according to provisional data. It will present its results for 2016 at its annual press conference Thursday.

http://auto.economictimes.indiatime...bosch-sells-subsidiary-to-chinas-zmj/58490909

 

[Shotgunner51]

China’s HNA becomes largest stakeholder in German Deutsche Bank
Posted By: News Deskon: May 03, 2017

SHANGHAI: Chinese conglomerate HNA Group has become the largest shareholder in Germany’s biggest lender Deutsche Bank after raising its stake to nearly 10 percent, according to a regulatory filing.

• HNA Group, an aviation and shipping group, leapfrogged US management giant BlackRock after its holding in Deutsche Bank reached 9.92 percent, worth 3.4 billion euros ($3.7 billion), according to the US public filing this week.

• BlackRock held a stake of 5.88 percent in the European banking giant as of April.

• Deutsche was hit with heavy fines last year, as well as battling headwinds from low interest rates, tougher banking regulation and a massive restructuring plan that will see the bank withdraw from some business areas.

• The bank suffered a 1.4-billion-euro loss in 2016, but it reported strong first quarter results last week.

But HNA invested in the firm as it believes the shares of the bank are “substantially undervalued and are an attractive investment”, according to the filing.

• HNA just last month agreed to buy an $8 billion stake in Rio de Janeiro’s airport from the corruption-tainted Brazilian firm Odebrecht.

• It also announced in October that it would acquire a 25 percent stake in international hotel operator Hilton Worldwide Holdings, not long after announcing it would buy the aircraft leasing business of US-based CIT Group Inc. for $10 billion.

• The company purchased Brazil’s third largest airline Azul in August last year, a deal that followed a July announcement that it had made a successful $1.5 billion offer for Swiss airline catering company Gategroup.

• In May last year, the company bought a 13 percent stake in Virgin Australia airline and also acquired a share of Portuguese national airline TAP. (APP)

https://timesofislamabad.com/chinas-hna-becomes-largest-stakeholder-german-deutsche-bank/2017/05/03/

 

[Shotgunner51]

Chinese Property Tycoon Buys London’s Tallest Building
Posted By: News Desk on: May 03, 2017

Cheung Chung Kiu, chairman of CC Land Holdings. [File photo]​

CC Land Holdings, a Hong-Kong listed property dealer, released details of its acquisition deal of one of the tallest buildings in the City of London in a notice on Monday. According to the notice, Green Charm Investments, a subsidiary wholly owned by CC Land, entered an agreement in March to acquire 100 percent of the interests in the Leadenhall Building for nearly 1.14 billion pounds (10.1 billion yuan). Together with the interests, the company also took over its liabilities, which was assessed to be 12.7 million pounds. This is the most expensive property deal in Britain since 2014.

Widely known as the Cheesegrater because of its shape, the Leadenhall Building was valued at 1.15 billion pounds on March 31. The building's annual rental fees were about 402 million pounds. The 224-meter-high skyscraper was built in 2010 and opened in 2014, with a cost of 286 million pounds.

Besides the Leadenhall, CC Land has also acquired the One Kingdom Street in London's West End for 290 million pounds and owns 34.55 percent of the interests of an eight-story office building in Sydney, Australia, which cost 122 million HK dollars.

Read the full article at https://timesofislamabad.com/chinese-property-tycoon-buys-londons-tallest-building/2017/05/03/

 

[Shotgunner51]

CC Land buys City of London's tallest skyscraper for $1.46b
By WU YIYAO in Shanghai | China Daily | Updated: 2017-05-03 07:52

​

A pedestrian walks past the Leadenhall Building in the City of London financial district, the United Kingdom. BLOOMBERG VIA GETTY IMAGES​

A Chinese realty firm said it has paid 1.135 billion pounds ($1.462 billion) to buy the tallest skyscraper in City of London－the biggest Chinese investment in the United Kingdom's real estate market. Hong Kong-listed CC Land Holdings Ltd, controlled by property magnate Cheung Chung-kiu, one of the biggest real estate players in Chongqing, said in an announcement on Monday that one of its subsidiaries bought 122 Leadenhall Street, known widely as the Cheesegrater for its distinctive wedge shape. The 225-meter-high building was owned jointly by British Land and Canada's Oxford Properties. The combined space of the 46-floor Cheesegrater is about 56,600 square meters. The skyscraper's projected annual rental income, fully let, will be about 40.2 million pounds.

