Home>News Center>Bizchina

China to become global 2nd economic entity
Updated: 2004-09-26 10:56

It is predicted that 2005 will see China to issue US$22 billion new shares when the Swiss Credit was held its meeting of the Executives of the Board of Directors in Shanghai.

Paul Calello, CEO of Swiss Credit expressed the very day in Shanghai, saying that China has the potential to develop into a global second economic system within a span of 10 years.

Paul Calello expressed himself like this when he was attending the meeting of the Executive Directors in Shanghai. As learned, this is the first time for the credit to have its leading group meeting held in China. Paul Calello said, why the meeting of the executives was to be held in China is that all executives could have an experience of the marvelous economic growth in China for this is of an extraordinary significance for the group. He expressed whichever financial service group has a view for future development must set up a business of a certain scale in Asia, especially in China.

Prior to this, many internationally renowned organizations and experts have made a prediction on the status of China in the world economy in future. The comparatively popular view is that China will become the third economic entity in the coming 20 years, next to the US and Europe with seemingly few holding the view that China would come up to the second in the world.

What's the ground for the assertion of Paul Calello is perhaps the strong development of financial business that the Swiss Credit experienced in China. The statistics of the Swiss Credit indicate, in the first 8 months of 2004, the securities and bonds issued in Asia amounted to US$38.5 billion in total, of which China alone took up 1/3 of them at a secured top.

From January to the end of August 2004, the issuance of securities in China came to US$17.7 billion, surpassing by far the amount of USD 13.8 billion in 2003. Moreover, the market still shows a strong indication to take in the new shares from China.

During the rest of the time of this year, the securities issuance in China is quite likely to reach US$15 billion while the estimation for 2005 is around US$22 billion, which, in deduction of Japan, takes up about 70 percent of the total securities issuance in Asian area. In the merger and acquisition market, the year of 2000 witnessed China to take up only 7 percent of the total merger transactions in Asia in deduction of that of Japan. But in 2003, the ratio China occupied rose to 31 percent, reaching US$29.5 billion in transaction value.

Paul Calello expressed, along with the continuous deepening of economic reform in China and its further merging into the global economy the Swiss Credit has discovered a huge opportunity for development. It is now actively taking in the elite from among human resources to form an outstanding leading group, hoping to have a further strengthened cooperation with the Chinese government and enterprises in so inspiring a time as such for development. He expressed, China is one of the important market in Asia-Pacific Region and one of the important global markets of the group as well.

Before this, First Boston Bank of Credit Suisse (CSFB) got approval at the end of August through Swiss Investment Bank Shanghai Branch to carry out directly with the Chinese companies on transactions for financial derived products. Besides, the CSFB also through its branch took an active part in Renminbi debentures and bonds transactions and recovery business in the market, numbering second among all foreign-funded banks in the total Renminbi transaction business in 2003.

  Story Tools