China's Import-Export Expo Brings Business Opportunities to Capital Markets

Cai Enze

The seventh China International Import Exposition (CIIE) is being held with great fanfare, and this global spectacle not only serves as a platform for trade exchanges but also as a feast for capital markets, bringing forth numerous business opportunities.

For the stock market, the CIIE is like a powerful catalyst. Many domestic and foreign companies showcase their advanced technologies, innovative products, and vast market prospects at the expo, directly impacting the performances of relevant companies on the stock market. Sanofi, France's largest healthcare group, is one of the frequent visitors to the expo. In previous years, Sanofi completed numerous innovative drug "global premieres" and "Chinese debuts" at the expo, and leveraged it to quickly bring new products to patients, further accelerating the company's integration into the Chinese market and expanding its presence in China. According to Argus Research, a well-known research institution, Sanofi's stock target price was raised from $55 per share to $60 per share in July this year, while maintaining its "buy" rating, highlighting market confidence in Sanofi's future performance growth. At the same time, the CIIE also provides a platform for emerging industries such as artificial intelligence and new energy companies. The rise of these companies injects new vitality into the stock market, attracting numerous investors' attention and capital investments.

The long-term credit market has seen new opportunities arise due to the CIIE. Financial institutions can more directly understand enterprises' operating conditions and development needs at the expo, providing them with more precise long-term loan services. Some companies showcase innovative projects and business expansion plans at the expo, which may attract financial institutions' attention, prompting them to provide long-term lending support. The Swedish bank has played a bridge role in supporting Swedish exports to China, helping Swedish companies promote their trade with China at lower prices and with greater convenience, and providing complementary services, especially in trade financing and credit areas, to assist enterprises in developing their businesses in China. The CIIE allows many Swedish companies to have a deeper understanding of the Chinese market, which also brings more business opportunities to the bank.

The derivatives market has become more vibrant under the influence of the CIIE. The CIIE's market fluctuations and uncertainty provide more opportunities for trading in financial derivatives such as futures, options, etc. Investors can use derivatives to hedge risks or make speculative transactions. For example, during the CIIE period, changes in market demand expectations may cause prices of relevant commodity futures to fluctuate. Investors can use derivatives to trade based on market changes and earn returns. Meanwhile, the CIIE also promotes international trade development, and exchange rate fluctuations will affect derivative market transactions. Financial institutions can develop more derivatives products based on market demands to meet investors' needs.

M&A in listed companies has become more frequent under the driving force of the CIIE. The expo's exchange and cooperation between enterprises may lead some listed companies to expand their market share or improve their technology levels through mergers and acquisitions.

The CIIE brings so many business opportunities to capital markets, and there are several profound reasons behind this. Firstly, the CIIE is an important platform for global trade, gathering the world's best resources and most advanced technologies, which enables enterprises to showcase their capabilities on this platform, attracting investors' attention, and providing a rich selection of investment options for various sectors of the capital market. Secondly, the CIIE promotes economic exchanges and cooperation between countries, optimizing and integrating the global industrial chain. Enterprises from different countries and regions exchange information, complement each other's strengths and weaknesses, and jointly open up new markets. This cooperative model not only enhances enterprises' competitiveness but also brings more investment hotspots and opportunities to the capital market. Thirdly, the CIIE reflects China's strong resilience and enormous potential. China's massive market scale, continuously improving consumption capacity, and ongoing reform and opening-up policies have attracted global companies' attention. These companies are increasing their investments in the Chinese market, bringing new vitality and opportunities to the capital market. Fourthly, the CIIE has received high-level attention and strong support from the government. The government's series of preferential policies and measures have created a good policy environment for enterprises' development, and provided a powerful guarantee for the stable development of the capital market.

The opinions expressed in this column article are those of the author alone.