This is not the only CC Land acquisition in overseas markets in recent years. In 2016 the group acquired One Kingdom Street, a 12-floor, 50-meter-high building in London for 290 million pounds. It also bought a 34.55 percent share of an office building in Australia for HK$122 million ($15.68 million).

According to research by property services provider JLL, in the past three years investments in land, office buildings and hotels accounted for 90 percent of the Chinese mainland's total outbound realty investment. JLL said London was one of the top investment targets in the period, attracting about 16 percent of overall Chinese mainland outbound property investment, running second only to New York, which took 18 percent of the total spend. "Acquiring quality property in a bid to generate a long-term income stream has become a mainstream model for Chinese outbound property investment," a CITIC Securities Co research note said.

Read the full article at http://www.chinadaily.com.cn/business/2017-05/03/content_29177001.htm

 

[Shotgunner51]

China's Truking Tech To Acquire German Pharma Firm Romaco For $164M
May 3, 2017 — 10:08 HKT

Chinese pharmaceutical equipment supplier Truking Technology Ltd. and other investors have agreed to acquire 75.1% of German pharmaceutical packaging and equipment maker Romaco Group for €150 million (US$164 million).

Truking Technology’s controlling shareholder, Changsha Truking Investment Co., and Hunan Pengpai Equity Investment Management Services Co., are among the Chinese investors buying the stake from German private equity firm Deutsche Beteiligungs AG. Deutsche Beteiligungs will retain a 24.9% stake, which Truking Technology plans to buy out within the next three years.

"We are confident that the acquisition of Romaco represents a win-win situation for all the parties concerned," said Yue Tang, chairman of Shenzhen-listed Truking. "Romaco will benefit from the change in ownership through an increased share of the Chinese market and Truking will also be able to exploit outstanding opportunities for growth in European and transatlantic markets."

Deutsche Beteiligungs AG acquired Romaco from listed U.S. company Robbins & Myers, Inc. in April 2011. Since then, Romaco has increased its annual sales by around 50% to €134.3 million in the 2016 fiscal year. Romaco also opened five sales and service centers in China, France, Russia, Brazil and the U.S.

Truking was founded in 2000 and currently has a workforce of around 2,600. Truking builds plants and equipment for the pharmaceuticals industry and generated annual sales of around €154 million in 2016.

Truking’s core competencies lie in technologies for the processing and filling of sterile and non-sterile pharmaceutical liquids. Truking’s portfolio fits squarely with Romaco’s focus on the production and packaging of pharmaceutical solids, according to a company announcement.

"The product portfolio and the regional strengths of both companies complement each other very well without any overlapping. There are also very attractive growth opportunities for Romaco in China," said Paulo Alexandre, Romaco Group CEO.

Romaco will continue to operate independently after the deal clears all closing conditions and is fully completed.

https://www.chinamoneynetwork.com/2...to-acquire-german-pharma-firm-romaco-for-164m

 

[TaiShang]

Overseas push puts Midea on high-growth trajectory
China Daily | Updated: 2017-05-05

An engineer at the electrical noise testing center of Midea Group in Foshan, Guangdong province. YU GE / FOR CHINA DAILY

Overseas push puts Midea on high-growth trajectory R&D centers, acquisitions turn appliance maker into tech major

The establishment of overseas plants, research and development centers and the acquisition of a number of international intelligent automation solution makers have helped expand the business of Midea Group, a Chinese appliance maker, according to its senior executives.

