China's outbound investment falls 41.9 pct in Jan.-Sept.

Source: Xinhua| 2017-10-17 19:42:58|Editor: An
Video PlayerClose

BEIJING, Oct. 17 (Xinhua) -- China's non-financial outbound direct investment (ODI) dropped 41.9 percent year on year in the first three quarters, official data showed Tuesday.

Chinese companies invested a total of 78 billion U.S. dollars in 5,159 enterprises from 154 countries and regions during January-September, according to the Ministry of Commerce said.

The investment mainly went to leasing and commercial services, manufacturing, wholesale and retail, and information technology sectors.

Outbound investment to countries involved in the Belt and Road Initiative stood at 9.6 billion dollars during the period, accounting for 12.3 percent of the total ODI, up 4 percentage points from the same period in 2016.

No new projects were reported in property, sport and entertainment, where the government has been seeking to limit investment.

China's ODI has seen rapid growth in recent years. However, noting an "irrational tendency" in outbound investment, since last year Chinese authorities have set stricter rules and advised companies to make investment decisions more carefully.

In a document released in August, the State Council said overseas investment in areas including real estate, hotels, cinemas, the entertainment would be limited, while investments in sectors such as gambling would be banned.

The document also imposed restrictions on the setup of overseas private equity funds or other investment platforms without specific projects, and limited investments that did not meet technological, environmental, or safety standards.

In the meantime, investments related to the Belt and Road Initiative and those conducive to the country's industrial upgrading will be encouraged, according to the document.