Date
28 May 2017
Wanda recently bought Legendary Entertainment, the US studio behind blockbuster movies such as Jurassic World and Dark Knight, for about US$3.5 billion. Photo: Internet
Wanda recently bought Legendary Entertainment, the US studio behind blockbuster movies such as Jurassic World and Dark Knight, for about US$3.5 billion. Photo: Internet

What we’ll see more in Chinese acquisitions abroad

A report on China firms’ investments in the UK offers a glimpse into what sort of businesses mainland companies are most interested in.

More than ever, Chinese firms want to increase their competitiveness by gaining access to world-class technology and recognized overseas brands, according to a report published jointly by Grant Thornton and China Daily.

This trend is in line with China’s strategy to upgrade and strengthen its capability in high-end products manufacturing.

Mainland firms are also following their customers.

There is a clear push towards investment in UK firms that can help meet the needs of China’s growing middle class and a more consumption-oriented economy, the report noted.

With around 120 million Chinese now traveling overseas each year, and the number expected to rise further, it will fuel more outbound investment in tourism and leisure related assets, including hotels.

Companies with deep pockets will keep seeking assets and projects around the world along these lines.

Fosun Group and Dalian Wanda have already made their mark through a series of acquisitions in the past few years.

Wanda recently bought US film studio Legendary Entertainment for about US$3.5 billion.

Fosun Group had earlier invested in Cirque Du Soleil and Club Med, among other entities.

In the coming years, we will definitely be hearing about more such deals.

– Contact us at [email protected]

RC

EJ Insight writer

EJI Weekly Newsletter

Please click here to unsubscribe