China investment in Europe surges in second quarter

"Investment in Europe should continue strongly as the market remains very open for Chinese investments, valuations are reasonable, and Chinese companies need to move strategically to improve their value-added in terms of technologies, brands and access to customers," A Capital said in a statement.

Raw materials remain a favorite sector for Chinese investors, accounting for 53% of total deal value. The number was largely driven by Sinopec's $2.5 billion acquisition of a 33% stake in US-based Devon Energy and Yanzhou Coal's $2 billion purchase of Gloucester in Australia.

Resources aside, Europe was responsible for 95% of outbound deals by Chinese companies.

Several private equity players have in recent months scaled up their Sino-European investments. In July, A Capital and China's Sparkle Roll took a minority stake in Danish electronics maker Bang & Olufsen.

Last month, Mandarin Capital Partners told AVCJ it was nearing a EUR500 million ($627 million) first close for its second cross-border fund of EUR1 billion. The fund will make investments of EUR20-80 million in advanced manufacturing and services companies across China and German-speaking areas of Europe, as well as Turkey, Israel and the US.

Last week, China Development Bank (CDB) teamed up with French state-owned bank Caisse des Dépôts to create a EUR150 million fund to promote the international expansion of French and Chinese small- and medium-sized enterprise (SMEs).

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• Topics
• Greater China
• Europe
• Outbound investment
• Europe
• China
• A Capital Asia
• Mandarin Capital Partners
• China Development Bank