Chinese companies shifting focus to organic growth

Chinese companies are now attaching more importance to localized management and organic growth in the domestic market, which will naturally translate into a global status, rather than focusing on growing international market share via mergers and acquisitions, said experts from JPMorgan.

Sjoerd Leenart, global head of corporate banking at JPMorgan, said that there has been a discernible shift among Chinese companies in buying targets overseas to digesting and optimizing the acquisitions.

"The way in which the companies are going abroad, has shifted from acquisitions to rolling out their business models abroad. It is sometimes better to roll out your own business abroad than buying a third party company," said Leenart.