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Economy · Macro
Outbound investment from China rises slightly in first quarter
2019/04/25 04:41:44
outbound investment; trade tensions

Apr 25, 2019 (China Knowledge) - Outbound investment by Chinese companies rose slightly in the first quarter of this year despite ongoing uncertainties and headwinds from the Sino-US trade war.

During the first quarter of this year, Chinese firms and institutional investors completed 65 outbound deals worth RMB 169 billion, increasing by 4.8% compared to the same period one year ago.

Last year, outbound investment from China totaled RMB 738 billion falling by 23% from 2017 due to tighter domestic regulation and an increase in scrutiny by foreign governments on outbound China acquisitions.

In recent times, the Chinese government has increased its oversight of domestic companies looking to make overseas acquisitions after Chinese conglomerates such as Dalian Wanda, HNA Group and Anbang Insurance went on duel-fueled overseas expansions in the past which the government viewed as unsustainable and a threat to its economic stability.

At the same time, Chinese companies are also increasingly faced with resistance from foreign governments in regards to their foreign acquisitions of which some governments view as a threat to national security.

Despite this, China has still managed to remain active in mergers and acquisitions relating to natural resources and technology companies and the slight uptick in outbound investments last quarter shows that such outbound investments are likely returning to more normal levels.

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