New | Chinese direct investment in US to top US$10 billion for third year in a row

Total Chinese foreign direct investments in the United States are on pace to exceed US$10 billion for the third consecutive year, despite the recent stock market crash on the mainland.

Investment activity by Chinese companies in the US picked up again after that crisis as they spent a combined US$3 billion on 46 transactions in the third quarter, according to a report published on Thursday by research firm Rhodium Group.

There were 26 mergers and acquisition deals totalling US$2.5 billion made by Chinese companies in the three months ended September 30, the report said.

The biggest transactions completed last quarter were Dalian Wanda Group’s acquisition of the World Triathlon Corporation (WTC) for US$650 million, Avic Automotive Systems and BHR’s purchase of Henniges Automotive for US$600 million, and Fosun International’s US$433-million takeover of Meadowbrook Insurance.

“With investments of more than US$9 billion in the first three quarters and more than US$8 billion of pending transactions, total investment will likely again exceed US$10 billion in 2015,” Rhodium analysts Thilo Hanemann and Cassie Gao said in the report.

Total Chinese foreign direct investments in the US last year reached nearly US$12 billion on a record-high 92 deals. In 2013, total investments hit an all-time high of US$14 billion on 82 deals.