Japanese financial services firm to invest up to $3.2b over 3 years

Japanese financial service group Orix Corporation announced plans yesterday to set up its China headquarters in Dalian, Liaoning province, in a bid to tap into the nation's growing financial markets.

Established with an initial registered capital of $92 million, Orix (China) Investment Co Ltd expects to invest up to $3.2 billion in China over the next three years and eventually transform into a localized financial service group with total assets of $14.7 billion.

"It's a historic step for us. We are going to commit ourselves to China's financial industry as well as the infrastructure, ship and airplane leasing, and the new energy industry," said Yoshihiko Miyauchi, CEO of Orix Corporation. He made the remarks at the signing ceremony for a framework agreement with the Dalian government yesterday in Beijing.

"Our goal is to establish a localized financial service group that provides Chinese enterprises with financial services of the same quality as in Japan," he said.

Orix also plans to establish an investment fund of $7.4 billion in cooperation with the Dalian government to help Chinese companies in overseas mergers and acquisitions over the next three years.

Last month, Orix spent $87 million to acquire a 15-percent stake in Dalian-based Haichang Group, which operates in industries including real estate, tourism and shipbuilding. The two sides will jointly establish a shipbuilding management firm and develop products valued at $2.9 billion this year.

The Japanese company also expressed a strong interest in listing on Shanghai's international board that is set to launch this year.

"It's a possibility that we'll seek to be listed in Shanghai. We've been planning for it and have been studying the detailed rules and regulations," Miyauchi said.

Meanwhile, Orix is eyeing the new energy industry in China and will cooperate with Chinese investment companies including CITIC Group to invest in wind power companies.

"We are in talks with Orix on establishing financial platforms in Hong Kong to investment in mainland clean energy companies, particularly wind power companies," said Dou Jianzhong, executive director and vice-president of CITIC Group.

In 2005, Orix invested $10 billion to establish a leasing company in Shanghai to provide financing leases for foreign companies with operations in the Chinese mainland. It also made an equity investment along with China Railway Materials & Supplies Corporation to establish China Railway Leasing Co Ltd, the first railway leasing company in the country.

Established in 1964, Orix Corporation is Japan's largest integrated financial service group with total assets of $85.2 billion.

(China Daily 02/11/2010 page15)