FXStreet (Mumbai) – A weaker Chinese Yuan is taking its toll on the foreign investment into China.
The latest data shows FDI into China fell 5.8% in December from a year earlier to CNY 77 billion (USD 12 billion), while outbound non-financial investment climbed 6.1%.
The data contradicts popular opinion that the Yuan’s inclusion into SDR and a more market determined exchange rate would make Chinese assets more attractive to foreign investors.
The CNY fell to a five-year low last week, bringing its drop over the past year to almost 6%.
(Market News Provided by FXstreet)