A Case Study Of CITIC Pacific Investment In Australia

With China’s rapid economic development,economic strength and the implementation of the "go out" strategy,foreign investment has increasingly become an important part of the open economy.According to the statistics of the National Bureau of Statistics,China’s foreign investment in 2017 was US$ 124.6 billion,46 times that of 2002,with an average annual increase of 29.1 %.At the end of the year,China’s foreign investment stock reached US$ 1.48 trillion.At the same time,China’s industrialization and urbanization have continued to develop,and the demand for mineral resources has become more and more.In the past decade,China’s overseas mining investment has always been one of the five major industries for China’s foreign investment.There are many successful projects and some have bitter lessons in investing in mining abroad.Summarize these experiences and lessons through the case analysis,not only to improve the foreign mining investment performance of the relevant enterprises for reference,to other industries to invest abroad and even to improve the level of open economy in China has reference value.The first chapter introduces the background and significance of the research,the theoretical research,the research method and the contribution of the article.The second chapter introduces the theoretical methods used in this paper.The third chapter introduces the basic situation of CIC Taifu’s mineral investment in Australia and its project investment results.The fourth chapter puts forward the questions and makes a comprehensive analysis of the problems raised by Guanlihuiji using the relevant principles and methods.For example,according to the analysis of the strategic direction before the investment of the project,the feasibility analysis of the previous aspects of the investment plan,the management in the investment process,and the analysis of problem solving capabilities;Chapter V makes corresponding recommendations.CITIC Pacific’s project duration and total investment have greatly exceeded the budget,and it has been in a state of loss so far.It has withdrawn nearly half of the total investment in impairment over the years.Through the analysis of the process of the project,this paper believes that there are various mistakes before and during the investment,such as errors in pre-investment technology prediction,delays in the formation of project management teams,and insufficient attention to the legal differences between the two countries.This kind of problem is very typical.The main contribution of this paper: the research cases of foreign resource-based investment are few,this paper enriched the content of this research field;With reference to the investment management theory tool in the newly published "Guanlihuiji application guidelines No.500-Investment and Financing Management",the author systematically analyzes the case and draws experience and lessons,and puts forward a more systematic and comprehensive construction of investment decision-making.At the same time,there are also some shortcomings,such as the fact that the resources available for foreign information in the analysis process are less,and it is difficult to obtain data more directly or to directly compare policies to reflect the scale of its impact more intuitively.Second,the investment took a long time and experienced a lot of things during the process,making it difficult to accurately consider different situations such as the economy or the market at different times.