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REPEAT: China Jan-July ODI Plunges; FDI Drops Slightly

Repeats Story Initially Transmitted at 11:39 GMT Aug 15/07:39 EST Aug 15
     BEIJING (MNI) - China's non-financial outbound direct investment (ODI)
plunged 44.3% y/y to $57.2 billion in the first seven months of the year, the
Ministry of Commerce said on Tuesday, ascribing the drop to a curb in
"irrational investments."
     The decline was slightly smaller than the 45.8% y/y decrease in ODI in
dollar terms recorded in the first six months of the year.
     The "One Belt, One Road" initiative continued to drive China's ODI in the
January-July period, with a total of $7.65 billion in new investments in the 50
countries along the route from China to Europe, representing 13.4% of total ODI,
MOFCOM said.
     Investments mainly went toward the manufacturing; leasing and commercial
services; and information delivery, software and technology sectors. Investment
in the manufacturing sector increased 18.4% y/y, while investment in the leasing
and commercial services sector rose 28.7% y/y.
     Meanwhile, investment in real estate dropped 81.2% and decreased 79.1% in
the cultural, sporting and entertainment sector.
     Foreign direct investment (FDI) into China also fell in the first seven
months. Actual FDI was down 1.2% on an annual basis to CNY485.42 billion,
excluding investment in the financial sector, compared with a 0.1% decline from
January to June, MOFCOM said.
     MOFCOM said FDI in the high-technology service sector was up 16.8%
year-on-year to CNY70.31 billion in the January-July period, while FDI in the
high-technology manufacturing sector totaled CNY37.39 billion, increasing 8.3%
y/y, MOFCOM noted.
     FDI in the oil processing, coking and nuclear fuel processing sector jumped
328.4% y/y, the ministry said.
     FDI from Hong Kong, Taiwan and the Europe Union rose 6.6%, 41.2% and 5.4%,
respectively.
--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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