Chinese foreign investment takes a direct route

China’s outbound investment into resource and energy assets is likely to undergo a shift in form, direction and scale during the next few years. Nationalist resistance to earlier high-profile acquisitions and tougher regulatory inspection in traditional target countries, as well as a shift in domestic priorities, will determine new strategies.

“Although Australia and North America will remain the most important destinations for acquisitive Chinese companies and state-owned enterprises SOEs, other regions such as Africa and Central Asia should grow in prominence,” said Amy Cheng, vice-chairman of investment banking at Bank of China, in a panel discussion at this week’s Mines and Money conference in Hong Kong.