chinese capital and chinese investment in canada
DESCRIPTION
In this presentation, FMC's Wei Shao discusses the current landscape regarding Chinese Capital and Chinese Investment in Canada.TRANSCRIPT
![Page 1: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/1.jpg)
1
Chinese Capital & Chinese InvestmentIn Canada An Overview
Presented by: Wei ShaoOctober 18, 2012 (Vancouver Economic Commission)
![Page 2: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/2.jpg)
2
Chinese Capital & Chinese Investment in Canada – An Overview
• China’s Dependence on Import of major Resources
Oil 40% Nickel 51.3%Iron Ore 64% Cobalt 85%Copper 72% Platinum 86%Chromium 90% Potash 85%Manganese 69%
![Page 3: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/3.jpg)
3
Chinese Capital & Chinese Investment in Canada – An Overview
• Recent Developments
– 12th anniversary of the “Going Global” launch and $320 billion– Accelerated investment since 2008– Geographical preference – from regional to international– Larger and high profile transactions– Greenfield and exploration projects– Canada, Australia, Brazil
![Page 4: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/4.jpg)
4
Chinese Capital & Chinese Investment in Canada – An Overview
Chinese Investors
State Owned (Central)
State Owned (Provincial)
Private
Others
![Page 5: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/5.jpg)
5
Chinese Capital & Chinese Investment in Canada – An Overview
![Page 6: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/6.jpg)
6
Chinese Capital & Chinese Investment in Canada – An Overview
• Policy Evolvement
– 2004 – 2009 Guiding Catalogue of Countries and Industries for Overseas Investment
– 2005 China Outbound Investment Rules– 2009 Administration of Overseas Investment– 2009 SAFE Rules Governing Overseas Investment by Domestic
Companies and Institutions– 2010 – 2011 Special Guidelines to Encourage Overseas Investment– 2012 Guidelines to CSOEs
![Page 7: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/7.jpg)
7
Chinese Capital & Chinese Investment in Canada – An Overview
• Players – Investors in Canada
– State owned (Central) enterprises– State owned (Provincial) enterprises– Private companies (including Hong Kong listed companies)– Private companies controlled by Canadian residents– Policy banks and commercial banks– Investment funds
![Page 8: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/8.jpg)
8
Chinese Capital & Chinese Investment in Canada – An Overview
• Recent Trends
– Roles of private capital– Policy banks and commercial banks– Growing sophistication of funds– Internal rivalry and “No competitive bids”– “Going hostile”
![Page 9: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/9.jpg)
9
Chinese Capital & Chinese Investment in Canada – An Overview
• Incentives for Chinese companies going global
– Conventional lines of credits and loans– Fund to encourage overseas explorations projects– Strategic minerals and resources– The strengths of Yuan– Diversification from US bonds
![Page 10: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/10.jpg)
10
Chinese Capital & Chinese Investment in Canada – An Overview
• How China sees Canada
– Perceived US influence– From “cool politics but warm economics” to strategic partners and
mutual complementarities– Branding and image– Canada as a safe country for investment– CNOOC – Nexen and its implications
![Page 11: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/11.jpg)
11
Chinese Capital & Chinese Investment in Canada – An Overview
• China’s Interest in Canada
– From potash to iron ore and met coal– Copper, nickel, gold, uranium– Infrastructure and engineering– Chinese machinery and equipment– Canadian capital market
![Page 12: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/12.jpg)
12
Chinese Capital & Chinese Investment in Canada – An Overview
• Vancouver and Chinese Investment
– Headquarters of Chinese operations in Canada– 4 banks and 35 offices– Private capital– From shipping to movie production– Beyond tourism and real estate
![Page 13: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/13.jpg)
Thank you !Fraser, Milner Casgrain LLPWei Shao, Partner, China Practice
![Page 14: Chinese Capital and Chinese Investment in Canada](https://reader033.vdocuments.us/reader033/viewer/2022052822/554c208db4c905f1518b562b/html5/thumbnails/14.jpg)
The preceding presentation contains examples of the kinds of
issues companies working with Chinese Capital & Chinese
Investment In Canada could face. If you are faced with one of
these issues, please retain professional assistance as each
situation is unique.