More of China’s ODI going to Belt and Road regions
March 20, 2017 Category Foreign investment, Weekly
Economies along the Belt and Road Initiative and emerging industries have become hot spots for China’s outbound direct investment (ODI). Chinese investments in regions along the route grew by 5.8% year-on-year to USD1.79 billion in the first two months of the year, claiming 13.3% of the total ODI. A sharpened investment focus on the real economy and emerging industries is raising ODI figures in manufacturing and information technology. Investment in the two sectors took up a combined 42.3% of the total investment in the first two months, compared with just 17.1% a year ago. But the country’s overall non-financial ODI slumped by 52.8% year-on-year to USD13.4 billion during the first two months, mainly dragged down by a plunge in sectors such as the offshore property market, culture, sports and entertainment. Analysts said the drop is temporary and the nation’s “going global” strategy has not changed. “The government remains firm in encouraging Chinese companies to go overseas and promote the renminbi as an international currency. So we are not going to see a downward trend in ODI,” Morgan Stanley Economist Zhang Jun said. Han Qi, Senior Analyst at Morning Whistle, a Shanghai-based consultancy specializing in overseas investment, said ODI could show signs of picking up in the second half of the year. Chinese outbound investment in the offshore property market plunged by 84.9% and in the culture, sports and entertainment segments by 91.6% in the first two months, the Shanghai Daily reports. China’s outbound investment measured in yuan has plunged 53% in the first two months of 2017 from a year ago, China’s Ministry of Commerce (MOFCOM) said.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world