Chinese outbound investments rose by nearly a tenth in the first half of the year, driven by an economic recovery, but aggregate overseas mergers and acquisitions (M&A) volumes fell to a decade-low dropping 14% from a year ago, according to a report by global accounting firm Ernst & Young, reports the South China Morning Post. China’s outbound direct investment, or ODI, rose 9.6% from a year ago to $75.4 billion. It was mainly due to the strong growth of investment in non-financial sectors, which made up for more than 80% of the volume. The non-financial ODI in Belt and Road countries contributed $11.6 billion, growing by 15.4% compared to the same period last year.
“The momentum for Chinese companies to go abroad has strengthened,” said Loletta Chow, Global Leader of EY China Overseas Investment Network. She added the expansion is “expected to accelerate”, as Beijing announced a series of initiatives to prop up the country’s private sector, and many expo events are lined up in the coming months.
The report also showed a decline in value of total overseas M&A deals announced. It dropped to $11.7 billion, the lowest in a decade, with only Latin America and Oceania showing growth. Latin America was the top destination for M&A deals by region, ranking first for the first time in nearly a decade.
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