Consecutive decline in foreign investment in China 8 months attractive

Posted on 6/16/2009 at 7:01 PM - Post Comment

Published on the 15th the Chinese Ministry of Commerce data show that the actual conditions of China in May this year to attract foreign direct investment (FDI) the amount of 6.379 billion U.S. dollars, up 17.8 percent decline, the third consecutive decline in IWC watches eight months, but the decline is less than 22.51% of April. Data show that China 1-5 months to attract foreign direct investment in the actual amount of 34.05 billion U.S. dollars, up 20.4 percent decline. Since October 2008, China's absorption of foreign direct investment has been declining for eight months, which is since 1998 in China since the Asian financial crisis, the Jaeger LeCoultre newly established foreign-invested enterprises, contracted foreign investment and actual use of foreign investment continued to decline the first time, the targets of this year The decline in the trend of continuous expansion. Not long ago, China issued the Samsung Research Institute reported that global FDI is expected in 2009 will be reduced by 12% -15%, the withdrawal of foreign capital in China will not change the short term trend and the trend has continued to deteriorate. In the Longines financial crisis situation, cash flow of foreign commercial banks increasingly tense, to reduce their stake in Bank of China to become their first choice. There are figures show that this year, the foreign strategic investors in domestic banks selling down his shareholding, cash market value of more than 120 billion yuan. ICBC has been hit this year, large-scale reduction of 3, including American Express, Allianz of Germany, as well as reduction of the bank Goldman Sachs shares up to tens of billions of Chinese Yuan Renminbi. May 12, Bank of America to sell its 13.5 billion shares held by China Construction Bank H shares lifted, involving about 7.3 billion U.S. dollars of funds. Britain's Oris "Financial Times" reported on June 15, the recent acquisition of Ping An of China Shenzhen Development Bank, of which 17% of the shares in the United States is from Texas Pacific Group (TPG) of the reduction. Reported that, even if TPG does not consider the use of operating leverage, the reduction of the U.S. group will also earn at least the profits of 1.02 billion U.S. dollars, representing about 660 million U.S. dollars of its initial investment of 154% return. Faced with the continuing decline in foreign investment, some foreign investors to flee the phenomenon, Northwestern University professor of Patek Philippe economics and management college in Yong "Global Times" reporter that the deterioration of the international environment, multinational companies and investment funds have been slow desire This is a normal phenomenon. May's decline slightly less than the decline in April that slowed down FDI. After all, relatively speaking, China's economy showed some signs of recovery. Yong that, in fact, China's FDI is not only the decline in FDI in most countries are not very optimistic estimate. China's decline in relative terms than other countries but also smaller. With the improvement of Panerai the global economic situation, China's economic recovery and growth is expected revaluation of the RMB is expected to decline in foreign direct investment will continue to decline and eventually become positive growth. According to The Economist Intelligence Unit recently released the "global economic crisis impact on the business environment," the report, China in the years 2009-2013 ranked the world's top market opportunities, with China's economic development and policies in place, China will continue to be the world's preferred to FDI. Ministry of Finance data show that in April this year, the country's financial revenues fell 13.6% year-on-year decline in March than to Rado expand, while the national fiscal expenditure rose 24.5 percent, revenues and expenditures to further highlight the tension of contradictions. The first quarter of the country's financial revenues dropped by 8.3% in fiscal expenditure 34.8% Ministry of Finance said that China's fiscal revenue in February fell 1.2 percent, 1 to a total financial revenue in February fell 11.4%. National revenue in March than the first two months of decline narrowed, with the clean-up, storage revenue to pay more and a low base of the same month last year, and other non-economic factors are more related to, but the latter part of Raymond Weil fiscal revenue situation is still not optimistic.

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