Chinese investment overseas in the first two months of the year soared 147 percent year-on-year to US$18.39 billion, official data showed yesterday.
It outpaced the inflow of foreign direct investment (excluding financial sectors), which declined 1.35 percent year-on-year to US$17.48 billion during the same period, the Chinese Ministry of Commerce said.
Beijing is keen to promote overseas investment as part of its efforts to reform China’s growth model and acquire significant foreign assets in sectors such as energy, mining and high-tech industries, analysts said.
“It should be a trend in the long run — it is highly likely that overseas direct investment will exceed foreign direct investment in the next few years,” said Ren Xianfang (任現芳), a Beijing-based analyst with research firm IHS Global Insight.
“It is a national strategy to transform China into a big investor from a big exporter,” he said.
Chinese direct investment overseas surged almost 30 percent last year from 2011, as firms in the world’s second-largest economy increasingly look to expand abroad.
The biggest increase in Chinese investment in a major market over the first two months of the year was in Australia, where it surged 282 percent, the ministry said.
It was followed by Hong Kong, up 156 percent, and the US with a 146 percent increase, while in Southeast Asia, it went up 114 percent and in the EU 81.9 percent.
However, in Japan, with whom Beijing has been involved in a territorial row, investment was down 31 percent. Overseas FDI to Russia also slipped 46 percent.
At the same time China’s manufacturing competitiveness faces rising costs, while investor confidence is battered by weakness in the global economy.
Nonetheless, incoming FDI rose 6.3 percent to US$8.21 billion last month, the first year-on-year increase in nine months, the ministry said.
EU investment into China increased “quite rapidly” in the first two months of the year, the ministry said in a statement, rising 34.01 percent to US$1.214 billion.
However, FDI from the US and Asia fell, with Japanese investment down 6.7 percent over the period to US$1.269 billion.
‧ Australia, up 282 percent.
‧ Hong Kong, up 156 percent.
‧ US, up 146 percent.
‧ Southeast Asia, up 114 percent.
‧ EU, up 81.9 percent.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
BAD RAP: The exchange said Tatung had seriously breached shareholders’ rights and failed to give a satisfactory explanation of its board election dispute Tatung Co (大同) shares yesterday plunged by the maximum daily limit of 10 percent to NT$18.90, the lowest in three months, after the Taiwan Stock Exchange (TWSE) on Tuesday evening changed the company’s classification to a full-delivery stock effective tomorrow. The TWSE’s move follows the company’s failure to give a clear and satisfactory explanation of why it deprived dozens of shareholders of their voting rights during a board election at the annual shareholders’ meeting on Tuesday morning. Under the exchange’s regulations, investors are not allowed to engage in margin trading of a full-delivery stock, TWSE spokeswoman Rebecca Chen (陳麗卿) told
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate