Thus, in the western countries suffered sovereign debt risk baked in investment for the Western infrastructure does have the game advantage, but the CIC and other Chinese companies lack the infrastructure of international experience in operations management, prudent to equity form of investment in western infrastructure. At the same time, China's foreign exchange reserves, the nature of the problem is not an investment diversity issues, but the excessive accumulation of the central bank's foreign exchange reserves under the existing system of exchange settlement and foreign exchange markets. Therefore, to promote the foreign exchange market system reforms and exchange rate reform, from the system for a more constructive possession of sinks in China to create better conditions than the brains to explore the diversification of official foreign reserve.
The current British government hopes to sovereign wealth funds to participate in investment in infrastructure, for this is neither a significant increase in the pressure of the government deficit but also as a disguised form of economic stimulus plan to promote economic growth, provide new jobs for domestic workers to reduce unemployment . So even if the English permission to vote as Equity investment in its infrastructure, will also be required to ensure the main employment Englishman, to prevent the export of Chinese labor to the British through the tightening of visa, so that China is difficult to graft "+ labor export the traditional mode of operation, thereby increasing the company in the UK and other infrastructure costs.
Recently, CIC chairman Lou Jiwei, the author expressed the hope that cooperation with the fund management company or through public-private partnership as an equity investor participation in infrastructure investment in the UK. With the British Government "coincide," The British Government wants to Asia and other sovereign wealth funds for upgrading the infrastructure of the United Kingdom to provide financing support.
Specifically, iron and other enterprises have many years experience and infrastructure strength to invest in overseas infrastructure, the investment if access to investment in UK infrastructure projects, the objective to provide operational space for Chinese companies to further open the markets of developed countries. But had to be pointed out that Chinese enterprises engaged in overseas infrastructure projects, mostly belonging to the investment cooperation agreement between the government and overseas investment in infrastructure are dependent on labor export of cheap labor in China to reduce costs to lock in gains.
In recent years, Chinese enterprises to actively participate in the overseas country's infrastructure construction, such as in Africa and other countries to take the resources to invest in infrastructure in exchange for participation in local infrastructure in Western countries take the form of BOT, and China's infrastructure to the international community to the impact of high quality; but a genuine form of equity participation in overseas infrastructure, the case is rare. The cast if the way of equity participation in infrastructure in the UK is undoubtedly a breakthrough. Moreover, overseas infrastructure, particularly infrastructure investments in developed markets of course, investment payback period is longer, but the investment income is relatively stable, moderate investment risk, and the robust style of sovereign wealth funds to match.
Not only that, the Western countries, a relatively conservative position held by the Chinese enterprises to invest in its infrastructure, such as Huawei and ZTE have been difficult for Western investment in telecommunications infrastructure breakthrough. Recently, the Icelandic Ministry of the Interior rejected the the gentry Group of Iceland tourism, real estate investment, at the same time the Western countries to vote in the definition of government-sponsored enterprises, resulting in the cast had to brewing split in order to explore the international investment space. Therefore, even if the British Government to allow CIC to the equity investment in infrastructure, may also be the key part of infrastructure investment and operation and management after the completion of for the vote set many restrictions World Steel Pipe News , such as the cast of the shares become non-voting preference shares and other forms, to avoid the cast direct management or lead management infrastructure. Obviously, the asymmetry of the restricted shareholders' equity means that the risk of equity investment income.
Even if ultimately recognized by the British Government world pie network information , as equity investors to participate in the Western infrastructure, principally engaged in investment in financial markets cast a new challenge. Before the vote is also invested $ 4.2 billion stake in Gaz de France Suez Industrial holding a minority stake in the financial investment, and investment results so far remains to be seen.
At the same time, whether it is or has experience in overseas investment in infrastructure in the iron and other investment and lack of experience of the operation and management of overseas infrastructure, while equity investors, investment in infrastructure projects such as the key to success lies in daily operation and management non-project, lack of experience in operations management and lead to high operating costs, then the form of equity investment in overseas infrastructure is a difficult to get rid of the burden in terms of the investment, such as Chinese enterprises in recent years in the international market acclimatized and investment losses reflect, Chinese enterprises still lack of effective international experience in operations management.