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Foreign investment in the petrochemical industry has achieved significant benefits
On March 19th, the General Office of the State Council issued the Action Plan for Solidly Promoting High Level Opening up to the Outside World and Strengthening Attraction and Utilization of Foreign Investment, pointing out that greater efforts should be made in creating the environment and improving services, and the practical issues of concern to foreign-invested enterprises should be taken as a breakthrough point. Foreign investment is an important force to participate in the construction of Chinese path to modernization and promote the common prosperity and development of China's economy and the world economy. China is one of the largest and most important petrochemical markets in the world, and the issuance of the Action Plan is a significant benefit for foreign investment in the petrochemical industry.
Continue to search for investment opportunities
On March 10th, Saudi Aramco released its 2023 performance report, with its annual net profit recording the second highest in history, second only to 2022. Meanwhile, Saudi Aramco CEO Amin Nasser stated that he is seeking more opportunities to invest in China. According to data, Saudi Aramco has invested heavily in China since last year, with a total amount possibly exceeding 100 billion yuan. Earlier, the comprehensive construction of the main project of the China Saudi Aramco Gulei ethylene project, with a total investment of approximately 44.8 billion yuan, was held in Zhangzhou, Fujian.
On February 18th, at the Guangdong Provincial High Quality Development Conference, Tan Ranke, Chairman of ExxonMobil China, stated that ExxonMobil's investment in the first phase of the ExxonMobil Huizhou ethylene project in the Daya Bay Petrochemical Zone in Huizhou has exceeded 31 billion yuan, and an additional 10 billion yuan will be invested this year.
At the same time, foreign giants such as BASF, ExxonMobil, and Siemens have invested in establishing technology innovation and research and development centers in Guangdong. "The BASF project has a total investment of about 10 billion euros in Zhanjiang, which is of great significance for the local economic development of Zhanjiang and the stability of Guangdong's foreign trade foundation," said Zhang Yansheng, Chief Researcher of the China Center for International Economic Exchange.
Continuously optimizing the business environment
This Action Plan takes practical measures to expand market access, facilitate the flow of innovative factors, and align with international high standard economic and trade rules, in order to attract more foreign investment. Wu Hao, Secretary General of the National Development and Reform Commission, stated that the introduction of the Action Plan once again demonstrates China's high attention to attracting foreign investment, strengthening positive interaction with the world economy through high-level opening-up, and enhancing the confidence of foreign investors in investing in China through practical actions.
According to data, China's actual utilization of foreign investment in 2023 is still at a historical high. In terms of "quantity", the actual utilization of foreign investment exceeded 1.1 trillion yuan, which is the third highest in history; From a qualitative perspective, the structure of utilizing foreign investment continues to optimize, with high-tech industries attracting investment accounting for 37.4%, an increase of 1.3 percentage points from 2022, and the manufacturing sector attracting investment accounting for 27.9%, an increase of 1.6 percentage points.
"China's economy performed steadily last year, and this year's proposed growth target of about 5% indicates that China's economy continues to play an important role in the global economy, and will also be a stabilizer and strong engine of world economic growth. China's expansion of high-level opening up and the creation of a stable, transparent and predictable policy environment are very encouraging for foreign-funded enterprises, including Johnson&Johnson." Song Weiqun, senior vice president of Johnson&Johnson Global and chairman of China, said that Johnson&Johnson is more confident in taking root in the Chinese market and actively promoting local innovation, intelligent manufacturing and ecological cooperation capabilities.
Continuously optimistic about investment in China
In addition to the continued optimism of foreign investment in China, international investment banks are also doing the same. At present, global funds are actively purchasing Chinese stocks and have been net buyers of Chinese stocks for the second consecutive month. Foreign institutions are all optimistic that Chinese assets will soon usher in a more optimistic outlook.
Among them, Skagen AS from Norway and Boston Partners from the United States, two global funds, have significantly increased their holdings in A-shares, Hong Kong shares, and related stocks in recent months. The reasons given by the two funds for increasing their holdings are that the valuations of Chinese stock market related stocks are low, financial and regulatory risks are significantly reduced, and corporate profits are improving.
Various signs indicate that foreign investment is continuing to enter the market. According to a research report released by Industrial Securities, in February this year, foreign investment achieved its first monthly net inflow in the past seven months, becoming the main incremental capital in the market in recent times. From the perspective of splitting the foreign investment structure, the foreign investment allocation has accumulated an additional position of nearly 26 billion yuan in February this year. Several foreign institutions have stated that the current A-share market pattern is undergoing positive changes, coupled with market valuations at historical lows, highlighting opportunities for asset investment in China.
