Foreigners put more of their money in China last year as the country’s size and growth stood out in a world still trying to manage the coronavirus pandemic.
In the capital city of Beijing, foreign investors claimed more than a third of commercial real estate deals, an increase from prior years, property manager JLL said Thursday.
The Chinese government would like to attract more foreign capital, whether in business projects or the local financial markets. Such participation contributes to international use of the Chinese currency, while foreign businesses bring jobs, tax income and expertise to the local market.
Foreign direct investment set for record high
Businesses also put more money into projects in China last year, as measured by foreign direct investment.
As of November, foreign direct investment for 2020 reached $129.47 billion, more than the same period a year ago, according to official data. That puts China on track for record-high foreign direct investment last year, according to estimates from Macquarie released Thursday.
China recorded $138.13 billion in foreign direct investment in 2019, up from nearly $135 billion in 2018, according to data from Wind Information. Official figures for 2020 from the Ministry of Commerce are expected later this month.
In financial markets, foreign investors more than doubled their purchases of Chinese bonds for a record high 1.1 billion yuan in inflows last year, according to estimates from Macquarie.
Long-term interest from foreigners
Growing foreign interest in China and the capital city of Beijing are part of longer-term trend.
For example, foreign investors have gradually increased their share of transactions in the capital city’s commercial property market. The proportion rose from 22%, or just over a fifth, in 2018, to 30% in 2019 and 35% in 2020, according to JLL.
