China’s investments overseas are set to benefit capital markets, as the nature of the country’s economy evolves, writes the Asset.
HSBC chief executive Stuart Gulliver said on the potential benefit to Asian capital markets that “Where once Chinese overseas investment focused almost exclusively on the commodities and infrastructure […] it is becoming much more diverse.”
He continued that the new focus reflects “China’s ‘going out’ policy and its need to boost private sector investment, turbo-charge consumer spending and accelerate innovation.”
Addressing the Boao forum over the weekend, Chinese President Xi Jinping echoed the words he spoke at Davos last year, affirming China’s commitment to globalization, and spoke of China’s changing role.
“The new normal of the Chinese economy will continue to bring more opportunities of trade, growth, investment and cooperation for other countries in Asia and beyond. In the coming five years, Chinese investment abroad will exceed US$500 billion.