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Overseas investment almost doubles

www.chinanews.cn 2005-09-05 14:32:54

(Source: Shenzhen Daily/Agencies)

Sept. 5 - Chinese direct investment abroad almost doubled last year as
the government encouraged businesses to send capital out of the country,
official figures showed.
Chinese companies directly invested US$5.5 billion overseas last year, up
from US$2.9 billion in 2003 and US$2.7 billion in the previous year.
But the outward investment, while showing a growing tendency for Chinese
to seek returns outside of their own country, remained less than a 10th
of the foreign money that has been flowing in to exploit China's low
costs and domestic market.
The figures for direct investment cover money going straight into such
assets as businesses and real estate, not indirectly through the share
market or loans.
Issuing the figures, the Commerce Ministry said Chinese investors had
held direct investments abroad worth US$44.8 billion at the end of 2004.
"United States, Russia, Japan, Germany and Australia are the top
destinations," it said.
It added that 75 percent of the investment went to the construction,
manufacturing, retail and wholesale industries.
Faced with a tide of foreign money flowing into the country, much of it
as bets on a currency revaluation, the government has encouraged Chinese
investors to send their money out.
It has allowed exporters to keep their foreign earnings abroad,
reinforced a long-established policy that promoted the buying or
establishment of businesses outside of China, and asked banks to support
outward investment.
By the end of last year, foreigners held US$562.1 billion in direct
investments in China, the ministry said.

          ��2004 China foreign direct investment to $5.5b

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