Chinese venture capital company wants to focus on Portugal to move into Europe

11 September 2006

Shanghai, China, 11 Sept – Portugal should take advantage of the fact that it is a European market that is relatively cheap and easy to enter to attract Chinese investment, the deputy chairman of venture capital company VCChina, which has partners in the Portuguese market said Friday in Shanghai.

“It is difficult to explain the low level of Chinese investment in Portugal,” said Wolfgang Yang, the deputy chairman of VCChina, who in august 2005 signed a partnership agreement for Chinese companies to enter Europe and vice versa with Portuguese venture capita company Gesventure.

Admitting that so far the efforts made to attract investment to Portugal had not been successful, Yang said he was optimistic, “because the most attractive thing about Portugal is that it is a member-state of the European Union (EU) and can be a gateway into Europe for Chinese products and investment, but with a lower level fo entry than the rest of the EU.”

“That is the opportunity. If a Chinese investor enters the real estate sector in Portugal it enters the EU real estate market, and the cost is lower,” he said.

In terms of flow in the opposite direction, of Portuguese investment in China, Yang said that the most conservative investment for Portuguese capital in China was the manufacturing sector.

“The safest way of investing in China is still the most traditional sector; manufacturing. The ideal is to identify a factory that is not having good results and turn it around to make the business profitable,” he said.

Yang said, however, that investment in China should not have the main aim of re-exporting products to European markets, but rather the sale of products to the Chinese markets.

VCChina, which is one of China’s first venture capital companies, in August 2005 signed a partnership protocol with Gesventure to establish links between business projects, capital and markets in Portugal and China. (macauhub)