China’s foreign investment was negative $11.8 billion in the third quarter, marking the first outflow in the country’s foreign investment since 1998. Higher interest rates and geopolitical tensions are to blame for this decline, as foreign businesses are taking money out of the nation. The metric tracks financial transactions related to Chinese companies that are owned by foreign investors. In the first three quarters of 2023, China’s other primary indicator of inflows of foreign direct investment was 920 billion yuan ($125.8 billion), an 8.4% decrease from 2022.
This year, foreign businesses operating in the industrial and export-oriented sectors have reported declining profitability due to economic headwinds. Foreign funds sold 172 billion yuan worth of mainland shares, indicating a weak level of foreign portfolio investment in Chinese enterprises. Only $5.7 billion was raised this year by venture funds and private equity firms operating in China, a small amount compared to prior years.
DISCLOSURE: All our E.F team members come from an investment background. Apart from writing articles about companies, investments and financial instruments, we also invest in most of them. Please read our terms of use for more details.
+ There are no comments
Add yours