China's outbound direct investment reaches $170.11 billion last year

The Dollar Business Bureau 

China's non-financial outbound direct investment (ODI) grew 44.1% year-on-year to $170.11 billion in 2016, as it began to invest its forex reserves, over $3.05 trillion, in various projects abroad. 

Last year, the Chinese companies invested in 7,961 overseas ventures across 164 countries and regions, according to the Chinese Ministry of Commerce. 

Beijing is also giving fillip to Chinese President Xi Jinping's Silk Road initiative, also known as The Belt and Road Initiative, which requires a mammoth investment of about $1 trillion.

China’s state-run Xinhua news agency said The Belt and Road initiative was a strong boost to collaboration between Chinese and foreign firms. 

Chinese companies have pumped in almost $15 billion in countries taking part in Beijing's new Silk Road initiative last year. These companies have especially focused on the real economy and emerging industries for outbound investment. 

Of the total outbound investment, up to 18.3% went to manufacturing in 2016, an increase from 12.1% in 2015.  

Chinese companies took away 197 overseas mergers and acquisitions (M&A) in the manufacturing sector in 2016, accounting for 26.6% of their total M&A. 

Meanwhile, 12% of China's total ODI was invested in information transmission, software and information technology services, carried out by 109 overseas M&A deals by Chinese enterprises. These overseas M&A had translated into China's economic restructuring and industrial upgrading. 

Chinese regulators are also studying the potential risks emanated against the backdrop of rapid outbound investment growth, while also examining irregularities in such investments.