UK's fastest growing Chinese-owned companies claim awards

By Angus McNeice in London | chinadaily.com.cn | Updated: 2017-01-14 05:28

UK's fastest growing Chinese-owned companies claim awards

Jin Xu (2nd from right, front row), minister counselor of the economic and commercial office of the Chinese Embassywith winners of the Tou Ying Tracker 2016.

Bank of China and Ali Pay were some of the most rapidly expanding Chinese-owned companies operating in the UK that were recognized at an awards ceremony at London's glitzy St Pancras Renaissance Hotel on Thursday.

Both state-owned and private Chinese companies from multiple industries received awards for making it into the Grant Thornton Tou Ying Tracker 2016, a list of the top 30 fastest growing Chinese-owned firms in the UK compiled by the London-based accountancy in collaboration with China Daily.

"The numbers are quite staggering," said Simon Bevan, head of the China Britain Services Group at Grant Thornton and co-author on the report. "The state-owned companies achieved an average growth of 146 percent year-o- year. The private companies achieved an even more astonishing growth of 210 percent."

Bevan commented that the companies contributed positively to the UK economy, employing more than 20,000 while turning over nearly 10 billion pounds between them last year.

The fastest-growing Chinese-owned companies in the UK come in all shapes and sizes, although a look at the executives in charge reveals that they do share some things in common. The companies' boards are typically gender diverse, youthful, and willing to work alongside local management to enhance innovation, according to the authors of the Tou Ying Tracker report.

Among the companies in the list, 12 percent of board members at Chinese state-owned-enterprises (SOEs) in the UK - and 6 percent of board members at private Chinese-owned firms in Britain - are female. Both levels compare favorably with the 5.6 percent of board positions occupied by women at FTSE 250 companies.

The board members at fast-growing Chinese-owned companies in the UK are also younger on average than their British counterparts. In the UK, the average age of non-executive directors is 59 and executives is 52 - this compares to an average board member age of 48 across the companies on Grant Thornton's list.

Jin Xu, minister counselor of the economic and commercial office of the Chinese Embassy in London, said the UK-China relationship received a huge boost in 2015 when President Xi Jinping visited Britain.

"It was a great moment, not only for political relations but also for cultural exchanges and trade relations between the two countries," Jin told China Daily from the awards ceremony. "Business people want to make money, and make it safely. So they choose the UK, because they think it's a great place to invest. In 2016 Chinese investment in the UK grew very fast, faster than in other European countries, and I think this trend will continue in the future."

A number of companies present on the night picked up awards for their rapid growth. From the financial services, ICBC Standard Bank, Alipay UK, Bank of China and its subsidiary Boci Global Commodities, and China RE UK all took home trophies. Bank of China subsidiary China Bridge Group, a business support service, also picked up an award.

A spokesman for Bank of China said the bank's competitive and diversified services, and focus on building customer relationships and maintaining social responsibility values all contributed to its growth in the UK market.

"Bank of China will continue to strengthen the linkage between China and abroad, to be the most localized and internationalized Chinese bank in the London market and to be a bridge for commerce, trade, friendship and cooperation between China and the UK," said the BoC spokesman.

Hu Yabing, president of ICBC Standard Bank, said the depreciation of the pound following the EU Referendum augmented Chinese interest in UK assets last year.

"The Brexit vote has probably led to a reduction in overseas investment flows into the country, but investors China proved to be less pessimistic about the UK's outlook," Hu told China Daily. "Trophy real estate assets in central London are seen as particularly attractive investment opportunities given the post-referendum fall in the pound."

Three Chinese technology companies were among the award winners: China Unicom (Europe) Operations, Huawei Technologies (UK) and Hytera Communications. Property investment company Greenland (United Kingdom) Investment, crude oil trader Unipec UK, and RW Wentworth UK, owners of Wentworth Golf Club, were also recognized.

China Daily has collaborated with Grant Thornton on the Tou Ying Tracker since 2013. The annual report is based on accounts filed at Companies House in London by Chinese-controlled entities.Li Wensha, editor-in-chief of China Daily Europe said "this report is just one example of what can be achieved when we work together, and the continued success of the companies represented here makes me optimistic for the UK and China's economic future."

Tou Ying Tracker 2016 - Top 16 SOEs (In alphabetical order)

Bank of China (UK) Ltd

BOC Aviation (UK) Ltd

Boci Global Commodities (UK) Ltd

Changan UK R & D Centre Ltd

China Bridge Group (UK) Ltd

China International Capital Corporation (UK) Ltd

China RE UK Ltd

China Telecom (Europe) Ltd

China Unicom (Europe) Operations Ltd

Greenland (United Kingdom) Investment Ltd

ICBC Standard Bank PLC