Nanjing sees a large increase of local companies Go Global2015-03-06 12:54:52
At the beginning of 2015, Nanjing’s overseas investment has shown a flourishing prospect. We see increase not only in the number of local enterprises that “go global”, but also in the quality of the projects. Currently, over 20 projects have been initiated focusing on service and software sectors, targeting the European markets.
According to statistics of Overseas Investment Division, Nanjing Municipal Investment Promotion Commission, just in January, Nanjing has totally 20 overseas investment projects. The amount of contracted investment capital is up to 134 million USD. It reaches 10% of the total amount of last year and is 21% higher than last January.
Last May, SanPower Group merged the British third-largest department store “House of Fraser”, which became Nanjing’s largest cross-border M & A in the field of commerce and trade circulation in last years. Recently, SanPower Group’s listed company Hiteker has merged a listed company IDT International Limited.
A few years ago, Nanjing enterprises' overseas investment is mainly concentrated in the processing and manufacturing industry. These companies are mostly located in the less developed regions like Southeast Asia, Africa, and rarely involved in tourism and retail sectors. In recent years, more and more enterprises are targeting higher value-added businesses. On March 2014, GPRO Group invested 52 million euros to merge Spain VALPARAISO hotel, aiming at building this hotel into a European base of Chinese tourists. This January, the company ZTE set up a software factory in India, which focuses on the development of software industry.
In addition, Nanjing Municipal Investment Promotion Commission (NMIPC) is working to improve its service for enterprises. In 2014, NMIPC has participated and organized more than a dozen overseas investment promotion activities, serving as platforms connecting foreign government departments in China, foreign embassies and consulates in China, foreign investment promotion agencies in China, and Nanjing local enterprises. This year, Nanjing will set up a special fund to support overseas investment. (Editor: Joanna Zou, Melissa Zhao)