Bangkok 10th most popular location for Chinese corporates globally
New report from JLL examines the influence of China’s increasingly dynamic corporate sector across Asia Pacific
Bangkok 19 April 2018 – While China's biggest corporates are increasingly flexing their global muscle as the country's economic and geopolitical influence accelerates, Bangkok is the 10th most popular destination for mainland firms expanding overseas, and ranks 3rd in terms of the volume of Chinese corporate leasing activity over the last three years, according to 'China12: China's Cities Go Global', a new report from real estate consulting firm JLL. The report analyses 12 mainland cities and their transformation into major hubs of innovation and global interaction. It also dives into the country's emerging wave of influential corporates and the impact that this group of dynamic Chinese companies have beyond their domestic market.
"The China12 are home to a growing group of highly dynamic and ambitious new generation firms that will drive the next wave of globalisation," says Jeremy Kelly, Director of Global Research, JLL. "We're already seeing a higher number of domestic brands, both established firms and new start-ups, enter the international market, with key targets in South and Southeast Asia."
According to real estate consulting firm JLL, Chinese businesses are now expanding their global footprint through targeting emerging markets, acquiring overseas firms and making strategic investments in new technologies.China's largest companies are leading the charge overseas and emerging as some of the world's most innovative brands. In terms of scale, Baidu, Alibaba and Tencent rival Google, Amazon and Facebook while hardware giants like Huawei, ZTE and Lenovo have become some of China's most internationalised firms.
Amongst the global network of cities, Asian markets such as Singapore, Tokyo, Jakarta, Bangkok, Seoul and Delhi are featured prominently. Leading the pack is Singapore as the top destination for mainland firms expanding overseas. Not only is it Asia's most stable and transparent market and a global financial services hub, Singapore also carries strong links to China and is geographically well-placed to act as a gateway into Southeast Asia.
Two of the world's most globalized cities – Tokyo and Seoul – come in at close second and fifth places respectively, demonstrating China's appetite for the world's leading gateways and financial centres. Jakarta (6th) and Bangkok (10th) are major beneficiaries of Chinese companies' expansions into Southeast Asia, and Delhi (13th) is a key target as Chinese corporates seek to tap into India's vast population of over a billion.
Mr Kelly explains: "Entry into these growth markets allows Chinese companies to tap into Asia's large, young and rapidly growing consumer populations. We've seen some of China's most prominent firms show major interest in start-ups in India, Indonesia and Singapore as they seek to gain a foothold in these booming economies. E-commerce and consumer electronics firms, in particular, are starting to gain strong market shares in some of these markets."
The trajectories of many Asian cities, from megacities to mid-sized hubs, are set to be transformed by Chinese activity in coming years. Alongside increased corporate demand and growing intra-regional capital flows, many emerging South East Asian cities are set to benefit from infrastructure investment related to the 'Belt and Road Initiative', which will support employment and boost economic growth, while Chinese technology and innovation will transform the way people live and work in cities.
- ends -
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About JLL Thailand
The firm’s operation in Thailand began in 1990 and today is the country’s largest international property service provider with 1,600 employees and more than five million square metres of property and corporate facilities managed. In Euromoney Real Estate Survey 2018, JLL was voted as Thailand’s number one overall real estate advisor for the 8th consecutive year and also won top votes for agency/letting, research and valuation in the same survey. The firm was also named Thailand’s five-star winner in the commercial property consultancy and commercial real estate agency categories at the International Property Awards Asia Pacific 2019/2020. For more information, visit jll.co.th.