How can the PE of China take the advantage of Shanghai Free Trade Zone (FTZ) to go abroad? -A case study of Hony Capital

摘要

The traditional way of cross-border investment has been complained by investors because of the complexity of approval process, the limited investment range of industries, and the potential high cost of capital. However, Since China (Shanghai) Pilot Free Trade Zone had been set up, China open wider to the outside in the area of trade and investment, encouraging enterprises to go out. This paper analyses the policy advantages of overseas investment in FTZ by the case study of Hony Capital, and put up an improved plan. To speed up the process of domestic capital going abroad, both the financial service and the policy in FTZ need to be improved: On the one hand, the bank should actively explore the way to service the enterprises, helping them expand financing channels. On the other hand, the FTZ could be built into the center of cross-border investment funds, where enterprises can get help when they plan to overseas merge and acquisition.