Continue to search for investment opportunities
On March 10th, Saudi Aramco released its 2023 performance report, with its annual net profit recording the second highest in history, second only to 2022. Meanwhile, Saudi Aramco CEO Amin Nasser stated that he is seeking more opportunities to invest in China. According to data, Saudi Aramco has invested heavily in China since last year, with a total amount possibly exceeding 100 billion yuan. Earlier, the comprehensive construction of the main project of the China Saudi Aramco Gulei ethylene project, with a total investment of approximately 44.8 billion yuan, was held in Zhangzhou, Fujian.
On February 18th, at the Guangdong Provincial High Quality Development Conference, Tan Ranke, Chairman of ExxonMobil China, stated that ExxonMobil's investment in the first phase of the ExxonMobil Huizhou ethylene project in the Daya Bay Petrochemical Zone in Huizhou has exceeded 31 billion yuan, and an additional 10 billion yuan will be invested this year.
At the same time, foreign giants such as BASF, ExxonMobil, and Siemens have invested in establishing technology innovation and research and development centers in Guangdong. "The BASF project has a total investment of about 10 billion euros in Zhanjiang, which is of great significance for the local economic development of Zhanjiang and the stability of Guangdong's foreign trade foundation," said Zhang Yansheng, Chief Researcher of the China Center for International Economic Exchange.
Continuously optimizing the business environment
This Action Plan takes practical measures to expand market access, facilitate the flow of innovative factors, and align with international high standard economic and trade rules, in order to attract more foreign investment. Wu Hao, Secretary General of the National Development and Reform Commission, stated that the introduction of the Action Plan once again demonstrates China's high attention to attracting foreign investment, strengthening positive interaction with the world economy through high-level opening-up, and enhancing the confidence of foreign investors in investing in China through practical actions.
According to data, China's actual utilization of foreign investment in 2023 is still at a historical high. In terms of "quantity", the actual utilization of foreign investment exceeded 1.1 trillion yuan, which is the third highest in history; From a qualitative perspective, the structure of utilizing foreign investment continues to optimize, with high-tech industries attracting investment accounting for 37.4%, an increase of 1.3 percentage points from 2022, and the manufacturing sector attracting investment accounting for 27.9%, an increase of 1.6 percentage points.
"China's economy performed steadily last year, and this year's proposed growth target of about 5% indicates that China's economy continues to play an important role in the global economy, and will also be a stabilizer and strong engine of world economic growth. China's expansion of high-level opening up and the creation of a stable, transparent and predictable policy environment are very encouraging for foreign-funded enterprises, including Johnson&Johnson." Song Weiqun, senior vice president of Johnson&Johnson Global and chairman of China, said that Johnson&Johnson is more confident in taking root in the Chinese market and actively promoting local innovation, intelligent manufacturing and ecological cooperation capabilities.
Continuously optimistic about investment in China
In addition to the continued optimism of foreign investment in China, international investment banks are also doing the same. At present, global funds are actively purchasing Chinese stocks and have been net buyers of Chinese stocks for the second consecutive month. Foreign institutions are all optimistic that Chinese assets will soon usher in a more optimistic outlook.
Among them, Skagen AS from Norway and Boston Partners from the United States, two global funds, have significantly increased their holdings in A-shares, Hong Kong shares, and related stocks in recent months. The reasons given by the two funds for increasing their holdings are that the valuations of Chinese stock market related stocks are low, financial and regulatory risks are significantly reduced, and corporate profits are improving.
Various signs indicate that foreign investment is continuing to enter the market. According to a research report released by Industrial Securities, in February this year, foreign investment achieved its first monthly net inflow in the past seven months, becoming the main incremental capital in the market in recent times. From the perspective of splitting the foreign investment structure, the foreign investment allocation has accumulated an additional position of nearly 26 billion yuan in February this year. Several foreign institutions have stated that the current A-share market pattern is undergoing positive changes, coupled with market valuations at historical lows, highlighting opportunities for asset investment in China.
Morgan Stanley also stated that overall, the A-share market pattern has undergone significant changes. In the first half of this year, the Chinese economy will enter a stable operation trend, and its suppression effect on the market will be weaker than last year. The market will be more sensitive to marginal improvement, and the profit making effect is expected to significantly increase.
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