Chinese overseas investment plunges 46% in first half

SHANGHAI - China’s nonfinancial outbound direct investment (ODI) dropped significantly during the first half of this year as companies spent less on overseas mergers and acquisitions. Caixin reports that Chinese companies spent US$48.2 billion as ODI from January through June, a decline of 45.8% from the same period in 2016, Commerce Ministry spokesman Gao Feng told a news conference.

Overseas deals involving property developers, hotels, entertainment and sport clubs shrank. Investment in foreign real-estate developers plummeted by 82.1% year-on-year, while that in the cultural, sport and entertainment industry fell by 82.5%, Gao said.

He added that the Ministry of Commerce and other regulatory authorities had stepped up efforts to curb “irrational” deals and diversify outbound investments since late last year.

Pan Gongsheng, the head of China’s State Administration of Foreign Exchange, said in March that some overseas investments were “irrational” and “abnormal”, citing as examples a domestic steel maker’s acquisition of an overseas food company and a Chinese restaurant’s purchase of overseas internet gaming companies.  www.webershandwick.cn (ATI).