ID :
148706
Thu, 11/04/2010 - 02:57
Auther :
Shortlink :
https://oananews.org//node/148706
The shortlink copeid
ASIA LIKELY TO SEE MORE CHINESE RETAIL MONEY IN NEXT 5-10 YEARS
By Samantha Tan
KUALA LUMPUR, Nov 3 (Bernama) -- Asian countries are likely to see a greater
flow of Chinese retail money flowing into the region in the next five to 10
years, according to Singular Asset Management Sdn Bhd.
Its chief investment officer Teoh Kok Lin said that Chinese retail investors
would participate in the equity markets as the Chinese government had been
encouraging local companies to go abroad since 2000.
"In the next five to 10 years, we would see a tremendous amount of Chinese
retail money coming in. We may see the 1993 super-boom when American retail
investors came to Asia," he said during a session at the Second World Chinese
Economic Forum here Wednesday.
Teoh was one of three speakers at the session entitled "The Wall of
Money-China's Growing Overseas Investments".
"The Chinese companies are now more eager to invest abroad as they find the
domestic market too competitive. They are also looking to expand market share,
acquire new technology and access to new markets globally," he said.
Teoh said Asian companies, including Malaysian, should position themselves well
to attract the Chinese companies, adding they were interested in all sectors
that could perform well.
He said the flow of Chinese overseas investments was currently largely driven by
the Chinese government in US Treasury auctions, mergers and acquisitions, and
sovereign wealth funds.
Teoh said the Chinese government would encourage overseas investment as the
country has a huge reserve of US$2.6 trillion, adding that the Chinese would
invest more in natural resources and the financial sector.
The US dollar's devaluation has provided poor returns, prompting the Chinese
government to create the China Investment Corporation (CIC) to manage China's
investment in equities, he said.
Established in 2007, CIC has about US$200 billion of assets under
management, making it one of the world's largest sovereign wealth funds.
China has also introduced the Qualified Domestic Institutional Investor
programme, a scheme relating to the capital market which allows financial
institutions to invest in offshore markets such as securities and bonds.
-- BERNAMA
KUALA LUMPUR, Nov 3 (Bernama) -- Asian countries are likely to see a greater
flow of Chinese retail money flowing into the region in the next five to 10
years, according to Singular Asset Management Sdn Bhd.
Its chief investment officer Teoh Kok Lin said that Chinese retail investors
would participate in the equity markets as the Chinese government had been
encouraging local companies to go abroad since 2000.
"In the next five to 10 years, we would see a tremendous amount of Chinese
retail money coming in. We may see the 1993 super-boom when American retail
investors came to Asia," he said during a session at the Second World Chinese
Economic Forum here Wednesday.
Teoh was one of three speakers at the session entitled "The Wall of
Money-China's Growing Overseas Investments".
"The Chinese companies are now more eager to invest abroad as they find the
domestic market too competitive. They are also looking to expand market share,
acquire new technology and access to new markets globally," he said.
Teoh said Asian companies, including Malaysian, should position themselves well
to attract the Chinese companies, adding they were interested in all sectors
that could perform well.
He said the flow of Chinese overseas investments was currently largely driven by
the Chinese government in US Treasury auctions, mergers and acquisitions, and
sovereign wealth funds.
Teoh said the Chinese government would encourage overseas investment as the
country has a huge reserve of US$2.6 trillion, adding that the Chinese would
invest more in natural resources and the financial sector.
The US dollar's devaluation has provided poor returns, prompting the Chinese
government to create the China Investment Corporation (CIC) to manage China's
investment in equities, he said.
Established in 2007, CIC has about US$200 billion of assets under
management, making it one of the world's largest sovereign wealth funds.
China has also introduced the Qualified Domestic Institutional Investor
programme, a scheme relating to the capital market which allows financial
institutions to invest in offshore markets such as securities and bonds.
-- BERNAMA
