Over the preceding 18 months, the activities and aspirations of both sovereign wealth funds and Chinese banks have attracted a great deal of scrutiny. With the current economic climate and crisis in financial markets, it would be interesting to gauge whether attitudes have changed. With funding channels locked-up in financial centres across the globe and with governments under increasing pressure to support ailing institutions, it would seem that capital inflows would be most welcome.
In the midst of the maelstrom, recent comments made to the South China Morning Post at the World Economic Forum by Bank of China vice-president Zhu Min seem instructive, ”from a business point of view, we are looking at all possible deals everywhere,” he said. However, cash -strapped banking executives should take note, he qualified his remarks by saying that,”In our overseas acquisition endeavours, we are more interested in unique and profitable business models and financial products rather than….. seemingly undervalued financial assets.”
Recent events put an interesting twist on a very divisive issue and will test the resolve of governments who may have previously stood in the way of asset acquisition on the part of foreign entities. To fence-sitting observers however, it will give an indication of the depth of the current crisis.
Tags: Bank of China, financial markets, Sovereign wealth funds, World Economic Forum
