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Business "going out" has a risk guide

Date:2016-05-06

For more and more Chinese enterprises overseas investment behavior, China Export & Credit Insurance Corporation for the first time released the "Global Investment Risk Analysis Report" for Chinese enterprises to provide overseas investment risk guidance.
Investing in international markets for new opportunities for development is becoming the de facto move for more and more Chinese enterprises. The latest data show that at present China's foreign investment and foreign investment is close to balance. "It is very necessary to strengthen the prevention of risks in overseas investment because the more open it is, the greater the risk exposes enterprises to risks. From an international perspective, this is an era of major adjustment and transformation, and its projection into economic and trade will have more More Uncertainty: Investing is an ongoing process that requires continual assessment of ex ante risks in advance, "Jiang Wenbin, deputy director of the Department of Commerce's cooperation department, said of the report.


According to the relevant data of export credit insurance, the next 5 to 10 years, Chinese enterprises will enter the period of high risk of foreign investment. In 2015, China CITIC Bank surveyed nearly one hundred enterprises that have overseas investment business and found that 44% of the companies surveyed invested overseas in the risk of one to three years and 25% of them took four years By five years, the longest period of business risk occurred in less than seven years. In addition, from the actual compensation claims of China CITIC Bank, the proportion of overseas investment in insurance has risen rapidly in recent years. Compared with 2013, cumulative claims of China CITIC Bank in 2014 increased twice as much as claims.
"At present, there are three misunderstandings about Chinese enterprises' overseas investment: first, they think that the risk in developed countries is small; second, they think that they have been operating in the host country for many years, know the local market very well and consider the risk controllable. Thirdly, they think there is no good relationship between the host country and China In fact, none of these factors can be an effective protection against risks. "Luo Xi, general manager of China Export & Credit Assurance, said that risk assessment is the most effective way for enterprises to identify and identify risks in the early years. The report is the first time that domestic financial institutions are targeting Systematic research on risk has initially formed the basic framework for the study of overseas investment risks and will play an important role in helping overseas investment enterprises to identify and measure investment risks.
Faced with the advent of Chinese enterprises overseas investment climax, China CITIC made three recommendations, including strengthening the construction of overseas investment risk database, the establishment of overseas investment risk protection fund, improve the RMB global clearing system.

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