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Albert commented on recent upsurge of China's investment overseas

[Hong Kong, 20 May 2008]

In a recent (May 12) news article in South China Morning Post entitled "Mainland investments abroad rise to US$19.3b", Albert Au, our Managing Director cum President of the Hong Kong Institute of Certified Public Accountants (HKICPA), commented on recent upsurge of China's investment overseas.

"The US subprime has led many financial institutions to seek new investors. This offers buying opportunities and good buying prices for China Investment Corp (CIC) and other mainland firms", Albert said.

Recent significant investments abroad include the purchase of stakes from large multinational firms such as Morgan Stanley and Blackstone Group by CIC last year. In the first quarter of 2008, The Mainland's total investment abroad already exceeded the total overseas investment in 2007. China has become the biggest overseas investor among all developing countries and ranked 13 worldwide.

Albert said the increasing growth of China's overseas investments reflects the government's policy to expand investments to curb domestic inflation problem. He anticipated that there will be a continuous increase of China's offshore investments for the rest of this year.