Based in the manufacturing hub of Foshan, Guangdong province, in the heart of the Pearl River Delta, Midea currently has 17 R&D centers in eight countries. It has invested over 20 billion yuan ($2.89 billion) in R&D over the past five years, according to the company.

The company is planning to set up more R&D centers in Austria, Germany and Singapore in the near future, aiming to tailor-make its products as per local needs. That's part of its larger goal to make them globally competitive.

Midea has 12 overseas plants already, covering major home appliance goods and automation solution products.

"We are more willing to build joint ventures in overseas markets, especially countries and regions along the Silk Road Economic Belt and the 21st Century Maritime Silk Road," said Fang Hongbo, chairman and president of Midea Group.

China proposed the Belt and Road Initiative in 2013 with the aim of building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient trade routes.

Since the establishment of its first overseas plant in Vietnam in 2007, Midea has efficiently expanded its operations. It has been offering its products in global markets over the past few years.

According to Midea's annual report, the group's overseas sales reached 64 billion yuan, accounting for nearly half of the company's total sales in 2016.

Its overseas sales revenue is expected to reach more than half of the company's total revenue in 2017, according to a company source.

Fang, its chairman, said: "Growing market demand in emerging countries and regions, along with an improving domestic demand for smart home appliances, will help boost sales in the years ahead".

Gu Yanmin, vice-president of Midea, said the overseas acquisitions had helped expand its business to new industrial areas, amid intensifying competition in the domestic home appliances market.

"We are now more likely to identify ourselves as a leading technology company, not only in the area of home appliances, but also in industries like heating and ventilation, robotics and automation solutions," Gu said in an early interview with China Daily.

In recent times, it effected a series of international acquisitions.

Midea took a majority stake in German robotics manufacturer Kuka GA last year. It bought more than a 50 percent stake in Israeli motion solution provider Servotronix Motion Control Ltd earlier this year.

"We have been seeking another growth path beyond home appliances, changing our business model driven by mass production at low cost to scientific and technological innovation," said Gu.

Midea also took a large stake in Italian air conditioner maker Clivet SpA and an 80 percent stake in Japanese home appliance manufacturer Toshiba Corp's white goods business last year.

http://www.chinadaily.com.cn/business/2017-05/05/content_29212091.htm

 

[Shotgunner51]

Midea took a majority stake in German robotics manufacturer Kuka GA last year. It bought more than a 50 percent stake in Israeli motion solution provider Servotronix Motion Control Ltd earlier this year.

Welcome Kuka and Servotronix to join the Midea Family!

Midea is the world’s largest producer of major appliances and the world’s No.1 brand of air-treatment products, air-coolers, kettles and rice cookers. Each year, Midea wins 40+ design awards at different global design shows such as reddot, iF, and Good Design Award. Midea has also landed several high-profile projects, most recently the 2016 win to install sophisticated HVAC (Heating Ventilation Air Conditioning) solutions in all 12 stadiums for sports games in Brazil. Midea is a strong supporter of sport and the proud official sponsoring partner of FINA, the World’s Swimming Federation.

http://www.midea.com/global/about_midea/brand/

 

[TaiShang]

Denmark's Saxo Bank to have China's Geely as new shareholder
Xinhua | Updated: 2017-05-06

COPENHAGEN — Denmark's Saxo Bank Group announced on Friday that it received and agreed on an offer from China's Geely Group to become a key shareholder of the bank with about 30 percent stake.

Lars Seier Christensen, co-founder of Saxo, a leading Danish multi-asset trading and financial-technology firm, has received an offer and agreed to sell his stake of 25.71 percent of the bank to Geely International Hong Kong, a subsidiary of Zhejiang Geely Holding Group Co Ltd, also known as Geely Group, the bank said in a statement.

Certain minority shareholders are expected to sell their stakes to Geely, which is expected to own 30 percent of Saxo on completion, according to the statement.

