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Foreign Investment Into China Falls as Weaker Yuan Dents Inflows

FDI decreased 5.8% in December, while ODI climbed 6.1%
Outbound buying by Chinese companies hit record in 2015

A vendor packs mannequin heads into a bag at a wig stall in a street market. FDI into China fell 5.8 percent in December from a year earlier to 77 billion yuan ($12 billion), while outbound non-financial investment climbed 6.1 percent.
Photographer: Xaume Olleros/Bloomberg

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By Enda Curran and Jonathan Browning

January 20, 2016 at 5:18 AM UTC

This article is for subscribers only.

China’s weakening yuan isn’t just spurring capital to leave the country, it’s also acting as a brake on foreign-direct investment.

FDI into China fell 5.8 percent in December from a year earlier to 77 billion yuan ($12 billion), while outbound non-financial investment climbed 6.1 percent, government data showed Wednesday. Economists said expectations for further yuan weakness are one reason behind the flows as savers and companies shuffle money out while inbound investors take a wait-and-see approach.