Home > Overseas Investment News > ODI Surges 62 Percent to $74b in First Five Months
ODI Surges 62 Percent to $74b in First Five Months
2016-06-20
Brief:The growth of outbound direct investment from China is remaining steady this year, leaving the world's second-largest economy on track to exceed last year's record figure.
The growth of outbound direct investment from China is remaining steady this year, leaving the world's second-largest economy on track to exceed last year's record figure, experts said on Friday.
 
"The robust growth of China's outbound direct investment will not change in the short term. The economic situation demands that domestic companies deploy more people and resources to fuel their growth in overseas markets," said Li Guanghui, vice-president of the Chinese Academy of International Trade and Economic Cooperation.
 
China's non-financial outbound direct investment surged almost 62 percent year-on-year to 479 billion yuan ($74 billion) between January and May this year, data from the Ministry of Commerce show.
 
Major investment destinations were members of the Association of Southeast Asian Nations, Australia, the European Union, Japan, Russia and the United States, which received $59 billion, about four-fifths of the total.
 
Ministry spokesman Shen Danyang said Chinese companies invested in 151 countries and regions in the first five months of this year, with countries and regions along the Belt and Road Initiative remaining the hot spots as companies deployed their financial resources.
 
The trade and infrastructure network proposed by China in 2013 envisions a Silk Road Economic Belt and a 21st Century Maritime Silk Road, covering about 4.4 billion people in more than 60 countries and regions in Asia, Europe and Africa.
 
China invested $5.63 billion in 49 countries and regions along these two trading routes during the five-month period, up 16 percent on a year-on-year basis.
 
"Many opportunities come from the growing demand in these countries for improved infrastructure facilities, power stations, services and regional connectivity, as well as their desire to create jobs and new commercial areas," said Shen.
 
In the meantime, ODI to North America, Oceania, Asia and Latin America rose 208 percent, 72 percent, 63 percent and 51 percent, respectively.
 
Besides that, the first batch of investments by the Asian Infrastructure Investment Bank will also be announced on June 24 during its third board meeting, which is expected to stimulate more outbound capital from China and its partners to invest in quality big-ticket projects.
 
Lin Guijun, a professor of international business at the University of International Business and Economics in Beijing, said that the persistent drag of the global economic downturn on the European and US economies has helped create an "ideal external investment environment", especially for the emerging markets.

China Daily
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