A CAPITAL releases the DRAGON INDEX the first Index tracking Chinese Outbound Investments globally
on the occasion of the China-EU Summit in Beijing & the visit of the Chinese Vice President to the US

Europe is for the first time largest recipient of Chinese Outbound Investments
with over 34% of the total (multiplied by 2,5 in 2011, increase of 155%)

After having been multiplied by x10 in 10 years (to 68 billion USD in 2011)
A CAPITAL anticipates Chinese ODI to grow by additional 800 billion USD by 2016

The A CAPITAL DRAGON INDEX has been launched to serve as the reference indicator of Chinese ODI and tracks the globalization rate of the Chinese economy since WTO accession in 2001. It will be published quarterly by A CAPITAL.

The Dragon Index measures the growth rate of Chinese ODI stock relative to GDP and tracks Chinese ODI aggregated by type of investment (minority/majority), by type of investor (SOE/Private), by region of the world and by main reason for investment (resources/technology/brand/market access).



Andre Loesekrug-Pietri, founder and Managing Partner of A CAPITAL commented:
"Europe becomes increasingly attractive for Chinese investments, with more than 34% of the total, which is very good news in the current Eurozone crisis”
"Chinese investors are increasingly looking for added-value – high-end manufacturing, brands, distribution, rather than the usually-reported natural resources investments. 50% of deals are now following this trend, double than in 2010”
“The A CAPITAL Dragon Index is the first Index tracking Chinese ODI globally, and we wish this Index to become the reference indicator for policymakers, CEOs, scholars and investors when they are dealing with a mega trend of the 21st century: the globalization of China and of its enterprises”.

Key trends identified by A CAPITAL are:
- China’s ODI doubled as a share of its GDP from 2,6% to 5,3 % in 10 years (grew from 6.8 billion to 68 billion USD), since WTO accession (the Dragon Index grew from 1000 to 2015 points in 10 years)
- Private Chinese firms, and not just State Owned Enterprises, are increasingly investing overseas (proportion grew from 17% to 28% of total value in 2011 – and 61% in terms of number of deals)
- Investments surge in Industry/Technology and Services (49%, up from less than 25%), indicating a clear shift of Chinese investors towards going up the value chain
- Europe becomes the first destination of Chinese ODI this year (34% of the 2011 total, 10.4 billion USD) demonstrating the European market’s openness and its technological relevance for Chinese strategic development objectives.
- Chinese mergers and acquisitions in the US drop from 7,2 billion USD to 3,2 billion in 2011
- A CAPITAL anticipates the Dragon Index to hit 4400 points in 2016, meaning 800 billion USD more ODI over the next 5 years

Download charts and data : A CAPITAL DRAGON INDEX

Visit the website: www.acapitaldragonindex.com
A CAPITAL Dragon Index press release ENG

A CAPITAL signs a landmark agreement with Beijing to establish the first China‐Outbound Private Equity Fund denominated in RMB. A CAPITAL is the first European investment vehicle to sign an agreement with Beijing to establish a RMB Private Equity Fund. The Fund will jointly invest with Chinese enterprises into Europe for technology, market access and major brands.

Beijing, China - Private equity firm A CAPITAL signed on 11 March 2011, a memorandum of understanding (MoU) with the Beijing Municipal Bureau of Financial Work on the formation of a RMB‐denominated fund.

A CAPITAL, which already launched a Euro fund dedicated to China‐Europe cross‐border investments, will now benefit from the unique opportunity to raise capital in RMB from Chinese institutional and private investors. The Fund will be registered in Beijing and jointly invest with Chinese groups to pursue strategic equity investment opportunities in Europe.

A CAPITAL China Outbound RMB Fund will be entitled to preferential treatment from the Beijing Municipal Government, in accordance with its financial development strategies and policies. The Beijing Municipal Government will provide full support to A CAPITAL, in particular in the access to leading private and state-owned companies in Beijing, as well as to major institutional investors in the Capital City.

Huo Xuewen, Head of the Beijing Municipal Bureau of Financial Work, said: "We welcome and support the establishment of A CAPITAL China Outbound RMB Fund in Beijing. We believe this sets the momentum to welcome more European private equity expertise in the Capital City, with Beijing playing a unique role in supporting Chinese companies going global."

André Loesekrug‐Pietri, Chairman and Managing Partner of A‐CAPITAL, said: "We are delighted to have the strong support from the Beijing Municipal Government for this pioneering RMB‐denominated fund. Our objective is to establish an effective channel for Chinese equity investments into Europe and foster win‐win strategic and equity partnerships between leading European and Chinese groups. Through this, we will boost the development of Chinese and Beijing leading companies, and secure strong development in China of European groups."

The Fund will play an active role in the Chinese Go Global strategy and support the structural transformation strategy defined in the 12th 5-year plan. In signing this MoU with the Beijing Government, A CAPITAL will contribute to further strengthen Beijing as a major financial center and a leading city for the Private Equity industry in China.
A CAPITAL Beijing RMB Fund 15 March 2011 English Press Release

A CAPITAL was at the origin of the landmark China-Europe strategic partnership between Fosun International, China’s largest private conglomerate, and Club Méditerranée, one of the most famous brands in high-end tourism.

A CAPITAL acted as the exclusive financial advisor of Fosun, and co-invested in the transaction.

Closed in June 2010, this deal is the first-ever minority investment by a Chinese group into a global brand, in order to support its China strategy and tap into the highly promising market of Chinese high-end tourism.
Fosun-ClubMed transaction press release in English
A CAPITAL press release in English
Fosun-ClubMed transaction press release in French