China's non-financial ODI slows in Jan-Aug

BEIJING -- China's rate of investment overseas has slowed as a result of the global economic downturn and softening growth in the world's second-largest economy, official figures showed on Wednesday.

China's outbound direct investment in non-financial sectors rose 39.4 percent year on year to $47.68 billion in the first eight months of the year, Ministry of Commerce spokesman Shen Danyang told a press conference.

The increase was slower than the 52.8-percent expansion seen in the January-July period, as global growth faltered and flagging property investment and exports weighed on the Chinese economy.

Of the nation's ODI in the first eight months, investments made in the form of mergers and acquisitions reached $13.2 billion, or 28.7 percent of the total, Shen said.

He said overseas M&As by Chinese investors have seen relatively fast expansion but have not shown a "spurt" in growth as some described.

"We believe China's ODI will maintain a rapid and healthy development as the government's "going global" strategy for Chinese firms plays out," he said.

The country's ODI in the European Union fell 2.5 percent year on year to $1.18 billion in the January-August period, while Australia and Japan slumped 43 percent and 11.1 percent, respectively, Shen told reporters.

During this period, the Chinese mainland's investments in Hong Kong surged 48.2 percent from a year earlier.

The member countries of the Association of Southeast Asian Nations and the United States saw ODI from China rise 40.5 percent and 18.2 percent, respectively.

The accomplished turnover of China's overseas-contracted projects climbed 16.2 percent year on year to $68.46 billion in the first eight months, accelerating from the 14.5-percent growth in the first seven months, according to Shen.