B&R countries feature as 2018 ODI growth steady
China’s outbound direct investment grew steadily in 2018, up 4.2 percent year on year to US$129.83 billion.
Financial outbound direct investment totalled US$9.33 billion, skyrocketing by 105.1 percent from a year earlier, and non-financial ODI grew 0.3 percent year on year to US$120.5 billion, according to data from the Ministry of Commerce and the Foreign Exchange Bureau.
The total turnover of foreign contracted projects hit US$169.04 billion, up 0.3 percent year on year.
China’s outbound investment continued to show stable and sound growth, a spokesman with the cooperation department at the ministry said.
The ministry said a significant amount the outbound investment targeted Belt and Road Initiative countries
Chinese companies invested a total of US$15.64 billion in 56 Belt and Road countries, an increase of 8.9 percent year on year, accounting for 13 percent of the total ODI.
The turnover of contracted projects in 63 countries along the B&R reached US$89.33 billion, accounting for 52 percent of the total turnover.
Also, the structure of outbound investment continues to diversify, the ministry said.
China’s outward investment mainly flowed to leasing and business services, manufacturing, wholesale and retail trade, and mining, accounting for 37 percent, 15.6 percent, 8.8 percent, and 7.7 percent of ODI respectively.
ODI into the tertiary sector amounted to US$84.25 billion last year, up 3.6 percent from 2017, accounting for 69.9 percent of the total.
No new investment projects were seen in the real estate, sports and entertainment sectors, indicating that irrational investment has continued to be effectively curbed.
A total of 405 cross-border merger and acquisition projects were completed last year, with a total actual transaction value of US$70.26 billion, of which US$27.45 billion was from domestic investors, accounting for 39.1 percent of the total M&A amount and 22.8 percent of the total ODI.
Offshore financing amounted to US$42.81 billion, accounting for 60.9 percent of the total M&A.
Other foreign investment segments such as practical investment, equity swaps, joint ventures and franchises also grew.