Surging Chinese investment a boon for Britain

Mainland Chinese firm Dalian Wanda has more than £1 billion (HK$12.1 billion) of investments in Britain, enough to warrant a recent tour of inspection by its chairman.

The firm's website features a photo of Wang Jianlin shaking hands with London mayor Boris Johnson on August 29 during Wang's visit.

Wanda had committed to a £700 million development of a luxury hotel and residential complex in London, said Catherine Raines, Britain's director general of trade and investment with China. It will be the city's first mainland Chinese-owned luxury hotel.

The firm is just one of many from China pursuing big-ticket deals in Britain. Chinese investment in Britain soared nearly 80 per cent year on year to more than US$4 billion last year, according to China's Ministry of Commerce.

Britain rose to fifth place as an overseas destination for investment from China last year from eighth in 2011 and 21st in 2010, according to the ministry, which ranks the country as the third most important investment destination in Europe.

"The biggest change is the concentration of Chinese investment into a smaller number of European countries over the past 10 years, including the UK. Over the last 18 months, we've seen huge deals from three main categories of Chinese investors," Raines said.