Growth of key industries in China poses potential for EU companies: Dagong Europe

MILAN, Italy, May 28 (Xinhua) -- Fast development of key industries in China poses a strong potential for European companies, analysts of Dagong Europe, the branch of China-based Dagong Global Credit Rating Co., Ltd. in Europe, said here on Wednesday.

China's need to increase technological content of its production, reduce foreign energy dependence and fight environment pollution matches with important sectors in European countries such as automotive, energy, pharmaceuticals and telecommunication, Richard Miratsky, Head of Corporates Analytical Team at Dagong Europe, said.

Miratsky made the remarks at the Milan Foreign Press Association, where the agency's analysts presented the first series of Dagong Europe Industry Compass, a sector-focused study combining an overview of major European industries with focus on developments and opportunities in China.

Dagong Europe Industry Compass showed that strong demand makes China central to European car producers. Over 4.5 million European branded cars were sold in the Asian country last year, and the potential of future expansion remains strategic.

In the same way, surging China's healthcare expenses, driven by aging population, rising middle class and rapid urbanization will attract international investments in the pharmaceutical industry.

Regarding the telecom sector, currently domestic players dominate the market in China, but the continuing infrastructure upgrade will also benefit foreign manufacturers and providers of ancillary communication technologies.

China's growing demand for oil and gas as well as growing electricity demand and need to reduce coal use will also bring opportunities for European high-tech operators, the study highlighted.

"In absolute terms, these industries have rapidly grown in China over the past two decades, with 21.9 million cars sold, 1.2 billion mobile subscriptions and 450 billion U.S. dollars spent on pharmaceuticals in 2013," Miratsky went on to say.

Meanwhile Francesca Russo, Director of Corporates Analytical Team at Dagong Europe, highlighted "Per capita consumption levels in the Asian country, however, remain behind Europe and the United States, representing significant growth potential for international players."

Dagong Europe was established in Milan in 2012 as a Sino-Italian joint venture between Dagong Global Credit Rating and Mandarin Capital Partners, a private equity fund by institutional investors, and was the first Asian rating company operating in the European Union (EU).

A new competitor in the international market of rating provided with a different view and deep perspective, Dagong Europe issues credit opinions on financial institutions including insurance companies and non-financial corporates, General Manager of Dagong Europe, Ulrich Bierbaum, explained.

Dagong Europe is under and compliant to the European framework regulated by the European Securities Market Authority (ESMA) and counts on an international, experienced team with the mission to reflect the growing importance of Chinese investors in global markets and also promote the flows of foreign capitals into China, he said.

http://news.xinhuanet.com/english/china/2014-05/29/c_133369049.htm