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China economy
China

China’s March outbound direct investment slumps 30.1pc to US$7.11b

Curbs on capital outflow weigh down overseas investment

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Some Chinese firms are unable to close deals as they wait for permission to transfer yuan into foreign currencies. Photo: Reuters
Reuters

China’s non-financial outbound direct investment (ODI) slumped 30.1 per cent in March from a year earlier as authorities kept a tight grip on capital outflows to help support the yuan and safeguard the country’s foreign exchange reserves.

Non-financial ODI totalled US$7.11 billion last month, Commerce Ministry data showed on Tuesday.

For the first three months of this year, non-financial ODI tumbled 48.8 per cent to US$20.54 billion from the same period last year.

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Outbound investment in countries involved in China’s “One Belt, One Road” infrastructure initiative was US$2.95 billion in the first quarter, or 14.4 per cent of the total, the ministry said.

Non-financial ODI tumbled 52.8 per cent in January-February from the same period last year, with amounts in the property and entertainment sectors down more than 80 per cent.

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