China’s non-financial outbound direct investment (ODI) totaled 92.42 billion yuan ($13.43 billion) in the first two months of 2017, down by 53% on year. Photo: AFP
China’s non-financial outbound direct investment (ODI) totaled 92.42 billion yuan ($13.43 billion) in the first two months of 2017, down by 53% on year, the Ministry of Commerce announced late Thursday.
The actual use of foreign capital in China in January-February was 138.7 billion yuan, down by 2.3% from the same period last year, said the ministry in a statement published on its web site.
In February alone, the actual use of foreign capital was 68.6 billion yuan, up by 9.2% on year, it said.
While China’s overseas direct investment in the real economy and emerging industries has been growing sustainably, ODI in the leasing and business service sectors, property sector, as well as the cultural, sports and entertainment sectors has fallen by 74%, 85% and 92%, respectively, said the statement.
China has been stepping up its controls over the ODI since late last year amid concerns of a depreciating yuan, as the country’s foreign exchange reserves fell sharply.
“The Chinese government supports local enterprises, especially those capable of carrying out actual overseas investment activities,” Pan Gongsheng, the head of the State Administration of Foreign Exchange, said recently, adding that irrational investments in sectors such as overseas property and entertainment should be closely supervised.