China Foreign Investment Gauge Turns Negative For First Time
- Decline highlights how profits are being moved out of China
- Confidence will take time to recover, Societe Generale says
Commuters at a subway station in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
A measure of foreign investment into China turned negative for the first time since records began in 1998, highlighting how foreign companies are pulling money out of the country due to geopolitical tensions and higher interest rates elsewhere.
China’s direct investment liabilities in its balance of payments declined by $11.8 billion in the third quarter, the country’s foreign exchange administration said. The measure records monetary flows connected to foreign-owned entities in China.