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2015 Statistical Bulletin of China's Outward Contents Foreign Direct Investment
2015 Statistical Buflelin of Chinas OlJtVilardforeign Direct lnvestment The year 2015 witnessed a robust recovery of global foreign direct investment, with the flows of outward foreign direct investment reaching $1.47 trillion, a year-on-year Mercase of 11.8%. 1. Overview of Chinas Outward FDI Faced with the complex intemational situation, the Chinese govemment proactively promoted "the 2.The Flows and Stock of Chinas Outward FDI Belt and Road Initiative" and steadily carried out intemational cooperation of production capacity, 3.Chinas Outward FDI to Major Economies in the World constantly improving the working system for "going global". Chinese enterprises speeded up 4.Structure of Chinas Outward Foreign Direct Investors integrating into the economic globalization process. In the year 2015, Chinas outward foreign 5.Geographical and Industrial Distributions of Chinas FDI Enterprises direct investment achieved a historie breakthrough. For the first time, the flows of outward foreign 6.Statistics on Chinas Outward FDI direct investment ranked second in the world and exceeded the level of inward foreign direct Table 1 Chinas outward FDI flows by country and region, 2007-2015 investment over the same period. Also for the first time, China experienced net capital outflows Table 2 Chinas outward FDI stock by country and region, 2007-2015 from the two-way foreign direct investment. Table 3 Distribution of Chinas outward FDI flows by industry, 2007-2015
Table 4 Distribution of Chinas outward FDI stock by industry, 2007-2015
Table 5 Chinas outward FDI flows by province, 2007-2015(Non-Financial Part)
Table 6 Chinas outward FDI stock by province, 2007-2015(Non-Financial Part) 1.0verview of Chinas Outward FDI Table 7 Chinas outward FDI flows into EU countries, 2007-2015 1.1 Chinas outward FDI net fiows (hereinafter referred to as "flows") in 2015 reached $145.67 billion, Table 8 Chinas outward FDI stock into EU countries, 2007-2015
Table 9 Chinas Outward FDI Flows in ASEAN Countries,2007-2015 increased by 18.3 percentage points cornpared with the previous year. Among the flows, $96.71 billion vas
Table10 Chinas Outward FDI Stock in ASEAN Countries,2007-2015 incremental equity investment; $37.91 billion was reinvested eamings and $11.05 billion was debt instrument Table11 Chinas Outward FDI in Countries along the Belt and Road , 2015 investment, accounting for 66.4%, 26% and 7.6°/0 of the total respectively. Table12 The Top 100 Non-financial Chinese TNCs Ranked by Outward FDI Stock, 2015 By the end of 2015, 20,200 Chinese domestic investors had established 30,800 FDI enterprises Table13 The Top 100 Non-financial Chinese TNCs Ranked by Foreign Assets, 2015 2 Table14 The Top 100 Non-financial Chinese TNCs Ranked by Foreign Revenues, 2015 (hereinafter referred to as "overseas enterprises") in 188 countries (regions) globally . The year-end total assets of overseas enterprises were $4.37 trillion. The accumulated outward FDI net stock (hereinafter
referred to as "stock") reached $1097.86 billion. Arnong the stock, $471.51 billion vas equity investment,
C) FDI enterprises refer to foreign enterprises that are directly owned or have 10% voting rights or equivalents controlled by domestic investors. FDI countries (regions) are accounted as the first country (region) invested by domestic investors. '121 2015 Statistical Bulletin nf China ODutw4lEpréig n Direct nvéstmeni • of China's OutwardForn»n Direct Investmen
$442.78 billion was reinvested earnings and 8183.57 billion was debt instrument investment, accounting for Figure 2 Outward FDI Stock of China and Other Major Countries (Regions). 2015 43%,40.3% and 16.7% of the total respectively.
