Immigration to Spain by purchasing property and focusing on the Spanish economy: With the economic recovery in Spain in recent years and the rapid expansion of the Chinese economy overseas, more and more Chinese enterprises have begun to set their sights on Spain. Not long ago, Wang Jianlin's acquisition of a 20% stake in Atlético Madrid for 45 million euros was one of the most successful recent cases.
Prior to purchasing the 20% stake in Atlético Madrid, Wang Jianlin acquired the iconic Spanish building, the "Edificio España," for 265 million euros last June, with plans to convert it into a super five-star hotel and an entertainment and shopping center. This project has already officially commenced.
This week, Wang Jianlin's Wanda Group sent representatives to Spain to negotiate a large-scale community investment project worth 3 billion euros. Wang Jianlin's series of investments has captured the attention of many in both China and Spain.
In addition to Wang Jianlin, many other Chinese enterprises have turned their investment focus to Spain in recent years. Li Ka-shing, Asia's richest man, recently announced the acquisition of O2, the British subsidiary of the Spanish telecommunications company Telefonica, for 15.4 billion US dollars. Following its first branch in Madrid, the Industrial and Commercial Bank of China (ICBC) has opened a second branch in Barcelona.
Furthermore, in February 2014, the Chongqing Kangde Group invested over 50 million euros to acquire the "Hotel Santiago," a four-star hotel on the island of Tenerife, Spain. At the end of March, the Jinpu Mallorca Dongyi International Resort Hotel, invested in by the well-known Chinese Jiangsu enterprise Jinpu Group for 48 million euros, held its opening ceremony. In the same month, China's HNA Group announced the acquisition of a 20% stake in the Spanish NH Hotel Group for 234 million euros, at a price of 3.8 euros per share. In July, China's WH Group announced the acquisition of the Spanish food company Campofrio. Subsequently, the Shanghai Fosun Group announced its investment in a Spanish ham manufacturing company, among others.
Last September, during Spanish Prime Minister Rajoy's visit to China, the two countries signed 14 trade agreements involving funds totaling 3 billion euros. At the end of last year, 70 Chinese entrepreneurs traveled to Gran Canaria, Spain, for a business meeting with the island's Minister of Tourism to discuss various investment possibilities and related cooperation projects.
As the large-scale investment by Chinese enterprises and wealthy individuals in Spain continues to heat up, small and medium-sized investors in China have also seized the opportunity to invest in Spanish property. Since the introduction of the new investment immigration law regarding "residency by property purchase" at the beginning of 2014, more than 300 Chinese citizens have obtained Spanish residency through property purchases in the first ten months. This number continues to grow.
Similarly, the enthusiasm of Chinese tourists visiting Spain has been rising in recent years. According to estimates by the Spanish Embassy in China, Spain was expected to host 300,000 Chinese tourists in 2014, generating 612 million euros in revenue. In fact, in the first ten months of 2014, 240,000 Chinese tourists had already visited Spain, an increase of 17.9% compared to the same period the previous year. Facing the booming trend of increasing Chinese tourists, Kurt Grötsch, Chairman of the Friendly China Association, stated that the number of Chinese tourists visiting Spain is expected to exceed 1 million by 2020. This is 6 years ahead of the forecast by the World Tourism Organization.
In recent years, the "Eastern Dragon"—various large and small Chinese enterprises and individuals—has invested over 10 billion in Spain, and Spain has firmly become the largest platform for Chinese enterprises and individuals to expand overseas. Spanish media have also stated that this year, Spain has entered the "Year of China." Frequent trade exchanges between the two countries have brought them closer, and the Spanish public has gained a new understanding of China. In 2015, we will continue to welcome a vibrant "Year of China."
