Comments on: China’s External Investments http://blogs.cfr.org/geographics/2009/09/21/china%e2%80%99s-external-investments/ A graphical take on geoeconomic issues, with links to the news and expert commentary. Wed, 08 Feb 2012 17:14:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Rien Huizer http://blogs.cfr.org/geographics/2009/09/21/china%e2%80%99s-external-investments/#comment-185 Rien Huizer Thu, 08 Oct 2009 10:34:09 +0000 http://blogs.cfr.org/geographics/?p=541#comment-185 Interesting pice of data. Supports widely held intuition that "China" (in this case the predominantly the state in all of its manifestations, because the locally owned private sector may be unable (or unwilling, or using overseas chinese friends) to invest abroad) seems to aspire to operating like a vertically integrated (set of) conglomerate. And the state wants to compensate for the lack of inputs (quality/quantity/cost) of locally available ones. Technology is an important input that would generally not result in cross border financial investment (of course China would like to buy some technology companies if it was allowed to do so) but of course "technology imports/investments" would be a far more important topic. But this once more underlines the fact that "China" is no ordinary investor.. Interesting pice of data. Supports widely held intuition that “China” (in this case the predominantly the state in all of its manifestations, because the locally owned private sector may be unable (or unwilling, or using overseas chinese friends) to invest abroad) seems to aspire to operating like a vertically integrated (set of) conglomerate. And the state wants to compensate for the lack of inputs (quality/quantity/cost) of locally available ones. Technology is an important input that would generally not result in cross border financial investment (of course China would like to buy some technology companies if it was allowed to do so) but of course “technology imports/investments” would be a far more important topic.

But this once more underlines the fact that “China” is no ordinary investor..

]]> By: Geographics http://blogs.cfr.org/geographics/2009/09/21/china%e2%80%99s-external-investments/#comment-183 Geographics Wed, 07 Oct 2009 16:30:21 +0000 http://blogs.cfr.org/geographics/?p=541#comment-183 The external investment portion of the chart was made by aggregating individual deals, which includes partial stakes, not just M&A, from Bloomberg’s deal data. It should be inclusive of all Chinese entities. Bloomberg does a fair job picking up deals that are mentioned in the press. However, deals that are not disclosed would be missing from the data set. The data set includes 643 deals, although not all had a sector data field. We created a countries/regions chart, but those data are inadequate to the task – at least without a lot of clean-up. This is due to deals being labeled based on location of incorporation instead of location of activity. The Virgin Islands, for example, end up with a large weight. The external investment portion of the chart was made by aggregating individual deals, which includes partial stakes, not just M&A, from Bloomberg’s deal data. It should be inclusive of all Chinese entities. Bloomberg does a fair job picking up deals that are mentioned in the press. However, deals that are not disclosed would be missing from the data set. The data set includes 643 deals, although not all had a sector data field.

We created a countries/regions chart, but those data are inadequate to the task – at least without a lot of clean-up. This is due to deals being labeled based on location of incorporation instead of location of activity. The Virgin Islands, for example, end up with a large weight.

]]> By: FT.com | Money Supply | Morning round-up http://blogs.cfr.org/geographics/2009/09/21/china%e2%80%99s-external-investments/#comment-181 FT.com | Money Supply | Morning round-up Fri, 02 Oct 2009 12:09:48 +0000 http://blogs.cfr.org/geographics/?p=541#comment-181 [...] China has meaningfully pushed towards domestic demand, largely via investment, to support growth. But data show a strong external bias in Chinese investment: the country is securing materials and energy abroad, but investing relatively little in health [...] [...] China has meaningfully pushed towards domestic demand, largely via investment, to support growth. But data show a strong external bias in Chinese investment: the country is securing materials and energy abroad, but investing relatively little in health [...]

]]> By: rachel http://blogs.cfr.org/geographics/2009/09/21/china%e2%80%99s-external-investments/#comment-180 rachel Wed, 30 Sep 2009 03:43:18 +0000 http://blogs.cfr.org/geographics/?p=541#comment-180 interesting chart, matches with some of the other data and anectdotal data. what entities are you including in "China", the CIC, SAFE, national oil companies, all SOEs? It would also be interesting to see a chart like this on countries/regions of equity investment interesting chart, matches with some of the other data and anectdotal data. what entities are you including in “China”, the CIC, SAFE, national oil companies, all SOEs?

It would also be interesting to see a chart like this on countries/regions of equity investment

]]> By: Geographics http://blogs.cfr.org/geographics/2009/09/21/china%e2%80%99s-external-investments/#comment-173 Geographics Wed, 23 Sep 2009 20:58:47 +0000 http://blogs.cfr.org/geographics/?p=541#comment-173 This picture only applies to business investment. Those data are not from the NIIP release; rather they are aggregated from individual investments collected by Bloomberg. The database captures both acquisition and partial investment, but is certainly not perfect. It would likely miss small direct equity investment or equity investment through external managers. This picture only applies to business investment. Those data are not from the NIIP release; rather they are aggregated from individual investments collected by Bloomberg. The database captures both acquisition and partial investment, but is certainly not perfect. It would likely miss small direct equity investment or equity investment through external managers.

]]> By: bws http://blogs.cfr.org/geographics/2009/09/21/china%e2%80%99s-external-investments/#comment-169 bws Mon, 21 Sep 2009 18:36:26 +0000 http://blogs.cfr.org/geographics/?p=541#comment-169 how do you estimate china's external investment? presumably they are in aggregate overwieght us and european fixed income and underweight equities. does china have niip data that shows it total external investments across sectors? how do you estimate china’s external investment? presumably they are in aggregate overwieght us and european fixed income and underweight equities. does china have niip data that shows it total external investments across sectors?

]]>