China Jan-Sept ODI Plunges On 'Irrational' Investment Drop

     BEIJING (MNI) - China's non-financial outbound direct investment (ODI)

plunged 41.9% y/y to $78.03 billion in the first nine months of the year, the

Ministry of Commerce said on Tuesday, ascribing the drop to a curb in

"irrational investments" in overseas real estate, sporting and entertainment

sectors.

     The decline was slightly bigger than the 41.8% y/y decrease in ODI in

dollar terms recorded in the first eight months of the year. But ODI in the

third quarter rose 7.9% compared with that in the second quarter. 

     The "One Belt, One Road" initiative continued to drive China's ODI in the

January-September period, with a total of $9.4 billion in new investments in the

61 countries along the route from China to Europe, representing 12.3% of total

ODI, MOFCOM said.

     Investments mainly went toward manufacturing; leasing and commercial

services; and information delivery, software and technology. Investment in the

manufacturing sector increased 17.3% y/y, while investment in the leasing and

commercial services sector rose 32% y/y.

     Meanwhile, there was no new investment in the real estate, cultural,

sporting and entertainment sectors, MOFCOM said -- in line with government

policy intended to limit such investments.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

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