China FDI falls sharply

Inbound FDI into China has fallen sharply, in new figures released by Swiss Investment Bank UBS today.

The dramatic slide down 35 per cent on 2015, represents just 1.58 per cent of GDP in the year to September, off double digit highs recorded in previous years, reports the FT.

The pull back on foreign investment in China reflects slower GDP growth in the country, forecast at 6.8 per cent for 2017.

China outbound FDI increased to 2.19 per cent of GDP as Chinese firms seek overseas acquisitions, in a reversal of FDI fund flow trends seen previously.

Overall, net FDI fund flows for the Asia region was down in 2016 signalling Asia’s increasing investment in global markets.