Hi Jay, Your recently purchased Chinese shares are all showing gains ... should you trade out or hang on for the big score?
biz.scmp.com
Friday, October 25, 2002
Mainland poised to overtake US in FDI stakes
ESTHER LAM in Geneva
China is poised to overtake the United States as the largest recipient of foreign direct investment (FDI) in the world this year, according to the United Nations.
FDI in China is forecast to reach a record US$50 billion this year, up from US$46.8 billion last year, while inflows to the US are expected to slump by two-thirds to US$44 billion.
China's gains come against a backdrop of sharply declining FDI inflows around the world.
The plunge in inflows to the US - traditionally the largest recipient of FDI - is mainly due to intra-company loans shifting from net inflows to net outflows, according to the United Nations Conference on Trade and Development (Unctad). The US recorded inflows of US$124 billion last year.
Industrial restructuring and economic liberalisation, further accelerated by China's World Trade Organisation entry late last year, are behind FDI growth in the mainland's medium and hi-tech manufacturing and services industries, according to Unctad.
Globally, the uncertain economic situation and weak stock markets are undermining business confidence, with a sharp impact on cross-border mergers and acquisitions (M&As) and corporate investment.
According to figures released by Unctad, completed cross-border M&As between January and early September this year fell by 45 per cent to about US$250 billion, from US$460 billion for the same period last year. The decline was particularly drastic in the US where M&As account for the bulk of FDI.
In Asia, Hong Kong, South Korea, Thailand and Taiwan are expected to experience a decline in FDI inflows this year. |
