Rani Jarkas: Chinese buyers target insurance companies for overseas acquisition

Chinese companies have been on an outbound acquisition spree for the last few years, covering real estate, hotels, movie studios, healthcare, soccer clubs, chemicals and high-end technology.

Now, Chinese buyers looking for overseas acquisitions are now adding a new item to their list of potential takeover targets, insurance companies. The Wall Street Journal reported early this week that three leading bidders for Singapore-based Asia Capital Reinsurance Group Pte Ltd all obtained capital support from China.

China announced a record $92 billion of overseas mergers and acquisitions deals from January to March this year, accounting for 30 percent of the world’s total. Within these M&A cases, there are seven overseas insurance deals, with total value of US$1.86 billion. Prior to 2014, the insurance sector went several years without years.

According to Thomson Reuters data, Chinese outbound M&A activity has more than doubled in two years, hitting a record $120 billion in total deal value so far in 2016.

In particular, private companies will continue to be an increasingly important force in overseas mergers and acquisitions as they are more nimble in their decision making compared with SOEs.

Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of experience around the globe, said, “There has been a huge amount of overseas investment by Chinese companies over the past 15 years and we expect to see more in a wider range of industries for the forthcoming years.”

Rani Jarkas, the Chairman of Cedrus Investments.

Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas

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王雷(Rani Jarkas):中国买家竞购海外保险公司

过去几年间,“走出去收购热潮席卷了中国企业,覆盖了房地产酒店电影公司医疗足球俱乐部化工高科技领域。

现在,对于正在海外市场上开展并购活动的中国企业来说,保险公司已经成为了新的竞购目标。《华尔街日报》本周报道了总部设在新加坡的亚洲资本再保险公司(Asia Capital Reinsurance Group Pte Ltd)的并购战,所有三个领先竞标者都由中国企业提供支持。

今年一月到三月间,中国海外并购交易总价值达到920亿美元,占到全球总额的30%。今年以来中国买家已经宣布了七项收购海外保险公司的交易,其总价值达到了18.6亿美元。在2014年以前,保险行业中则有好几年都没有出现过这种交易。

根据汤森路透的数据,中国海外并购在两年内翻了一番,今年截至目前为止总价值达到1200亿美元。

其中,由于私营企业的决策程序相比国有企业更加灵活,其将日益成为海外并购的中坚力量。

赛德思投资董事长王雷(Rani Jarkas)有多年的全球投资经验。他表示:“过去十五年中国企业参与了大量的海外投资交易,我们相信未来在更广泛的行业看到中国企业的身影。”

Rani Jarkas, the Chairman of Cedrus Investments.

Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas

Rani Jarkas: China encourages private investments

As a vital force to China’s economy, private fixed-asset investment accounts for more than 60 percent of the country’s total investment. However, the first half of 2016 witnessed a record low growth momentum of investment by private enterprises, with growth sliding to 2.8 percent from 11.4% last year.

Premier Li Keqiang addressed to senior officials of some provinces and State Council departments last week, indicating that private and semi-public businesses should be encouraged to invest in the key projects to be launched during China’s 13th Five-Year Plan period (2016-2020), such as education, medical care, elderly care and other service sectors, as well as to infrastructure.

Li also reassured the interests and legitimate rights of investors should be protected. In particular, innovation in Public-Private-Partnership financing mode should be promoted.

A continued slump in private investment growth could spoil the country’s efforts to maintain economic growth within the targeted range — 6.5 to 7 percent for the year — and to optimize the economic structure in coming years.

Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of financial experience in Asia, said, “Chinese government’s stronger financial support to small and micro private enterprises will have a wide range of influences, including promoting consumption and creating jobs.”

Rani Jarkas, the Chairman of Cedrus Investments.

Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas

王雷(Rani Jarkas):中国鼓励民间投资繁荣发展

作为推动中国经济增长的重要力量,民营固定资产投资占到全国总投资的60%。然而,2016年上半年民间投资增速创历史新低,从去年同期的11.4%下滑到2.8%。

李克强总理在上周各省政府和各部委负责人会议上强调,应促进民间投资“十三五”规划(2016到2020年)内的关键项目上发挥作用,例如教育医疗养老和其他服务业,以及基础建设

李克强同时强调投资者的利益和合法权益应受到保护,另外应公私合作融资模式创新。

民间投资增速的持续下滑会严重影响国家维持经济6.5%到7%的目标增速的努力,影响未来经济结构的优化 。

赛德思投资董事长王雷(Rani Jarkas)在亚洲有多年的金融投资经验。他表示:“中国政府对小微民营企业的大力财政支持将带来一系列的重大影响,包括刺激消费和创造就业。”

Rani Jarkas, the Chairman of Cedrus Investments.

Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas

Rani Jarkas: China broadens its door for foreign investments

Foreign direct investment (FDI) in non-financial sector in China increased 3.8 percent year-on-year to 343.6 billion yuan in the first five months of 2016. From January to May, investment in the services sector was up 7.0 percent to 241.8 billion yuan, representing 70.4 percent of total FDI.

Premier Li Keqiang assures foreign firms that more will be done to tackle financial risks at Summer Davos Forum in Tianjin on Tuesday. He promised wider market access for foreign investment and the country is committed to building an environment for fair competition.

“Foreign technology and managerial expertise will help Chinese companies and the country’s industrial upgrading,” Li said. He also acknowledged the contribution of foreign firms in facilitating China’s efforts to push economic transformation and upgrading through reform and innovation.

According to the Ministry of Commerce of the People’s Republic of China, Foreign Direct Investment in China averaged US$4156 million from 1997 until 2016, reaching an all-time high of US$12,627 million in December of 2015 and a record low of US$183.2 million in January of 2000.

Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of financial experience in Asia, said, “Although facing many challenges, China still has the great potential for investment and should become the world’s most appealing destination for investment in the near future.”

Rani Jarkas, the Chairman of Cedrus Investments.

Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas