Energy giant bolsters financial links, diversifies portfolio

CEFC China Energy is developing a diversified financial platform to support its sustainable development.

The business signed an agreement to acquire a 50 percent share of J&T Finance Group, the second-largest financial group in the Czech Republic, in March 2016, becoming the first Chinese private company to control a European bank.

The acquisition established a solid foundation for CEFC China to expand its footprint in the financial investment sector in Europe and other overseas regions, according to the company.

CEFC also supported J&T Bank, as a representative of the Czech government, to set up the Sino-Central and Eastern Europe Investment Fund with the Industrial and Commercial Bank of China, in order to help more Chinese businesses to invest in Belt and Road countries.

The company has established regional headquarters in Georgia to strengthen its commitment to the local market.

Located at the crossroads of Western Asia and Eastern Europe, Georgia is seen as one of the most important traffic and logistic hubs in Europe.

The management of CEFC China have decided to launch strategic cooperation with Georgia's government and businesses in sectors such as banking, trading, exports and processing, warehouse logistics and cross-border finance. The cooperation is based on detailed analysis of regional market demand and the Belt and Road Initiative. Those moves play a significant role in supporting Chinese businesses exporting advanced technologies, products and capacities to Europe and Asia.

After years of expansion, CEFC China has become one of the biggest and most influential Chinese enterprises in Central and Eastern Europe. It has strong brand awareness in countries along the Belt and Road.

The business plans to apply its experiences in the Czech Republic and Georgia to other Belt and Road countries and regions to support its long-term development.

It has signed cooperation agreements with countries including Germany, Italy, Russia, Bulgaria, Qatar and Oman in areas such as energy, finance, technology, agriculture and infrastructure.

Further expansion

Apart from expanding operations in Belt and Road countries, CEFC is also actively looking for opportunities in the other regions, such as the United States.

CEFC China has agreed to acquire a 19.9 percent stake in the US century-old broker Cowen Group in March. The deal, to be completed in the third quarter of 2017, will make the business the largest shareholder of Cowen Group.

"We highly value the experiences and advantages Cowen has in innovation industries such as healthcare, new energy, technology, media and telecommunications, as well as its position in capital market services," said Ye Jianming, chairman of CEFC.

"The partnership between CEFC China and Cowen in investment, capital and asset management will help both parties to better allocate resources and create bigger value," Ye added.

Looking ahead, CEFC China will continue to invest in Cowen and support its core businesses' expansion.

The Chinese energy and financial service giant will help Cowen establish Shanghai as its China headquarters, and even for the Asia-Pacific region.

Such a development would connect the US financial services company with the Shanghai International Financial Center and Shanghai Technology Innovation Center, providing services for domestic companies moving abroad.

(China Daily 05/14/2017 page36)