Chinaâ€™s record outbound investment slumped last month as authorities stepped up scrutiny of acquisitions overseas and other deals to keep money from flowing out of the country.
The worldâ€™s biggest trading nation saw outward investment decline 35.7 percent from a year earlier in yuan terms in January, the Ministry of Commerce said on Thursday. Foreign direct investment to the nation also dropped by 9.2 percent. Overseas purchases surged to a record last year. Last month, the foreign exchange regulator rolled out measures to further examine such deals. The government has announced new rules aimed at keeping money in the country as officials seek to stem capital outflows and bolster the weakening yuan.
The fall in foreign direct investment also raises questions about the nationâ€™s appeal to investors. That decline was mainly due to
a high base last year and the distortions caused by the week-long Lunar New Year holiday, when workplaces close and millions travel home.
â€œWe saw some fluctuations in January dataâ€ on foreign investment, Sun Jiwen, a commerce ministry spokesman, said at a briefing in Beijing. â€œBut that doesnâ€™t represent a full-year trend for Chinaâ€™s attraction of foreign investment.â€