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Europe: Top destination for Chinese investors

Chinese companies shift focus from resources to technology. Wei Tian and Ding Qingfen report for China Daily. August 9, 2012 -- Europe, despite its troubles, remains the top destination for Chinese investors who are changing their focus from energy and resources to financial markets and technology, a key report said on Wednesday. Just under a third of Chinese companies surveyed, 32 percent, believed that the best investment opportunities will be in western Europe over the next three years, according to a survey conducted by global professional service provider Ernst & Young. The Middle East and North Africa were favored by 29 percent and 22 percent chose North America. The survey questioned 146 senior managers from Chinese companies across a range of industries. "Western Europe continues to be attractive to Chinese investors due largely to its open business environment, as well as undervalued assets as a result of the ongoing eurozone crisis," said Loletta Chow from the China Overseas Investment Network at Ernst & Young. But Chinese investors should guard against potential risks, the report warned, explaining that many projects owned by private equity funds lacked investor protection. A greater interest in Europe and North America was also due to a changing investor appetite with energy and resources not playing such a dominant role. Investment in energy declined from 82 percent in 2009 to 60 percent in the first half of 2012, the report said.