**: Venture Capital Exchange.
Since the beginning of this year, Middle East capital has continued to develop Chinese assets, and has frequently cooperated with financial institutions and enterprises at the ** level, sovereign **, and set off a new Middle East boom.
*The Times reporter learned that on November 30, CCB International (Holdings)** hereinafter referred to as "CCB International") and Abu Dhabi Investment Office (hereinafter referred to as "ADIO") signed a memorandum of strategic cooperation in Abu Dhabi, the capital of the United Arab Emirates. According to the agreement, the two parties will commit to strengthening cooperation and regular communication to promote mutually beneficial initiatives, and through group companies and affiliates, take joint actions against customers and entities seeking to establish and conduct business in Abu Dhabi or Chinese mainland and Hong Kong, so as to promote the high-quality development of the Belt and Road Initiative and promote the deepening of financial cooperation between China and Argentina.
In an exclusive interview with the reporter of ** Times, Li Qianxin, chairman of CCB International, said: "In recent years, China and Argentina have comprehensively promoted the construction of financial cooperation mechanisms under the framework of the 'Belt and Road', and have continuously expanded the space for cooperation in central bank agreements, banking, insurance and bilateral cross-border financial institutions. At the first China-Arab States Summit, we are also actively responding to the call of 'focusing on economic development and promoting win-win cooperation' and working together to build a China-Arab community with a shared future for the new era, striving to make innovations and explorations in terms of scale and form of cooperation, hoping to further promote China-Arab financial cooperation with our professional expertise. ”
CCB International joins hands with ADIO to explore investment opportunities in both places.
It is worth noting that CCB International is the first investment bank in the financial sector to sign a memorandum of cooperation. According to the MoU, the two parties will carry out and promote cooperation activities of mutual interest in key areas such as industry, renewable energy, mineral rare earths, artificial intelligence technology, information and communication technology (intelligent transportation, e-commerce, cloud computing) in the form of joint venturesFacilitate the financing and secondary listing of Chinese companies in Abu Dhabi and the listing of Abu Dhabi companies in Chinese mainland or Hong Kong;Identifying and screening various types of Chinese companies that meet the listing requirements of the Abu Dhabi Stock Exchange for the Abu Dhabi Initial Public Offering** (Adipof) to facilitate investment opportunities;At the same time, CCB International's direct investment and asset management business identifies and selects various Abu Dhabi companies that meet the listing requirements of Chinese mainland or Hong Kong Stock Exchange to promote investment opportunities.
Specifically, the reporter learned from CCB International that the cooperation with ADIO will enable CCB International's clients to have access to a large number of Middle Eastern sovereignty** and can imagine creating more cooperation opportunities for customers and investors in Abu Dhabi in the next 5 years. In addition to focusing on the three major business segments of pre-IPO, IPO and post-IPO, CCB International will also carry out and promote joint ventures with ADIO in key areas** to deepen and promote bilateral cooperation. Particular attention will be paid to the non-oil industry and renewable energy, with the hope of promoting greater diversification of China's OFDI in the UAE.
In fact, since the beginning of this year, CCBI has also had frequent contacts with the Middle East region, and CCBI was also one of the representative members when the Chief Executive of the Hong Kong Special Administrative Region (HKSAR), John Lee, led a delegation to visit the Middle East at the beginning of the year. As the investment banking flagship of China Construction Bank, CCB International's subsidiaries headquartered in Hong Kong provide a full range of investment banking services to global high-quality enterprises, including sponsorship and underwriting, financial advisory, mergers and acquisitions and restructuring, additional issuance, placement and refinancing of listed companies, and direct investment.
ADIO accelerates its presence in China.
Recently, during the International Financial Leaders' Investment Summit in Hong Kong, Hong Kong Stock Exchange Chief Executive Nicolas Aguzin said that assets are being reallocated to China. The Middle East's top 10 sovereign wealth** currently has about $4 trillion in assets under management, of which $40 billion is invested in China. This is expected to grow to $10 trillion, of which 10 percent, or nearly $1 trillion, will be in China.
As an important source of funding for the Middle East, Abu Dhabi has grown rapidly in recent years. According to its statistics office, in 2022, Abu Dhabi's GDP grew by 9 percent compared to 20213%, making it the fastest growing economy in the MENA region. In addition to the recovery in oil prices** and oil production, Abu Dhabi's diversification strategy, led by the Abu Dhabi Department of Economic Development (ADDED), has also contributed to this.
ADIO is an independent body established in 2019 by the United Arab Emirates** to promote the development of the private sector in Abu Dhabi, supporting investors and businesses to build and grow and diversify the economy. Since the beginning of this year, we have also been in frequent contact with financial institutions in China's primary and secondary markets.
Just last month, Shenzhen-based venture capital institutions also organized a delegation to visit ADIO in the Middle East. The relevant person in charge of the Shenzhen Venture Capital Association said that they had a detailed understanding of ADIO's responsibilities, operation methods and how to provide services for foreign-funded enterprises, and had in-depth exchanges with the relevant person in charge of ADIO, and had in-depth exchanges with the relevant person in charge of ADIO, and exchanged investment opportunities in the fields of new energy, modern agriculture, financial technology, etc., and exchanged the possibility of cooperation between Chinese venture capital institutions and ADIO. The person in charge of ADIO said that he is very willing to carry out in-depth cooperation with China's venture capital institutions, and is also willing to provide a high-quality platform for cooperation with Chinese high-tech enterprises.
Not only that, the Abu Dhabi ** market has grown rapidly in recent years, with its IPO financing reaching about US$4.5 billion in 2022, making it one of the top 10 in the world for the first timeIn the first three quarters of 2023, the IPO financing scale was about US$3.8 billion, ranking fifth in the world in terms of the amount of funds raised. At present, the listed companies in Abu Dhabi are mainly local state-owned enterprises, and the industries are mainly energy, finance and service industries.
CCB International also pointed out that in recent years, the Middle East region has actively promoted transformation and diversified industries, with a special focus on TMT and ESG related industriesThe need for Chinese companies to explore diversified fundraising channels is also very obvious. Therefore, under the premise of the integration of laws, regulations and regulations of the two countries, the initial or secondary listing of Chinese enterprises in Abu Dhabi can effectively attract overseas capital to invest in China, and on the other hand, for investors in Abu Dhabi, it can effectively diversify risks and promote diversified investment.