China’s non-financial outbound direct investment (ODI) surged 24.1% year-on-year in the first quarter of
this year, as stringent controls have reined in domestic companies’ irrational buying spree, the Ministry of Commerce (MOFCOM) said. Chinese investors made USD25.5 billion of non-financial ODI in 2,023 foreign enterprises across 140 economies in this year’s first quarter. “The structure of ODI has been optimized, as stringent controls have effectively reined in irrational outbound investment,” the Ministry said. Most investment flowed into sectors such as leasing, mining, manufacturing and information technology services. ODI in the leasing and business service sectors accounted for approximately one- fourth of the total.

In comparison, no new investments were made in the property, sports and entertainment sectors in the same period. China’s outbound direct investment, after peaking in 2016, saw a drastic reduction in 2017 amid the government’s efforts to curb irrational investment overseas that has brought potential risks to overall financial security. China’s ODI in economies participating in the Belt and Road Initiative climbed 22.4% year-on-year to USD3.61 billion in the first three months this year.

Foreign direct investment (FDI) into China registered steady growth, increasing 0.5% year-on-year to CNY227.54 billion in the first quarter this year. FDI in the high-tech sector accounted for nearly one-fifth of total FDI in the period.