MNI: China ODI Continues Drop On 'Irrational' Investment Falls

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

plunged 40.9% y/y to $86.31 billion in the first 10 months of the year, the

Ministry of Commerce said on Thursday, stressing that "irrational overseas

investments," including in the real estate, sporting and entertainment sectors,

had been effectively curbed.

     The decline was smaller than the 41.9% y/y decrease in ODI in dollar terms

recorded in the first nine months of the year. 

     China's "One Belt, One Road" infrastructure initiative continued to drive

ODI in the January-October period, with a total of $11.18 billion in new

investments in the 53 countries along the route from China to Europe,

representing 13% of total ODI, 4.7 percentage points higher than in the same

period last year, MOFCOM said.

     Investments mainly went toward manufacturing; leasing and commercial

services; retail sales; and information delivery, software and technology.

Investment in the manufacturing sector increased 17% y/y from 17.3% in the

January-September period, while investment in the leasing and commercial

services sector rose 32.4%, 0.4 percentage point higher than the first nine

months of the year. 

     Meanwhile, there was no new investment in the real estate, sporting and

entertainment sectors, MOFCOM said -- in line with government policy intended to

limit such investments.

     Overseas contracted projects increased, which pushed up exports, the

ministry noted. The new contracted projects -- all with values above $50 million

-- totaled $155.47 billion in the January-October period.

--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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