The deal is pending, among other things, regulatory approvals and financial terms of the transaction are expected to be finalized by the fourth quarter of 2017.

"Geely Group has shown an impressive ability to foster sharp and solid profitable growth in their portfolio companies, and it has a deep understanding of Scandinavian business values and culture," said Kim Fournais, Saxo co-founder and CEO, in the statement. Fournais also owns 25.71 percent of the bank.

"I am confident that partnering with Geely creates an even stronger foundation to capitalize on the many global opportunities and not least in the growing Chinese and Asian markets," Fournais added.

Daniel Donghui Li, chief financial officer and executive vice president of Geely Group, said the company expects to expand its activities in the financial services sector through this transaction.

"We expect to deliver group synergies from the development of financial services both within Geely Group and the wider Chinese market," Li said.

Saxo Bank is a multi-asset trading and investment specialist, offering a complete set of trading and investment technologies, tools and strategies.

Founded in 1992 and headquartered in Copenhagen, Saxo Bank employs more than 1,500 people in financial centers around the world including London, Singapore, Paris, Zurich, Dubai and Tokyo.

The company established a China office in Shanghai in 2015, and has since then signed extensive financial technology partnerships.

Saxo Bank is also owned by US fund TPG Capital with 29.26 percent and some minority shareholders.

Based in East China's Zhejiang province, Geely Group consists of three sub groups and companies: Geely Auto Group, Volvo Cars and Geely Commercial Vehicles. It has revenue of more than $26 billion and total assets of more than $24 billion in 2016.

 

[TaiShang]

Piraeus port has never witnessed such glory: PCT employee
Xinhua | Updated: 2017-05-15

ATHENS - Sarantos Zilakos, a young Greek electrical engineer, is leaving work each afternoon since 2011 with a warm smile on his face. He returns home to his wife and 17-month-old daughter proud, because he feels he is making his own contribution to a major project that has been praised internationally as a success story of bilateral cooperation between Greece and China.

Zilakos, 31, is working at the department of cranes maintenance at Piraeus Container Terminal (PCT), a COSCO SHIPPING subsidiary which runs the site in the past seven years posting impressive results.

Piraeus has never witnessed such glory, he told Xinhua in a recent interview as state leaders were gathering at Beijing to discuss the Belt and Road Initiative in which Greece's largest port holds a key role.

After the Chinese investment at PCT piers have been expanded and upgraded, modern cranes have been erected, the terminal has been linked to the railway network connecting the port to central Europe, the number of containers loaded and discharged has skyrocketed.

Cargoes loaded and unloaded at the port totaled 3.74 million TEUs (20-foot equivalent units) in 2016, up from 880,000 TEUs in 2010, when COSCO Shipping's subsidiary Piraeus Container Terminal (PCT) took over the management of Piers II and III.

Born, raised and still living at Piraeus, son of a seafarer, Zilakos has witnessed the change up close. He is optimist that the work done inside the port will help Greece recover from a seven year acute debt crisis, in particular after COSCO SHIPPING also purchased the majority stake in Piraeus Port Authority (PPA) last year.

According to the Hellenic Republic Asset Development Fund, the total value of the PPA agreement amounts to 1.5 billion euros ($1.6 billion) until the expiration of the concession in 2052.

The PPA's privatization will help create 125,000 jobs, according to a survey of the Foundation for Economic and Industrial Research, one of Greece's leading think tanks.

"The local society has embraced the port because it is not only the premises of the port which are blossoming, but also the other stores outside and our partners are flourishing," Zilakos told Xinhua.

"One store after the other was closing due to the economic crisis which hit Greece. Today all our partners who are running their businesses outside the port and are cooperating with COSCO SHIPPING have opened new stores, new entrepreneurs have joined in... All these are fundamental. These are great steps for the local economy," he said.

