Deloitte invites professionals from 25+ countries to its China Outbound Investment Forum

Published: 20 September 2017

Today, Deloitte convened the China Outbound Investment Forum in Chongqing, China as an important part of the 2017 Deloitte GCSG Annual Meeting. On this occasion Deloitte has invited over 150 professionals from 25 countries across the globe and enterprise executives from various industries, to discuss the development and trend of Chinese outbound investment in the context of China’s economic transformation.

Representatives from Chongqing Commerce Commission delivered their opening remarks at the Outbound Investment Forum, during which they stressed Chongqing as the economic center of Western China, a region which consists of many investment advantages, such as its favourable geographical location, unique system, platforms, industries and economic corridors, all of which have attracted large amounts of foreign investment and widespread international attention. As Chongqing opens up even further, it will be considered as a new growth highlight with great potential.

It is the first time for the Deloitte Global Chinese Services Group to hold its annual meeting in Chongqing, a beautiful, mountainous city in China. Terence Cheung, Deloitte China Western Region Managing Partner, pointed out that Chongqing is both the core office in Western China for Deloitte and an important pivot for China's development and opening up. Automobile and electronics manufacturing, the pillar industries of Chongqing, drive the development of the whole Western China region with its strong economic impact. What is also worth mentioning is that more than half of the Global Fortune 500 companies have opened their offices in Sichuan Province, and all of them regard the future economic growth of Sichuan and Chongqing to be promising.

Deloitte China Chief Economist, Xu Sitao said at the Forum, “Chinese outbound investment hit a record high in 2016. Though China have seen a slowdown of growth rate in recent months, China still remains the top export country with the largest amount of foreign exchange reserves. Booming consumption will serve as the new engine to drive China’s economic growth, and the country, which has long benefited from the globalization, will keep its position against protectionism. The current draconian measures aimed at slowing down capital outflows are likely to be temporary. China’s economy will undergo a new round of transformation, such as consumption enhancement and investment reduction, which will make a strong influence on the global market. Domestic consumption upgrade will bring about more benefits to soft commodities, while capacity adjustment may pose pressure on hard commodities.”

At the Forum, enterprise representatives shared insights and experiences drawn from outbound investment practices with attending guests. As China has been developing and promoting its "Going Global" Strategy, Chinese investors have become more mature and sophisticated in identifying investment targets and making operation plans. However, we should be aware that questions such as how to develop the right M&A strategies, how to manage investment risks and post-investment integration will still remain major challenges faced by Chinese companies. This is why Chinese enterprises should leverage their professional expertise and practical experiences to improve their abilities, in order to cope with outbound investment risks and boost the success rate of their projects. "The Chinese government encourages enterprises, financial institutions and professional services firms to cooperate closely with each other to achieve overseas excellence”, said Norman Sze, Belt & Road Initiative Service Leader of Deloitte China. Apart from obtaining a basic knowledge about economic environment and market access requirements of the targeted investment destination, how Chinese companies can perfectly combine their advantages and local resources, carry out effective post-integration management and implementation, and achieve seamless synergy across the globe also serve as key factors that determine the success of a project. Moreover, Chinese companies should also pay attention to the vital issues when “going out”, including innovative financing models (lower financing costs), international professionals training, talent pool expansion as well as asset portfolio management.

Deloitte Global Chinese Services Group Chairman, Rosa Yang emphasized in her closing remarks, “Deloitte is committed to helping Chinese companies become world-leading and prestigious multinational enterprises. The future success of China lies in the thriving development of Chinese companies. ” Deloitte Global Chinese Services Group deploys in over 90 countries and geographic regions with professionals possessing Chinese speaking capabilities and knowledge about China and Chinese companies to provide professional advice and comprehensive solutions to Chinese companies investing overseas.