Navigating the Belt and Road

Financial sector paves the way for infrastructure

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In the first half of 2015, the roll-out of the “One Belt, One Road” initiative and the implementation of a series of reform measures have encouraged more Chinese enterprises to “go out” into the global market.

According to statistics released by the Ministry of Commerce, China’s non-financial outbound investment amounted to US$56b in the first half of 2015, a year-on-year increase of 29.2%, which indicates that China is likely to outperform the expected outbound investment growth target of 10% for the year.

EY - Financial sector paves the way for infrastructure
EY - Financial sector paves the way for infrastructure
EY - Financial sector paves the way for infrastructure
EY - Financial sector paves the way for infrastructure
EY - Financial sector paves the way for infrastructure
 

Behind the impressive high growth, we can see the implementation of the “going out” strategy and the dreams of expansion of Chinese enterprises. The “One Belt, One Road” strategy has evolved from a general guidance to concrete projects, which will guide future China outbound investment, and lay a solid foundation for Chinese investment’s Big Navigation Era.

  • Stronger policies. Frequent high-level visits and trade; governmental support in the financial sector; equipment “going out” and international production capacity cooperation.
  • Clearer development strategy. New model of overseas cooperation: emphases on infrastructure and international production capacity cooperation, with financial collaboration and support.
  • Broader space expansion. Across Siberia and the Pacific Ocean, and extending to Latin America, distance is not affecting the enthusiasm of Chinese investors.

In the future, China’s outbound investment will continue to grow as Chinese enterprises are looking for a wider investment scope. There are many opportunities ahead, but we hope forward-looking Chinese enterprises will be cautious in their outbound investment, calmly deal with various challenges and achieve their dreams of internationalization.

EY- Lorletta-Chow Loletta Chow
EY Global COIN Leader