More on China’s fast moves
In an article on Antony Leung, Citibank veteran and new head of Blackstone in “Greater China,” the WSJ imparts a surprise insight into China’s fast moving plans to recycle its foreign exchange reserves:
In the recent deals, Mr. Leung has had luck on his side. This year, when Mr. Leung approached Lou Jiwei, the finance ministry official who is expected to serve as chairman of the new investing company, to pitch Blackstone’s products, he never expected Mr. Lou would be interested in investing in Blackstone itself…
On Monday, China Development Bank said it would invest as much as €9.8 billion ($13.52 billion) for a stake in Barclays PLC and thereby help it finance its bid for ABN Amro Holding NV. An important intermediary once again was Mr. Leung, whose firm advised the Chinese government-owned lender. Such a deal could also become, by far, China’s biggest single overseas investment, if China Development Bank buys the full stake.
We continue to be amazed at the fast pace of these movements. Lou Jiwei — a government employee — didn’t even have his job in March of this year. Less than two months later, it is Lou Jiwei who is proposing to Blackstone (if the account is to be believed), that China take a $3 billion stake in its IPO, not the other way around. The investment agency had not even been established yet at that time. It is hard to imagine the US government bureaucracy and its senior officials moving this boldly and fast. Indeed, they are known for rather the opposite.
July 26th, 2007 at 3:23 am
Why do the Chinese invest outside their country? I thought China was the place to be? Why would one not invest in a high growth, high yield place that one knows best, but instead invest in lower yield slower growth, high tax area? What do Chinese officials know that others do not?
Is it that China is not what it is believed to be, or is there a political reason?
It is not so much what the Chinese are doing, as much as why.