Chinese Investment in UK Takes Great Leap ——Grant Thornton released Tou Ying Tracker 2016

Today, Grant Thornton issued Grant Thornton 投英Tou Ying Tracker 2016,developed in collaboration with China Daily.The Tou Ying Tracker 2016 reflects that the top 30 Chinese companies in the UK achieved average growth of 174% in 2015, which is 130% higher than the overall growth of 44% in 2014. Chinese investment in UK took a great leap last year, making significant contribution to British economy.

This is the fourth edition of the Grant Thornton Tou Ying Tracker, based on the latest published accounts filed as at 7 October 2016 and analysisof the performance of Chinese companies in the UK prior to the EU referendum,identifying the fastest-growing 30 Chinese companies in the UK. The report shows that these businesses had a combined turn over of more than £9.8 billion, and employed over 20,000 people (7 times more than 2,500 in 2014). Among the companies, the top 16 SOEs achieved average growth of 146%, while 14 private companies grew by 210% on average.

The Tou Ying Tracker 2016 reflects the changing pattern of Chinese overseas investment and shows that China’s thriving private sector is increasingly forging its own path and achieved spectacular growth, followingthe lead of its more established SOEs. SOEs have focused mainly on the UK energy and financial services sectors, with the remainder coming from thetelecoms,real estate, technology and business support services sectors. By contrast, the top 14 private companies range across the manufacturing, technology, media, telecoms, leisure, retail, consumer, financial services and property sectors. This reflects the growing global presence of the Chinese private sector alongside its increasingly consumer-oriented economy, underlined by the move from ‘Made in China’ to ‘Made for China’.

Sacha V Romanovitch, CEO ofthe Grant Thornton UK LLP, said: "The eye-catching formal negotiations toleave the EU are likely to start in March 2017 and may not be completed until early 2019. Brexit is just one component of wider global economic uncertainty, some acquisitive groups may put their M&A agenda on hold until there is greater clarity. Since the result of the EU Referendum, there have been some significant projects involving Chinese investors and Chinese capital. The UK government will seek to maintain the competitive nature of the UK and its trading relationships. In addition, the value of sterling may continue to offer opportunities for investors, as do government plans for increased infrastructure investment."

"The Chinese government has published the‘The Belt and Road' initiative, of openness and inclusiveness, which should be jointly built through consultation to meet the interests of all," said Xu Hua, chief executive officer and managing partner of Grant Thornton China, "According to Grant Thornton Tou Ying Tracker 2016, the Chinese government has started anew‘Silk Road’in the UK and the continued growth of China's investment in the UK, and this is very much in line with the Chinese government’s ‘The Belt and Road’initiative to create a new ‘Silk Road’ of trade links and markets."

"In May of this year, the ‘Belt and Road’ International Cooperation Summit will be held in Beijing, China, standing for exploring new ways for current global and regional economic development, starting new engines to accomplish the linkage type development, so that the‘Belt and Road’ initiative will better benefit people of all countries, and the Sino‐British pattern will be setting a good example for the world." said Xu Hua.

For more information, please check full version of the 投英Tou Ying Tracker 2016.