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Singapore remains No 2 destination for Chinese investments: EIU

Friday, November 7, 2014 - 12:40
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SINGAPORE remains the second most attractive destination, after the US, for Chinese investments. Hong Kong remains in third position.

SINGAPORE remains the second most attractive destination, after the US, for Chinese investments. Hong Kong remains in third position.

This is according to new research from The Economist Intelligence Unit (EIU). Its China Going Global Investment Index, which ranks 67 countries on their attractiveness to Chinese overseas investment, features 55 quantitative indicators of opportunity and risk - two broad pillars used to assess countries' attractiveness.

"Developed economies generally perform better than developing economies, backed by large market size, diversified economic structure, strength in intellectual property protection and low political and social risks,'' the EIU said.

Japan slipped by two places, to sixth. The EIU said the perception of China has deteriorated over the past year. "Japan has the least favourable view towards China among all of the countries surveyed by a US polling agency, Pew Research. Cooling relations might create additional obstacles in investment approval and business operation.''

Southern European countries, including Italy, Spain, Portugal and Greece, lagged other European countries in the opportunity pillar, as a result of gloomy growth prospects and weaker strength in intellectual property development. However, subdued economic performance presents appealing acquisition opportunities for Chinese buyers, as a result of suppressed valuation.

The rankings of African and Latin American economies diverge. Countries with stable political and social environments in general see their rankings improve. Venezuela, Egypt and Libya remain near the bottom, with worsening rankings.

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