According to the press conference jointly held by China Ministry of Commerce (“MOFCOM“), China National Bureau of Statistics (“NBS“), and China State Administration for Foreign Exchange (“SAFE“) on September 22, 2016, China’s outbound investment in 2015 hits record high at USD 145.67 billion, which makes China the second largest capital export country in the world. As the inbound investment to China is USD 135.6 billion in 2015, this means China has become a net capital exporting country.
During the press conference, the *Statistics Bulletin for the Direct Outbound Investment of China in 2015* (“2015 Statistics Bulletin“) was also publicized.
The main features of China’s outbound investment in 2015 are as follows according to the Statistics Bulletin:
- China’s outbound investment in 2015 hits record high at USD 145.67 billion, which accounts 9.9% of the world’s investment. This makes China the second largest capital exporting country with US raking the first (USD 299.96 billion) and Japan raking the third (USD 128.65 billion). China has become a net capital exporting country in 2015 when the inbound investment to China was USD 135.6 billion.
- The value of Chinese companies’ offshore assets has exceeded USD 4,000 billion, raking 8th in the world. As of the end of 2015, 20,200 Chinese investors established 30,800 greenfield companies outside China in 188 countries (regions) around the world, which own the toal assets of USD 4,370 billion outside China.
- In 2015, Chinese companies implemented 579 outbound investment and/or M&A transactions in 62 countries (regions) with the actual transaction amount of USD 54.44 billion, among which, the direct investment amounts USD 37.28 billion accounting 68.5% and the offshore financing amounts USD 17.16 billion accounting 31.5%. The fields of M&A cover 18 major industries including manufacturing, IT/software and IT service, mining, culture/sports and entertainment.
- Pirelli-ChemChina merger was the largest M&A deal implemented by Chinese companies in 2015, which involves ChemChina acquiring 60% shares of Pirelli with USD 5.29 billion.
- More than 80% of China’s FDI went to developing countries, 14% went to developed countries and 2.1% went to economies in transition.
- USD 10.05 billion was invested in equipment manufacturing industry, which indicated 158.4% year-on-year growth and accounted 50.3% of the investment in the manufacturing industry. These investments facilitated the China equipment, technologies, standards and services to “go abroad”.
- In 2015, foreign companies invested by Chinese had paid various taxes of USD 31.19 billion to their hosting countries, which increased by 62.9% comparing to the previous year. They also hired 1.225 million labors in their hosting countries, which increased by 392 thousand labors comparing to the previous year.
- 79.7% of the outbound investment in 2015 totaling USD 116.44 billion went to Hong Kong, Holland, Cayman Islands, BVI, and Bermuda. Apparently these places were used as investing vehicles by Chinese companies.
- More than 80% of the non-financial outbound investment came from local companies (as comparing to companies owned by central government, i.e. large SOEs). The top 3 areas which made most outbound investment are Shanghai, Beijing and Guangdong, each of which had made over USD 10 billion outbound investment in 2015.
- The new equity investment in 2015 amounts USD 96.71 billion accounting 66.4%. The investment made by earnings amounts USD 37.91 billion accounting 26%. The investment made by debts vehicles amounts USD 11.05 billion accounting 7.6%.
As of now, the full text of the 2015 Statistics Bulletin is not available for download yet but it is expected to be available soon.