China snubs debt in European spending spree
Chinese companies and funds have ramped up investment in crisis-hit
Europe, buying utilities, energy firms and even luxury yacht makers, but
are steering clear of eurozone debt.
Analysts say bargain-hunting -- and not the secret hand of Beijing --
is driving the recent wave of acquisitions as Chinese companies seek to
expand overseas and the country's sovereign wealth fund diversifies away
from US bonds.
Chinese direct investment in Europe more than doubled to $6.7 billion
in 2010 from the previous year, latest official figures show, and
analysts expect the recent flurry of deals to continue as eurozone
economies deteriorate.
"At a time of severe economic and financial stress in the eurozone
there are inevitably some great buying opportunities for cash-rich
Chinese firms," said Alistair Thornton, an analyst at IHS Global Insight
in Beijing.
Chinese firms have been targeting a range of sectors, including
engineering, high-tech, energy, finance and utilities, as intense
domestic competition forces them to look for new markets around the
world.
AFP
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