Tu blc 1 Structure of China's OlitWard EDI Flows and Stock. 2015 (Billions of VS Dollars)
(Billions of US Dollars) United States 5982.8 Germany Flows Stock ~~~1812.5 United Kingdom ~~~1538.1 Indicator Year-on-Year Hong Kong (China) ~~~1485.7 Amount Growth Rate Share (%) Amount Share (%) France ~~~1314.2 (/o) Japan 1~~~1226.6 Total 145.67 18.3 100.0 1,097.86 100.0 Switzerland 1~1~1138.2 China ~~1097.9 Financial Sector 24.25 52.3 16.6 159.66 14.5 Canada Im~za 1078.3 21.42 13.3 83.4 938.2 85.5 Non-financial Sector Netherlands lus~a« 1074.3 Note: 1. The financial sector refers to domestic investor's outward FDI in the overseas financial sector and Singapore lansa 625.3 the non-financial sector refers to domestic investor's outward FDI in the overseas non-financial Russia 11E252.0 sector. Brazil 1a181.5 2. Data on flows in the non-financial sector and that in MOFCOM 2015 Express ($118.02 billion) India 1[139.0 mainly differed in the reinvested eamings. 0 1000 2000 3000 4000 5000 6000 7000 The World Investment Report 2016 by UNCTAD showed that global FDI outflows reached $1.47 trillion Note: Data on China's outward FDI in 2015 is based on Statistical Bulletin dChina's 001, and data on other in the year 2015, with the year-end stock of $25.04 trillion. Based on this report. China's outward FD1 flows countries (regions) is based on the World lnvestment Repon 2016 by UNCTAD. and stock in 2015 accounted for 9.9% and 4.4% of the global total respectively. For the first time, China
ranked second arnong ah countries (regions) in terms of outward FDI flows, increased by 0.8 percentage 1.2 In the year 2015, China's financial outward FDI fiows reached $24.25 billion, with a year-on-year
point compared with the previous year. In terms of stock, China ranked 8th, increased by 1 percentage point growth rate of 52.3%. Among the flows, $16.4 billion went to the monetary financial services sector (the
cornpared with the previous year. former bank ing industry), taking up a share of 67.6%.
By the end of 2015, the financial outward FDI had reached $159.66 billion, among which $97.13 billion Figure 1 Outward FDI Flows of China and Ober Major Countries (Regions), 2015 itad gone to the monetary financial services category, $2.19 billion liad gone to insurance industry, $6.8
(Billions of VS Dollars) billion had gone to capital market services (the former securities industiy) and $53.54 billion had fallen under
United States 121~~~11~11~11~~~ 299.97 other financial industries, accounting for 60.8%, 1.4%, 4.3% and 33.5% of the total respectively. 145.67 China 1111111~~11~111 By the end of 2015, China's state-owned commercial banks liad established 79 branch offices, 57 Japan ~11111~~11~ 128.65 Netherlands ~~~~R 113.43 affiliated institutions in 42 countries and regions including the United States, Japan, the United Kingdom, etc. ~~~~101.62 Ireland These overseas enterprises had employed 47,000 staffs, 45,000 of ni hom had been of foreign nationalities, Germany III~~94.31 taking up a share of 95.50/t, By the end of 2015, China had established 7 overseas insurance agencies. Canada 111•111111167.18 United Kingdom 61.44 1.3 The non-financial outward FDI flows reached $121.42 billion in 2015, with a year-on-year Hong Kong (China) 55.14 increase of 13.3%. The sales incorne of overseas enterprises arnounted to $1386.3 billion, decreased by Singapore 35.49 South Korea Mi11127.64 50 100 150 200 250 300 350 (5) China's state-owned banks include Bank of China, Agricultural Bank of China. Industrial and Comercial Bank of China. China Construction Bank and Bank of Communications.
86 2015 Statistical Bulletin of China's Outward Foreign Direct Investment 2015 Statistical Bulletin1of China's Outward Foreign Direct invelment
11.7 percentage points. Domestic investors achieved a total of $313.2 billion exports and imports through 2.The Flows and Stock of China's Outward FDI overseas enterprises. The imports amounted to $204.5 billion and the exports reached $108.7 billion, with 2.1 Characteristics of China's Outward FDI Flows in 2015 annual growth rates of -39.5% and -1.4% respectively. 2.1.1 Outward EDI reached to a new level, with its flows ranking second globally for the first time. By the end of 2015, the non-financial FDI stock had reached $938.2 billion and the total assets of The year 2015 witnessed a declining speed of global industrial output growth. International trade overseas enterprises had reached $2.44 trillion. remained in the doldrums. The volatility of the financial market increased and the commodity prices declined 1.4 In 2015, the total taxes and duties paid to countries where the investment was made by the overseas rapidly. The developed countries experienced a slow recovery while economic growth in the emerging enterprises reached $31.19 billion, with a year-on-year increase of 62.9%. The overseas enterprises employed markets further declined. The overall recovety of the world economy was weak and economic growth slowed 2,837,000 staffs. Among them, 1,225,000 were of foreign nationalities, accounting for 43.2% of the total and Against this background, the global foreign direct investment increased against the trend, with its total increased by 392,000 staffs compared with the previous year. infiow increased by 38 percentage points, reaching to the highest level since the 2008 global financial crisis.
