China's Outbound Direct Investment (ODI) spiked to $102.75 billion in the first seven months of this year registering a 61.8 per cent increase and overtook the Foreign Direct Investment (FDI), making the world's second -largest economy a net exporter of capital.
China's ODI soared to 673.24 billion yuan (about $102.75 billion) from January to July, a 61.8 per cent year-on- year increase, Ministry of Commerce (MOC) spokesperson Shen Danyang told a press conference here on Wednesday.
The ODI in July alone reached 91.01 billion yuan ($13.89 billion), down 9.5 per cent month on month, the MOC said. During the first seven months of the year, China's ODI surpassed its FDI, meaning China has become a net capital exporter, Shen said.
In the first seven months of the year, China's FDI rose 4.3 per cent year on year to 491.51 billion yuan ($77.13 billion) according to MOC data. The US and Germany were among the most popular investment destinations for Chinese companies.
In the first seven months of the year, ODI in both countries more than doubled from a year earlier. Large overseas mergers and acquisitions (M&A) contributed to the ODI growth boost. During the first seven months of the year, China's overseas M&A value stood at $54.3 billion accounting for more than half of the total ODI.
The M&A value in the first seven months of 2016 surpassed the volume registered for the whole of 2015. From January to July, there were M&A's in 63 countries and regions, covering 15 sectors, including information transmission, services, software and manufacturing.
By the end of July, China's accumulated investment under the Belt and Road Initiative hit $51.1 billion accounting for 12 per cent of the country's total ODI. Launched in late 2013, the Belt and Road Initiative is an umbrella term for the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It will be a trade and infrastructure network connecting Asia with Europe and Africa, along ancient trade routes. China's services imports and exports amounted to 2.53 trillion yuan during the first six months of 2016, up 21.5 per cent year on year.
Exports in maintenance and repairs, advertising, finance, technology, telecommunications, and computer and information services grew rapidly.