What does Brexit mean for China?

Wang Jianlin, chairman of Dalian Wanda Group, talks to UK Prime Minister David Cameron on Jan 24, 2014 in Davos, Switzerland.[Photo provided to chinadaily.com.cn]

Companies may face challenges

Chinese enterprises may face challenges in using Britain's position as a gateway to expand their businesses in other European countries after the United Kingdom voted to leave the European Union, according to an insider.

Andrew Yuan, managing director of Hytera Communications UK, said Chinese companies in Britain are likely to see their businesses hurt by the decision, as many of them use UK headquarters to cover their business in other EU countries.

"Take my company as an example. About 45 percent of our revenue last year came from European countries outside the UK. I am worried that about one-third of our businesses may be dampened if the UK actually leaves the EU."

Hytera, a company based in Shenzhen, Guangdong province, specializes in designing and manufacturing mobile radio communications equipments.

It set up a representative office in the UK in 2005, which has evolved into a headquarters covering markets in western and northern Europe.

Zeng Gang, a senior researcher at the Chinese Academy of Social Sciences' Institute of Finance and Banking, said the Brexit would hit the British pound, causing a negative impact on pound-related assets in Britain.

"Chinese companies owning assets in Britain should readjust their strategies and look to diversify their investment in other European countries if they plan to expand their influence in Europe," he said.