Its total outflow increased by 11.8 percentage points, the highest since the year 2011. Meanwhile, in 2015 Table 2 China's Annual Outward FDI Flows and Stock since the Establishment of
Outward FDI Statistics System China's outward FDI reached to a historical high of $145,67 billion, with a year-on-year Mercase of 18.3%,
(Billions of US Doltars) a higher rate of Mercase than the global average. The scale of China's outward FDI fiows ranked only behind
Flows Stock the United States (reaching to $299.96 billion) and exceeded Japan to become the second in the world.
Year Year-on-Year Global Global Since authorities in China released the annual data in 2003, China's outward FDI had continuously Amount Growth Rate Amount Ranking Ranking (%) increased for 13 years, with the flows in 2015 54 times to the flows in 2002. The average annual growth rate 2002 2.7 26 29.9 25 reached 35.9% between 2002 and 2015. During the "Twelfth Five-Year Plan" period, China's outward FDI 2003 2.85 21 5.6 33.2 25 2004 5.5 20 93.0 44.8 27 totaled $539.08 billion, which is 2.4 times to the period under the "Eleventh Five-Year Plan". 2005 12.26 17 122.9 57.2 24 Figure 3 Outward FDI flows of China, 2002 - 2015 2006 21.16 13 43.8 90.63 23 2007 26.51 17 25.3 117.91 22 ( Billions of US Dollars) 2008 55.91 12 110.9 183.97 18 160 - 145.67 2009 56.53 5 1.1 245.75 16 140 2010 68.81 5 21.7 317.21 17 120 2011 74.65 6 8.5 424.78 13 2012 87.8 3 17.6 531.94 13 100 2013 107.84 3 22.8 660.48 11 80 56.53 2014 123.12 3 14.2 882.64 60 145.67 2015 2 18.3 1,097.86 40 55.91 2651 Note: 1. Data for 2002-2005 includes only non-financial outward FDI, and data for 2006-2015 includes outward FDI 20 in al! industries. 2. Annual growth rato for the year 2006 refers to that of the non-financial outward FDI. O no o, O o o o o o o CO o o o o O 00o rn co rin co rit co CO CO CO CO CO CO
Note: 1. Data from 2002 to 2015 comes from Statistical Bulletin of Chinos 001.
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- 19trini.1Pumrd}"Prei.gri OlrectlInVat O b-Sta *alio& ;ufietin of China's O rd Forel! a aIlDirect inv'rstmen11,
2.1.2 For the first time, China's outward FDI exceeded inward FDI. China has entered a period of 2.1.3 Mergers and acquisitions were active, reaching to new areas of operations. net capital outflow. In 2015, Chinese enterprises conduced 579 outward M&As in 62 countries (regions), with an actual
In 2015, China's actual use of FDI amounted to $135.6 billion, with a year-on-year increase of 6%, transaction amount of 854.44 billion. In particular, $37.28 billion was direct investment , accounting for ranking third in the world. China's outward FDI (OFDI) reached to $145.67 billion, $10.07 billion higher 68.5% of the M&A amount and 25.6% of China's total outward FDI in that year, and $17.16 billion was than inward FDI (FDI) during the same year. For the first time, there vas net capital outflow under the item overseas financing, accounting for 31.5% of the M&A amount. China National Tire & Rubber Company's of direct investment. The enhancement of China's comprehensive national power, the increasing speeds of the acquisition of about 600 o stake in Pirelli in Italy with $5.29 billion vas the largest overseas M&A from
"Belt and Road Initiative", the international production capacity cooperation, the continuous improvement of Chinese enterprises in 2015. the outward investment policy framework and the deepening pragmatic multilateral and bilateral cooperation In 2015, Chinese enterprises' M&As were carried out in 18 industrial categories, including all contributed to the "going global" of Chinese enterprises. As a result, China's outward investment has manufacturing, information transmission/ software and IT services, mining, culture/ sports and entertainment, entered into the fast lane of development. leasing and business services, etc. Compared with the year 2014, water conservancy/ environment and
public facility management was the new category of M&As. In terms of the value of transactions, there
Figure 4 OFDI and FDI Comparison in China, 2009-2015 were 137 M&As in the manufacturing sector, amounting to $13.72 billion, with a year-on-year increase of
13,4% and ranked top among the major industrial categories. The information transmission/ software and (Billions of US Dollars) IT services sector ranked second with the value of transactions reaching $8.41 billion and a year-on-year
2015 increase of 135.6%. Hefei Rui Cheng Industrial Investment Company's acquisition of Samba Holland Ltd.
