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     BEIJING (MNI) - Foreign direction investment (FDI) in China surged to
CNY124.92 billion in November, up 90.7% on a year-on-year basis, the Ministry of
Commerce said Thursday.
     From January to November, FDI rose 9.8% y/y to CNY803.62 billion.
     In November, 4,641 new foreign companies were set up in China, a 161.5%
jump from a year earlier. From January to November, the number was 30,815, a
26.5% gain.
     "Rapid growth of newly-established foreign companies effectively
facilitated the inflow of foreign investment," Gao Feng, spokesman for the
ministry, said Thursday at a press briefing. A concentration of investment
capital for large projects and the Chinese government's new policies to boost
foreign investment also buoyed FDI growth, Gao said.
     the high-tech sector saw rapid growth of foreign investment, with the
high-tech manufacturing FDI climbing 9.9% y/y to CNY60.15 billion and high-tech
service investment jumping 100.9% y/y to CNY177.1 billion.
     Central China benefited the most from the government's policies to boost
foreign investment, with an investment growth of 29% y/y, resulting in total
foreign investment of CNY52.09 billion.
     Investors from Taiwan (+47.2% y/y), Hong Kong (20.1%) and Japan (7.4%) were
the leaders for investment in China, the ministry said.
     Chinese outbound direct investment (ODI) of non-financial institutions
overseas also experienced a relatively high growth of 34.9% y/y to $21.24
billion in November, the first time this year that the monthly gain was in the
positive territory, according to Gao.
     But the rise in November could not offset the slump in the first 10 months
of the year. ODI of non-financial institutions from January to November dropping
33.5% y/y basis to $107.55 billion, with the decline narrowing 7.4 percentage
points compared with the first 10 months. 
     Chinese ODI was invested in 5,796 companies in 174 foreign countries.
     The government also claimed to have sharply reduce the number of foreign
investment that did not make economic or political sense. 
     "Unreasonable outbound investment (of Chinese companies) has furthered be
curbed," Gao said.
     ODI in November mainly flowed into the rental and commercial service
sectors, as well as retail, manufacturing and high-tech industries overseas,
while property and sports and entertainment -- which are hotspot areas for
Chinese companies early in the year  -- saw no new investment in November,
according to the ministry.
     Chinese companies increased investment in 59 companies involved in the One
Belt One Road program, the massive project to link China with Europe, the Middle
East and Africa via land and water routes championed by Chinese President Xi
Jinping. These investments grew 11.5% year-over-year to $12.37 billion, with the
growth rate 3.2 percentage points higher than the same period last year.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com
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