Think that Chinese investors are generously backing all major US businesses? It's not quite that simple, according to a survey from the AMO, a network of financial communications agencies, and member Abernathy MacGregor.
The group found that Western companies and Chinese investors “are still at the early stages of understanding each other.”
Of all Western companies, the study found that continental European corporations are most likely to chase Chinese investors, while “British IR officers admit they plan on focusing most of their energy on the US where they feel they receive more value for their effort,” according to the report. However, most US companies are skeptical of Chinese investors, citing a lack of transparency. The North American markets, as well as Italy, the Netherlands, Scandinavia, and Spain, have reported much lower numbers of Chinese shareholders than other markets.
Meanwhile, the report also found that mining and IR officers have been the most proactive in seeking out Chinese investors, but that Chinese institutional investors have “spread the wealth across a broad variety of sectors.”
AMO also recommended that IR executives visit China, noting that “going all the way to China will mean greater investment in time and money, but a targeted IR road show to the East will likely deliver better results that simply working the Chinese investors' London offices.”
The AMO network spoke to IR officers at 71 companies in 12 countries for the report.