In a country suffering from high unemployment - with rates reaching up to 65 percent among youth -- the investment has opened prospects for jobs. Several young people are sending their CVs to PCT, including many of Zilakos' friends.

Currently thousands of Greeks are working at the port along with a small number of Chinese managers. People of different philosophies find the common ground and collaborate harmoniously to achieve the best results, the young electrical engineer noted.

Working conditions are very good, he said. All employees are offered a free meal during their shift.

"Each one of us here is a member of a team. We do not take into consideration whether someone is Chinese or Greek. We are all working as a team and we all learn from each other," Zilakos told Xinhua.

"The management is listening to the employees, they discuss our ideas and views and this helps us become more productive," he underlined.

After the success story of PCT through win-win Sino-Greek cooperation he is convinced that bilateral cooperation can be successful also in other fields, he said.

"Greece, our country, is going through very difficult years this period and it is very important for such a small country with so many problems today to become a junction, an international junction (for trade)," Zilakos stressed.

He strongly believes that China can help Greece become this junction. He sent his CV to PCT in 2011 because he was impressed with the Chinese and their working style.

Before his work for PCT, as an employee of a Greek company, in 2008 he spent seven months at Dalian, a coastal city in northeast China's Shenyang province, for ship repairing works.

He was impressed with how quickly constructions were erected within just a few hours and innovation in technology.

When he heard that Chinese investors arrived at Piraeus and electrical engineers are needed, he applied for a position at PCT and he was happy he made this decision, he told Xinhua.

***

China=global public goods.

@Shotgunner51

 

[TaiShang]

Chinese companies buy stake in dry port in Kazakhstan
Xinhua | Updated: 2017-05-15

BEIJING - Two Chinese companies on Monday signed a contract with Kazakhstan's national railway company to buy 49 percent of an inland port near the China-Kazakhstan border.

China COSCO Shipping Corporation and Jiangsu Lianyungang Port Co will each hold 24.5 percent of the dry port located in the Khorgos-East Gate special economic zone, according to a statement from China COSCO Shipping.

The dry port is about 15 km from the Khorgos port in China's Xinjiang Province on the border of the two countries. From the port, railway cargo can reach Lianyungang in east China's Jiangsu in five days and reach Europe in about 10 days.

Xu Lirong, chairman of China COSCO Shipping, said the dry port is the company's first overseas railway investment project since the corporation was established.

The company aims to build it into an important trade passageway and a model project for China and Kazakhstan under the Belt and Road Initiative.

China COSCO Shipping is a state-owned company set up in early 2016 after the merger of COSCO and China Shipping.

 

[Shotgunner51]

Focuslight completes acquisition of micro-optics maker LIMO
05/16/2017 By Conard Holton Editor in Chief

Image. Headquarters of Focuslight Technologies in Xi'an, China. Courtesy Focuslight.

High-power laser diode maker Focuslight Technologies (Xi’an, China; NEEQ: 835243) has completed its acquisition of LIMO Lissotschenko Mikrooptik (Dortmund, Germany), a supplier of micro-optics and beam shaping systems. The transaction was funded by issuing shares of stock to investors.

“Focuslight and LIMO are highly complementary in technology and products,” says Victor Liu, president and CEO of Focuslight. “With the combination of our expertise in diode laser technology with LIMO’s world-leading micro-optics beam shaping technology, we will offer our customers highly enhanced and well-tailored laser solutions, a much broader product portfolio, and more versatile customization services.”​

Liu says that Focuslight, founded in 2007, plans to invest and further strengthen LIMO’s optical technologies, products, and solutions in key industries, such as semiconductor manufacturing, flat-panel display production, medical device manufacturing, and the automotive industry.

Related article: Success in China requires focus on quality--Milton Chang interviews Victor Liu

Related article: Laser travels in China: From the Qin Emperor to the Golden Decade

LIMO was founded in 1992 and employs a team of more than 200 engineers, physicists, technicians, and other specialized staff. Recently the company has expanded its optics portfolio to 3D free-form surfaces for use in various laser, imaging, and sensor applications. LIMO produces optical components in a wafer-based batch process, making it possible to cost-effectively manufacture several thousand lenses in a single step.

