Chinese institutions invest more than US trillion dollar of offshore portfolios in the economy

Official data shows that as of the first half of this year, Chinese financial and non-financial institutions have invested more than US$1 trillion in overseas investment portfolios in the form of stocks and bonds.

China’s State Administration of Foreign Exchange stated that as of June 2023, China’s overseas securities investment assets (excluding reserve assets) reached US$1.08 trillion.

The authority’s data shows that these investments are distributed as follows:

  • Equity investments amounted to US$606.3 billion.
  • Bond investments amounted to US$475.4 billion.

According to the agency:

  • Non-bank financial institutions held US$591.8 billion, accounting for 55% of total overseas investment assets.
  • Among them, banks have assets of US$368.3 billion, accounting for 34% of total assets.
  • Among them, the non-financial sector has assets of US$121.6 billion, accounting for 11%.

Previous official data from the Chinese Ministry of Commerce showed that in the first five months of this year, China’s non-financial overseas direct investment was approximately US$52 billion, a year-on-year increase of 16.1%.

Such investments will reach $146.5 billion in 2022, an increase of less than 1% from 2021.

The same data also shows that in 2022, non-financial investment in countries along the “Belt and Road” will increase by an average annual rate of 3.3%, reaching approximately US$21 billion.

However, there are reports that China’s foreign direct investment expanded from 2005 to 2017, from US$10 billion to US$170 billion, with the support of the Belt and Road Initiative, but has declined in the past four years. 2023, according to the magazine. “national interest” Last April.

The newspaper said at the time, “Foreign investment has always been China’s main tool of influence and important to the health of its economy… But it seems that China’s global dreams, its economic power, its political appeal, and its international status are disappearing .”

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