China Buys the World - Welcome to the presentation Our...

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Unformatted text preview: Welcome to the presentation Our Topic is Our Topic is “It’s China’s World (We just live in it)” China is the 2nd largest exporter in the world. They have 2 trillion foreign exchange wealth to invest in different businesses. So they are investing in natural resources, technologies, real­estate etc. Source of Capital Source of Capital China’s main source of capital is Export Their main strategy is capturing different market They consume less and save much Natural Resources CNOOC is trying to secure one­sixth of Nigerian oil Offering higher Price China lent Petrobras, the Brazilian national oil company Natural Resources China took over PertoKazakhstan in 2005 CIC shelled out $1 billion to JSC KazMunaiGas Exploration Production. CIC paid $850 million to acquire the Hong­ Kong commodity trading powerhouse Acquisition China spent $115 billion on foreign acquisition Chinese Computer maker Lenovo bought IBM China is still broadening its foreign acquitision Bank 20% stake in johanesberg Morgan stanley in U.S Semiconductor Company of Japan Next step of China’s integration 8% credit growth came from state owned banks But the growth looks abnormal­their domestic economies are maxed out so they are making Foreign Direct Investment China and Iran China and Iran Background of Investment Election of Iran in 12 June, 2009 Questions about authenticity of election by EU, UK, USA and other western countries Supported by OIC members, Russia, China, India, and Brazil China and Iran China and Iran Background of Investment The world’s eye on Iran Iran’s investors trip to China Does it worth? China and Iran China and Iran Initial Investment Initially China invested $4.7 billion In 2010­2011, it will become $120 billion (estimated) China and Iran China and Iran Is It Beneficial for Both? For China­ China will get oil, gas and natural resources Iran is supplying about 14% of China’s total oil import Iran is the only Middle­East country where China becomes the major oil producer China and Iran China and Iran Is It Beneficial for Both? For Iran­ Massive amount of foreign investment. Support of China in developing Nuclear Power in Iran. China’s veto in expanding embargo on Iran China and Iran China and Iran Consequences “Obama fired a shot” China­America relation Iran got a powerful friend Where, capital is a Surplus. China going to invest in financial asset and real estate. China has $300 billion to invest Overcapacity of CIC. Is it good or bad? Invest 1 bill. in Oktree Capital Management CIC’s forthcoming investment: 2 bill in Western hedge funds and money managemnet companies. Overcapacity of CIC. Is it good or bad? 50 billion will invest in next coming year. CIC bought 9.9% stake in the Blackstone Group Rejection and Reason Failed to purchase Unocal, the LA based oil company Another rejection came from Rio Tinto Anglo Australian mining com Battle between foreign govt. and CIC.... In 2005, CNOOC vs America. Australian foreign investment review board vs China’s state owned aluminum company. America impose higher tax in Chinese made tires. Thanks to all…. question??? ...
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This note was uploaded on 03/24/2012 for the course BBA SBM taught by Professor Goa during the Spring '09 term at East West University, Chicago.

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