Vitalij Lissotschenko, the owner of LIMO, said, “I am pleased to put LIMO in the good hands in Dr. Liu and the Focuslight team. I am confident the combination of Focuslight and LIMO will be a win-win situation for both companies.”​

Guido Bonati, CEO of LIMO, added, "This transaction will give LIMO more financial flexibility to develop innovative technologies, reduce cost by additional capital investment, and help LIMO exploit new markets and new applications”​

Source: Focuslight Technologies

http://www.laserfocusworld.com/arti...s-acquisition-of-micro-optics-maker-limo.html

 

[TaiShang]

Chinese rivals eye bids for top UK bed retailer Dreams
By ANGUS MCNEICE in London | China Daily | Updated: 2017-05-17

China's biggest memory-foam manufacturer Mlily and rival mattress maker King Koil China are set to go head-to-head in the auction for one of the United Kingdom's biggest bed retailers, Dreams, with bids expected in the range of 400 million pounds ($517 million), according to media reports.

Dreams' owner－London-based Sun European Partners, the European advisor to US-based private equity firm Sun Capital Partners－put the mattress company up for sale earlier this year and appointed investment bank Rothschild to run the auction.

The two Chinese groups are expected to compete against UK bed maker Silentnight, owned by HIG Capital, according to the Daily Telegraph. Silentnight already supplies mattresses to Dreams.

Both Sun European Partners and Dreams declined to comment on the sale when contacted by China Daily.

Dreams was founded in 1986 under the name Sofa Bed Center in Uxbridge, West London, by Mike and Carol Clare, who used loans and savings of just 16,000 pounds. Mike Clare joined the ranks of the UK's wealthiest people when he sold the company for 200 million pounds to UK-based private equity firm Exponent in 2008, months before that year's global banking crisis.

Exponent battled to keep up with interest payments and Sun European Partners bought Dreams out of administration in 2013.

The new owner closed dozens of stores across the UK and oversaw a successful campaign that encouraged consumers to more regularly replace mattresses. In 2016, Dreams posted pretax profits of 32 million pounds, up 136 percent.

Shanghai-based King Koil China has 250 retail stores in 124 cities throughout China and is a leading player in supplying beds to Chinese luxury hotels, with a 35 percent market share.

Last November, London-based private equity firm Advent International announced it had acquired a majority ownership interest in King Koil.

Mlily is the mattress and pillow brand of Shanghai-based Healthcare Ltd.

Founded in 2003, Mlily has been the largest memory foam manufacturer in China since 2011, with export volumes worth $150 million in 2014, according to the company's website.

The company signed a five-year partnership with English Premier League club Manchester United in October 2016. Mlily mattresses have been installed at the club's Aon Training Complex.

 

[JSCh]

Wednesday, May 24, 2017, 15:51
Geely agrees to buy 49.9% stake in Malaysia's Proton
By Xinhua

KUALA LUMPUR - China's Zhejiang Geely Holding Group has agreed to buy a 49.9 percent stake in Malaysia's national carmaker Proton, the two sides announced on Wednesday.

Geely also agreed to buy a majority share of 51 percent in Lotus, a former British sports car brand which was acquired by Proton in 1996.

The price of the stake sales was not disclosed, and the two sides expected to reach a definitive deal before the end of July.

Proton, which was founded in 1983 by former Malaysian Prime Minister Mahathir Mohamad, has been under-performing in recent years and relied heavily on government loans to continue its operation.

Geely, headquartered in east China's Zhejiang province, became popular in 2010 when it bought Volvo Cars from Ford. Since then, it has successfully revived the struggling brand.

In 2016, Geely sold 1.3 million cars globally, including around 766,000 in the Geely brand and around 530,000 Volvo cars.

