Foreign investors poured significant amounts into China last year as the country’s economic growth stood out against the backdrop of the global financial troubles associated with the coronavirus pandemic..
Commercial real estate transactions increased 30% year-over-year, JLL said.
«Beijing is expected to remain a priority choice for overseas investors, especially as domestic capital is projected to fully recover much earlier than most other major markets.», – said Michael wang, Senior Director of Capital Markets, JLL North China.
Covid-19 first appeared at the end of 2019 in the Chinese city of Wuhan. The disease spread abroad and escalated into a global pandemic within a few months. However, the outbreak in China stopped in the second quarter of 2020 after local authorities imposed strict restrictive measures. Some time later government eased quarantines, giving the economy a chance to breathe out and begin recovery.
The Chinese authorities are very interested in attracting foreign capital, be it business projects or local financial markets. This process promotes the international use of the Chinese currency, while foreign enterprises create jobs, generate tax revenues and bring talent experience to the local market..
As of November 2020, foreign direct investment reached $ 129.47 billion, which is more than in the same period last year. This indicator at the end of the year can break the record for the entire period of maintaining statistics of the Celestial Empire.
China recorded $ 138.13 billion in foreign direct investment in 2019, up from nearly $ 135 billion in 2018, according to Wind Information.. Official data for 2020 from Commerce Department expected this month.
In financial markets, global investors more than doubled their purchases of Chinese bonds to a record high 1.1 billion yuan last year.
Growing foreign interest in China and towards the country capital Beijing is part of a long-term trend. For example, investors are gradually increasing their share of transactions in the capital’s commercial real estate market..
Over the past few years, China’s rapid economic growth and hundreds of millions of consumers have attracted international brands, automakers and financial institutions. In helping this process, the Chinese government has eased restrictions on foreign investment.
However, critics say change is happening too slowly and unfair practices are still present. In particular, we are talking about the requirements for the transfer of key technologies for doing business in the country.. Beijing’s strict capital controls also make it difficult for foreign investors to withdraw funds from the country..
Market Participants Follow Beijing’s Political Priorities More Than Market Movements. This has constrained liberalization of cross-border investment policy in general from 2013 and will continue to limit potential until significant changes take place, experts say..