Events Background
Not long ago, the State Administration of Foreign Exchange Capital Project Management Secretary Zou Lin said: next stage we will continue to relax restrictions on the outflow of capital, and issue the "overseas investment institutions in foreign exchange regulations," abolish foreign exchange funds overseas investment source review, simplify capital outflows audit. In addition SAFE will also focus on improving the financial management practices of transnational corporations, foreign exchange settlement and sales finance companies in the pilot business, the facilitation of enterprise capital operation, and promote investment facilitation. Turning to recent foreign exchange capital project management ideas, Zou Lin said: 1, we will strengthen capital inflows, the foreign exchange funds to guide, monitor and improve the quality and efficiency of the use of foreign capitals; 2, gradually relax restrictions on the outflow of capital, and gradually push forward yuan convertible under the capital account; 3, improve management methods and means to facilitate business operations on foreign exchange funds to support the development of China's overseas investment.
China's software offshore outsourcing and offshoring IT enterprises took advantage of the opportunity, increase its overseas investment or acquisition Industry efforts to extend the downstream industry chain. This is because:
1. The policy will be more favorable to the outsourcing industry. SAFE from the upcoming release of "overseas investment institutions in foreign exchange regulations," we find that the country needs more foreign investment enterprises to alleviate pressure on domestic liquidity, more importantly, the poor performance of the QDII and other financial institutions outside, the domestic capital Blackstone Group and Barclays Bank investment losses, the Government cautious to prevent the State Development Bank shares such as Citigroup all reflect the current situation of domestic financial capital also lack of experience. Thus, it can be inferred that the future of the offshore industry is the country's capital will be the focus of support.
2. Due to the appreciation of the RMB and the dollar, the rupee devaluation, coupled with the policy of support, both at home and abroad have also enhanced the package vendors to the downstream expansion of power, for example, in Vietnam, Malaysia, Thailand acquisitions or investments offshore software and IT services companies, as local Human lower cost, more labor-intensive, enterprises can reduce the cost of domestic and international pressure on the package.
3. The loan-to-crisis linked to the shortage of funds from Europe and America, then Europe and the United States letting corporate brands, technology, and personnel are in a relatively "cheap" phase, while domestic manufacturers to pack relatively abundant funds, and may take this opportunity to buy Europe US contract customers or colleagues, on the one hand may be extended to the upper reaches of the industrial chain, reduce Chinese localization, testing, the proportion of low-profit business; on the other hand, in contract to upgrade their market influence.
The software outsourcing enterprises:
- 1. Strengthen the acquisitions or investments of European and the United States software businesses to raise the level of technology, increase customer channels, and strengthen the brand influence.
- 2. Consider the acquisitions or investments of Vietnam software outsourcing enterprises.
- 3. Consider the users' software industry overseas subsidiaries or departments for the acquisition to strengthen industry applications and embedded software R & D capabilities and increase industry personnel reserve.
