Chinese investors head to Southeast Asia for acquisitions as they face rising barriers in the US and Europe, Baker McKenzie says
- Southeast Asia is the preferred investment destination among Asia-Pacific executives, though Chinese firms need to tread carefully in the region
- Baker McKenzie survey finds previous hotpots of Europe, Britain the UK and the United States falling out of favour
Corporate executives in the Asia-Pacific region remain upbeat on international investments, although interest in Southeast Asia has begun to displace previously favoured destinations, according to a survey by law firm Baker McKenzie.
Destinations such as Europe, Britain and the United States have fallen out of favour, overtaken by Thailand, Vietnam and other Southeast Asian nations, according to the survey, which polled 600 executives in the Asia-Pacific.
About 63 per cent of executives based in mainland China said they expected to increase international investments by more than 10 per cent over the next two years. The survey included responses from 200 executives based in either Hong Kong or China.
Across all firms surveyed, 88 per cent of respondents said their firms were more interested in international expansion, be that acquisitions, investments or listings, over the next two years.
The report’s authors found that China’s “Belt and Road Initiative” remained important to the strategy of Hong Kong and Chinese companies.
“Chinese companies are still very active in making [belt and road] investments,” said Baker McKenzie M&A partner Bee Chun Boo.