Foreign direct investment in China hits lowest level since 1993

FDI inflows to China slow to a crawl: Foreign direct investment in China in 2023 hit itslowest level in three decades on the back of slow post-pandemic recovery and a spiraling property crisis, writes the Financial Times.

By the numbers: Direct investment liabilities — a gauge that measures foreign capital inflows — were down 82% y-o-y in 2023 at USD 33 bn — its lowest since 1993, according to government data cited by the salmon coloured paper.

But it’s not just the economic crisis driving investors away: Beijing has cracked the whip on foreign consultancies in recent months to prevent them from sharing basic information — such as in a televised police raid of NYC-based Capvision — alleging “national security” concerns. The crackdown has made it difficult for foreign investors to access needed information on potential acquisitions or suppliers.

THE CLOSING BELL-

The EGX30 rose 1.1% at yesterday’s close on turnover of EGP 6.6 bn (70.4% above the90-day average). Local investors were net sellers. The index is up 18.3% YTD.

In the green: Orascom Development (+7.7%), Talaat Moustafa Group (+6.8%), and GB Corp (+5.4%).

In the red: Oriental Weavers (-2.4%), Ibnsina Pharma (-2.1%), and Beltone Holding (-1.9%).

CORPORATE ACTIONS-

FRA approves ADIB capital increase: Abu Dhabi Islamic Bank will increase its authorized capital to EGP 10 bn, up from EGP 7 bn, and its paid and issued capital to EGP 6 bn, up from EGP 5 bn, after the Financial Regulatory Authority greenlit the move, according to an EGX disclosure (pdf).