with $1.8 billion was the largest M&A in this sector. The financial sector M&As amounted to $6.61 billion, 2014 with a year-on-year increase of 217.8%. Major M&As were China Minsheng Investment Group's buyout 2013 of Sirios lnsurance Group ($1.79 billion), and Industrial and Commercial Bank of China Ltd. acquiring the 2012 UK Standard Bank PLC. (60% share) and Turkey's Tekstilbank (75.5% share). Due to the global commodity 2011 market remaining in the doldrums and other factors, M&As in the mining sector cooled clown. Total
9010 transaction declined by 70.3% to $5.32 billion. There were 21 M&As in the culture/ sports and entertainment
2009 sector. The amount of M&As rose from $100 million in the previous year to $3.23 billion. The major M&As
20 40 60 80 100 120 140 ,I 60 were Beijing Wanda Cultural Industry Group acquiring 100( Yo stake of US World Triathlon Corporation for
$900 million and 90.49/. stake of Swiss Infront Sports &Media for $750 million. OFDI • FDI
Note: Data on China's FDI from 2009 to 2015 is from the World 1nvestment Repon 2016 by UNCTAD.
FJ Direct investment refers ro doinestie investors' or their overseas enterprises' M&As, which are linanced by domestic investor's own funds and domestic bank baos (Such direct invesnnent is brought iota outward FDI statistics account, cxcluding externa] baos guaranteed by domestic investors.)
90
(regions) intermsofactualtransactionamountweretheUnitedStates, CaymanIslands,Italy,Hong 2015 StatisticalBulletin Initiative", reachingto$9.23billion andaccountingfor17%ofthetotalamountM&As.Amongthem, Kong, Australia,theNetherlands,Israel,BermudaIslands,Kazakhstanand theUnitedKingdom. from Chineseenterprises. countries suchasIsrael,Kazakhstan, Singapore, RussiaandLaosattractedmorethan$1billionofM&As In In 2015,Chineseenterprisescarriedout101M&Asincountriescovered by"theBeltandRoad Information Transmission,SoftwareandITServices Financial Services Manufacturing Leasing andbusinessservices Culture, SportsandEntertainment Transportation, StorageandPostalServices Scientific ResearchandTechnicalServices Hotels andCateringservices Mining Public HealthandSocialWork Construction Real Estate Production andSupplyofElectricity,Heat,Gas Wholesale andRetailTrade Management Resident Services,RepairandOtherServices Water Conservancy,EnvironmentandPublicFacility Education Agriculture, Forestry,AnimalHusbandryandFishery Total Water 2015, Chineseenterprises'M&Aswerecarriedoutin62countries(regions). Toptencountries Table 3IndustrialDistributionsofChina'sM&As,2015 of China'sOutwardForeignDirectlnvestment Industry Number of M&As 131 579 58 21 24 77 43 21 81 18 37 10 11 11 12 4 9 6 5 (Billions of US Dollars) Amount 13.72 54.44 6.61 5.32 8.41 0.38 3.13 3.23 2.07 2.66 2.71 0.43 0.88 0.26 0.02 0.12 1.12 1.61 1.76