With Proton and Lotus joining the Geely Group portfolio of brands, Geely will strengthen its global footprint and develop a beachhead in Southeast Asia, said Li Donghui, executive vice president and CFO of Geely.

"Geely is full of confidence for the future of Proton," Li added as the company also aims to unleash the full potential of Lotus cars thanks to Volvo's revitalization.

 

[onebyone]

Launched in 2016 by the National Committee and the Rhodium Group as part of the US-China FDI Project, the annually updated Two-Way Street report is a groundbreaking study of two-way direct investment flows between the United States and China. The report makes use of a new transactions-based proprietary database to create a fully comparable picture of American foreign direct investment (FDI) in China and Chinese FDI in the United States from 1990 to the present. The authors find the depth of FDI integration to be much greater than commonly thought, and annual patterns to be evolving rapidly.

The latest update to the report - released on May 17, 2017 - adds 12 months of fresh data, reviews bilateral investment trends in 2016, and discusses the outlook for 2017. The 2017 udpate will be officialled roled out at events in Washington, D.C. and New York City, both of which are open to the public. Key findings from the report include:

• In 2016, two-way flows reached $60 billion, establishing a new benchmark in the relationship
• Chinese invested $3 in the U.S. for every $1 Americans invested in China. However, historic U.S. FDI stock in China is still twice that of China's stock in the U.S.
• Recent political developments on both sides of the Pacific are changing the future outlook on FDI

This report series is produced in conjunction with New Neighbors, which takes an in-depth look at the footprint of Chinese investment by congressional district.

The National Committee extends its thanks to the generous Two-Way Street: 2017 Update sponsors.

https://www.ncuscr.org/content/two-way-street-us-china-direct-investment-trends

https://rhodiumgroup.arrays.co/us_china_foreign_direct_investments

 

[JSCh]

Wednesday, May 24, 2017, 13:08
China Life splashes out on US property
By Cai Xiao

A traveler walks pass an advertisement of China Life Insurance, the country's largest life insurer, at Beijing airport on Dec 14, 2003. (STR / AFP)

Chinese leading insurer China Life Insurance (Group) Co said on Tuesday it is buying 48 commercial properties in the United States with total value of US$950 million.

China Life Investment Holding Co Ltd, an alternative investment and management company and unit of China Life, is buying a 95 percent stake in the real estate projects from ElmTree Funds LLC, a private-equity firm based in the city of St Louis.

China Life said ElmTree would retain a 5 percent stake and continue to manage the properties together.

The 48 customized commercial properties are scattered throughout the US in 21 states and include logistics centers, office buildings and healthcare facilities. Tenants include GE, FedEx, Caterpillar and T-Mobile.

The business model of ElmTree has been to develop properties and lease them to single tenants on a long-term basis.

"The real estate properties have a steady cash flow and can generate good returns, with a rate of return usually higher than landmark office buildings in major global cities," China Life said in a statement.

ElmTree Funds Managing Principal Jim Koman told The Wall Street Journal that in general, properties in off-the-beaten-path locations produced yields that are more than 3 percentage points greater than yields from trophy buildings in top locations.

"We're seeing more and more foreign capital coming into secondary and tertiary markets all across the country," said Koman.

"China Life's latest investment is a typical example of Chinese insurers going abroad to optimize their asset allocations," said Hao Yansu, director of the school of insurance at the Central University of Finance and Economics.

Hao said Chinese insurance companies have strong financial strengths and more knowledge of the international market and overseas investments, aiming to better allocate their assets, are becoming increasingly popular with them.

Chinese insurers preferred to invest in real estate projects because they have the potential to appreciate in value and are easy to cash out. Acquiring financial institutions is also a popular strategic move, Hao added.

In 2015, China Life made its first US deal, joining Ping An Insurance to buy a majority stake in a Boston development in the city's popular Seaport District.