The declining yuan has halted foreign investments into China.
Official government data showed FDI into China slid by 5.8% to 77 billion yuan ($12 billion) in December from a year ago. But outbound non-financial investment soared 6.1%. Also, acquisitions abroad by Chinese companies touched record levels last year, with China Inc.’s bid to expand.
Chinese officials have been trying to downplay speculations on a major degeneration. Around $843 billion in capital left the country between February and November. The nation’s stockpile of foreign exchange reserves declined by $513 billion last year to $3.33 trillion.
The material has been provided by InstaForex Company – www.instaforex.com