China to See Overseas Financing Improved Next Year: Morgan Stanley

Chinese enterprises will see a better situation in overseas fund raising next year, says Mr J. Jonathan Zhu, managing director of Mongan Stanley. After China's entry into the WTO the development of inland financial markets would be sped up to bring more benefits to the inland financial institutions.

Last year saw a total volume of US$20 billion overseas fund raising by Chinese inland enterprises, but a slump to US$3 billion this year and next year will see it to go up again. As expected, the capital market would gradually pick up in the first half of next year as the US economy is going to recover from the later half of next year for stock market always goes ahead of economy. Besides, Chinese inland enterprises are considering reforms and the situation will turn to be clearer next year to make its overseas financing easier.

Listing on international markets could widen fund-raising channels for Chinese enterprises, enabling them to purchase international institutions and enlarging business scale and in the end to bring them onto the track of global market.

Enterprises engaged in telecom, media, interflow of materials and goods, and energy and finance may become the target of international capital, for it favors leading enterprises in trades that have bigger growth potential.

By PD Online Staff Li Heng

People's Daily Online ---