China says ‘irrational’ outbound investment curbed, Jan-Aug slumps
BEIJING: China’s outbound nonfinancial investment (ODI) slumped 41.8 per cent in January-August from a year earlier, as authorities kept a tight grip on outflows for what they call ‘irrational’ overseas projects.
The grip is part of efforts to curb speculative capital outflows that had pressured the yuan currency.
For August, ODI declined 24.8 per cent from a year earlier to US$11.52 billion, Reuters calculated from official data.
The Ministry of Commerce, which on Thursday released data on the first eight months of the year, did not give a figure for August alone.
“Irrational” overseas investment has been effectively curbed, the ministry said. China’s state council said in August that China will limit overseas investment in property, hotels, entertainment, sports clubs and film industries.
Dalian Wanda Group said last month that it had scrapped plans to buy Nine Elms Square in London, the latest setback for the Chinese conglomerate, and one connected with Beijing’s tight controls on overseas investment.
At least two of HNA Group’s overseas deals have hit a hurdle as the Chinese conglomerate struggles to take money out of China amid a crackdown by Beijing on capital outflows to fund acquisitions it sees as risky, according to four people familiar with the process.
For January-July, ODI had fallen 44.3 per cent from a year earlier to US$57.2 billion.
ODI that went into 52 countries involved in China’s ‘Belt and Road’ initiative totalled US$8.55 billion in the JanuaryAugust period, accounting for 12.4 per cent of the total, the ministry said. — Reuters