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China's non-financial outbound direct investment fell 40.9% between Jan-Oct

China's central cabinet said overseas investment in areas including real estate, hotels, cinemas, and entertainment would be limited, while investment in sectors such as gambling would be banned.

Press Trust of India  |  Beijing 

China's non-financial outbound direct investment fell 40.9% between Jan-Oct

China's non-financial fell 40.9 per cent to $86.3 billion between as compared to the same period last year, following a curb on by the government.

Chinese investors spent a total of $86.3 billion on 5,410 enterprises from 160 countries and regions during the period, the Ministry of Commerce (MoC) said in a statement.


"Irrational outbound was effectively contained," it said while noting a slightly milder decrease of and a better industrial structure.

In the Jan-Sept period, (ODI) dropped 41.9 per cent year-on-year.

in the first 10 months mainly went to leasing and commercial services, manufacturing, wholesale and retail, and information technology sectors.

No new projects were reported in property, sports or entertainment.

In recent years, China's ODI has seen rapid growth. However, noting an "irrational tendency" in outbound investment, Chinese authorities have set stricter rules and advised companies to make decisions more carefully since last year, state-run Xinhua news agency reported today.

In a document released in August, China's central cabinet said overseas in areas including real estate, hotels, cinemas, and entertainment would be limited, while in sectors such as gambling would be banned.

Earlier this month, the released a new draft rule on outbound investment, including stipulations on the activities of firms established overseas by domestic companies.

Meanwhile, ODI to countries involved in the multi-billion One Initiative has been encouraged.

During the first 10 months, Chinese companies invested $11.2 billion dollars in 53 countries along the Belt and Road, accounting for 13 per cent of the total ODI, up 4.7 percentage points from a year earlier, the data showed.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, November 16 2017. 15:34 IST
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