If the decline continues through the end of the year, it will be the first annual net capital outflow since at least 1990.
Foreign companies received a record $15 billion from China in the second quarter of 2024. Bloomberg wrote this on August 12, citing data from the State Administration of Currency Control.
China’s direct investment liabilities in its balance of payments fell by nearly $15 billion between April and June, marking only the second time the number has turned negative. In the first six months, it was down about $5 billion.
Foreign direct investment in China in the first half of 2024 was the lowest since the start of the pandemic in 2020.
If the decline holds through to the end of the year, it will be the first annual net capital outflow since at least 1990, when comparable data began to be compiled.
Bloomberg said foreign investment in China has fallen sharply in recent years after reaching a record $344 billion in 2021.
Chinese outbound investment also hit a record, with companies sending $71 billion abroad in the second quarter, up more than 80% from the same period last year ($39 billion).
Chinese companies are ramping up investment rapidly, investing in projects such as electric vehicles and batteries.
It will be remembered that China’s economic growth has slowed down. Key indicators show growth at a slower rate than forecast.
Source: korrespondent
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