Chinese companies to buy UK assets

Chinese companies plan to purchase US$2.23 billion of products and services on a buying spree in the UK, the Wall Street Journal reported. The trip is part of a European tour as Beijing looks to boost overseas investments and take advantage of tumbling asset values in Western economies. Organized by the Ministry of Commerce and set to take place this month, the trip will also include Germany, Switzerland and Spain. A senior official said that China is looking at ways to use its nearly US$2 trillion of official foreign exchange reserves to invest abroad. HNA Group, an aviation industry conglomerate, and unit Hong Kong Airlines will buy a combined US$1.33 billion of aircraft engines and related services from Rolls-Royce Group, a person familiar with the plan said. Another unspecified Chinese firm will pay a combined US$615 million for 3,000 Jaguar and 6,000 Land Rover automobiles on the same British tour, the person said.