Outflows of direct investment by foreign investors exceeded inflows in 2Q24 by a record USD 14.80 bn, the second time of such net outflows since data started in 1998, UOB Group economist Ho Woei Chen notes.

Net direct investment outflows in 2Q24

“China’s FDI inflows have weakened further in 2Q24. The net direct investment liabilities on the balance of payments (BOP) showed a record outflow. FDI reported by MOFCOM which only includes new FDI inflows also fell to its lowest since 3Q17.”

“China has remained the largest recipient of global FDI in 2023, after the US and ASEAN. The recent data from SAFE and MOFCOM suggests that China faces the prospects of a sharper slowdown in FDI inflows this year due to the ongoing trade tensions and its growth moderation.”