China's ODI fell 41 pc after curb on irrational overseas

China's non-financial outbound direct investment fell 40.9 per cent to USD 86.3 billion between January and October as compared to the same period last year following a curb on irrational overseas investment by the government.

Chinese investors spent a total of USD 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 investment was effectively contained," it said, while noting a slightly milder decrease of investment and a better industrial structure.

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

Investment 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 investment 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 investment in areas including real estate, hotels, cinemas, and entertainment would be limited, while investment in sectors such as gambling would be banned.

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

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

During the first 10 months, Chinese companies invested USD 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 MoC data showed.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

TAGS:

Economy