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Original Title: US Media: In the Global Fight Against the New Corona Pneumonia Epidemic, Foreign Funds Come to China
FX168 Financial News (Hong Kong) News On Tuesday (January 19), CNBC reported that last year, foreigners invested more money in China because China’s scale and growth are exceptional in a world that is still struggling to cope. to the coronavirus pandemic. prominent.
Property management company Jones Lang LaSalle (JLL) recently stated that in the capital Beijing, more than a third of commercial real estate transactions were completed by foreign investors, an increase from previous years.
“Beijing is expected to remain an important choice for foreign investors, especially considering that the capital, Beijing, is expected to see more signs of recovery earlier than most other major foreign markets,” said Michael Wang, Senior Director of Capital Markets, North China, Jones Lang LaSalle. Said in a press release.
In late 2019, the new corona pneumonia epidemic first appeared in Wuhan, China. The disease spread abroad and became a global epidemic within a few months. However, after the authorities took strict measures to limit personal contact, the outbreak stopped in China in the second quarter. As the number of local cases of new coronary pneumonia declined and the government eased restrictions, China became the only major economy to achieve growth in 2020.
The Chinese government hopes to attract more foreign investment, both in commercial projects and in the local financial market. This participation promotesRMBThe international use of foreign companies, while foreign companies have brought jobs, tax revenue and experience to the local market.
Foreign direct investment hits a record
As measured by foreign direct investment, business investment in Chinese projects also increased last year.
Official data shows that as of November last year, foreign direct investment reached US $ 129.47 billion in 2020, higher than the same period last year. According to estimates released by Macquarie, this puts China’s foreign direct investment last year expected to hit a record high.
According to data from Wind Information, China recorded US $ 138.13 billion in foreign direct investment in 2019, up from almost US $ 135 billion in 2018. China’s Ministry of Commerce is expected to release official data for 2020 by the end of this month.
According to Macquarie estimates, in the financial market, the purchase of Chinese bonds by foreign investors more than doubled last year and the inflow of funds to China reached a record level of 1.1 billion yuan.
Long-term benefits for foreign investors
The growing interest of foreign investors in China and Beijing is part of a long-term trend.
For example, the share of foreign investors in transactions in the Beijing commercial real estate market has gradually increased. According to data from Jones Lang LaSalle, this proportion has gone from 22% in 2018 (just over a fifth) to 30% in 2019 and 35% in 2020.
Jones Lang LaSalle said its 2020 sales were 47 billion yuan ($ 7.26 billion), surpassing 2018. Jones Lang LaSalle said the market is still affected by the coronavirus and that sales in 2019 are far from reaching the multi-year high of 80 billion yuan.
In recent years, China’s rapid economic growth and hundreds of millions of consumers have attracted international consumer brands, automakers, and financial institutions. What’s driving this trend is that the Chinese government has relaxed restrictions on foreign investment.
But critics say these changes have come too slowly and that unfair practices still exist, such as the need to transfer key technologies to do business in China. The Chinese government’s strict capital controls also make it difficult for foreign investors to withdraw funds from China.
At the highest level, the Chinese authorities continue to openly insist on attracting more foreign investment. But international investors are paying attention to whether this profitable opportunity is as good as it sounds.
As China Dashboard analysts tracking reforms said in their latest report released last week:
“Market participants are more concerned about Beijing’s political priorities than market forces. Since 2013, this has generally limited the liberalization of cross-border investment policies and will continue to limit the potential until this situation changes.”
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