China’s state-owned Jianyin Investment asserts pursuit of overseas culture assets amid crackdown

China Jianyin Investment, the equity investment group spun off from China Construction Bank, remains adamant in pursuing foreign assets to proliferate China’s “soft power” even as Beijing tightened its oversight on overseas acquisitions of film, sports and entertainment businesses.

Determined to capitalise on the vast potential of the mainland’s culture sector which encompasses entertainment, leisure, arts and publishing, the state-owned investment conglomerate (JIC) said it envisioned creating a complete chain of businesses by taking advantage of its financial strength.

“In terms of overseas investment related to cultural businesses, we aim to bring advanced technologies, quality content and mature brands in foreign markets to China through acquisitions,” said Wayne Wang, a vice general manager of JIC Huawen Investment, a JIC subsidiary. “Eventually, we hope to help upgrade China’s cultural businesses and bolster the exports of Chinese cultural heritage through the global distribution network bought and deployed by us.”

JIC Huawen has been on the lookout for global acquisitions of culture-related assets although some of these overseas assets such as football clubs, cinemas and hotels are classified as restricted categories according to Beijing’s book in its crackdown on some non-state-owned freewheeling asset buyers.

“As a state-owned company, JIC Huawen will firmly adhere to the national policies and follow its [the state’s] directions,” Wang said.

The State Council criticised last year that some of the overseas acquisitions made were focused on properties and entertainment assets that did little to benefit China’s real economy, but instead triggered capital outflows and increased financial risks.